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High Liner Foods Reports Improved Operating Results for the Third Quarter of 2021 -Increases Quarterly Dividend by 3.0 Cents Per Share - LUNENBURG , NS , Nov. 16 , 2021 / CNW / - High Liner Foods Incorporated ( TSX : HLF ) ( " High Liner Foods " or " the Company " ) , a leading North American value - added frozen seafood company , today reported improving financial results for the thirteen and thirty - nine weeks ended October 2 , 2021 . " Our financial performance this quarter reflects the strong underlying fundamentals of our business and the proactive action we have taken on pricing , purchasing and portfolio mix , " said Rod Hepponstall , President and CEO of High Liner Foods . " We grew net sales and made further profitability gains as we worked hard to fully satisfy demand for our products , especially our branded , valued - added seafood offerings . We were able to capitalize on the resurgence in foodservice , despite ongoing pandemic - related pressures , while sustaining retail performance versus the same period last year . " The Company's Board of Directors approved a quarterly dividend of CAD $ 0.10 per share on the Company's common shares , payable on December 15 , 2021 to holders of record on December 1 , 2021. The quarterly dividend of CAD $ 0.10 per share represents a 3.0 cents increase from the CAD $ 0.07 per share quarterly dividend paid during the third quarter of 2021 and reflects the Board's continued confidence in the Company's operations . " The High Liner Foods team is doing an excellent job navigating ongoing market challenges , while continuing to drive profitability , " said Robert Pace , Chair of the Board of Directors . " The dividend increase announced today recognizes this continued strong performance and cash flow position . The 3.0 cents increase per share brings High Liner Foods closer to its target dividend payout ratio , while still allowing for investment in growth . " Key financial results , reported in U.S. dollars ( " USD " ) , for the thirteen weeks ended October 2 , 2021 , or the third quarter of 2021 , are as follows ( unless otherwise noted , all comparisons are relative to the third quarter of 2020 ) : • Sales increased by $ 19.7 million , or 10.1 % , to $ 214.3 million compared to $ 194.6 million and sales volume increased by 0.1 million pounds , or 0.2 % , to 54.8 million pounds compared to 54.7 million pounds ; • Gross profit as a percentage of sales increased to 22.4 % compared to 20.0 % and gross profit increased by $ 9.0 million , or 23.1 % , to $ 47.9 million compared to $ 38.9 million ; • Adjusted EBITDA [ 1 ] as a percentage of sales increased to 10.5 % compared to 9.8 % and Adjusted EBITDA increased by $ 3.3 million , or 17.3 % , to $ 22.4 million compared to $ 19.1 million ; • Two - year Compound Annual Growth Rate ( " CAGR " ) [ 2 ] for gross profit and Adjusted EBITDA was 6.2 % and 16.8 % respectively . • Net Debt 1 to rolling twelve - month Adjusted EBITDA improved to 2.8x at October 2 , 2021 compared to 3.0x at the end of Fiscal 2020 and 3.3x at September 26 , 2020 ; • Net income increased by $ 5.4 million , or 142.1 % , to $ 9.2 million compared to $ 3.8 million and diluted earnings per share ( " EPS " ) increased to $ 0.26 per share compared to $ 0.11 per share ; and • Adjusted Net Income 1 increased by $ 5.4 million , or 91.5 % , to $ 11.3 million compared to $ 5.9 million and Adjusted Diluted EPS1 increased to $ 0.32 per share compared to $ 0.18 per share . 1 Please refer to High Liner Foods ' Management's Discussion and Analysis ( " MD & A " ) for the thirteen and thirty - nine weeks ended October 2 , 2021 for definitions of the non - IFRS financial measures used by the Company , including " Adjusted EBITDA " , " Adjusted Net Income " , " Adjusted Diluted EPS " and " Net Debt " .