/NOT FOR DISTRIBUTION TO UNITED STATES OR FOR DISSEMINATION IN THE
HALIFAX, Nov. 1, 2013 /CNW/ - (TSX: CLR):
Initiates annual dividend of $0.10 per share, payable in quarterly
installments of $0.025 per share with the first payment to be made on
December 13, 2013 to shareholders of record as of November 29, 2013.
Communicates factors considered in determining dividend
Today, Clearwater Seafoods Incorporated ("Clearwater") announced the
initiation of an annual dividend of $0.10 per share, payable in
quarterly installments of $0.025 per share with the first quarterly
payment to be made on December 13, 2013 to shareholders of record as of
November 29, 2013.
Colin MacDonald, Chairman of the Board of Directors of Clearwater,
stated, "Our shareholders have been rewarded for investing in
Clearwater over the past few years through significant appreciation in
the value of their shares and the Board of Directors is delighted to
supplement that substantial return and express our confidence in
Clearwater's future by announcing a quarterly cash dividend."
Mr. MacDonald continued, "Central to the Board of Directors' decision to
announce a dividend was our confidence in the future and our belief
that it could be set at a level that is not only sustainable but that
provides some opportunity for growth."
Mr. MacDonald concluded "In making the determination of dividend levels,
the Board gave consideration to a number of key principles including
the expected future earnings and the amount of free cash flows that
should be retained to reinvest in the business, the assurance that all
obligations can be met with respect to existing loan agreements and the
desire to provide room for the dividend to increase in the future as
the business continues to grow and expand. The Board will review these
same factors on a periodic basis, and at least annually, when reviewing
opportunites to adjust or increase the dividend."
Global demand for seafood is outstripping supply, creating favorable
market dynamics for vertically integrated producers such as Clearwater
that have strong resource access.
Demand has been driven by growing worldwide population, shifting
consumer tastes towards healthier diets, and rising purchasing power of
middle class consumers in emerging economies.
The supply of wild seafood is limited and is expected to continue to lag
behind the growing global demand. This supply-demand imbalance has
created a market place in which purchasers of seafood are increasingly
willing to pay a premium to suppliers that can provide consistent
quality and food safety, wide diversity and reliable delivery of
premium, wild, sustainably harvested seafood.
Clearwater, like other vertically integrated seafood companies, is well
positioned to take advantage of this opportunity because of its
licenses, premium product quality, diversity of species, global sales
footprint, and year-round harvest and delivery capability.
Ian Smith, Chief Executive Officer, commented, "Strong market demand has
contributed to improvements in revenue and free cash flow, and as we
continue to invest in our business and increase our access to supply,
we expect to be able to continue to grow the business in 2014."
COMMENTARY REGARDING FORWARD-LOOKING STATEMENTS
This news release may contain "forward-looking information" as defined
in applicable Canadian securities legislation. All statements other than, statements of historical fact, included in
this release, including, without limitation, statements regarding
future plans and objectives of Clearwater, constitute forward-looking
information that involve various, known and unknown risks, uncertainties, and other
factors outside management's control. Forward-looking information is
based on a number of factors and assumptions which have been used to
develop such information but which may prove to be incorrect including,
but not limited to, total allowable catch levels, selling prices,
weather, exchange rates, fuel and other input costs. There can be no
assurance that such information will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such forward-looking information.
For additional information with respect to risk factors applicable to
Clearwater, reference should be made to Clearwater's continuous
disclosure materials filed from time to time with securities
regulators, including, but not limited to, Clearwater's Annual
Information Form. The forward-looking information contained in this
release is made as of the date of this release and Clearwater does not
undertake to update publicly or revise the forward-looking information
contained in this release, whether as a result of new information,
future events or otherwise, except as required by applicable securities
No regulatory authority has approved or disapproved the adequacy or
accuracy of this news release.
Clearwater is one of North America's largest vertically integrated
seafood companies and the largest holder of shellfish licenses and
quotas in Canada. It is recognized globally for its superior quality,
food safety, diversity of species and reliable worldwide delivery of
premium wild, eco-certified seafood, including scallops, lobster,
clams, coldwater shrimp, crab and groundfish.
Since its founding in 1976, Clearwater has invested in science, people
and technological innovation as well as resource ownership and
management to sustain and grow its seafood resource. This commitment
has allowed it to remain a leader in the global seafood market and in
sustainable seafood excellence.
SOURCE: Clearwater Seafoods Incorporated
For further information:
Robert Wight, Chief Financial Officer, Clearwater, (902) 457-2369; Tyrone Cotie, Treasurer, Clearwater, (902) 457-8181.