Clearwater reported second quarter 2013 sales of $95.4 million and adjusted EBITDA1 of $17.0 million versus 2012 comparative figures of $85.0 million and $16.7 million. Free cash flows1 in the second quarter of 2013 were ($10.9) million versus ($27.3) million in the second quarter of 2012.
Adjusted EBITDA for the second quarter of 2013 increased two per cent as compared with the second quarter of 2012 due to a strong and growing market demand for Clearwater's products which is evidenced in top line growth, partially offset by higher clam and shrimp harvest costs incurred due to weather related harvest disruptions during the first quarter and early in the second quarter.
The net use of cash improved by $16.5 million to $10.9 million in the second quarter of 2013 as compared to the second quarter of 2012 as a result of a $4.9 million reduction in the investment in working capital, less cash, other income and expense items, lower payments on long-term debt and lower payments to minority partners. The larger investment in working capital in 2012 was due to higher inventory that were incurred due to strong catch rates.
For the second quarter of 2013, excluding non-operational items of $7.7 million, earnings improved by $0.6 million, primarily due to lower interest expense. Non-operational items for the second quarter included refinancing and debt settlement costs, non-cash unrealised foreign exchange losses on foreign exchange contracts from the strengthening of the US dollar and Euro against the Canadian dollar.
In addition, realised foreign exchange losses from the translation of the US dollar denominated debt, that settled June 2013, contributed to a non-operational loss in earnings for the second quarter. Refer to second quarter earnings within the Management Discussion and Analysis for further information.
