Price increases boost Clearwater's Q3 results

Clearwater Seafoods Limited Partnership reported its third-quarter results for 2010 today. The results showed increased quarterly and year-to-date EBITDA, thanks in part to a smooth execution of planned price increases by the Bedford, N.S.-based seafood distributor.

Chief executive officer Ian Smith commented on the successful execution of the company's pricing strategy, along with its cost savings and customer demand for eco-labeled seafood, stating "I believe Clearwater is poised to continue to deliver improved operating margins and earnings performance through the balance of 2010 and into 2011."

Clearwater announced third-quarter EBITDA of $17.4 million on sales of $85.4 million versus $12 million and $74.5 million for the same period in 2009. The company said the 45% increase in EBITDA in Q3 of 2010 was due to strong sales volumes and increased selling prices, as well as lower costs.

Year-to-date, Clearwater reported EBITDA of $31 million on sales of $213.3 million versus $30 million and $215.7 million in 2009. This 3% year-to-date EBITDA increase was attributed to the same factors as the quarterly EBITDA increase.

Other key figures released today: third-quarter sales were $85.4 million versus $74.5 million in the same period in 2009. And year-to-date sales were $213.3 million versus $215.7 in 2009. Third-quarter sales volumes were up 2% from 2009 and year-to-date volumes were up 3%. Strong demand for core products allowed management to execute planned price increases in the majority of species including scallops, clams and cooked and peeled shrimp.