Clearwater Seafood - Economic Impact and Strategic Partnerships
Latest Financial Results: 1st Quarter 2019
(C$ in millions)
Q1 2019
Q1 2018
Sales
$120.1
$120.1
Adjusted EBITDA
$20.0
$19.1
Leverage
4.7x
5.0x
Return on Assets
7.7%
8.0%
Commentary
Sales for the first quarter of 2019 were $120.1 million reflecting higher available supply in scallops,
crab and langoustines and favourable prices and mix in clam and lobster. These were offset by
competitive market conditions across scallop species leading to lower prices compared to first quarter
of 2018. Average foreign exchange rates realized on sales for the first quarter of 2019 had a net
positive impact on sales of $1.0 million as compared to the same period of the prior year.
Record first quarter Adjusted EBITDA of $20.0 million was driven by higher margin scallop sales,
stronger demand for lobster in China and strong langoustine sales volumes as harvest volumes
increased. Adjusted EBITDA as a % of sales improved to 16.7% in Q1 2019, from 15.9% in the prior
year. Scallop mix, supply and costs were positive following an earlier start to the harvest and strong
catch conditions.
Leverage at the end of the first quarter of 2019 was 4.7x compared to 5.0x at the end of the first
quarter of 2018. Higher EBITDA in the first quarter of 2019, as compared to the first quarter of 2018,
offset a marginal increase in net debt. Cash generated from operations was invested in inventory,
capital expenditures of $6.6 million and a $2.3 million reduction in debt. The debt reduction was offset
by the impact of the new lease accounting standard.
Return on assets declined from 8.0% in Q1 2018 to 7.7% in Q1 2019 as lower EBIT, resulting from
higher depreciation, offset a decrease in the average asset base.
2019 off to a strong start
please refer to management's discussion and analysis for related period for a fulsome analysis and commentary
Clearwater remarkable seafood, responsible choice
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