High Liner Foods reports 3Q Financial results
High Liner Foods Incorporated, a leading North American value-added frozen seafood company, reported financial results for the thirteen week period ended October 2, 2010. All amounts are reported in Canadian dollars, reports http://www.megafishnet.com/ with reference to High Liner Foods.
Financial and operational highlights for the quarter include (all percentage changes are relative to the third quarter of 2009):
-- Adjusted EBITDA increased 19.4 % to $12.4 million;
-- Net income increased 20.5% to $6.2 million, or $0.41 per share,
compared to $5.1 million, or $0.28 per share;
-- Sales for the quarter were $144.3 million, an increase of 0.4%
due to the stronger Canadian dollar;
-- Sales in pounds increased 3.6% to 43.1 million compared to 41.6
million during the third quarter of 2009.
"High Liner's third quarter performance was strong and built on the momentum generated during the first and second quarters," said Henry Demone, president and CEO, High Liner Foods Incorporated. "The apparent improvement in consumer confidence in the U.S. and our ability to manage costs and leverage our deep-rooted relationships with North America's leading retail and foodservice customers all contributed to strong sales, EBITDA, net income and EPS during the period."
Approximately half of the Company's operations and assets, and more than 50% of its liabilities, are denominated in U.S. dollars. As such, foreign currency fluctuations affect the reported values of individual lines on the Company's balance sheet and income statement. When the Canadian dollar strengthens, the reported values decrease and the opposite occurs when the Canadians dollar weakens.
Sales for the quarter increased to $144.3 million from $143.7 million compared to the same quarter last year, with the strong Canadian dollar decreasing the value of reported sales by approximately $3.4 million, or 2.4%. Sales in domestic currency were $141.6 million compared with $137.7 million during the same period in 2009. Sales in pounds rose 3.6% to 43.1 million pounds compared to the previous year. The increase in sales during the quarter was primarily attributable to a rise in sales volumes.
Adjusted EBITDA for the quarter increased to $12.4 million from $10.4 million for the third quarter of 2009. In domestic currency, Adjusted EBITDA increased to $12.2 million compared with $10.0 million in the third quarter of 2009. The increases were due to higher sales volumes combined with lower input costs.
Net income for the quarter increased to $6.2 million, or $0.41 per share, from $5.1 million, or $0.28 per share during the third quarter of 2009. Earnings per share rose as a result of the retraction of non-voting equity shares in second quarter of 2010 and improved net income.
Today, the Board of Directors of the Company resolved to pay a quarterly dividend in the amount of $0.085 per Common and Non-Voting Equity Share payable on December 15, 2010 to shareholders of record on December 1, 2010.
"High Liner is positioned for growth based on the strength of our balance sheet, higher sales volumes and controlled inventory levels," added Mr. Demone. "The outlook for many of the key species on which High Liner depends is the most positive we have seen in 20 years. In spite of this increased supply, we are seeing cost increases from the lows experienced in 2009. This increase is driven by an improving economy in traditional markets as well as new demand from emerging markets. Longer-term, we are preparing for higher seafood and other input costs. To offset these cost increases - which may result in reduced sales volumes as they are absorbed by both the Company and our customers - we are exploring ways of streamlining efficiencies throughout the Company. Additionally, we remain focused on executing our strategic goals of continued profitability and investing in the sustainability of our industry."