RECORD SALES FOR CLEARWATER

Record sales for Clearwater. Canadian based international seafood company, Clearwater, has achieved record year-to-date sales of $449.2 million, with year-over-year adjusted EBITDA growth at 5.6%.

Sales for third quarter and year-to-date grew 6.7% and 3.9% respectively, as compared to the same periods of 2018. Strong harvest conditions, landings and available supply in scallops, clam and langoustines were partially offset by competitive market conditions for scallops, particularly in smaller sizes and frozen-at-sea shrimp.

In a statement, Clearwater said outlook for the rest of the year looked good, with growth driven by the strong harvest conditions and improved access to supply for procured species along with continued margin expansion and cost control.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for third quarter and year-to-date was $34.5 million and $84.8 million respectively, as compared to $30.7 million and $80.3 million in 2018. Gross margin as a percentage of sales increased in the third quarter and year-to-date due to strong harvest conditions and favourable mix for clam and scallops. Steady market demand for lobster was partially offset by increased competition in key markets. Overall, access to supply and customer demand in procured species remained strong as compared to the prior year.

Strong sales growth continued in Asia and Europe with year-to-date sales up 9.0% in Asia and third quarter sales up 16.3% in Europe.

Average foreign exchange rates realised on sales had a net negative impact on sales of $0.8 million in the third quarter and a net positive impact of $1.2 million year-to-date, as compared to the same periods of the prior year.