"Thanks to the support and creativity of our employees, we were able to operate most of our restaurants across the province during much of the fourth quarter and expand our off-premise dining options. We are also pleased to see that many of our establishments saw encouraging traffic during the quarter in spite of the sanitary measures," said Jean Bédard, President and CEO of
"The growth experienced in the first half of fiscal 2020 and the significant increase in revenues from our retail activities throughout the year, allowed us to limit the impact of the COVID-19 pandemic on our results. While profitability was down significantly from last year, the diversification of our activities and the quick implementation of cash preservation measures allowed us to end the fiscal year with the necessary liquidity and lending capacity to help us face the sanitary crisis by preserving the financial health of the Company," concluded Mr. Bédard.
Financial performance for the fourth quarter ended
Consolidated adjusted EBITDA(1) for the fourth quarter stood at
Financial performance for fiscal 2020
Despite strong revenues from restaurant activities in the first half of the year, cumulative consolidated revenues for the fiscal year ended
Consolidated adjusted EBITDA(1) for fiscal 2020 was
Renegotiated financing agreements
To ensure ongoing access to credit, the Company negotiated an amendment to its financing agreements with its financial institution. The Company was granted an easing of its financial and restrictive covenants, but will be required to meet a minimum EBITDA(1) in each quarter of fiscal 2021. The amendment also contains various limitations regarding dividend distribution, share buy-backs and investments in fixed assets by the Company or its affiliates during the next fiscal year. As at
Outlook
Second wave: required closure of dining rooms in restaurants located in maximum alert zones
Subsequent to the fiscal year-end, the Government of
Mitigation and diversification measures
The recent developments affecting the restaurant industry and the population as a whole have had, and will continue to have, an impact on the Company's operations in the short and medium term. Although the duration of the pandemic and its longer-term effect on the economy are still difficult to predict, the Company is currently working to optimize its network and operations based on the permitted occupancy rate of its restaurants and to adjust expenses to preserve its cash. Subject to the duration of the outbreak and the additional measures that may be put in place,
During the last few months, the Company has been able to maintain some level of activity and revenues by diversifying its activities, allowing it to mitigate the impact of the COVID-19 pandemic on its 2020 financial results. It will therefore continue to devote significant efforts to promoting its La Cage - Chez vous home-catering offer and to grow its retail activities.
Disclaimer
This press release contains forward-looking statements relating to the Company. Statements based on management's current expectations involve known and unknown inherent risks and uncertainties, including risks associated with public health issues such as those resulting from the COVID-19 pandemic. Actual results may differ from expectations. The reader is cautioned not to place undue reliance on forward-looking information. The Company does not undertake any obligation to update or revise any forward-looking statements as a result of new information, future events or other changes except if required by applicable laws.
Neither
About
Non-IFRS measures
The following measures used by the Company are not measures recognized under International Financial Reporting Standards ("IFRS"):
(1) | Consolidated adjusted EBITDA" corresponds to "earnings before financial expenses, amortization, share of net income of joint ventures and income tax", from which other losses (gains) are excluded and to which the share of earnings before financial expenses, amortization and income tax of joint ventures is added. The Company adopted IFRS 16, Leases, on |
For further information regarding the results and financial position of
Reconciliation of Non-IFRS Financial Measures
(in thousands of $, except for percentages)
Fourth quarter ended | Fiscal year ended | |||
2020 | 2019 | 2020 | 2019 | |
Earnings before financial expenses, amortization, net income of joint ventures and income taxes | 3,453 | 3,268 | 5,564 | 11,194 |
Other losses (gains) | (699) | (101) | 4,053 | (272) |
Earnings before financial expenses, amortization and income taxes of joint ventures | 222 | 262 | 786 | 1,518 |
Consolidated adjusted EBITDA | 2,976 | 3,429 | 10,403 | 12,440 |
Impact of IFRS 16 | (1,070) | - | (4,451) | - |
Consolidated adjusted EBITDA, excluding the impact of IFRS 16 | 1,906 | 3,429 | 5,952 | 12,440 |
Consolidated Statements of Comprehensive Income for the Fiscal Years Ended
(in thousands of Canadian dollars, except for earnings per share and number of outstanding shares)
2020 | 2019 | |
$ | $ | |
Revenues | 109,848 | 122,593 |
Cost of sales | 48,372 | 39,281 |
Selling and administrative expenses, excluding amortization | 51,859 | 72,390 |
Other losses (gains) (1) | 4,053 | (272) |
Earnings before financial expenses, amortization, | ||
net income of joint ventures and income tax | 5,564 | 11,194 |
Amortization | 9,469 | 5,909 |
Financial expenses | 2,122 | 1,172 |
Net loss (income) of joint ventures | (136) | (796) |
11,455 | 6,285 | |
(Loss) income before income tax expense | (5,891) | 4,909 |
Income tax (recovery) expense | (1,851) | 1,026 |
Net and comprehensive (loss) income | (4,040) | 3,883 |
Net and comprehensive (loss) income attributable to: | ||
The Company's shareholders | (3,863) | 3,957 |
Non-controlling interests | (177) | (74) |
Net and comprehensive (loss) income | (4,040) | 3,883 |
Earnings per share (in dollars): | ||
Basic | (0.45) | 0.46 |
Diluted | (0.45) | 0.45 |
Weighted average number of outstanding Class A shares | ||
(in thousands) : | ||
Basic (2) | 8,548 | 8,543 |
Diluted (2) | 8,548 | 8,732 |
(1) | Other losses (gains) include gains on business combinations and gains/losses on the disposal, write-off and impairment of property, plant and equipment. For further details, see Note 9 accompanying the audited consolidated financial statements. |
(2) | The weighted average number of Class A shares (basic and dilutive) reflects the retrospective application of the two-for-one stock split effected on |
SOURCE
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