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COLABOR PRESS RELEASE FOR IMMEDIATE DISTRIBUTION COLABOR GROUP REPORTS RESULTS FOR THE FOURTH QUARTER AND FISCAL 2020 Boucherville , Quebec , February 26 , 2021 - Colabor Group Inc. ( TSX : GCL , GCL.DB.A ) ( “ Colabor ” or the “ Company ” ) reports its results for the fourth quarter and the fiscal year ended December 26 , 2020 . Fourth Quarter 2020 Financial Highlights and Recent Events : • • Sales decreased by 30.9 % to $ 133.3 million , compared to $ 192.9 million for the fourth quarter of 2019 , mainly explained by the mandatory closure of restaurant dining rooms in Quebec as of October 1st resulting from the pandemic and the termination of a contract in Specialized distribution activities since the first quarter of 2020 ; Net earnings from continuing operations declined to $ 0.6 million compared to $ 1.9 million for the corresponding period of 2019 ; Adjusted EBITDA ( ¹ ) decreased to $ 7.5 million from $ 8.2 million for the corresponding period of 2019. Adjusted EBITDA margin increased to 5.6 % of sales compared to 4.2 % of sales during the corresponding period of 2019 ; ( 1 ) Cash flow from operating activities increased to $ 11.2 million compared to $ 7.9 million for the fourth quarter of 2019 . Excluding the effect of IFRS 16 adoption , cash flow from operating activities would have amounted to $ 8.6 million , an increase compared to 2019 , despite the decreases in sales ; and Strengthening the balance sheet following the recent announcement of the conclusion of new credits agreements on February 18 , 2021 , and the intention to redeem the $ 50.0 million convertible debentures . Fiscal 2020 Financial Highlights : • Sales amounted to $ 461.3 million , declined by 30.7 % compared to fiscal year 2019 , mainly explained by the termination of a contract in Specialized distribution activities , by the effects of the pandemic and the non - renewal of less - profitable contracts in Broadline activities distribution in Quebec ; Net earnings from continuing operations declined to $ 3.8 million compared to $ 7.5 million for the corresponding period of 2019 ; Adjusted EBITDA ( 1 ) increased to $ 28.9 million or 6.3 % of sales compared to $ 27.6 million or 4.2 % of sales for the corresponding period of 2019. Excluding the effect of IFRS 16 adoption , adjusted EBITDA as a proportion of sales is 4.4 % , an improvement compared to the fiscal year 2019 ; Net debt ( 2 ) decreased to $ 52.1 million , compared to $ 72.1 million as at December 28 , 2019 , bringing the financial leverage ratio ( 3 ) to 1.8x as at December 26 , 2020 ( or 2.6x excluding IFRS 16 adoption ) , compared to 2.6x as of December 28 , 2019 ; and Closing of the sale of the majority of the assets of the Summit division for a value of $ 9.5 million , subject to certain adjustments , of which an amount of $ 8.2 million has already been received . This division had incurred significant operating losses for several years .