Colabor Group Reports its 2016 Fourth Quarter and Year-End Results

BOUCHERVILLE, QUEBEC--(Marketwired - Feb. 24, 2017) - Colabor Group Inc. (TSX:GCL)

2016 HIGHLIGHTS

• Return to profitability in fiscal 2016 and a 72.8% increase in operating earnings before items not related to current operations, to $18.8 million
• Adjusted EBITDA of $30.3 million, up 15.1% year over year
• Cash flow from operating activities up $5.0 million to $33.1 million
• $68.1 million reduction in total debt during the year, from $186.2 million to $118.1 million, or 3.9x adjusted EBITDA for the last 12 months

FOURTH QUARTER HIGHLIGHTS

• 29.3% increase in operating earnings before items not related to current operations
• Relatively stable adjusted EBITDA of $9.1 million
• Cash flow from operating activities up $1.8 million to $15.5 million
• Appointment of Michael Horgan to Colabor's Board of Directors

Colabor Group Inc. (TSX:GCL) ("Colabor" or the "Corporation") reported its results today for the fourth quarter and fiscal year ended December 31, 2016.

"Colabor ended fiscal 2016 on stronger ground after rigorously executing its business plan. The rationalization plan announced at the beginning of the year combined with steady improvement in our operating performance resulted in a substantial increase in operating profitability. In addition, the recapitalization transactions that closed last October, combined with an excellent management of our working capital, led to an improved financial position and provide us with greater flexibility to pursue our growth objectives," said Claude Gariépy, President and Chief Executive Officer of Colabor.

Financial highlights		Quarter ended				Fiscal year ended
(thousands of dollars except per-share data)		Dec. 31, 2016		Dec. 26, 2015		Dec. 31, 2016	Dec. 26, 2015
Sales1		432,543		431,912		1,399,435	1,390,597
Adjusted EBITDA		9,092		9,301		30,267	26,304
Operating earnings before the following items		5,578		4,314		18,758	10,853
Charges not related to current operations		1,939		2,442		4,926	4,123
Asset write-off charges2		-		33,756		-	35,487
Net earnings (loss)		(160	)	(29,314	)	323	(33,764	)
	Per share - basic and diluted ($)	0.00		(1.07	)	0.04	(1.23	)
Cash flow from operations3		15,486		13,650		33,144	28,174
Weighted average number of shares outstanding4 (basic, in thousands)		76,985		27,454		43,534	27,454

1	At December 31, 2016, the Corporation early adopted IFRS 15, Revenue from Contracts with Customers. Prior year figures have been reclassified.
2	Including an impairment loss on goodwill and other intangible assets.
3	After the net change in working capital.
4	At December 31, 2016, the number of shares outstanding was 102,107,832.

FOURTH QUARTER RESULTS