TORONTO, Jan. 30 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR"), a
fully integrated food service company announced first quarter financial
results for the period ended November 30, 2008.
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Quarter ended November 30 2008 2007
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Revenue $ 37,497,162 $ 38,866,572
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Gross Profit $ 6,073,451 $ 6,404,102
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EBITDA(x) - excluding discontinued
operations(xx) $ 832,947 $ 971,515
EBITDA(x) - including discontinued
operations $ 605,907 $ 973,336
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Earnings/(Loss)(xx) excluding discontinued
operations $ 430,419 $ 811,320
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Earnings/(Loss)(xx) including discontinued
operations $ 153,359 $ 446,012
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EPS (basic) $ 0.01 $ 0.02
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Shares outstanding (basic) 26,148,670 26,148,670
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(x) EBITDA - This is a non-GAAP measure - earnings before interest, tax,
depreciation and amortization.
(xx) On December 8, 2008, Skor Cash and Carry closed three locations and
treated them as discontinued operations as at August 31, 2008.
SKOR is in a strong financial position with working capital of
$7,981,516. a debt to equity ratio of 0.12:1 and sufficient capital and
operating credit available to support the projected near term growth.
Since SKOR commenced a share buyback under its normal course issuer bid,
it has acquired 91,500 shares and a further 145,000 were returned to the
Company in conjunction with the sale of the Galaxie Diner assets.
Skor Food Service is performing well and its projects significant organic
growth in 2009. Skor Cash and Carry continues to face challenging market
conditions but is focused on growing revenue at the remaining nine locations.
Skor Culinary continues to make improvements to its manufacturing operations
that are expected to improve both revenue and gross margin in the later part
of the current fiscal year.
"The unprecedented slowdown of the Ontario economy and the reduction in
consumer confidence that we have experienced over the last few months is
having an impact on our business," commented Vince Capobianco, President and
CEO. "SKOR is combating these difficult operating conditions by better
managing its variable and product costs, tightening credit where necessary,
working with customers to help them be more successful and cultivating new
business relationships wherever possible. We are confident that SKOR will
manage its operations through the current business slowdown and exit a much
stronger organization."
The Company announces that the Directors of Skor were collectively
granted a total of 100,000 options on Dec 21/08 and Jan. 28/09, having an
exercise price of $0.25 and expiring 3 years from date issue.
SKOR, through its operating divisions Skor Food Service, Skor Culinary
Concepts and Skor Cash and Carry is a vertically integrated, full service, mid
sized, wholesale food supplier to the food service and retail industries. SKOR
serves a wide range of multi location food service establishments, quick
service restaurant chains, day care facilities, government institutions,
independent food service operators, independent grocery stores as well as
vending operators and convenience stores in Ontario..
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
%SEDAR: 00007944E
