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.
- 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.
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.
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.