Colabor Group Inc. · OTC:COLFF
Colabor — Q2 2017 Earnings Presentation
20 slides from Colabor's earnings presentation, Jul 21, 2017
Slide 1: Q2 2017 Results Summary
Q2 2017 Results Summary Groupe Colabor inc. July 21, 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 2. Overview of Q2 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 3.1 Long-term Debt 3.2 Ratio of
Slide 4: 1. Opening Remarks
1. Opening Remarks © COLABOR
Slide 5: 1. Opening Remarks
1. Opening Remarks Q2 2017 net earnings are in-line with last year at $3.1 M Recent growth and profit initiatives are starting to demonstrate tangible results: • Improved margins in the Distribution Segment • Optimized distribution network in Ontario • Solid performance at CDA (Quebec) and Norref (f
Slide 6: 1. Opening Remarks Continued
1. Opening Remarks Continued Investing in our operations to generate organic growth and improve profitability • Added more talent to our executive and sales teams mainly at o CDA (Quebec) o Summit (Ontario) o Lauzon (Superior quality meat products) • Working to position the Décarie Division for grow
Slide 7: 2. Overview of Q2 2017 Results
2. Overview of Q2 2017 Results
Slide 8: 2.1 Financial Highlights
2. Overview of Q2 2017 Results 2.1 Financial Highlights Stable net earnings at $3.1 million Cash flow from operating activities up $9.7 million to $2.2 million Financial Highlights Quarters ended (thousands of dollars except per-share data) June 17, 2017 June 11, 20161 Sales1 331,372 342,979 Adj
Slide 9: 2.2 Revenue Bridge | Q2 2017 vs Q2 2016
2. Overview of Q2 2017 Results 2.2 Revenue Bridge | Q2 2017 vs Q2 2016 In ($M) -3.4% 3.7 343.0 1.7 (8.6) 331.4 (8.4) Q2 2016 Specialty Broadline Boucherville Décarie Q2 2017 Distribution Wholesale • Distribution: -1.9%: Residual effect of historical contract loss in Ontario Good performance of Norre
Slide 10: 2.3 Adjusted EBITDA Bridge | Q2 2017 vs Q2 2016
2. Overview of Q2 2017 Results 2.3 Adjusted EBITDA Bridge | Q2 2012 vs Q2 2016 In ($M) -1.1 0.8 0.4 10.1 (0.9) 9.0 (1.4) Q2 2016 Non-recurring Margin % Operating expenses Volume Q2 2017 reversal of provision • Non-recurring item: Reversal of a provision related to the two-year retention program impl
Slide 11: 2.4 Earnings Before Income Tax Bridge | Q2 2017 vs Q2 2016
2. Overview of Q2 2017 Results 2.4 Earnings Before Income Tax Bridge | Q2 2017 vs Q2 2016 In ($M) -3.4% 1.3 0.2 -0.5 4.4 4.3 -1.1 Q2 2016 Financial charges D&A Non recurring Adjusted EBITDA Q2 2017 Stable earnings mainly driven by lower financial charges which helped mitigate lower Adjusted EBITDA 1
Slide 12: 2.5 Net Earnings | Q2 2017 vs Q2 2016
2. Overview of Q2 2017 Results 2.5 Net Earnings | Q2 2017 vs Q2 2016 2017 2016 Variance $ $ $ Operating earnings before costs not related to current operations, 9.0 M 10.1 M -1.1 M depreciation and amortization Costs not related to current operations 0.5 M - +0.5 M Depreciation and amortization 2.5
Slide 13: 2.6 Cash Flow from Operating Activities | Q2 2017 vs Q2 2016
2. Overview of Q2 2017 Results 2.6 Cash Flow from Operating Activities| Q2 2017 vs Q2 2016 In ($M) +9.7 2.2 Operating Activities 9.5 Operating Activities 8.0 WC change 11.2 -5.8 0.3 WC change -17.0 -0.7 -1.1 -7.5 Q2 2016 Net change in WC Non recurring items cash Adj. EBITDA cash Other Q2 2017 The im
Slide 14: 3. Balance Sheet
3. Balance Sheet © COLABOR
Slide 15: 3.1 Long-term Debt
3. Balance Sheet 3.1 Long-term Debt -72.4 In ($M) 197.5 Other Sub debt -47.5 5.7 125.1 Convert debt 7.1 Other Sub debt -37.7 Convert debt Credit facility Credit facility Q2 2016 Recapitalization Cash flow from Finance costs Other Q2 2017 operations Given our improving cash flow and the recapitalizat
Slide 16: 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 29.3 29.3 28.2 6.7 5.0 4.3 4.4 2.6 2.7 Q2 2016 Q1 2017 Q2 2017 Credit Facility Credit Facility Credit Facility Use: $ 97.7 M Use: $ 35.
Slide 17: 4. Looking Ahead
4. Looking Ahead © COLABOR
Slide 18: 4. Looking Ahead
4. Looking Ahead Focused on margin improvements ✔ Further benefits to come from the reorganization of the Ontario distribution network Reinvestments in our sales force started to demonstrate results with increasing ✔ street business in Eastern Quebec and Ontario New leadership at the Décarie Divisio
Slide 19: Appendix
Appendix © COLABOR
Slide 20: Appendix | Non IFRS Measure
Appendix | Non IFRS Measure Reconciliation of Net Earnings (Loss) to Adjusted EBITDA (unaudited, in thousands of dollars) 84 days 168 days 2017 2016 Variance 2017 2016 Variance $ $ $ $ $ $ Net earnings (loss) 3,097 3,073 24 (349) (2,225) 1,876 Income tax expense (recovery) 1,155 1,304 (149) 279 (543