Premium Brands Holdings Corporation Reports Record Fourth Quarter and 2020 Results, $550.4 Million in Acquisitions and a 10.0% dividend Increase
Press Release
VANCOUVER, B.C., March 11, 2021. Premium Brands Holdings Corporation (TSX: PBH), a leading producer, marketer and distributor of branded specialty food products, announced today its results for the fourth quarter of 2020.
HIGHLIGHTS
- Fourth quarter record revenue of $1.1 billion representing a 10.1%, or $97.1 million, increase as compared to the fourth quarter of 2019
- Organic volume growth of 5.2%, or 10.7% after excluding the estimated impact of COVID-19, which continues to impact the Company’s sales to the fine dining, airline and cruise line channels
- Record fourth quarter adjusted EBITDA of $87.7 million representing a 16.8%, or $12.6 million, increase as compared to the fourth quarter of 2019
- Record fourth quarter adjusted EPS of $0.86 per share as compared to $0.79 per share in the fourth quarter of 2019
- During the quarter, the Company completed the acquisition of Allseas Fisheries, and subsequent to the quarter, completed the acquisitions of Starboard Seafood, Distribution Cote-Nord and a 50% interest in Clearwater Seafood resulting in $550.4 million of capital being allocated
- The Company ended the quarter with a 0.6 to 1 senior debt to adjusted EBITDA ratio and approximately $880 million in available credit capacity. Reflecting business acquisitions and a $200 million credit facility increase completed subsequent to the quarter, the Company’s pro-forma senior debt to adjusted EBITDA ratio and available credit capacity are 1.9 to 1 and $600 million, respectively
- The Company increased its quarterly dividend by 10.0% to $0.635 per share or $2.54 per share annually, from $0.5775 per share or $2.31 per share annually
CONFERENCE CALL
The Company will hold a conference call to discuss its fourth quarter 2020 results on Thursday, March 11, 2021 at 10:30 a.m. PST (1:30 p.m. EST). An investor presentation that will be referenced on the conference call is available here or on the Company’s website at http://www.premiumbrandsholdings.com.
Access to the call may be obtained by calling the operator at (833) 300-9218 / (647) 689-4551 (confirmation code: 2970818) up to ten minutes prior to the scheduled start time. For those who are unable to participate, a recording of the conference call will be available through to 8:59 p.m. PST on March 25, 2021 at (855) 859-2056 / (404) 537-3406 (passcode: 2970818). Alternatively, a recording of the conference call will be available at the Company’s website at http://www.premiumbrandsholdings.com.
SUMMARY FINANCIAL INFORMATION
(In millions of dollars except per share amounts and ratios)
| 13 weeks | 13 weeks | 52 weeks | 52 weeks | |
| ended | ended | ended | ended | |
| Dec 26, | Dec 28, | Dec 26, | Dec 28, | |
| 2020 | 2019 | 2020 | 2019 | |
| Revenue | 1,056.2 | 959.1 | 4,068.9 | 3,649.4 |
| Adjusted EBITDA | 87.7 | 75.1 | 312.6 | 307.7 |
| Earnings | 23.3 | 16.2 | 83.7 | 84.2 |
| EPS | 0.57 | 0.43 | 2.16 | 2.35 |
| Adjusted earnings | 35.3 | 29.5 | 118.4 | 118.4 |
| Adjusted EPS | 0.86 | 0.79 | 3.05 | 3.31 |
| Trailing Four Quarters Ended | ||||
| Dec 26, | Dec 28, | |||
| 2020 | 2019 | |||
| Free cash flow | 188.8 | 177.8 | ||
| Declared dividends | 92.0 | 76.7 | ||
| Declared dividend per share | 2.31 | 2.10 | ||
| Payout ratio | 48.7% | 43.1% | ||
“2020 was the most difficult year in our history. Pandemic related challenges impacted almost every facet of our business but thanks to our great people and unique culture we managed to deliver our 17th consecutive year of record sales and adjusted EBITDA. Our decentralized business model and focus on entrepreneurialism enabled us to pivot rapidly and meet the challenges of the pandemic head on,” said Mr. George Paleologou, President and CEO.
“In terms of the fourth quarter, we are very pleased with our overall performance. Many of our businesses continued to be severely impacted by lock downs, travel restrictions and the shutdown of social events, however, as our results show, we were able to react quickly in developing new revenue streams including entering other sales channels and expanding the breadth of their product portfolios. This resilience, combined with our retail focused businesses being able to respond to major shifts in consumer demand, enabled us to post record results for the quarter.
“We know that the challenges of the pandemic are by no means behind us, however, as we look forward we have never been more excited or optimistic about what lies ahead for our company. The major investments we have made over the last several years are starting to bear fruit and our product innovation initiatives, which were largely on hold this past year due to the pandemic, are once again ramping up. Furthermore, we are more confident than ever that our recent historic partnership with a group of Mi’kmaq First Nations on the acquisition of Clearwater Seafood will be the transformational transaction that propels our Seafood Group to the next level in its evolution. With this, we now have five strategic platforms, consisting of our Canadian Protein, Seafood, Sandwich, U.S. Protein and Canadian Distribution groups, that are either at or well on their way to each achieving $1 billion in annual sales.
“In terms of our overall objective of reaching $6 billion in sales and $600 million in adjusted EBITDA by 2023, we remain on track and are confident that we will meet, or more likely exceed, these goals. Despite the pandemic, we exited 2020 a stronger, larger and more resilient company and are very well positioned to generate even higher growth rates once the Canadian and U.S. economies are fully re-opened and the pandemic is behind us,” added Mr. Paleologou.
FIRST QUARTER 2021 DIVIDEND
The Company announced that it will be increasing its quarterly dividend by 10.0% to $0.635 per share or $2.54 per share on an annualized basis. Correspondingly, the Company’s Board of Directors approved a cash dividend of $0.635 per share for the first quarter of 2021, which will be payable on April 15, 2021 to shareholders of record at the close of business on March 31, 2021.
Unless indicated otherwise in writing at or before the time the dividend is paid, each dividend paid by the Company in 2021 or a subsequent year is an eligible dividend for the purposes of the Enhanced Dividend Tax Credit System.
ABOUT PREMIUM BRANDS
Premium Brands owns a broad range of leading specialty food manufacturing and differentiated food distribution businesses with operations across Canada and the United States. For further information, please contact George Paleologou, President and CEO or Will Kalutycz, CFO at (604) 656-3100.
www.premiumbrandsholdings.com
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