American Seafoods Releases Fourth Quarter and 2005 Year End 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: and its wholly-owned subsidiary 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 Group (together, "American Seafoods") today announced their results for the fourth quarter and year ended December December: see month. 31, 2005. American Seafoods Group and its subsidiaries conduct substantially all the operations of American Seafoods. As a result, there are only limited differences between the consolidated financial results of the two companies, which are noted herein. Year Ended December 31, 2005 Compared to the Year Ended December 31, 2004 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 for the year ended December 31, 2005, increased $52.3 million, or 11.3%, to $514.0 million as compared to $461.7 million for the same prior year period. At-sea processing sales increased as a result of higher sales prices for 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.] and block products, as well as higher sales volumes of Pacific whiting and yellowfin sole products. Land-based processing sales increased primarily due to higher sales prices for our secondary processed block-cut products 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. Gross profit for the year ended December 31, 2005, increased $13.7 million, or 15.4%, to $102.6 million as compared to $88.9 million for the same prior year period. Gross margin of 20.0% for 2005 increased over the same prior year period gross margin of 19.3%, due primarily to the revenue factors described above, which is partially offset by increases in 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 of our at-sea processing segment and higher production costs in our land-based processing segment. 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 Group's 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, 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 and related write-offs, equity-based compensation, 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) for the year ended December 31, 2005, increased $8.4 million, or 7.7%, to $118.0 million as compared to $109.6 million for the same prior year period. The increase in Consolidated EBITDA was primarily due to the operational factors discussed above, partially offset by higher general and administrative expenses consisting primarily of higher employee bonus, retirement, corporate transportation and professional fee costs. Net income for ASG Consolidated for the year ended December 31, 2005, increased $53.7 million to $22.2 million as compared to a net loss of $(31.5) million for the same prior year period for reasons discussed above and due to the absence in 2005 of write-offs of goodwill related to the 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. business and recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). related to the cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. income deposit securities (IDS) offering incurred in 2004. Additionally, during 2005 there was a net increase in gains on foreign exchange and other derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts. These increases are partially offset by interest expense related to the Senior Discount Notes, which were not outstanding during the first three quarters of 2004, and general increases in interest rates on our variable rate debt and the write-off of deferred financing costs related to the refinancing Refinancing An extension and/or increase in amount of existing debt. of our senior credit agreement during 2005. Net income for American Seafoods Group for the year ended December 31, 2005, was $37.9 million. The $15.7 million difference in net income between the two companies is comprised substantially of interest expense and amortization of deferred financing costs related to ASG Consolidated's Senior Discount Notes. Three Months Ended December 31, 2005 Compared to the Three Months Ended December 31, 2004 Net sales for the three months ended December 31, 2005, increased $30.1 million, or 28.3%, to $136.6 million as compared to $106.5 million during the same prior year period due mainly to higher prices for surimi and block products and higher volumes of Pacific whiting surimi and block products. Land-based processing sales increased slightly for the fourth quarter of 2005 primarily due to higher sales prices generated from our secondary processed block-cut products and our scallop products. Consolidated EBITDA (as defined above) for the three months ended December 31, 2005, increased $4.2 million, or 24.4%, to $21.4 million as compared to $17.2 million for the same prior year period primarily due to the increase in revenue and the operational factors discussed above. This increase was partially offset by higher general and administrative expenses consisting primarily of higher employee bonus, retirement, corporate transportation and professional fee costs. Net loss for ASG Consolidated for the three months ended December 31, 2005, decreased $16.0 million to $(24.3) million as compared to a loss of $(40.3) million for the same prior year period for reasons discussed above and due to a net increase in gains on foreign exchange and other derivative contracts. These increases are partially offset by general increases in interest rates on our variable rate debt and the write off of deferred financing costs related to the refinancing of our senior credit agreement during the fourth quarter of 2005. Net loss for American Seafoods Group for the three months ended December 31, 2005, was $(20.1) million. The $4.2 million difference in net loss between the two companies is comprised primarily of interest expense and amortization of deferred financing costs related to ASG Consolidated's Senior Discount Notes. 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 2005 annual results live on Thursday Thursday: see week. , April 13th at 10:00 am PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT (1:00 pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). In order to participate, call 888-578-6632 and enter access code 6048335. We expect the call to start no later than 10:15 am PDT. There will also be a replay of the conference call available for 30 days by dialing 888-203-1112 and entering access code 6048335. 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. 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 Twelve
