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, managements 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 Companys financial disclosures are in Canadian dollars unless otherwise stated.
Since assuming operational control of the Company on December 21, 2018, the Companys 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 Companys 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.
- Acastas 2018 consolidated results included revenues from continuing operations of $176.7 million compared to $173.6 million in the 2017 year. Apollos 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 Companys 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 Managements Discussion & Analysis which will provide additional detail on the Companys results from operations.
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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 Companys 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 Companys 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 Companys 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 Companys 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 Companys 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.