Clearwater reported record sales of $134.1 million and adjusted EBITDA1 of $30.9 million for the third quarter of 2014 versus 2013 comparative figures of $114.0 million and $28.9 million, reflecting growth of 17.6 per cent and 7.1 per cent in both sales and adjusted EBITDA, respectively.
The growth in both sales and adjusted EBITDA was driven by strong market demand that increased sales volumes, in particular for turbot and clams, and higher prices in scallops, shrimp and lobster as well as a $5.3 million positive impact due to a foreign exchange rate environment that had average spots rates for currencies such as the US dollar and Euro at higher levels in 2014 than the third quarter of 2013.
Margins declined 2.3 basis points in the third quarter of 2014 due to higher harvesting costs for scallops and shrimp, partially offsetting the growth in adjusted EBITDA.
Free cash flows were $6.2 million versus $11.4 million in the third quarter of 2013, a decline of $5.2 million, due to higher capital expenditures.
Year to date results
Clearwater reported year to date sales of $325.2 million and adjusted EBITDA1 of $61.5 million versus 2013 comparative figures of $277.6 million and $56.8 million, reflecting growth of 17.1 per cent and 8.4 per cent, respectively.
The growth in both sales and adjusted EBITDA was driven by strong market demand that increased sales volumes for clams, higher prices for scallops, shrimp and lobster as well as a $17.9 million positive impact due to a foreign exchange rate environment that had average spots rates for currencies such as the US dollar and Euro at higher levels in 2014 than 2013.
Free cash flows improved $6.3 million from a use in cash of $(12.6) million in 2013 to $(6.4) million in 2014 due to higher adjusted EBITDA and a $11.2 million improvement in working capital, partially offset by higher capital expenditures (net of designated borrowings) from scheduled refits and vessel conversions, and the timing of payments to minority interest partners.
