Fourth-quarter EBITDA margin of 2.6%, stable from a year earlier.
Fourth-quarter cash flow after dividend of $4.8 million, up 45.0% from
$3.3 million in 2012
Fourth-quarter average indebtedness reduced to $102 million, down $28
million from the same period a year earlier
Early renewal of supply contracts with three affiliated distributors
representing annual sales of $115 million
BOUCHERVILLE, QC, March 13, 2014 /CNW Telbec/ - Colabor Group Inc. (TSX:
GCL) ("Colabor" or the "Company") today reported results for its fourth
quarter and fiscal year ended December 31, 2013.
"The 2013 year was marked by numerous initiatives that have made Colabor
a more efficient and competitive enterprise," said Claude Gariépy,
President and Chief Executive Officer of Colabor. "For 2014, our
efforts will be concentrated essentially on continued execution of
these measures and on development of sales. Our new financing structure
enables us to focus on taking advantage of opportunities to grow the
(thousands of dollars, except per-share data)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Charges not related to current operations
Per share - basic ($)
Weighted average number of shares outstanding (basic, in thousands)
* After-tax cash flow from operations before changes in operating assets
and liabilities less purchases of property, plant and equipment and
Total sales for the 115-day period ended December 31, 2013 were $456.5
million, compared to $464.3 million for the 114-day period ended
December 31, 2012. The 1.7% decrease was due essentially to the loss of
a large supply contract in Ontario and to the termination of
unprofitable distribution of tobacco products beginning in the second
quarter of 2013. On the other hand, the acquisition of T. Lauzon Ltée
("Lauzon"), completed March 4, 2013, contributed $33.0 million to sales
of the period. Excluding these items and adjusting for the difference
in number of days, the Company's comparable sales showed a slight
decrease of 1.9%.
Earnings before financial expenses, income taxes, depreciation and
amortization ("EBITDA") were $11.8 million, or 2.6% of sales, compared
to $12.0 million, or 2.6% of sales, in the fourth quarter of 2012. The
reduction in dollar terms from the fourth quarter of 2012 reflects
essentially the end of the supply contract. Because of a charge of $3.6
million not related to current operations, reflecting the impairment of
the investment in Investissements Colabor Inc., as well as the
additional financial expenses of approximately $1.0 million related to
increased interest expense and accelerated amortization of the credit
agreement that were announced by news release on February 3, 2014, the
Company recorded a net loss of $2.0 million for the fourth quarter of
"The fourth quarter was overall consistent with our expectations.
However, less favourable weather conditions in December 2013, compared
with last year, slowed business in our principal markets from that
moment on. The persistence of these conditions in January and February
will amplify the normal seasonality of first-quarter results," Mr.
Sales of the Distribution segment were $292.5 million in the fourth
quarter of 2013, compared to $317.8 million a year earlier. The 8.0%
decrease was due essentially to the factors noted above, offset in part
by Lauzon's distribution sales. Comparable sales were slightly down
Sales of the Wholesale segment were $164.0 million in the fourth quarter
of 2013, up from $146.5 million a year earlier. This 12.0% increase
reflects mainly Lauzon's wholesale operations. Comparable sales were
CASH FLOW AND FINANCIAL POSITION
Cash flow in the fourth quarter of 2013 was $6.4 million, or $0.24 per
share, compared to $7.5 million, or $0.32 per share, in the fourth
quarter of 2012. Net of dividends paid, free cash flow was $4.8 million
in the fourth quarter of 2013 compared to $3.3 million a year earlier.
As at December 31, 2013, the Company had drawn $108.7 million on its
bank credit facility. Subsequent to the end of the fiscal year, Colabor
refinanced its credit facilities, entering into agreements that will
provide it with greater financial flexibility and an enhanced ability
to manoeuvre in its business model.
Reflecting the success of measures taken by management to reduce the
Company's indebtedness, average daily indebtedness in the fourth
quarter of 2013 was $102 million, down from $111 million in the third
quarter, and from $130 million in the fourth quarter of 2012.
FISCAL 2013 RESULTS
For the 365-day year ended December 31, 2013, total sales were $1.44
billion, down 1.9% from $1.47 billion for the 366-day year ended
December 31, 2012. Comparable sales were slightly down 0.7%. Comparable
sales of the Distribution segment were down 0.4% and comparable sales
of the Wholesale segment were down 1.5%.
EBITDA for 2013 was $34.0 million, or 2.4% of sales, compared to $39.1
million, or 2.7% of sales, in 2012. Reflecting charges not related to
current operations of $12.0 million recorded in 2013, including $8.1
million directly related to execution of the efficiency and development
plan, the Company recorded a net loss for the year of $6.8 million,
compared to net earnings of $2.8 million for the previous year. Cash
flow was $17.4 million, or $0.66 per share, compared to $26.1 million,
or $1.13 per share, in 2012.
RENEWAL OF SUPPLY AGREEMENTS
Colabor is pleased to announce the early renewal of supply agreements
with three affiliated distributors. The two largest customers of the
Boucherville Wholesale division, Beaudry & Cadrin Inc. and Dubé &
Loiselle Inc., and O.H. Armstrong Ltd. have signed long-term agreements
representing total annual sales of approximately $115 million.
"The renewal of these long-term agreements attests to the longstanding
solid relationships we maintain with our network of affiliated
distributors and to the strength of that network. Colabor is proud to
contribute to the development of its partners' business by offering
value-added products and services at competitive prices. It is our
intention to pursue early renewal of our supply contracts over the
coming months," Mr. Gariépy said.
DECLARATION OF A QUARTERLY DIVIDEND OF $0.06 PER SHARE
The Board of Directors of the Company has declared a cash dividend of
$0.06 per share, to be paid April 15, 2014 to shareholders of record as
of the close of business March 31, 2014.
Colabor will hold a conference call to discuss these results on
Thursday, March 13, beginning at 10:30 p.m. Eastern Time. Interested
parties can join the call by dialling 647-427-7450 (from Toronto and
overseas) or 1-888-231-8191 (from elsewhere in North America). If you
are unable to participate, you can listen to a recording by dialling
1-855-859-2056 and entering the code 42409754 on your telephone keypad.
The recording will be available from 1:30 p.m. Thursday, March 13 to
11:59 p.m. Thursday, March 20, 2014.
The information provided in this release includes non-IFRS performance
measures, notably earnings before financial expenses, income taxes,
depreciation and amortization (EBITDA) and cash flow. Since these
concepts are not defined by IFRS, they may not be comparable to those
of other companies.
The Management Discussion and Analysis and the financial statements of the Company will be available at SEDAR
(www.sedar.com) following publication of this release. Additional information about
Colabor Group Inc. may also be found at SEDAR and on the Company's
website at www.colabor.com.
This news release may contain forward-looking statements reflecting the
opinions or current expectations of Colabor Group Inc. concerning its
performance and business operations and future events. These statements
are subject to risks, uncertainties and assumptions. Actual results or
events may differ.
Colabor is a wholesaler and distributor of food and non-food products
serving the foodservice market (cafeterias, restaurants, hotels,
restaurant chains) and the retail market (grocery stores, convenience
stores, etc.), in Quebec, Ontario and the Atlantic provinces.
For further information:
Colabor Group Inc.
Jean-François Neault, CPA, CMA, MBA
Vice-President and Chief Financial Officer
Tel. 450-449-0026 ext. 308
Martin Goulet, CFA
Senior Vice-President, Investor Relations
Tel. 514-731-0000 ext. 229