Colabor Group Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kyle McPhee - Cormark Securities - Analyst : Hello everyone, great results. First one for me, the distribution business seems to be benefiting from volume winds that are more than offsetting the head winds, but more than I thought. Were the year over year benefits of the volume within Q4 just wins from prior periods or not yet lapped, or have you also landed yet another round of new wins during Q4? If that's the case, what kind of clients or channels is that way?

Question: Kyle McPhee - Cormark Securities - Analyst : Got it. Okay. And when you got when you quote that 1.9% inflation, is that including the offset from that downward pricing hit on the reprice contract we learned about last quarter, is or is 1.9% just the pure inflation number before any impact.

Question: Kyle McPhee - Cormark Securities - Analyst : Okay, and that [red san] data that's out in markets to indicate there are some meaningful tailwinds into to Q1 2005 from the [GSE HST] break for consumers. Do you noticed any benefits for your business that align with this type of data that I'm seeing?

Question: Kyle McPhee - Cormark Securities - Analyst : Got it. Thank you. Okay, that's it for me. I'll leave it there off the line. Thank you.

Question: Michael Glen - Raymond James - Analyst : Hey, good morning. Just maybe to follow on the last question, to what degree are you seeing, any incoming inquiries for you based on your position as Quebec only distribution company and alternative to, some of the large competitors that are US based? Is that serving as any type of tailwind for your business right now?

Question: Michael Glen - Raymond James - Analyst : Okay, and then just to circle back on the contract renewal, just can you just remind us of at it was active for about five weeks in the quarter, I believe, is that accurate? And was there, I guess you don't have to quantify it, but the gross margin you reported would have been impacted by contract renewal just looking for you to confirm that.

Question: Michael Glen - Raymond James - Analyst : Okay, and, just on the cash flow statement, so the lease liability line, in the financing section, are you able to like that number continues to track below where I thought it would be, you have some updated guidance on where that number will be in 2025 and this is of course before I'm not talking about the acquisition but just for your stand for your business as it is today. Whereas at least liability payments plan will be in 2025. Unidentified Company Representative Yes, my, the, what did happen between 2023 prior years and 2024 is, that when we took the on the new lease in [Reno], it's a 20-year, lease and, as and the yeah, the accounting now is like a mortgage, so the liability goes down slower. And the the payments go to interest, so you'll see in the financing charges a higher number without without having a higher debt necessarily. And the portion in the cash flow goes to the liability is lower. Like a new mortgage. I see kind of not easy to figure out, but so the payments are there. It's just that, the allocation that is different. So some goes to financing charges and some goes to the balance sheet against the liability. So, to the cash flow it's the same goes to the same place, same line.

Question: Michael Glen - Raymond James - Analyst : Okay, perfect. That's great thank you so much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2025 / 2:30PM, GCL.TO - Q4 2024 Colabor Group Inc Earnings Call Unidentified Company Representative No problem.

Question: Frederic Tremblay - Desjardins Capital Markets - Analyst : Thank you, good morning. Just on the contract renewal, I think there were some margin announcement initiatives that you were contemplating related to that can you give us maybe an update on where you're at I realize it's early stage but just a quick update on that. Unidentified Company Representative Yes, thank you for the question. The we have implemented mitigation measures in Q4 and again to your question, its early stage, but we did what we expected or what we wanted to do as mitigation and as a reminder, the new addition will reduce the impact, as it will make it less, as a lower percentage of total sales.

Question: Frederic Tremblay - Desjardins Capital Markets - Analyst : Last question for me just on the on the salesforce, you obviously invested in the salesforce in 2024 to break into some regions in Western. Just wondering if the investments in the salesforce are largely done or is there more to do there and, yeah, just your overall clients on where your position, on that aspect.

Question: Frederic Tremblay - Desjardins Capital Markets - Analyst : Okay, that's it. Thank you.