LUNENBURG, NS, - High Liner Foods Incorporated, a leading North American value-added frozen seafood company, today reported financial results for the thirteen and thirty-nine weeks ended September 26, 2020.
"Our strong financial performance in the third quarter is a result of continuous improvement, consistent delivery and unrelenting focus on our customers' evolving needs," said Rod Hepponstall, President and CEO of High Liner Foods. "We have enhanced our business operations and overall financial health, generating significant improvements to cash flow, profitability and leverage, strengthening our ability to navigate market challenges and deliver ongoing Adjusted EBITDA improvements. Moving forward our increased cash flow will enable us to invest further in our business, our brands and ongoing product innovation, while continuing to reduce debt and support a higher dividend."
Robert Pace, Chair of the Board of Directors, said, "High Liner Foods has risen to the occasion during a time of unprecedented challenge in the North American food industry and proven how far the business has come in a relatively short amount of time. We are raising the dividend as a result of the Company's consistent performance and the Board's increased confidence in the future outlook for the business. We would like to thank shareholders for their support during our necessary business transformation."
The Company's Board of Directors approved a quarterly dividend of CAD$0.070 per share on the Company's common shares, payable on December 15, 2020 to holders of record on December 1, 2020. The quarterly dividend of CAD$0.070 per share represents a 40.0% increase from the CAD$0.050 per share quarterly dividend paid during the third quarter of 2020 and reflects the Board's continued confidence in the Company's operations.
Key financial results, reported in U.S. dollars ("USD"), for the thirteen weeks ended September 26, 2020, or the third quarter of 2020, are as follows (unless otherwise noted, all comparisons are relative to the third quarter of 2019):
- Sales volume decreased by 5.5 million pounds, or 9.1%, to 54.7 million pounds compared to 60.2 million pounds and sales decreased by $25.5 million, or 11.6%, to $194.6 million compared to $220.1 million;
- Gross profit as a percentage of sales increased to 20.0% compared to 19.3% and gross profit decreased by $3.5 million, or 8.3%, to $38.9 million compared to $42.4 million;
- Adjusted EBITDA1 as a percentage of sales increased to 9.8% compared to 7.5% and Adjusted EBITDA increased by $2.6 million, or 15.8%, to $19.1 million compared to $16.5 million;
- Net income increased by $6.2 million, or 258.3%, to $3.8 million compared to a net loss of $2.4 million and diluted earnings per share ("EPS") increased to $0.11 compared to a loss per share of $0.07; and
- Net Debt1 to rolling twelve-month Adjusted EBITDA improved to 3.3x at September 26, 2020 compared to 3.9x at June 27, 2020 and 4.1x at the end of Fiscal 2019.
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