Clearwater sees strong 2Q
Clearwater Seafoods reported strong second quarter results, including a 7.8 percent growth in sales and 37 percent growth in EBITDA compared to the same time period in 2011.
The company’s sales for the second quarter reached CAD 85 million compared to CAD 78.8 million in the second quarter of last year, while EBITDA was CAD 16.5 million compared to 12 million during the second quarter of 2011.
The company credits the higher sales volumes to the timing of offshore coldwater shrimp landings and strong market response in China. Higher earnings are a result of higher sales prices and higher sales volumes, partially offset by a shift to lower-margin species and higher harvesting and procurement costs per pound in certain species.
For the first half of the year, sales grew by 5.3 percent to CAD 155.9 million and EBITDA increased by 24.7 percent to CAD 27.5 million.
Clearwater said both results are on target for the company’s 2012 longterm financial targets, and expects earnings to remain strong in the second half of the year.
“The company’s continuing strong earnings momentum, the CAD 450 million independent valuation of our quotas by TriNav Fisheries Consultants Inc. and the positive ratings issued by Moody's and Standard and Poors all contributed to Clearwater's ability to refinance its debt facilities on favourable terms in the second quarter, thereby providing the company with the capital structure necessary to execute our growth plans while further reducing overall leverage,” said Ian Smith, CEO. “The MSC certification of our Arctic surf clams and Nova Scotia snow crab fisheries in July 2012 further supports our leadership position in sustainable seafood and our aspiration to be the world's most extraordinary, wild seafood company.”