K-Bro Releases Inaugural Sustainability Report

EDMONTON, AB, Dec. 20, 2023 /CNW/ - K-Bro Linen Inc. ("K-Bro" or the "Corporation") (TSX: KBL) today released its inaugural sustainability report ("Sustainability Report") outlining the Corporation's strategy related to Environmental, Social and Governance ("ESG") processes and providing a foundational framework to move forward on future objectives and initiatives.

The Sustainability Report highlights K-Bro's long-term strategy and focuses on three pillars:

• People: Foster a customer-centric culture, take care of people, embrace diversity, and ensure K-Bro is a great place to work.
• Partners: Be dependable, exemplify responsible business practices, support local communities, and anticipate evolving trends.
• Planet: Operate responsibly, prioritize energy efficiency, embrace best management practices, and support environmental stewardship across the supply chain.

"I am pleased to share our inaugural report as the latest step in our ESG program. This report highlights our continuous efforts to grow our business sustainably. We intend to publish reports annually to outline future goals and provide updates on our initiatives and progress," said Linda McCurdy, President and Chief Executive Officer at K-Bro.

"Putting people first, being dependable partners and embracing environmental stewardship have always been part of our culture. People, Partners, and Planet are terms that are significant to our team and form the basis of our pillars to help us engage with stakeholders around sustainability."

"We are proud of our seven-decade history of responsible, innovative growth. While delivering industry-leading service, we have embraced our responsibility to society. We prioritize customer and employee relationships, environmental stewardship, and creating positive impacts where we do business. We are excited to share our long-term strategy, as we contribute to progress in global sustainability efforts."

K-Bro's Sustainability Report is available on its website at:

 https://www.k-brolinen.com/company/sustainability-report/

CORPORATE PROFILE

K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts.  K-Bro currently operates ten processing facilities and two distribution centres under three distinctive brands, including K-Bro Linen Systems Inc., Buanderie HMR and Les Buanderies Dextraze, in ten Canadian cities: Québec City, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria.

Fishers, acquired by K-Bro in 2017, was established in 1900 and is an operator of laundry and linen processing facilities in Scotland.  Fishers provides linen rental, workwear hire and cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceutical sectors. Fishers' client base includes major hotel chains and prestigious venues across Scotland and the North East of England. The company operates five sites with facilities in Prestonhall, Perth, Newcastle, Livingston, and Coatbridge.

Additional information regarding the Corporation including required securities filings are available on our website at www.k-brolinen.com and on the Canadian Securities Administrators' website at www.sedar.com; the System for Electronic Document Analysis and Retrieval ("SEDAR").

K-Bro est le plus important propriétaire et exploitant de buanderies au Canada. K-Bro fournit une gamme étendue de services de buanderie aux établissements de soins de santé, hôtels et autres clients commerciaux. K-Bro exploite actuellement dix usines et deux centres de distribution sous trois entités distinctes, incluant K-Bro Linen Systems Inc., Buanderie HMR et Les Buanderies Dextraze, dans dix villes canadiennes: Québec, Montréal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver et Victoria.

Vous pouvez obtenir des renseignements supplémentaires sur la Société, y compris les documents déposés auprès des autorités de réglementation, sur notre site Web, au www.k-brolinen.com et sur le site Web des autorités canadiennes en valeurs mobilières au www.sedar.com, via le Système électronique de données, d'analyse et de recherche (« SEDAR »).

FORWARD LOOKING STATEMENTS

This news release contains forward-looking information that represents internal expectations, estimates or beliefs concerning, among other things, future activities or future operating results and various components thereof. The use of any of the words "anticipate", "continue", "expect", "may", "will", "project", "should", "believe", and similar expressions suggesting future outcomes or events are intended to identify forward-looking information.  Statements regarding such forward-looking information reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on management's estimates and assumptions that are subject to risks and uncertainties, which could cause K-Bro's actual performance and financial results in future periods to differ materially from the forward-looking information contained in this news release.  These risks and uncertainties include, among other things: (i) risks associated with acquisitions, including (a) the possibility of undisclosed material liabilities, disputes and contingencies, (b)  challenges or delays in integrating the targets (c) the diversion of management's time and focus from other business concerns, and (d) the use of resources that may be needed in other parts of our business; (ii) K-Bro's competitive environment; (iii) utility costs, minimum wage legislation and labour costs; (iv) K-Bro's dependence on long-term contracts with the associated renewal risk and the risks associated with maintaining short term contracts which are characteristic of the Villeray business ; (v) increased capital expenditure requirements, including any upgrades to the Villeray facilities and increased interest expense associated with drawdowns under K-Bro's credit facility to satisfy the Villeray purchase price and anticipated capital expenditures; (vi) reliance on key personnel; (vii) changing trends in government outsourcing; (viii) changes or proposed changes to minimum wage laws in Ontario, British Columbia, Alberta, and the United Kingdom, which could have an adverse effect on expenses in respect of employees situated in those jurisdictions. While a portion of such expenses may be passed on to or be recoverable from customers, there can be no assurances that that will occur and (viii) the availability and terms of future financing. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include: (i) volumes and pricing assumptions; (ii) expected impact of labour cost initiatives; and (iii) frequency of one-time costs impacting quarterly and annual financial results; and (iv) the level of capital expenditures. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements.  Certain statements regarding forward-looking information included in this news release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this news release. Forward looking information included in this news release includes, without limitation, the terms and conditions of the Acquisition and the Amended Credit Facility and the expected revenues, earnings, growth opportunities following the closing of the Acquisition and statements with respect to future expectations on margins and volume growth.

All forward-looking information in this news release is qualified by these cautionary statements.  Forward-looking information in this news release is presented only as of the date made. Except as required by law, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

SOURCE K-Bro Linen Inc.

Linda McCurdy, President & Chief Executive Officer; Kristie Plaquin, Chief Financial Officer, K-Bro Linen Inc. (TSX: KBL), Phone: [phone], Email: [email protected], Web: www.k-brolinen.com