All year long, High Liner Foods’ financial reports have been dominated by the company’s acquisition of Icelandic USA, and the Q3 report shows the merger cut back on net income compared to 2011, but also caused a boost in sales.
"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," said Henry Demone, president and CEO.
Sales for the Canadian frozen food company’s third quarter increased by 35.3 percent to CAD 218.8 million (USD 218.4 million, EUR 171.9 million), compared to CAD 161.7 million (USD 161.4 million, EUR 127 million) in Q3 2011.
The company’s Q3 net income, adding in costs related to the acquisition, stands at CAD 2.2 million (USD 2.2 million, EUR 1.7 million) compared with 2011’s CAD 6.7 million (USD 6.7 million, EUR 5.3 million). Year-to-date numbers were down too, at CAD 5.0 million (USD 5 million, EUR 4 million) compared with CAD 21.2 million (USD 21.2 million, EUR 16.7 million) at this time last year.
Along with the acquisition expenses, the company attributed the lower net income to increased stock compensation expenses in the third quarter. Excluding the expenses, the company’s adjusted net income for Q3 is CAD 7.9 million (USD 7.9 million, EUR 6.2 million) compared with CAD 6.3 million (USD 6.3 million, EUR 4.9 million) for the same quarter in 2011, and year-to-date is CAD 27.4 million (USD 27.3 million, EUR 21.5 million) compared with CAD 21.7 million (USD 21.6 million, EUR 17 million) in 2011.
Adjusted earnings for the third quarter increased by 78.3 percent to CAD 21.6 million (USD 21.6 million, EUR 17 million) compared to CAD 12.1 million in Q3 2011. Year-to-date earnings stand at CAD 69.7 million (USD 69.5 million, EUR 54.8 million) compared with CAD 41.3 million (USD 41.2 million, EUR 32.5 million) at this time in 2011. The company attributed the increases to higher sales volumes from the acquisition, and “lower seafood and other input costs.”
