Clearwater Reports Strong 2012 Annual, Fourth Quarter Results12 March 2013
CANADA - Clearwater continued to strengthen its financial position and create shareholder value in the fourth quarter of 2012 growing sales, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA1) and generating strong free cash flows.
- In 2012 Clearwater had the highest revenues and adjusted EBITDA in its history
- Annual results for 2012 include sales growth of 5.3 per cent to C$350.4 million and adjusted EBITDA growth of 18.1 per cent to C$72.2 million.
- Results for fourth quarter of 2012 include sales growth of 6.7 per cent to C$93.0 million and adjusted EBITDA1 growth of 16.7 per cent to C$18.8 million.
- Free cash flow C$17.1 million in 2012.
Clearwater Seafoods Incorporated reported its results for the annual and fourth quarter of 2012.
Clearwater reported sales of C$350.4 million and adjusted EBITDA1 of C$72.2 million versus 2011 comparative figures ofC$332.8 million and C$61.2 million representing growth rates of 5.3 per cent in sales and 18.1 per cent in adjusted EBITDA. This represents the fourth consecutive year of improved results.
For the year growth in sales and adjusted EBITDA came as a result of higher sales volumes, particularly of coldwater shrimp, as well as higher sales prices for most species.
The impact of the growth in sales on adjusted EBITDA was partially offset by a shift to lower margin species and higher procurement costs in certain species.
Fourth quarter 2012 sales were C$93.0 million and adjusted EBITDA was C$18.8 million versus 2011 comparative figures of C$87.1 million and C$16.1 million, representing growth rates of 6.7 per cent in sales and 16.7 per cent in adjusted EBITDA.
Free cash flows grew in the fourth quarter of 2012 to C$37.8 million versus C$15.9 million in 2011. For the year, free cash flows grew to C$17.1 million versus C$2.2 million in 2011.
The improvements to free cash flow in 2012 were driven by growth in adjusted EBITDA of 18.1 per cent, lower capital expenditures and a reduction in investment in working capital.
Free cash flows were used to reduce debt during the quarter. This, combined with higher adjusted EBITDA has resulted in an improvement in leverage from 3.8x at the December 31, 2011 to 2.9x as at December 31, 2012.
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