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COLABOR PRESS RELEASE FOR IMMEDIATE DISTRIBUTION COLABOR GROUP REPORTS RESULTS FOR THE FIRST QUARTER 2021 Boucherville , Quebec , May 3 , 2021 - Colabor Group Inc. ( TSX : GCL ) ( “ Colabor ” or the “ Company ” ) reports its results for the first quarter ended March 20 , 2021 . First Quarter 2021 Financial Highlights and Recent Events : . • • • Sales decreased by 23.3 % to $ 85.6 million , compared to $ 111.6 million for the first quarter of 2020 , mainly explained by the mandatory closure of restaurant dining rooms in Quebec in the first quarter of 2021 as a result of the pandemic and the termination of a contract in Specialized distribution activities during the first quarter of 2020 ; Net loss from continuing operations decreased to $ 1.0 million compared to $ 1.9 million for the corresponding period of 2020 ; Adjusted EBITDA ( ) increased to $ 3.8 million from $ 3.7 million for the corresponding period of 2020 and increase in adjusted EBITDA ( ¹ ) margin to 4.5 % of sales compared to 3.3 % of sales during the corresponding period of 2020 ; Stable cash flow from operating activities of $ 5.4 million compared to $ 5.6 million for the first quarter of 2020 , despite lower sales ; and Conclusion of new credits agreements in February 2021 , and redemption of all outstanding convertible debentures completed on March 23 , 2021 . Table of first quarter 2021 Financial Highlights : Financial highlights 12 weeks ( in thousands of dollars except percentages , per share data and financial leverage ratio ) 2021 2020 $ $ Sales from continuing operations 85,635 111,613 Adjusted EBITDA ( 1 ) 3,848 3,698 Adjusted EBITDA margin ( % ) 4.5 3.3 Net loss from continuing operations Net loss Per share - basic and diluted ( $ ) Cash flow from operating activities Financial position Net debt ( 2 ) ( 1,011 ) ( 1,871 ) ( 1,027 ) ( 8,330 ) ( 0.01 ) ( 0.08 ) 5,376 5,613 As at As at March 20 , December 26 , 2021 2020 50,530 52,100 Financial leverage ratio 1.7x 1.8x ( 1 ) Non - IFRS measure . Refer to the table Reconciliation of Net Earnings ( loss ) to adjusted EBITDA and to MD & A section 6 " Non - IFRS Performance Measures " . Adjusted EBITDA corresponds to net earnings ( loss ) before costs not related to current operations , depreciation and amortization and expenses for stock - based compensation plan . ( 2 ) Non - IFRS measure . Refer to MD & A section 6 " Non - IFRS Performance Measures " . Net debt corresponds to bank indebtedness , current portion of long - term debt , long - term debt and convertible debentures , net of cash . ( 3 ) Financial leverage ratio is an indicator of the Company's ability to service its long - term debt . It is defined as net debt / adjusted EBITDA for the last twelve months . Refer to MD & A section 6 " Non - IFRS Performance Measures " . " Despite restaurant dining room closures and citizen confinement , we are ending the first quarter of 2021 with good results . Due to the optimization measures implemented in 2020 , as well as tight management of our cost structure , subsidies contribution and optimal cash flow management in order to minimize the impacts of the pandemic , Colabor continued to improve profitability , generate strong cash flow and reduce net debt . ” , said Louis Frenette , President and Chief Executive Officer of Colabor .