TORONTO–(BUSINESS WIRE)–Acasta Enterprises Inc. (TSX: AEF) (“Acasta” or the “Company”)
today announced the release of its consolidated financial statements for
the year and quarter ended December 31, 2018, management’s discussion
and analysis (MD&A) and Annual Information Form (“AIF”).
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.
Since assuming operational control of the Company on December 21, 2018,
the Company’s refreshed Board and management team have set to the
difficult task of eliminating excess expenses and inefficiencies related
to the previous operating structure. Significant effort has been
expended to negotiate arrangements benefitting the Company as a whole
and to increase profitability at Apollo Health and Beauty Care Inc. (“Apollo”),
the Company’s sole operating subsidiary. The Company is focused on
streamlining operations to reduce its cost structure and overall Company
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.
- Acasta’s 2018 consolidated results included revenues from continuing
operations of $176.7 million compared to $173.6 million in the 2017
year. Apollo’s consumer products business has established long
standing relationships with its customers.
- Total comprehensive loss for 2018 was $319.6 million compared to
$440.9 million in the 2017 year. These reported losses include
non-cash impairment losses from continuing operations of $106.6
million during the year ended December 31, 2018 compared with $200.7
million the 2017 year. The total comprehensive loss also includes
losses of $145.3 million from discontinued operations in 2018 compared
with $249.7 million in 2017. The Company does not expect further
losses from discontinued operations going forward in 2019.
- Total debt has been reduced to $74.4 million at December 31, 2018 from
$983.9 million at December 31, 2017. 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.
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.