Months Ended
December 31,
------------------
2004 2005 Change
-------- -------- ------
Statement of Operations Data:
Net sales $461,667 $514,002 11.3%
Cost of sales, including depreciation
expense of $42,960 and $44,592,
respectively 340,505 375,976
Shipping & Handling 32,246 35,390
-------- --------
Total Cost of Sales 372,751 411,366
-------- --------
Gross profit 88,916 102,636 15.4%
Gross margin 19.3% 20.0%
Selling, general and administrative
expenses 35,958 43,741
Depreciation and amortization (1) 3,112 3,270
Goodwill impairment 7,171 -
-------- --------
Operating income 42,675 55,625 30.3%
Interest expense, net (41,865) (57,321)
Foreign exchange gains (losses), net (5,816) 23,792
Other derivatives gains (losses), net (7,098) 13,092
Loss from debt repayment and related
write-offs - (10,903)
Write off of recapitalization
transaction costs (19,264) -
Other expense, net (137) (2,116)
-------- --------
Net income (loss) $(31,505) $ 22,169 170.4%
======== ========
Consolidated EBITDA calculations:
Net income (loss) $(31,505) $ 22,169
Interest expense, net 41,865 57,321
Income tax provision 31 53
Depreciation and amortization 46,072 47,862
Unrealized losses (gains) on
derivatives, net 23,790 (24,583)
Equity-based compensation expense 2,931 3,481
Other 238 824
Goodwill impairment 7,171 -
Loss from debt repayment and related
write-offs - 10,903
Write-off of recapitalization
transaction costs 19,000 -
-------- --------
Consolidated EBITDA (2) $109,593 $118,030 7.7%
======== ========
Consolidated EBITDA margin 23.7% 23.0%
Other Data:
Capital expenditures $ 13,390 $ 16,220
Pollock production (metric tons) 90,474 94,529
Pollock sales (metric tons) 96,522 96,411
Reconciliation of Consolidated EBITDA to cash flow
from operating activities (2):
Cash flows from operating activities $ 68,733 $ 74,154
Interest expense, net 41,865 57,321
Net change in operating assets and
liabilities 6,832 6,925
Amortization of deferred financing
costs in interest expense (5,311) (5,118)
Amortization of debt discounts (2,832) (15,106)
Other 306 (146)
-------- --------
Consolidated EBITDA $109,593 $118,030
======== ========
(1) Amortization of intangibles and depreciation of other assets.
(2) Consolidated EBITDA is not a measure of operating income,
operating performance or liquidity under 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,
------------------
2004 2005
-------- --------
Selected Balance Sheet Data:
Cash and cash equivalents $ 1,960 $ 8,015
Accounts receivable, trade 38,042 37,758
Inventories 50,647 55,440
Property, vessels and equipment, net 198,340 171,479
Cooperative rights, other intangibles
and goodwill, net 120,713 125,187
Total assets 464,479 471,203
Total debt 608,805 595,877
American Seafoods Group LLC
Financial Highlights
(Unaudited, dollars in thousands)
For the Twelve
Months Ended
December 31,
------------------
2004 2005 Change
-------- -------- ------
Statement of Operations Data:
Net sales $461,667 $514,002 11.3%
Cost of sales, including depreciation
expense of $42,960 and $44,592,
respectively 340,505 375,976
Shipping & Handling 32,246 35,390
-------- --------
Total Cost of Sales 372,751 411,366
-------- --------
Gross profit 88,916 102,636 15.4%
Gross margin 19.3% 20.0%
Selling, general and administrative
expenses 35,958 43,706
Depreciation and amortization (1) 3,112 3,270
Goodwill impairment 7,171 -
-------- --------
Operating income 42,675 55,660 30.4%
Interest expense, net (38,997) (41,660)
Foreign exchange gains (losses), net (5,816) 23,792
Other derivatives gains (losses), net (7,098) 13,092
Loss from debt repayment and related
write-offs - (10,903)
Write off of recapitalization
transaction costs (19,264) -
Other expense, net (137) (2,116)
-------- --------
Net income (loss) $(28,637) $ 37,865 232.2%
======== ========
Consolidated EBITDA calculations:
Net income (loss) $(28,637) $ 37,865
Interest expense, net 38,997 41,660
Income tax provision 31 53
Depreciation and amortization 46,072 47,862
Unrealized losses (gains) on
derivatives, net 23,790 (24,583)
Equity-based compensation expense 2,931 3,481
Other 238 822
Goodwill impairment 7,171 -
Loss from debt repayment and related
write-offs - 10,903
Write off of recapitalization
transaction costs 19,000 -
-------- --------
Consolidated EBITDA (2) $109,593 $118,063 7.7%
======== ========
Consolidated EBITDA margin 23.7% 23.0%
Other Data:
Capital expenditures $ 13,390 $ 16,220
Pollock production (metric tons) 90,474 94,529
Pollock sales (metric tons) 96,522 96,411
Reconciliation of Consolidated EBITDA to cash flow from
operating activities (2):
Cash flows from operating activities $ 68,733 $ 74,172
Interest expense, net 38,997 41,660
Net change in operating assets and
liabilities 6,832 6,944
Amortization of deferred financing
costs in interest expense (5,275) (4,564)
Other 306 (149)
-------- --------
Consolidated EBITDA $109,593 $118,063
======== ========
(1) Amortization of intangibles and depreciation of other assets.
