High Liner Foods Reports Third Quarter Financial Results

LUNENBURG, NS, Nov. 12 /CNW/ – High Liner Foods Incorporated (TSX: HLF; HLF.A), today reported financial results for the quarter ended October 3, 2009. All amounts are reported in Canadian dollars unless otherwise stated.

Third quarter highlights:

  • Higher sales in both Canadian retail and food service operations;
  • Adjusted EBITDA(1) of $10.4 million;
  • Net income of $5.1 million, or fully diluted earnings per share of $0.28;
  • Overall sales decreased 3.8% to $143.7 million;
  • Net interest bearing debt decreased to 32.8% of total capitalization compared to 39.5% at the end of last year and 39.1% at the end of the third quarter a year ago;
  • Dividend declared for the fourth quarter of $0.075 cents per common and non-voting equity share; increased from $0.07 in the previous quarter.

“I am pleased with our performance, which was pretty well on par with our strongest quarter last year, pre-recession,” said Henry Demone President and Chief Executive Officer. “Our sales volume was lower, though not surprising given our price increases earlier in the year and the weakened economy. The current recession did not affect High Liner in 2008 until after the third quarter. During the third quarter of this year, temporary supply constraints on tilapia and lower sales of higher priced crab and lobster also reduced sales. Overall, our performance has been strong during what has been a difficult period for the economy. For the year-to-date, our sales are up 9.1% and our net income improved 35.0% compared to the same period last year.”

Third Quarter Financial Results

Third quarter sales decreased 3.8% to $143.7 million. Excluding the impact of a weaker Canadian dollar, which increased the value of reported U.S. sales by approximately $2.9 million, sales in domestic currency were $137.7 million compared to $146.2 million for the third quarter of 2008. Higher selling prices, which dampen volume, were implemented late in 2008 and early in 2009 to cover the increased cost of certain seafood and other commodities and to offset the weakened Canadian dollar. Sales volume measured in pounds decreased 6.9% to 41.6 million compared to 44.7 million in the third quarter of last year.

Adjusted EBITDA for the quarter was $10.4 million, compared to $10.9 million in the third quarter of 2008. Excluding the effect of converting U.S. results to Canadian dollars, in domestic currency Adjusted EBITDA for the quarter was $10.0 million compared with $10.8 million for the same quarter a year ago.

Net income for the quarter was $5.1 million, or $0.28 per diluted share, compared to $5.4 million, or $0.29 per diluted share, for the same quarter last year.

Source: High Liner Foods Inc.