Mr. Ian Kidson reports
ACASTA ENTERPRISES INC. REPORTS 2017 FINANCIAL RESULTS
Acasta Enterprises Inc. has released its consolidated financial statements for
the year and quarter ended Dec. 31, 2017, management discussion and
analysis (MD&A), and annual information form (AIF). These documents,
among others, will be posted on the company's website and SEDAR.
All values in this news release and the Company's financial disclosures
are in Canadian dollars unless otherwise stated.
"Having completed the sale of Stellwagen, the Board and management
intend to continue on the path of reducing Acasta's overall indebtedness
and focusing on the consumer products businesses. The Company is also in
the process of streamlining its corporate operations with a view to
materially reducing its cost structure and thereby strengthening its
financial position," commented Ian Kidson, Interim Chief Executive
Officer of the Company.
Acasta reported its first year as an operating company, consolidating
the results of the three businesses that it acquired on January 3,
Acasta's 2017 consolidated results included revenues of $366.5
million, a net loss of $413.1 million or $4.65 per share, adjusted net
income of $8.1 million or $0.09 per share and adjusted EBITDA of
Acasta reported impairment losses totaling $440.7 million ($423.6
million net of tax) during the year ended December 31, 2017, including
goodwill and intangible asset impairments of $240.0 million related to
Stellwagen Group Limited ("Stellwagen") and a goodwill
impairment of $200.7 million related to Apollo Health and Beauty Care
As a result of the sale of Stellwagen, which closed on March 27, 2018,
Acasta significantly reduced its over-all bank indebtedness to
million and eliminated the additional
indebtedness associated with Stellwagen's on-balance sheet financings
of several aircraft through the sale of Stellwagen.
On March 27, 2018, the sale of Acasta's Stellwagen business unit closed
in exchange for:
The cancellation of 26 million Class B Shares (reducing outstanding
shares by 27.2%);
U.S. $35.0 million in cash;
The termination of the Stellwagen earn-out; and
Up to an additional U.S.$5.0 million if proceeds from the sale of
certain profit participating notes ("PPNs") issued by a
subsidiary of Stellwagen are below a specified threshold.
Our MD&A will provide additional details and will describe the results
from each of the reportable segments in our portfolio.
2017 Financial Statements and Investor Conference Call
Acasta will release its fourth quarter and year-end 2017 financial
results after market close on Monday April 2, 2018 instead of March 29,
2018 as previously announced.
Acasta's senior management will host a conference call on Tuesday, April
3, 2018 at 9:00 a.m. (E.D.T.) to discuss the Company's financial and
operating results. Please dial 1-416-406-0743 or toll-free (Canada/US)
1-800-806-5484 with passcode 1948342#. To ensure your participation,
please join approximately five minutes prior to the scheduled start of
the conference call.
The conference call will be archived on the Company's website and will be available for replay at 1-905-694-9451 or toll-free
(Canada/US) 1-800-408-3053 with passcode 8204336#, expiring on May 15,
We seek Safe Harbor.
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