Mr. Ian Kidson reports
ACASTA ENTERPRISES REPORTS SECOND QUARTER RESULTS
Acasta Enterprises Inc. has released its consolidated financial results for the quarter ended
June 30, 2018, and has provided the following corporate update.
Financial and operating highlights:
Acasta's results from continuing operations for the three-month period
ended June 30, 2018, included revenues of $44.1-million, a net loss of
$96.9-million or $1.49 per share (basic and diluted), an adjusted net
loss of $17.6-million or 27 cents per share (basic and diluted), and
adjusted EBITDA (net income (loss) as recorded in the unaudited condensed consolidated interim statements of income (loss) and comprehensive income (loss) for the exclusion of certain other income and expense items determined in accordance with IFRS, being the calculation for adjusted net income (loss) and then further adjusting for finance costs, current and deferred income tax, depreciation and amortization expenses, foreign exchange, and impairment charges) of ($9.8-million) compared with revenues of $43.4-million, a net loss of $500,000 or one cent per share (basic and
diluted), adjusted net loss of $2.2-million or two cents per share (basic
and diluted), and adjusted EBITDA of $6.4-million for the three-month
period ended June 30, 2017.
On June 1, 2018, the company sold 100 per cent of its shares held in JemPak
Corp. at a purchase price of $118.0-million. Net cash proceeds were used to reduce debt outstanding and
pay fees and accrued interest to lenders.
On May 15, 2018, Acasta monetized its interest in the Stelloan profit
participating notes (PPNs) for net proceeds of $25.8-million (U.S.). These proceeds exclude the additional $5.0-million (U.S.) in
downside protection due from the purchaser of Stellwagen pursuant to
the sale agreement.
Proceeds from the sales of JemPak, Stellwagen and the monetization of
the PPNs were primarily used to repay debt. As a result, Acasta has
effectively reduced its total indebtedness by approximately $911.3-million from $983.9-million at Dec. 31, 2017, to $72.6-million at
June 30, 2018.
Second quarter 2018 results conference call
Acasta's senior management will host a conference call on Aug.
10, 2018, at 9 a.m. EDT to discuss the company's financial and
operating results. Please dial 1-416-340-2217 or toll-free
(Canada/United States) 1-800-806-5484 with passcode 2398339 followed by the number sign. To ensure your
participation, please join approximately five minutes prior to the
scheduled start of the conference call.
The conference call will be available for replay at 1-905-694-9451 or
toll-free (Canada/United States) 1-800-408-3053 with passcode 4939925 followed by the number sign, expiring
on Sept. 14, 2018.
We seek Safe Harbor.
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