Adjusted EBITDA decreased in the second quarter of 2014 by $2.6 million, or 13.5 per cent, to $16.7 million compared to $19.3 million (the American Pride Acquisition added $0.3 million in adjusted EBITDA).
Reported net income decreased in the second quarter of 2014 by $4.7 million, or 47.5 per cent, to $5.2 million (diluted earnings per share ("EPS") of $0.17) compared to $9.9 million (diluted EPS of $0.32).
Adjusted Net Income decreased in the second quarter of 2014 by $1.7 million, or 18.5 per cent, to $7.5 million (Adjusted Diluted EPS of $0.24) compared to $9.2 million (Adjusted Diluted EPS of $0.30).
Net interest-bearing debt to Adjusted EBITDA, calculated on a rolling fifty-two week basis, improved to 3.8x at the end of the second quarter of 2014 compared to 3.9x at the end of fiscal 2013.
"We've previously disclosed our strategic goals for 2014 are profitable growth, supply chain optimization and succession planning, and we are making progress on initiatives related to achieving these goals. The American Pride integration, which started after Lent, is on track to be completed by the end of this year. We have engaged outside expertise to assist with the supply chain optimization program and $20 to $25 million in annual cost savings should begin to be realised in 2015, with the full benefit being achieved in 2016," stated Mr Demone.
"We also continue to believe opportunities exist to further consolidate the frozen seafood industry in North America."
"Certain product margins may continue to be negatively impacted through the remainder of this year as high costs on certain key species continue and sales in the US foodservice sector may remain challenging, particularly as the underlying market dynamics of the US restaurant industry shift for our major US foodservice customers."
Mr Demone concluded: "However, we are committed to product innovation in our sector and are working with existing and new customers to bring innovative offerings to consumers."