Strong 2021 Q2 Results With Continued Strength in Revenue EDMONTON, AB, Aug. 5, 2021 /CNW/ - K-Bro Linen Inc. ("K-Bro" or the "Corporation") today announces its 2021 Q2 financial and operating results.
2021 Financial and Operating Highlights
- Consolidated healthcare revenue for Q2 2021 increased by 21.7% compared to Q2 2020.
- Consolidated hospitality revenue for Q2 2021 increased by 312.2% compared to Q2 2020.
- EBITDA increased in the second quarter to $12.2 million compared to $10.1 million over the comparable 2020 period.
- EBITDA margin decreased to 23.2% in the current year from 26.8% over the comparable 2020 period.
- On a consolidated basis excluding IFRS 16 Leases ("IFRS 16") for the three months ended June 30, 2021 the Corporation recorded adjusted EBITDA of $10.0 million and adjusted net earnings of $3.5 million in the second quarter of 2021. This is an increase over the comparable 2020 period where adjusted EBITDA was $7.6 million and adjusted net earnings was $1.3 million.
- Net earnings in the second quarter of 2021 increased by $1.8 million to $3.4 million compared to $1.6 million in the comparative period of 2020, and as a percentage of revenue increased by 2.2% to 6.5%.
- Adjusted EBITDA margin decreased to 18.9% in the current year from 20.1% over the comparable 2020 period.
- During the second quarter, K-Bro declared dividends of $0.300 per common share and distributable cash was $0.713 per common share on a fully diluted basis.
Linda McCurdy, President & CEO of K-Bro commented, "The COVID-19 pandemic continues to be a challenge to navigate, however, I am pleased with our second quarter results of 2021, with adjusted EBITDA of $10.0 million and adjusted EBITDA margin of 18.9%. Healthcare revenues for Q2 2021 saw increases of approximately 21.7% on a year-over-year basis due to increased customer demand, conversion to reusable products, new and short-term customers and price increases. Hospitality remains subdued compared to previous years, but we are experiencing continuing improvements in customer activity and expect this trend to follow throughout 2021 as restrictions continue to be eased with vaccine rollouts.
"In other developments, we are very pleased to have the opportunity to expand our long-term relationship with Alberta Health Services with the signing of a new 11-year agreement to provide laundry services to the province of Alberta. We began processing healthcare volume in Alberta in the 1980s, and we have worked closely and collaboratively with AHS over the past 30 years to earn their confidence and trust. We are happy that we will continue to provide service for all of our existing customers in Alberta while also being awarded new healthcare volume." concluded McCurdy.
https://www.newswire.ca/news-releases/k-bro-delivers-strong-2021-q2-results-with-continued-strength-in-healthcare-revenue-836362896.html