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COLABOR COLABOR GROUP REPORTS RESULTS FOR THE THIRD QUARTER 2021 AND ANNOUNCES THE APPOINTMENT OF A NEW BOARD MEMBER Boucherville , Quebec , October 14 , 2021 - Colabor Group Inc. ( TSX : GCL ) ( " Colabor " or the " Company " ) reports its results for the third quarter and the 36 - week period ended September 4 , 2021 and announces the appointment of Mr. Jean Gattuso as Director of the Company effective today . Third Quarter 2021 Financial Highlights : Sales increased by 8.8 % to $ 131.6 million , compared to $ 120.9 million for the third quarter of 2020 , with a reopening of restaurant dining rooms at the beginning of the quarter in 2021 while the reopening occurred later in the third quarter of 2020 ; Table of third quarter 2021 Financial Highlights : Financial highlights ( in thousands of dollars except percentages , per share data and financial leverage ratio ) Sales from continuing operations Net earnings from continuing operations decreased to $ 2.3 million compared to $ 3.4 million for the corresponding period of 2020 , resulting primarily from the decrease of subsidies related to the pandemic and additional labor costs in the current context of labor shortage , partly offset by sales increase ; Adjusted EBITDA ( ¹ ) decreased to $ 7.8 million from $ 10.1 million for the corresponding period of 2020 and decrease in adjusted EBITDA margin to 5.9 % of sales compared to 8.4 % of sales during the corresponding period of 2020 . Excluding the impact of subsidies obtained , the adjusted EBITDA margin ( ¹ ) would have been 6.0 % in 2021 and 7.6 % in 2020 ; Cash flow generated by operating activities down to $ 7.4 million compared to cash flow from operating activities of $ 16.4 million for the third quarter of 2020 , due to higher utilization of working capital ( 4 ) in relation with higher sales and by the timing of inventories purchase and suppliers payments , as well as higher collection of receivables in 2020 . Mr. Gattuso joins the Board of Directors of Colabor as of today . Adjusted EBITDA ( ¹ ) Adjusted EBITDA¹ ) margin ( % ) Net earnings from continuing operations Net earnings ( loss ) Per share - basic and diluted ( $ ) Cash flow from operating activities Financial position FOR IMMEDIATE DISTRIBUTION 12 weeks 2021 $ 131,622 7,821 5.9 PRESS RELEASE 2,288 2,038 0.02 7,448 2020 $ 120,931 10,143 8.4 3,441 1,789 0.02 16,359 36 weeks 2021 $ 325,309 18,340 5.6 2,917 2,703 0.03 9,717 As at September 4 , 2021 53,210 2.1x 2020 $ 328,002 21,454 6.5 3,178 ( 9,423 ) ( 0.09 ) 23,431 As at December 26 , 2020 Net debt ( 2 ) Financial leverage ratio ( ³ ) 52,100 1.8x ( ¹ ) Non - IFRS measure . Refer to the table Reconciliation of Net Earnings to adjusted EBITDA in 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 . 22 ) 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 .