Results for the first quarter of 2013 were consistent with management expectations and include sales of C$68.3 million, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of C$10.8 million versus 2012 comparative figures of C$70.9 million and C$10.9 million, respectively.
- Rolling twelve month results include adjusted EBITDA growth of 16.2% to C$72.1 million and C$8.8 million of growth in free cash flows to C$9.0 million.
- Adjusted EBITDA of C$10.8 million was stable as compared with the first quarter of 2012 as continued productivity improvements drove strong margins
- Lower sales volumes were a result of lower available opening inventory of cold water shrimp and clams due to record sales in the fourth quarter 2012. Continuing strong demand momentum for our core species in Asia, in particular China, and North America will result in higher sales as supply increases later in the year
- Management maintains strong and positive full year outlook consistent with long term growth targets including sales growth >5%; adjusted EBITDA margins >18%; leverage of approximately 3.0x; and return on assets > 12%
Free cash flow decreased by C$8.4 million to (C$14.5) million in the first quarter of 2013 as a result of a C$14.6 million investment in working capital.
The investment in working capital was higher than in the first quarter of 2012 primarily as a result of having to replenish the lower opening inventory to normal levels during the first quarter of 2013.
Clearwater's business experiences a predictable seasonal pattern in which sales, margins and adjusted EBITDA are lower in the first half of the year while investments in capital expenditures and working capital are higher resulting in lower free cash flows in the first half of the year and higher free cash flows in the second half of the year.
