Recent Buy

You walk down the frozen section of any supermarket you will likely see High Liner Foods products under the High Liner Brand or another brand.

High Liner Foods is in the business of frozen fish products in the grocery story and provide fish products to restaurants. One of the most successful businesses in the world is McDonald's. High Liner Foods provides the fish burgers to McDonald's for the Filet-O-Fish sandwiches. 

High Liner Foods reported there earnings in the morning on August 14.
 
The President and CEO, Rod Hepponstall, has this to say:

"The Company's financial results for the second quarter of 2018 reflect continued challenges in the business related to soft sales volume, a shift in product mix from higher margin value-added products to lower margin commodity products, raw material cost increases not fully passed along to customers and inefficiencies in our supply chain.  The impact of these challenges in the second quarter was most acute in our U.S. business."

Second quarter (ending June 30 2018) Highlights ( all numbers in USD unless noted).
 

• Sales increased $12.9 million to $245.3 million of Q2 2018 compared to $232.4 million in Q2 2017
• Gross profit increased by $5.5 million to $43.3 million in Q2 2018 compared to $37.8 million in Q2 2017
• Net income increased by $2.2 million to $2.8 milliion in Q2 2018 compared to $0.6 million in Q2 2017 and diluted EPS increased to $0.08 in Q2 2018 compared to $0.02 in Q2 2017
• Adjusted Net Income decreased by $2.3 million to $3.8 million in Q2 2018 compared to $6.1 million in Q2 2017. Adjusted Diluteed EPS decreased to $0.11 in Q2 2018 compared to $0.19 in Q2 2017.
• Canadian-Equivalent Adjusted Diluted EPS decreased to CAD $0.14 in Q2 2018 compared to CAD #0.26 in Q2 2017
• The net interest-bearing debt to rolling 12 month adjusted EBITDA was 5.6x at June 30, 2018, which is roughly the same on end fiscal 2017.

High Liner Foods trades on the Toronto Stock Exchange under ticker symbol HLF.TO. The company is headquartered in Lunenberg, Nova Scotia.
 
High Liner Foods reports its earnings in US dollars approximately 75% of sales are in the US.
 
The CEO says the company is in the process of re-structuring to make the company operate more efficient. This will be a huge positive going forward, so the stock price should rebound in the next 12 months.

Warren Buffett says, "Be greedy when others are fearful, and fearful when others are greedy".
 
Prior today I owned 200 shares of HLF.TO at an adjusted cost base of $16.06 per share. After earnings the share price fell about 15% which led me to place a limit order. My bought 90 shares at $7.70 for a total cost of $698.27 including commissions.
 
HLF.TO currently pays an annual dividend per share of $0.58 Canadian. Therefore the yield on this purchase is 7.46%. This purchase adds $52.20 to my annual dividend income.
 
I will update my investment tab portfolio with this purchase in early September.

DISCLAIMER

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.