American Seafoods Announces Second Quarter Earnings Results.SEATTLE Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. -- ASG ASG Assign ASG Allen Systems Group (Naples, FL) ASG Abu Sayyaf Group (terrorist group) ASG Associated Student Government ASG Area Support Group ASG Adaptive Services Grid ASG Assistant Secretary General Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Seafoods") today announced its results for the six and three months ended June June: see month. 30, 2006. Six Months Ended June 30, 2006 Compared to the Six Months Ended June 30, 2005 For the six months ended June 30, 2006, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 5.8% to $291.5 million as compared to $275.6 million during the first six months of 2005. This increase in net sales was due primarily to higher sales volumes of pollock roe, yellowfin sole and Pacific whiting surimi su·ri·mi n. Minced, processed fish used in the preparation of imitation seafood, especially imitation shellfish. [Japanese : suru, to process, mash + mi, meat.] products, and higher sales prices for pollock block and surimi, and scallop scallop or pecten, marine bivalve mollusk. Like its close relative the oyster, the scallop has no siphons, the mantle being completely open, but it differs from other mollusks in that both mantle edges have a row of steely blue "eyes" and products. Offsetting these increases were lower sales prices for pollock roe product and lower sales volume of pollock surimi product. Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (which pursuant to the American Seafoods Credit Agreement is calculated as earnings before net interest expense, income tax benefit or provision, depreciation, amortization, unrealized foreign exchange and other derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. gains or losses, equity-based compensation, loss from debt repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan including redemption premium redemption premium See call premium. , the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of certain financing costs and goodwill and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. or gains) increased 2.3% for the six months ended June 30, 2006 to $80.8 million as compared to $79.0 million during the first six months of 2005. The increase was primarily due to higher net sales, which were partially offset by higher fuel and freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or costs and a $3.2 million increase in selling, general and administrative expenses, excluding non-cash, equity-based compensation, that was primarily associated with an increase in performance-related employee bonuses and other compensation expenses. Net income decreased $34.6 million for the six months ended June 30, 2006 to $5.8 million as compared to $40.4 million for first six months of 2005 primarily due to the $17.8 million write-off of deferred financing costs and redemption premium associated with the redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of the Company's Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes in April 2006, a $21.2 million decrease in unrealized net gains on foreign exchange and other derivatives and an increase in selling, general and administrative expenses, including a $5.1 million increase in non-cash, equity-based compensation expense. These factors were partially offset by $7.2 million of lower interest expense and a $2.1 million increase in gross profit for the period. There was a slight decrease in pollock production volume for the six months ended June 30, 2006 as compared to the first six months of 2005, primarily due to the timing of the Company's B season catch. Three Months Ended June 30, 2006 Compared to the Three Months Ended June 30, 2005 For the quarter ended June 30, 2006, net sales increased 38.0% to $170.0 million as compared to $123.2 million during the second quarter of 2005. The increase in net sales in the second quarter of 2006 as compared to 2005 was due mainly to higher sales volumes of pollock roe and yellowfin sole products and higher sales volume and prices for pollock block product. The higher sales volume of pollock roe product in the second quarter of 2006 was largely the result of sales timing differences that caused revenue for a significant amount of pollock roe product to be recognized in the month of April rather than in the first quarter of 2006. Consolidated EBITDA increased 59.6% for the quarter ended June 30, 2006 to $49.7 million as compared to $31.2 million during the second quarter of 2005. The increase was primarily due to higher net sales, which were, partially offset by higher fuel and freight costs and a $2.6 million increase in selling, general and administrative expenses, excluding non-cash, equity-based compensation, that was primarily associated with an increase in performance-related employee bonuses and other compensation. Net income decreased $6.4 million for the quarter ended June 30, 2006 to $4.2 million as compared to $10.6 million for second quarter of 2005 primarily due to the $17.8 million write-off of deferred financing costs and the redemption premium associated with the redemption of the Company's Senior Subordinated Notes, a $10.1 million decrease in unrealized net gains on foreign exchange and other derivatives and the increase in selling, general and administrative expenses. These factors were partially offset by a $23.7 million increase in gross profit and $3.7 million lower interest expense for the period. Quarterly Conference Call Information: American Seafoods will host its conference call in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the release of its second quarter financial results live on Tuesday Tuesday: see week. , August 