Skor reports 2010 first quarter financial results

PROFIT INCREASES AS MANAGEMENT DRIVES BOTTOM LINE GROWTH

TORONTO , Jan. 26 /CNW/ - The Skor Food Group Inc. (TSX.V: SKF)("SKOR"), an integrated food service company, announced its first quarter financial results for the period ended November 30, 2009 .

Consolidated results for the first quarter are as follows:

    
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    Fiscal 2010                             Three months ended November 30
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                                                 2010              2009
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    Revenue                                $   37,117,361    $   36,665,758
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    EBITDA *(excluding discontinued
     operations)                           $    1,038,599    $      605,907
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    Net Earnings                           $      486,677    $      153,359
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    EPS (basic)                            $         0.02    $         0.01
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    Shares (diluted)                           25,855,757        26,148,670
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    * EBITDA is a non-GAAP measure - earnings before interest, tax,
    depreciation and amortization.
    

The Company has a working capital ratio of 2:1 and working capital of $10,508,582 . In addition it also has $6 million in unused lines of credit with a major Canadian bank.

"The first quarter financial results were in line with our overall expectations and resulted from our commitment to profitably grow our food distribution and manufacturing businesses," said Vince Capobianco , President and CEO. "The Company will build on these financial results with a view to growing the Company organically and by acquisition. The Company is financially strong and has sufficient sources of internal capital to target accretive and synergistic acquisitions that fit our investment criteria."

A conference call to discuss the results will be held:

Tuesday January 26, 2010 at 1:30 pm EST

The conference call can be accessed by dialing the following numbers:

Local: 416-644-3426, North American Toll Free: 1-800-731-5319

SKOR, is a vertically integrated, full service, mid sized, wholesale food supplier to the food service and retail industries. SKOR services a wide range of multi location food service establishments, quick service restaurant chains, day care facilities, government institutions, independent food service operators, independent grocery stores as well as vending operators and convenience stores in Ontario.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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For further information: Vince Capobianco, President and CEO, [phone] ext 234, [email protected]; John Lewis, Linear Capital Corp., [phone], Toll free 1-877-954-6327, [email protected]