(2) Consolidated EBITDA is not a measure of operating income,
operating performance or liquidity under 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,
------------------
2004 2005
-------- --------
Selected Balance Sheet Data:
Cash and cash equivalents $ 1,123 $ 7,779
Accounts receivable, trade 38,042 37,758
Inventories 50,647 55,440
Property, vessels and equipment, net 198,340 171,479
Cooperative rights, other intangibles
and goodwill, net 120,713 125,187
Total assets 459,418 466,714
Total debt 481,122 453,088
ASG Consolidated LLC
Financial Highlights
(Unaudited, dollars in thousands)
For the Quarter Ended
December 31,
------------------
2004 2005 Change
-------- -------- ------
Statement of Operations Data:
Net sales $106,492 $136,646 28.3%
Cost of sales, including depreciation
expense of $17,004 and $17,186,
respectively 94,544 114,657
Shipping & Handling 8,190 10,471
Total Cost of Sales 102,734 125,128
-------- --------
Gross profit 3,758 11,518 206.5%
-------- --------
Gross margin 3.5% 8.4%
Selling, general and administration
expenses 14,424 13,819
Depreciation and amortization (1) 789 901
-------- --------
Operating loss (11,455) (3,202) 72.0%
Interest expense, net (13,123) (14,154)
Foreign exchange gains (losses), net (9,578) 5,075
Other derivatives gains (losses), net (5,936) 8
Loss from debt repayment and related
write-offs - (10,903)
Write off of recapitalization
transaction costs (316) -
Other income (expense), net 112 (1,124)
-------- --------
Net loss $(40,296) $(24,300)
======== ========
Consolidated EBITDA calculations:
Net loss $(40,296) $(24,300)
Interest expense, net 13,123 14,154
Income tax provision (1) 23
Depreciation and amortization 17,793 18,087
Unrealized (gains) losses on
derivatives, net 20,008 (995)
Equity-based compensation expense 6,265 2,485
Other 225 1,049
Goodwill impairment 0 0
Loss from debt repayment and related
write-offs - 10,903
Write off of recapitalization
transaction costs 52 -
-------- --------
Consolidated EBITDA (2) $ 17,169 $ 21,406 24.7%
======== ========
Consolidated EBITDA margin 16.1% 15.7%
Other Data :
Capital expenditures $ 2,040 $ 3,051
Pollock production (metric tons) 1,319 1,639
Pollock sales (metric tons) 22,243 30,770
Reconciliation of Consolidated EBITDA to
cash flow from operating activities (2):
Cash flows from operating activities $ 25,697 $ 39,296
Interest expense, net 13,123 14,154
Net change in operating assets and
liabilities (17,658) (27,287)
Amortization of deferred financing
costs in interest expense (1,352) (689)
Amortization of debt discounts (2,832) (3,986)
Other 191 (82)
-------- --------
Consolidated EBITDA $ 17,169 $ 21,406
======== ========
(1) Amortization of intangibles and depreciation of other assets.
(2) Consolidated EBITDA is not a measure of operating income,
operating performance or liquidity under 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.
American Seafoods Group LLC
Financial Highlights
(Unaudited, dollars in thousands)
For the Quarter Ended
December 31,
------------------
2004 2005 Change
-------- -------- ------
Statement of Operations Data:
Net sales $106,492 $136,646 28.3%
Cost of sales, including depreciation
expense of $17,004 and $17,186,
respectively 94,544 114,657
Shipping & Handling 8,190 10,471
Total Cost of Sales 102,734 125,128
-------- --------
Gross profit 3,758 11,518 206.5%
-------- --------
Gross margin 3.5% 8.4%
Selling, general and administration
expenses 14,424 13,789
Depreciation and amortization (1) 789 901
-------- --------
Operating loss (11,455) (3,172) 72.3%
Interest expense, net (10,255) (10,028)
Foreign exchange gains (losses), net (9,578) 5,075
Other derivatives gains (losses), net (5,936) 8
Loss from debt repayment and related
write-offs - (10,903)
Write off of recapitalization
transaction costs (316) -
Other income (expense), net 112 (1,123)
-------- --------
Net loss $(37,428) $(20,143)
======== ========
Consolidated EBITDA calculations:
Net loss $(37,428) $(20,143)
Interest expense, net 10,256 10,028
Income tax provision (1) 23
Depreciation and amortization 17,793 18,087
Unrealized gains (losses) on
derivatives, net 20,008 (995)
Equity-based compensation expense 6,265 2,485
Other 224 1,046
Loss from debt repayment and related
write-offs - 10,903
Write off of recapitalization
transaction costs 52 -
-------- --------
Consolidated EBITDA (2) $ 17,169 $ 21,434 24.8%
======== ========
Consolidated EBITDA margin 16.1% 15.7%
Other Data (quarter ended):
Capital expenditures $ 2,040 $ 3,051
Pollock production (metric tons) 1,319 1,639
Pollock sales (metric tons) 22,243 30,770
Reconciliation of Consolidated EBITDA to cash flow from
operating activities (2):
Cash flows from operating activities $ 25,699 $ 39,307
Interest expense, net 10,255 10,028
Net change in operating assets and
liabilities (17,522) (27,267)
Amortization of deferred financing costs
in interest expense (1,316) (549)
Other 53 (85)
-------- --------
Consolidated EBITDA $ 17,169 $ 21,434
======== ========
(1) Amortization of intangibles and depreciation of other assets.
(2) Consolidated EBITDA is not a measure of operating income,
operating performance or liquidity under 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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