Colabor Group Inc. · OTC:COLFF
Colabor — Q3 2017 Earnings Presentation
19 slides from Colabor's earnings presentation, Oct 19, 2017
Slide 1: Q3 2017 Results Summary
Q3 2017 Results Summary Groupe Colabor Inc. October 19, 2017 www.colabor.com
Slide 2: Important Notice
Important Notice Disclaimer This document is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Colabor Group Inc. and has not been prepared for delivery to, and review by, prospective investors in order to assist them in m
Slide 3: Table of Content
Table of Content 1. Opening Remarks and Highlights of the Quarter 2. Overview of Q3 2017 Results 2.1 Financial Highlights 2.2 Revenue 2.3 Adjusted EBITDA 2.4 Operating Earnings Before Costs Not Related to Current Operations 2.5 Net Earnings 2.6 Cash Flow from Operating Activities 3. Balance Sheet 3.
Slide 4: 1. Highlights and Opening Remarks
1. Highlights and Opening Remarks
Slide 5: 1. Highlights and Opening Remarks
1. Highlights and Opening Remarks Positive Results • Improving profitability at CFD division in Eastern Quebec, focused on independents, for a second consecutive quarter • Reduction of financial charges by $0.9M or 34,2% A Challenging Quarter in Ontario • Consolidated sales down 5.8% on historical c
Slide 6: 1. Highlights and Opening Remarks (continued)
1. Highlights and Opening Remarks (continued) Q3 2017: Recent Progress Offset by Weak Results in Ontario Ontario (Summit Division): • Pressure on margins in the large restaurant chain market segment • Slower than anticipated efficiencies from the optimization of our distribution network • Agreement
Slide 7: 2. Overview of Q3 2017 Results
2. Overview of Q3 2017 Results
Slide 8: 2.1 Financial Highlights
2. Overview of Q3 2017 Results 2.1 Financial Highlights Financial Highlights Quarters Ended (thousands of dollars except per-share data) Sept. 09, 2017 Sept. 03, 20161 Sales1 319,334 339,100 Adjusted EBITDA 7,682 9,196 Operating Earnings Before the Following Items 5,128 6,573 Charges Not Related to
Slide 9: 2.2 Revenue Bridge | Q3 2017 vs Q3 2016
2. Overview of Q3 2017 Results 2.2 Revenue Bridge | Q3 2017 vs Q3 2016 -5.8% In ($M) 339.1 (9.4) 319.3 (10.4) Q3 2016 Distribution Wholesale Q3 2017 • Distribution: -3.7%: Residual effect of historical contract loss in Ontario Norref slightly lower on salmon price deflation CFD sales increase Lauzon
Slide 10: 2.3 Adjusted EBITDA Bridge | Q3 2017 vs Q3 2016
2. Overview of Q3 2017 Results 2.3 Adjusted EBITDA Bridge | Q3 2017 vs Q3 2016 In ($M) -1.5 2.2 9.2 (1.3) 7.7 (2.4) Q3 2016 Margin % Operating expenses Volume Q3 2017 • GM%: Significant increase of margins as a percentage of sales following good inflation management, product mix and efforts dedicate
Slide 11: 2.5 Net Earnings | Q3 2017 vs Q3 2016
2. Overview of Q3 2017 Results 2.5 Net Earnings | Q3 2017 vs Q3 2016 2017 2016 Variance $ $ $ Operating Earnings Before Costs Not Related to Current Operations, 7.7 M 9.2 M -1.5 M Depreciation and Amortization Costs Not Related to Current Operations 7.0 M - +7.0 M Depreciation and Amortization 2.6 M
Slide 12: 2.6 Cash Flow from Operating Activities
2. Overview of Q3 2017 Results 2.6 Cash Flow from Operating Activities| Q3 2017 vs Q3 2016 -14.1 In ($M) 23.0 Operating Activities 8.8 0.8 8.9 -12.5 -1.5 WC change 14.1 -0.8 Operating Activities 6.5 WC change 2.4 Q3 2016 Net change in WC Non recurring items cash Adj. EBITDA cash Other Q3 2017 Cash F
Slide 13: 3. Balance Sheet
3. Balance Sheet © COLABOR
Slide 14: 3.1 Long-term Debt
3. Balance Sheet 3.1 Long-term Debt -58.6 In ($M) 177.5 Other Sub debt 8.6 2.4 118.9 -47.5 Other Convert debt -22.1 Sub debt Convert debt Credit facility Credit facility Q3 2016 Recapitalization Cash flow from Finance costs Other Q3 2017 operations Given our improving cash flow and the recapitalizat
Slide 15: 3.2 Ratio of Total Debt / Trailing Adj EBITDA
3. Balance Sheet 3.2 Ratio of Total Debt / Trailing Adj EBITDA Total debt/Trailing adj EBITDA Trailing adj EBITDA Total debt (excluding convert)/Trailing adj EBITDA 30.5 28.2 26.7 5.8 4.2 4.4 4.5 2.7 2.6 Q3 2016 Q2 2017 Q3 2017 Credit Facility Credit Facility Credit Facility Use: $ 76.5 M Use: $ 43.
Slide 16: 4. Looking Ahead
4. Looking Ahead © COLABOR
Slide 17: 4. Looking Ahead
4. Looking Ahead CEO to retire effective March 2nd, 2018 ✔ Hired an executive recruitment firm to accelerate the search Disciplined approach to growth ✔ Focus on margin improvements Further benefits to come from the reorganization of the Ontario distribution network Reinvestments in our sales force
Slide 18: Appendix
Appendix © COLABOR
Slide 19: Appendix | Non IFRS Measure
Appendix | Non IFRS Measure Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (unaudited, in thousands of dollars) 84 days 252 days 2017 2016 Variance 2017 2016 Variance $ $ $ $ $ $ Net Earnings (Loss) (18,753) 2,708 (21,461) (19,101) 483 (19,584) Income Tax Expense (Recovery) (1,271) 1,203 (