Thanks to elevated pricing and foreign exchange, Clearwater Seafoods adjusted earnings jumped by 83 percent in the third quarter.
With an EBITDA of CAD 38.8 million (USD 29.1 million; EUR 27.1 million), a rise of 26 percent over the same period last year, and sales ringing in at a record high of CAD 147.3 million (USD 110.5 million; EUR 103 million), a 10 percent increase over the same timespan in 2014, the Canadian company noted strong demand for its products continues to drive sales for the business.
“Strong operating cash flows in the third quarter and year to date period were offset by the timing of seasonal increases in working capital in 2015. These results are in line with management's expectations and position the company well to generate strong annual free cash flows,” explained the harvester.
What’s more, Clearwater successfully completed its acquisition of Macduff Shellfish Group Limited to the tune of CAD 94.4 million on top of seasonal working capital debt as of 30 October. “This investment strengthens Clearwater's leading global market position in complementary premium wild seafood with an immediate 20 percent expansion of supply (approximately 15 million pounds) of high quality shellfish including; scallops, langoustine, whelk and crab,” the company said.
Macduff is also positioned for growth in 2016, according to the Q3 report. As of June 2015, the shellfish company acquired an additional 4 scallop trawlers and licenses, thus bringing their fleet to 14 mid-shore scallop harvesting vessels.
Overall, Clearwater is enthused by its results in Q3.
"We are pleased with our year-to-date results for 2015 and expect that our five-year strategic plan goal of CAD 100 million in adjusted EBITDA is now within our reach – one full year ahead of our original timetable," said CEO Ian Smith.
"Strong global demand across all markets and species has been a key strength that has more than offset challenging harvest conditions in the first half of 2015. With our fourth quarter still ahead of us, exceptional market conditions and improving supply position, we remain confident in our full year outlook," Smith continued. “Looking forward, the acquisition of Macduff further strengthens our global market position by expanding our supply of premium wild shellfish by approximately 20 percent."
Clearwater reports an EBITDA of CAD 70.7 million (USD 53.1 million; EUR 49.4 million) for the year-to-date, and sales of CAD 339.4 million (USD 254.7 million; EUR 237.3 million) YTD.
