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American Seafoods Group Releases Fourth Quarter and 2004 Earnings Results.

Article Excerpt
SEATTLE -- American Seafoods Group LLC today announced its results for the fourth quarter and year ended December 31, 2004. Net sales increased 12.2% for the year ended December 31, 2004 to $461.7 million as compared to $411.4 million during the prior year due mainly to higher sales volume of surimi and block products related to both carryover pollock inventory from the 2003 "B" season and 2004 production, higher sales volume of roe product from the 2004 "A" season, higher sales prices for catfish products and higher sales volume of scallop products. These increases were partially offset by lower sales prices for certain pollock products as compared to the prior year period.

Adjusted EBITDA (which we calculate as earnings before net interest expense, income tax benefit or provision, depreciation, amortization, unrealized foreign exchange and other derivatives gains or losses, loss from debt repayment and related write-offs, equity-based compensation, the write off of offering costs related to our initial public offering of income deposit securities (IDSs) and notes and the write off of goodwill associated with our catfish operations and other non-cash charges or gains) decreased 3.4% for the year ended December 31, 2004 to $109.3 million compared to $113.2 million during the prior year primarily due to lower margins in our catfish operations and lower surimi prices, which were partially offset by increased sales volumes of certain pollock products. Gross margin decreased in 2004 to 19.3% from 24.8% in the prior year and fluctuates quarter to quarter due to seasonality. The decline in gross margin resulted primarily from the sale of lower...