Core Viewpoint - Colabor Group Inc. has entered into forbearance agreements with its principal lenders and Investissement Québec to temporarily avoid defaults related to financial covenants for the third and fourth quarters of 2025 [1][2][3] Group 1: Forbearance Agreements - The forbearance agreements allow Colabor to avoid immediate financial penalties while it works on amendments to its credit facilities [2][3] - The agreements are effective until October 15, 2025, contingent on Colabor's compliance with specified financial and operational covenants [3] Group 2: Financial Position and Stability - The forbearance agreements provide Colabor with additional flexibility following a cybersecurity incident in July 2025, aimed at strengthening its financial position [4] - Colabor's management is actively engaged in discussions with stakeholders to ensure long-term stability and growth [4] Group 3: Company Overview - Colabor operates as a distributor and wholesaler of food products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces [5]

Core Viewpoint - Colabor Group Inc. has provided an update on a cybersecurity incident that affected its internal IT systems, stating that the incident has been contained and most operations have returned to normal [1][2]. Incident Containment and Operations - The company has engaged leading external cybersecurity experts to manage and investigate the incident, resulting in the restoration of most systems and normal operations [1][2]. - Colabor is currently unable to fully assess the impact of the incident on its operating revenues for the current quarter but does not expect a materially significant effect on its revenues for the 2025 fiscal year [3]. Employee and Data Security - Preliminary investigations indicate that personal information of certain employees may have been compromised, and the investigation is ongoing [4]. - As a precaution, Colabor is offering credit monitoring services to all employees and has notified relevant authorities about the incident [4]. Leadership Response - The President and CEO of Colabor expressed gratitude towards employees and cybersecurity experts for their commitment during the incident, emphasizing the company's resilience and determination to maintain trust with stakeholders [5]. Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [6].

Core Viewpoint - Colabor Group Inc. reported a mixed performance for the second quarter of 2025, with increased sales but significant net losses and decreased adjusted EBITDA, influenced by a recent acquisition and ongoing macroeconomic challenges in the restaurant industry [1][3][10]. Financial Performance - Sales from continuing operations increased by 5.1% to $169.5 million compared to $161.3 million in the same period of 2024 [4][7]. - Adjusted EBITDA decreased to $5.4 million, with a margin of 3.2%, down from $9.7 million and 6.0% in the corresponding period of 2024 [4][11]. - Net loss from continuing operations was $2.3 million, compared to net earnings of $1.7 million in the same quarter of 2024 [4][12]. - Cash flow from operating activities decreased to $4.5 million from $5.0 million in the second quarter of 2024 [4][15]. Acquisition Impact - The acquisition of Alimplus Inc.'s food distribution assets contributed $8.8 million to sales, highlighting its strategic importance for growth and market positioning [7][10][8]. - The acquisition is expected to create synergies and enhance customer base, particularly in targeted territories [8][9]. Financial Position - As of June 14, 2025, net debt increased to $97.3 million from $47.8 million at the end of 2024, reflecting the financing of the acquisition [4][16]. - The financial leverage ratio rose to 4.3x, up from 2.4x at the end of 2024, indicating increased reliance on debt [4][6]. Market Conditions - The company faced challenges due to macroeconomic headwinds affecting the restaurant industry, which impacted profitability despite revenue growth [9][10]. - The renewal of a major supply agreement at less favorable terms also contributed to the decline in gross margins [11][12]. Future Outlook - The company plans to focus on optimizing operations and improving profitability in the second half of the year, with an emphasis on debt reduction [18].

Core Points - Colabor Group Inc. identified a cybersecurity incident on July 20, 2025, affecting its internal IT systems [1] - The company took immediate action to protect its network and data by engaging cybersecurity experts for containment and remediation [2] - The full scope and impact of the incident, including potential data access of customers, suppliers, or employees, is still under investigation [3] Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [4]

Group 1 - Colabor Group Inc. will release its Q1 results for the period ended June 14, 2025, after market close on July 24, 2025 [1] - A conference call to discuss the results is scheduled for July 25, 2025, at 9:30 a.m. Eastern Time [2] - Colabor operates as a distributor and wholesaler of food products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces [4] Group 2 - The conference call can be accessed via a toll-free number for North American participants and an international dial-in option [2] - A recording of the conference call will be available until August 1, 2025, for those who wish to listen later [3] - Colabor offers specialty food products including fish, seafood, and meat through its Broadline activities [4]

Group 1 - Colabor Group Inc. held its annual meeting of shareholders on May 8, 2025, with 61,043,516 common shares represented, accounting for 59.84% of the issued and outstanding shares [1] - All eight candidates proposed for the Board of Directors were elected by majority vote, with Marc Beauchamp receiving 99.33% in favor and Danièle Bergeron receiving 96.82% [1] - The appointment of PricewaterhouseCoopers LLP as the auditor was approved unanimously at 100.00% [2] Group 2 - Colabor operates as a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [3]

Financial Performance - Sales from continuing operations for Q1 2025 were $131.7 million, a slight increase of 0.4% compared to $131.2 million in Q1 2024 [3][7] - Adjusted EBITDA decreased to $2.3 million, representing a margin of 1.7%, down from $4.9 million and a margin of 3.7% in the same period last year [3][9] - The net loss from continuing operations was $4.0 million, compared to a loss of $1.8 million in Q1 2024 [3][10] - Cash flow from operating activities decreased to $6.2 million from $11.7 million in the prior year [3][11] Financial Position - As of March 22, 2025, net debt was reduced to $47.1 million from $47.8 million at the end of 2024 [3][12] - The financial leverage ratio increased to 2.8x from 2.4x [3][4] - Working capital decreased to $45.8 million from $50.3 million at the end of the previous fiscal year, attributed to seasonal effects [11][12] Market Dynamics - The growth in purchasing volume with distribution clients is helping the company gain market share despite a slowdown in the restaurant industry [5] - The renewal of a supply agreement with an institutional client at lower margins than in 2024 is impacting financial performance [8][9] - Wholesale activities sales decreased by 3.8%, primarily due to the slowdown in the restaurant industry [8] Strategic Initiatives - The company announced an agreement to acquire the food distribution assets of Alimplus Inc. and its subsidiary Tout-Prêt Inc. for $51.5 million, pending closing conditions [7] - Management is focusing on sound financial management and aims to improve product and customer mix to mitigate the impact of lower-margin contracts [13]

Group 1 - Colabor Group Inc. will hold its Annual Meeting of Shareholders on May 8, 2025, at 2:00 p.m. Eastern Daylight Time, in a virtual-only format [1][3] - Registered shareholders and duly appointed proxyholders can participate in the Meeting, vote, or submit questions in real time, provided they meet the conditions outlined in the Management Information Circular [2] - Non-registered shareholders may attend the Meeting as guests but will not have voting or questioning rights [2] Group 2 - Colabor operates as a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets in Quebec and the Atlantic provinces, as well as the retail market [4]

Core Points - Colabor Group Inc. will release its first quarter results for the period ending March 22, 2025, after market close on May 1, 2025 [1] - A conference call to discuss these results is scheduled for May 2, 2025, at 9:30 a.m. Eastern Time [2] Company Overview - Colabor is a distributor and wholesaler of food and related products, serving the hotel, restaurant, and institutional markets (HRI) in Quebec and the Atlantic provinces, as well as the retail market [4]