TORONTO, July 30 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR"), a
vertically integrated food service company announced financial results for the
third quarter of fiscal 2008.
Consolidated results for the third quarter and the year to date are as
Nine months ended May 31 Three months ended May 31
2008 2007 2008 2007
Revenue $120,966,580 $133,219,409 $ 40,159,426 $ 47,801,840
EBITDA $ 1,953,485 $ 2,010,443 $ 469,812 $ 644,488
Net Income $ 517,147 $ 767,426 $ 39,872 $ 257,846
EPS (basic) $ 0.02 $ 0.03 $ 0.00 $ 0.01
Shares (diluted) 26,158,185 25,812,587 26,151,562 25,748,670
The Company ended the quarter in a strong financial position with a
working capital ratio of 1.65:1, working capital of $8,769,931 and a
conservative long term debt to equity ratio of 0.16:1
The year-over-year changes in the following items influenced the
Company's operating income in the third quarter of 2008 compared to the same
period in 2007. Increased amortization/depreciation costs, combined with
increased occupancy/fuel costs and the inclusion of approx. $306,000 of costs
associated with the consolidation at Skor Culinary, were the primary factors
that contributed to higher operating expenses.
Revenue and profitability in the Food Service division met management's
expectations despite increasingly competitive conditions, wet spring weather
conditions that reduced travel to cottage country and recreational facilities
such as golf courses, which are a large component of SKOR'S seasonal sales
volumes. The Food Service division is moderately sheltered from the current
economic downturn because of its solid foundation in institutional business
together with a focus on the quick service restaurant market, which tends to
be less sensitive to reductions in discretionary consumer spending.
The Wholesale Cash and Carry segment continues to feel the pressure from
a competitive retailing environment and the ongoing challenges to obtain and
retain new high value customer relationships. Total revenue declined on a year
over year basis by approximately 25% of which a significant portion of the
revenue decline was in low margin tobacco products. Management will deal with
all under-performing locations before the calendar year-end. The Company
continues to develop opportunities to differentiate the business model from
that of its competition.
Skor Culinary revenue increased on a year over year basis, however, the
results were not in line with managements expectations. The Company
consolidated operations during the quarter which will result in a substantial
reduction in operating costs going forward.
"We will continue to assess each individual operating division's
performance and should management be unable to deliver the returns expected by
the executives and our shareholders, we will sell or close units to improve
the overall performance of the Company," said Vince Capobianco, President and
Conference Call: You are invited to attend a conference call on Thursday
July 31, 2008 at 3:30 EST to review the Q3-2008 financials and receive a
corporate update. Financials will be available prior to the call at sedar.com.
The dial-in numbers are 416-644-3430 in Toronto, or Toll Free 1-800-732-6179.
SKOR, through its operating divisions Skor Food Service, Skor Culinary
Concepts and Skor Cash and Carry, is a vertically integrated, full service,
wholesale food supplier to the food service and retail industries. SKOR
services a wide range of multi location food service establishments, Quick
Service Restaurant chains, day care facilities, government institutions,
independent food service operators, independent grocery stores as well as
vending operators and convenience stores in Ontario.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Vince Capobianco, President and CEO, (905)
660-1212 ext 234, firstname.lastname@example.org; John Lewis, Linear Capital Corp.,
(416) 364-2266, email@example.com