22nd at 11:00 a.m. PT (2:00 p.m. ET). In order to participate, call 800-946-0716 or 719-457-2644 and enter access code 4332899. The call is expected to start no later than 11:15 a.m. PT. There will also be a replay of the conference call available for 30 days by dialing 888-203-1112 or 719-457-0820 and entering access code 4332899. About American Seafoods American Seafoods is a leader in the harvesting har·vest n. 1. The act or process of gathering a crop. 2. a. The crop that ripens or is gathered in a season. b. The amount or measure of the crop gathered in a season. c. , processing, preparation and supply of quality seafood seafood Edible aquatic animals excluding mammals, but including both freshwater and ocean creatures. Seafood includes bony and cartilaginous fishes, crustaceans, mollusks, edible jellyfish, sea turtles, frogs, sea urchins, and sea cucumbers. . Harvesting a variety of fish species, the Company processes seafood into an array of finished products, both on board its state-of-the-art fleet of vessels Vessels are a post-rock band from Leeds, UK. Vessels were born from the ashes of A Day Left in September 2005. In 2006 they self-released a 5 track eponymous ep, and played many gigs including the unsigned stage at Leeds Festival. and at its HACCP-approved production facilities located in both Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. and
Alabama Alabama, indigenous people of North AmericaAlabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). . The Company produces a diverse range of fillet fillet /fil·let/ (fil´et) 1. a loop, as of cord or tape, for making traction on the fetus. 2. in the nervous system, a long band of nerve fibers. fil·let n. 1. , surimi, roe and block product offerings, made from Alaska pollock There are members of the Theragra genus that are commonly referred to as pollocks. This includes the Alaska pollock or walleye pollock (Theragra chalcogramma) and the Norwegian pollock (Theragra finnmarchica). , Pacific whiting, Pacific cod, sea scallops, and U.S. farm raised catfish catfish, common name applied to members of the freshwater fish families constituting the suborder Nematognathi. The catfish is related to the sucker and the minnow, and like them has a complex set of bones forming a sensitive hearing apparatus. . Finished products are sold worldwide through an extensive global distribution and customer support network. From the ocean to the plate, American Seafoods has established a global sourcing, selling, marketing and distribution network bringing quality seafood to consumers worldwide. For more information, please visit us at www.americanseafoods.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . The words "will," "believes," "anticipates," "intends," "estimates," "expects," "projects," "plans," or similar expressions are intended to identify forward-looking statements. All statements in this press release other than statements of historical fact, including statements which address our strategy, future operations, future financial position, estimated sales, projected costs, prospects, plans and objectives of management and events or developments that the Company expects or anticipates will occur, are forward-looking statements. All forward-looking statements speak only as of the date on which they are made. They rely on a number of assumptions concerning future events and are subject to a number of risks and uncertainties, many of which are outside of the Company's control and could cause actual results to differ materially from such statements.
ASG Consolidated LLC
Financial Highlights
(Unaudited, dollars in thousands)
For the Six Months Ended
June 30,
2005 2006 Change
Statement of Operations Data:
Net sales $ 275,559 $ 291,530 5.8%
Cost of sales, including depreciation
and amortization expense of $22,120
and $21,558, respectively 190,132 200,465
Shipping & handling 17,104 20,633
Total cost of sales 207,236 221,098
Gross profit 68,323 70,432 3.1%
Gross margin 24.8% 24.2%
Selling, general and administrative
expenses 19,543 27,909
Depreciation and amortization (1) 1,596 1,598
Goodwill impairment - -
Operating income 47,184 40,925 -13.3%
Interest expense, net (28,597) (21,435)
Foreign exchange gains, net 13,777 3,359
Other derivatives gains, net 8,585 826
Write-off of deferred financing costs
and redemption premiums - (17,754)
Write-off of recapitalization
transaction costs
Other expense, net (533) (133)
Net income $ 40,416 $ 5,788 -85.7%
Consolidated EBITDA calculations:
Net income $ 40,416 $ 5,788
Interest expense, net 28,597 21,435
Income tax provision 17 6
Depreciation and amortization 23,716 23,156
Unrealized losses (gains) on
derivatives, net (14,902) 6,317
Equity-based compensation expense 1,156 6,284
Write-off of deferred financing
costs and redemption premiums - 17,754
Other 11 74
Goodwill impairment - -
Write-off of recapitalization
transaction costs - -
Consolidated EBITDA (2) $ 79,011 $ 80,814 2.3%
Consolidated EBITDA margin 28.7% 27.7%
Other Data:
Capital expenditures $ 11,132 $ 8,499
Pollock production (metric tons) 45,280 44,886
Pollock sales (metric tons) 44,631 43,040
Reconciliation of Consolidated EBITDA to cash flow
from operating activities (2):
Cash flows from operating activities $ 56,566 $ 32,556
Interest expense, net 28,597 21,435
Net change in operating assets and
liabilities 3,611 21,216
Amortization of deferred financing
costs in interest expense (2,956) (1,031)
Amortization of debt discounts (7,282) (8,144)
Unrealized losses on derivatives
included in interest expense 135 5,545
Write-off of deferred financing costs
and redemption premiums - 8,860
Other 340 377
Consolidated EBITDA $ 79,011 $ 80,814
(1) Amortization of intangibles and depreciation of other assets.
