/NOT FOR DISTRIBUTION TO UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES/
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 laws.
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.