Skor Food Group Reports Improved Earnings For Q3 - 2009

Friday, July 31, 2009 8:00 AM

TORONTO, July 31 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR"), a vertically integrated food service company, announced financial results for the third quarter of fiscal 2009.

Consolidated results for the third quarter and the year to date are as follows:

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                   Three months ended May 31    Nine months ended May 31
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                       2009          2008          2009          2008
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Revenue          $  35,966,383 $  35,908,616 $ 105,173,319 $ 109,160,442
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EBITDA(x)        $     653,717 $     468,534 $   1,252,249 $   1,945,162
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Net Earnings     $     181,658 $      39,872 $      35,994 $     517,147
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EPS (basic)      $        0.01 $        0.00 $        0.00 $        0.02
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Shares (diluted)    25,880,670    26,151,562    26,007,215    26,158,185
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(x) EBITDA is a non-GAAP measure - earnings before interest, tax,
    depreciation and amortization.

SKOR generated EBITDA of $837,490 and $2,270,870 in the third quarter and nine month periods respectively, excluding discontinued operations. These results enabled SKOR to end the quarter in a strong financial position with a working capital ratio of 1.71:1, working capital of $8,022,527 and a conservative long term debt to equity ratio of .07:1.

"The food service business continues to be stable and strong, with good organic growth from increases in chain and institutional business offsetting weakness at the independent/owner operated facilities," said Vince Capobianco, President and CEO. "Weakness in the Ontario manufacturing sector continues to negatively impact sales at Skor Culinary as its customers service that sector. Operations at the Skor Wholesale Marketplace have improved substantially, generating positive cash flow, net of discontinued operations, in the third quarter."

The Company has experienced stability in sales, carrying on into the fourth quarter. Management continues to work diligently towards obtaining its HACCP certification for Skor Culinary and Skor Food Service and to increase sales penetration into the retail and food service markets.

SKOR'S broad line food operations include Skor Food Service, Skor Culinary Concepts and Skor Wholesale Marketplace, which supply products to Ontario's food service and retail industries.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

%SEDAR: 00007944E

(Source: CNW )

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