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✔ COLABOR PRESS RELEASE FOR IMMEDIATE DISTRIBUTION COLABOR GROUP REPORTS RESULTS FOR THE SECOND QUARTER 2021 Boucherville , Quebec , July 21 , 2021 - Colabor Group Inc. ( TSX : GCL ) ( “ Colabor ” or the “ Company ” ) reports its results for the second quarter and the 24 - week period ended June 12 , 2021 . Second Quarter 2021 Financial Highlights : • • Sales increased by 13.2 % to $ 108.1 million , compared to $ 95.5 million for the second quarter of 2020 , mainly explained by a volume increase from restaurants , following the gradual reopening of their dining rooms during the second quarter of 2021 and given the less restrictive containment measures in 2021 than in the corresponding period of 2020 ; Net earnings from continuing operations amounted to $ 1.6 million comparable to the net earnings for the corresponding period of 2020 , resulting primarily from sales increase , offset by the decrease of $ 3.2 million in subsidies obtained ; Adjusted EBITDA ) decreased to $ 6.7 million from $ 7.6 million for the corresponding period of 2020 and decrease in adjusted EBITDA margin to 6.2 % of sales compared to 8.0 % of sales during the corresponding period of 2020 . Excluding the impact of subsidies obtained , the adjusted EBITDA margin ( ¹ ) would have been 5.0 % in 2021 and 3.4 % in 2020 ; Cash flow used in operating activities down to $ 2.9 million compared to cash flow from operating activities of $ 3.2 million for the second quarter of 2020 , due to higher utilization of working capital ( 4 ) in relation with higher sales and by the timing of inventories purchase ; and Redemption of all outstanding convertible debentures completed on March 23 , 2021 . Table of second quarter 2021 Financial Highlights : Financial highlights ( in thousands of dollars except percentages , 12 weeks 2021 per share data and financial leverage ratio ) $ 2020 $ 24 weeks 2021 2020 $ $ Sales from continuing operations 108,052 95,458 193,687 207,071 Adjusted EBITDA ( 1 ) 6,671 7,613 10,519 11,311 Adjusted EBITDA margin ( % ) 6.2 8.0 5.4 5.5 Net earnings ( loss ) from continuing operations 1,640 1,608 629 ( 263 ) Net earnings ( loss ) 1,692 ( 2,882 ) 665 ( 11,212 ) Per share basic and diluted ( $ ) 0.02 ( 0.03 ) 0.01 ( 0.11 ) Cash flow from operating activities ( 2,911 ) 3,217 2,465 8,830 Financial position As at As at June 12 , December 26 , 2021 2020 Net debt ( 2 ) 57,206 52,100 Financial leverage ratio ( 3 ) 2.0x 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 operating earnings 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 four quarters . Refer to MD & A section 6 " Non - IFRS Performance Measures " . ( 4 ) Working capital is an indicator of the Company's ability to hedge its current liabilities with its current assets . Refer to MD & A section 3.2 " Financial Position " for detailed calculation .