High Liner Foods is optimistic about its operating performance for the full year (Photo: High Liner Foods)

High Liner Foods Reports Strong Operating Results for Q3 2012

High Liner Foods Incorporated (Public,TSX: HLF; HLF.A), leading North American value-added frozen seafood company, has reported financial results for the thirteen and thirty-nine weeks ended September 29, 2012.

Financial and operational highlights for the third quarter and first thirty-nine weeks of 2012 include (all comparisons are relative to the third quarter and first thirty-nine weeks of 2011, unless otherwise noted):

• Sales for the third quarter increased by 35.3 per cent to CAD 218.8 million from CAD 161.7 million;
• Reported net income for the third quarter, including one-time costs of the Icelandic USA Acquisition, of CAD 2.2 million (diluted earnings per share ("EPS") of CAD 0.14) compared with CAD 6.7 million (diluted EPS of CAD 0.44); CAD 5.0 million (diluted EPS of CAD 0.32) for the first thirty-nine weeks of 2012 compared with CAD 21.2 million (diluted EPS of CAD 1.38);
• Adjusted EBITDA for the third quarter increased by 78.3 per cent to CAD 21.6 million from CAD 12.1 million; CAD 69.7 million for the first thirty-nine weeks of 2012 compared with CAD 41.3 million;
• Adjusted Net Income of CAD 7.9 million (Adjusted diluted EPS(3) of CAD 0.51) for the third quarter compared with CAD 6.3 million (Adjusted diluted EPS of CAD 0.41); CAD 27.4 million (Adjusted diluted EPS of CAD 1.78) for the first thirty-nine weeks of 2012 compared with CAD 21.7 million (Adjusted diluted EPS of CAD 1.41);
• Interest-bearing debt reduced by CAD 47.8 million in the first thirty-nine weeks of 2012;
• The integration of Icelandic USA Acquisition continues to progress ahead of schedule.

Henry Demone, president and CEO

"As we continue the process of integrating the Icelandic USA Acquisition operations with ours, we are pleased to report another strong quarter that saw sales and Adjusted EBITDA grow by 35.3 per cent and 78.3 per cent, respectively," said Henry Demone, president and CEO.

"The increases were largely due to the addition of the Icelandic USA Acquisition, which had a robust 5.9 per cent year-over-year sales growth on a pro forma basis that assumes the Icelandic USA Acquisition had been part of our operations for the same quarter in 2011. Our non-Icelandic USA sales declined by 4.8 per cent due to a variety of reasons. Overall, Adjusted EBITDA growth remained strong at 18.4 per cent on a pro forma basis. EBITDA growth was also positively affected by lower seafood input costs, which we previously forecasted would begin to show a favourable contribution to profitability in the third quarter."

"With regard to the Icelandic USA Acquisition integration, we are pleased that we have maintained our pace ahead of plan, and that High Liner is now operating under one enterprise resource planning (ERP) system. We now project synergies from the Icelandic USA acquisition of at least CAD 18 million, the high end of our original estimate of CAD 16-CAD 18 million."

"The Icelandic USA Acquisition was accretive on an adjusted basis for both the third quarter and year to date, and we continue to expect it to be accretive for the full year," said Mr. Demone. "As we have maintained an accelerated pace of integrating our U.S. operations with Icelandic USA's, we expect to benefit from the synergies earlier than anticipated and further solidify our leadership position in the North American frozen seafood food service market."

High Liner Foods Incorporated is a processor and marketer of superior quality seafood products

"Our Canadian retail operations continue to remain strong and we expect this performance to be sustained into next year. We began to see the benefits of lower seafood input costs during the third quarter, which we project to continue into the fourth, quarter and into 2013, as seafood costs are expected to remain favourable. Lower seafood costs will reduce our commodity sales as we pass on some of these lower product costs to customers. Lower commodity product costs should increase margins and profitability. All these factors considered, we are optimistic about our operating performance for the full year and beyond."

The company has made sustainability a key corporate goal, with the end objective being purchasing 100 per cent of raw materials and commodities from certified sustainably caught or farmed seafood

About High Liner Foods Incorporated

High Liner Foods Incorporated is a leading North American processor and marketer of prepared, value-added frozen seafood. High Liner's branded products are sold throughout the United States, Canada and Mexico under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Royal Sea labels, and are available in most grocery and club stores.

The Company also sells its products under the High Liner, FPI, Mirabel, Viking, Icelandic Seafood, Samband of Iceland, Seastar, and Seaside brands to restaurants and institutions, and is the major supplier of private label seafood products to North American food retailers and food service distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbols HLF and HLF.A on the Toronto Stock Exchange.

Source: High Liner Foods

Margaret E.L. Stacey
Editor Companies and Products
[email protected]
www.seafood.media

Address:	100 Battery Point - Box 910
City:	Lunenburg
State/ZIP:	NS (B0J 2C0 )
Country:	Canada
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