TORONTO–(BUSINESS WIRE)–Acasta Enterprises Inc. (TSX: AEF) (“Acasta” or the “Company”)
today announced the release of its unaudited condensed consolidated
financial statements for the three months ended March 31, 2019 and
management discussion and analysis (MD&A). These documents will be
posted on SEDAR at www.sedar.com.
All values in this news release and the Company’s financial disclosures
are in Canadian dollars unless otherwise stated.
Financial Highlights
-
Net income for three months ended March 31, 2019 was $1.4 million from
continuing operations compared to a loss of $26.4 million in the
comparative period. Total comprehensive income for the three months
ended March 31, 2019 was $1.4 million compared to a total
comprehensive loss of $168.8 million in the comparative period. The
comparative period total comprehensive loss includes losses of $142.4
million from discontinued operations (Stellwagen and JemPak). The
Company didn’t incur any losses from discontinued operations in the
three months ended March 31, 2019 and does not expect additional
losses from discontinued operations going forward. -
Acasta’s reported revenues of $41.5 million in the three months ended
March 31, 2019 compared to $42.3 million in comparative period. All
reported revenues are from Apollo’s Consumer Products business. -
Debt totalled $76.5 million at March 31, 2019. The Company’s
commercial bank credit facility matures on June 1, 2019 and its U.S.
credit facility on September 1, 2019. The Company is working with its
lenders to extend debt maturities and improve lending terms.
Please refer to our Management’s Discussion & Analysis which will
provide additional detail on the Company’s results from operations.
Corporate Highlights
The Company is pleased to report that its efforts to rationalize
expenses combined with the realization of production efficiencies
resulted in a return to profitability in the three months ended March
31, 2019. The Company is focused on streamlining its operations and
reducing its cost structure and debt with a view towards enhancing
shareholder value over the medium to long term. The Company will
continue to explore various alternatives to achieve these ends.
Advisories:
Cautionary Note Concerning Forward Looking Statements
This news release includes forward looking statements. All such
statements constitute forward looking information within the meaning of
applicable securities law and are made pursuant to the “safe harbour”
provisions of applicable securities laws. Forward looking statements
include, but are not limited to statements about other anticipated
future events or results, including comments with respect to Company’s
future financial performance and condition. Forward looking statements
are statements that are predictive in nature, depend upon or refer to
future events or conditions and are identified by words such as “will”,
“expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or
similar expressions concerning matters that are not historical facts.
Such statements are based on current expectations of the Company’s
management and inherently involve numerous risks and uncertainties,
known and unknown, including economic factors. The forward-looking
information contained in this news release is presented for the purpose
of assisting readers in understanding the Company’s business and
strategic priorities and objectives. A number of risks, uncertainties
and other factors may cause actual outcomes or financial results to
differ materially from the forward looking statements contained in this
news release, including, among other factors, those referenced in the
section entitled “Risk Factors” in the Company’s annual information form
for the year ended December 31, 2018, a copy of which is available on
the SEDAR website at www.sedar.com
under the Company’s profile. Forward looking statements contained in
this news release are not guarantees of future outcomes performance and,
while forward looking statements are based on certain assumptions that
the Company considers reasonable, actual events could differ materially
from those expressed or implied by forward looking statements made by
the Company. Readers are cautioned to consider these and other factors
carefully when making decisions with respect to the Company and to not
place undue reliance on forward looking statements. Circumstances
affecting the Company may change rapidly. Except as may be expressly
required by applicable law, Acasta does not undertake any obligation to
update publicly or revise any such forward looking statements, whether
as a result of new information, future events or otherwise. These
cautionary statements expressly qualify all forward looking statements
in this new release.
Contacts
Acasta Enterprises Inc.
[email protected]
Fred
Leigh
416-861-5933
www.acastaenterprises.com