(2) Consolidated EBITDA is not a measure of operating income,
operating performance or liquidity under U.S. generally accepted
accounting principles. We include Consolidated EBITDA because we
understand it is used by some investors to determine a company's
historical ability to service indebtedness and fund ongoing
capital expenditures, and because certain covenant measures in our
note indenture and credit agreement are based upon Consolidated
EBITDA. In addition, it should be noted that companies calculate
Consolidated EBITDA differently and, therefore, Consolidated
EBITDA presented by us may not be comparable to Consolidated
EBITDA as reported by other companies.
December 31, June 30,
2005 2006
Selected Balance Sheet Data:
Cash and cash equivalents $ 8,015 $ 2,860
Accounts receivable, trade 37,758 35,751
Inventories 55,440 73,352
Property, vessels and equipment, net 171,479 157,775
Cooperative rights, other intangibles
and goodwill, net 125,187 122,629
Total assets 471,203 479,520
Total debt 595,877 578,746
ASG Consolidated LLC
Financial Highlights
(Unaudited, dollars in thousands)
For the Quarter Ended
June 30,
2005 2006 Change
Statement of Operations Data:
Net sales $123,230 $169,779 37.8%
Cost of sales, including depreciation and
amortization expense of $12,871 and
$13,975, respectively 94,912 112,899
Shipping & handling 8,580 13,401
Total cost of sales 103,492 126,300
Gross profit 19,738 43,479 120.3%
Gross margin 16.0% 25.6%
Selling, general and administrative
expenses 9,340 11,528
Depreciation and amortization (1) 765 821
Operating income 9,633 31,130 223.2%
Interest expense, net (14,158) (10,488)
Foreign exchange gains, net 12,907 1,676
Other derivatives gains (losses), net 2,425 (551)
Write-off of deferred financing costs and
redemption premiums - (17,754)
Write-off of recapitalization transaction
costs - -
Other income (expense), net (202) 159
Net income $ 10,605 $ 4,172
Consolidated EBITDA calculations:
Net income $ 10,605 $ 4,172
Interest expense, net 14,158 10,488
Income tax provision 10 12
Depreciation and amortization 13,636 14,796
Unrealized gains (losses) on
derivatives, net (7,672) 2,456
Equity-based compensation expense 422 49
Write-off of deferred financing costs
and redemption premiums - 17,754
Other 11 8
Goodwill impairment 0 0
Write-off of recapitalization
transaction costs 0 -
Consolidated EBITDA (2) $ 31,170 $ 49,735 59.6%
Consolidated EBITDA margin 25.3% 29.3%
Other Data :
Capital expenditures $ 4,401 $ 3,089
Pollock production (metric tons) 7,502 4,596
Pollock sales (metric tons) 22,873 28,537
Reconciliation of Consolidated EBITDA to
cash flow from operating activities (2):
Cash flows from operating activities $ 32,446 $ 39,926
Interest expense, net 14,158 10,488
Net change in operating assets and
liabilities (11,364) (7,896)
Amortization of deferred financing costs
in interest expense (1,469) (315)
Amortization of debt discounts (3,730) (4,171)
Unrealized losses on derivatives included
in interest expense 62 2,407
Write-off of deferred financing costs and
redemption premiums - 8,860
Other 1,067 436
Consolidated EBITDA $ 31,170 $ 49,735
(1) Amortization of intangibles and depreciation of other assets.
(2) Consolidated EBITDA is not a measure of operating income,
operating performance or liquidity under U.S. generally accepted
accounting principles. We include Consolidated EBITDA because we
understand it is used by some investors to determine a company's
historical ability to service indebtedness and fund ongoing
capital expenditures, and because certain covenant measures in our
note indenture and credit agreement are based upon Consolidated
EBITDA. In addition, it should be noted that companies calculate
Consolidated EBITDA differently and, therefore, Consolidated
EBITDA presented by us may not be comparable to Consolidated
EBITDA as reported by other companies.
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