Ms. Linda McCurdy reports

K-BRO REPORTS OUTSTANDING Q1, 2013 RESULTS

K-Bro Linen Inc. had revenue of $31.6-million and EBITDA (earnings before interest, taxes, depreciation and amortization) of $5.9-million for the three months ended March 31, 2013. Net earnings after tax were $2.8-million, earnings of 39 cents per share, and distributable cash of 65.7 cents per diluted share for the quarter.

                           FINANCIAL RESULTS 
                 (thousands, except per share amounts)

                                       For the three months ended March 31,
                                                   2013                2012

Revenue                                          $31,647            $30,165
Operating expenses                                25,743             24,568
EBITDA                                             5,904              5,597
EBITDA as a percentage of revenue                  18.7%              18.6%
Earnings before income taxes                       3,807              3,177
Income tax expense                                 1,045                708
Net earnings                                       2,762              2,469
Basic earnings per share                            0.39               0.36
Diluted earnings per share                          0.39               0.35
Total assets                                      99,452             92,529
Long-term debt, end of year                        5,162              4,000
Cash provided by operating activities              9,180              6,768
Net change in non-cash working capital items       4,049              1,774
Share-based compensation expense                     320                502
Maintenance capital expenditures                     173                134
Distributable cash flow                            4,638              4,358
Dividends declared                                 2,028              1,927
Payout ratio                                       43.6%              44.2%

In the first quarter of 2013, revenue was $31.6-million which was 4.9 per cent higher than the $30.2-million generated in the comparable period in 2012. This year-over-year increase was due to a combination of additional volume from the Saskatoon health region and organic growth in other volumes and revenues. EBITDA increased from $5.6-million in first quarter, 2012 to $5.9-million in first quarter 2013, from organic growth from the company's existing businesses.

Outlook

"We are pleased with the excellent results for the quarter which are being driven by strong revenues from new and existing customers, and effective control of our cost structure," said Linda McCurdy, president and chief executive officer. "We are delivering excellent service and we have a portfolio of processing facilities ready to serve increasing numbers of national clients. This quarter, we generated an 11.9-per-cent year-over-year increase in net earnings. Looking ahead, we are focused on completing and transitioning into our new Edmonton facility and growing the business in this geographic area with the expanded capacity. We are excited about our future and confident in our ability to continue to provide value to our customers and our shareholders."

We seek Safe Harbor.