Clearwater Finance Inc. - Ársreikningur

CLEARWATER REPORTS 2009 YEAR-TO-DATE AND THIRD QUARTER RESULTS STRONGER THAN 2008

Attention Business/Financial Editors                                            

CLEARWATER REPORTS 2009 YEAR-TO-DATE AND THIRD QUARTER RESULTS STRONGER THAN    
2008                                                                            

/Not for distribution to United States or for dissemination in the United States
/                                                                               

HALIFAX, NOVEMBER 10/CNW/ - (TSX: CLR.UN, CLR.DB, CLR.DB.A):                    

Increased EBITDA of 40% or $7.3 million year-to-date to $25.4 million versus    
2008 and of 34% to $10.6 million for the quarter or $2.7 million over the third 
quarter of 2008. (EBITDA is Earnings before interest, taxes, depreciation and   
amortization, foreign exchange gains and losses and one time and unusual        
adjustments. For a reconciliation of these amounts please refer to the          
Management's Discussion and Analysis).                                          

Increased gross profit margins of 35% or $9 million year-to-date over 2008 to   
$34.9 million.  Gross profit margins in the third quarter of 2009 were up 27% or
$3.1 million over the third quarter of 2008.                                    

Significantly improved leverage over the prior year as management continues to  
focus on improving the balance sheet.  Total long term debt has been reduced by 
$17 million in the first 9-months.                                              


Today, Clearwater Seafoods Limited Partnership (“Clearwater”) reported its      
year-to-date and third quarter 2009 results.                                    

Clearwater reported a 35% increase in gross margin to $34.9 million, on a 4%    
year-to-date increase in sales to $215.7 million, improvements of $9.0 million  
and $7.7 million over the respective periods in 2008.  Year-to-date, the        
business experienced overall higher margins as a percentage of sales due        
primarily to improved operating results in our clam, scallops, FAS shrimp and   
processed lobster businesses.  In addition, strengthening foreign exchange rates
on foreign currency denominated sales and lower fuel costs had a positive impact
on margins.   With the launch of the new clam vessel and the finalization of a  
new shrimp joint venture, both of which occurred in the second quarter of 2008, 
and our ongoing focus on cost reduction, Clearwater's operating results have    
continued to show improvement in 2009. These positive factors resulted in a 40% 
increase in year-to-date 2009 EBITDA before foreign exchange losses and one time
and unusual adjustments. Clearwater reported EBITDA of $25.4 million            
year-to-date 2009 versus $18.1 million in the same period of 2008 (for          
calculation of EBITDA refer to the Definitions and Reconciliations section of   
the 2009 third quarter MD&A).                                                   


As a percent of sales, gross profit margin improved 35% for the first 9 months  
of 2009 over 2008.  Gross margin was up 27% in the third quarter against 2008's 
third quarter.  The significant improvement in margins in 2009 was primarily    
because of greater productivity in our clam and scallop businesses partially    
offset by a sales mix of relatively lower margins for shrimp and live lobster.  
In addition management has focused on controlling costs, and increasing vessel  
operations and productivity, resulting in better margin realization for key     
species.  Clearwater reported EBITDA of $10.6 million in the third quarter of   
2009 versus $7.9 million in the same period of 2008.  The improvements for both 
periods are a result of higher gross profits as the business returns to more    
normal operations.                                                              
During the quarter Clearwater continued to generate cash by disposing of        
non-core quotas from which it was not earning an adequate return on its capital 
employed.  In the third quarter Clearwater sold $7.2 million of non-core        
groundfish quotas and recorded a gain on sale of $2.0 million.  Year-to-date    
Clearwater has generated proceeds of $15.3 million from the sale of non-core    
quotas and $1.3 million from the sale of other surplus assets.                  

Leverage improved to 4.83 times EBITDA from 9.23 in Q3 2008 because of a rolling
12 months of sustaining EBITDA of $45.3 million from operations and reduced     
debt.  Senior debt is now less than 2 times EBITDA.  Total debt repayments of   
more than $17 million reduced total debt to $223.9 million at the third quarter 
of 2009 versus $241.3 million at December 31, 2008.                             

The sale of these non-core quotas is part of Clearwater's focused strategy for  
maintaining liquidity which includes tightly managing its working capital,      
limiting capital spending, liquidating under performing assets and selling      
non-core assets which do not achieve an adequate return on capital, and limiting
distributions.                                                                  

Looking forward to the last quarter of 2009, Clearwater believes that with the  
improvements to the (clam, shrimp and lobster) fleets and the possibility of    
continued lower fuel costs it will be able to operate without disruption to     
continue to grow the trend of positive cash flows and profit margins.  This is  
of course subject to any impact of weakened economic conditions in Asia, North  
America and Europe.  Clearwater also believes that as a food company the        
business will continue to respond well in the current recessionary period as it 
has so far this year.                                                           

Over the next several years Clearwater will continue its focus on reducing its  
leverage.  This will come from a combination of improved earnings levels and    
from using the positive cash flow of the business to reduce debt.  This should  
result in lower interest costs as debt levels are reduced.  In December 2010    
Clearwater Seafoods Income Fund has $45 million of convertible debentures that  
come due.  These funds were invested by the Fund in Class C Units issued by     
Clearwater with similar terms and conditions, including maturity in December    
2010. Clearwater also has approximately $1.2 billion in ISK denominated bonds,  
including CPI and accrued interest that come due in September 2010              
(approximately Canadian $10.5 million).  Management is currently assessing      
alternative solutions and believes that the Company will be successful in       
refinancing both of these facilities before they come due.                      

Colin MacDonald, Chairman and Chief Executive Officer, commented, “We are       
pleased to report continued strong results in 2009 despite the challenging      
worldwide economic conditions. Our solid results speak to the success of all our
business units and in particular our outstanding and dedicated workforce which  
continues to seek and find ways to drive innovation in our harvesting, our      
processing and in building strong relationships with our customers.”            


Colin MacDonald                                                                 
Chairman and Chief Executive Officer                                            
Clearwater Seafoods Limited Partnership                                         
November 10, 2009                                                               

Financial Statements and Management's Discussion and Analysis Documents         

For an analysis of Clearwater and Clearwater Seafoods Income Fund's third       
quarter results, please see the Management's Discussion and Analysis and the    
2009 third quarter financial statements.  These documents can be found in the   
disclosure documents filed by Clearwater Seafoods Income Fund with the          
securities regulatory authorities available at www.sedar.com or at its website  
(www.clearwater.ca).                                                            

Key Financial Figures ($000's except unit amounts)
    -------------------------------------------------------------------------
    Clearwater                13 weeks ended             39 weeks ended
                        October 3, September 27,    October 3, September 27,
                             2009          2008          2009          2008
    -------------------------------------------------------------------------
    Sales                 $74,483       $81,557      $215,671      $207,905
    Net earnings
     (loss)                  $418      ($10,234)      $29,310      ($20,671)
    Basic earnings
     (loss) per unit        $0.01        ($0.20)        $0.57        ($0.40)  -------------------------------------------------------------------------
    EBITDA(1)             $10,562        $7,882       $25,405       $18,088
    Units outstanding
     at period-end
    Limited
     Partnership
     Units             51,126,912     51,126,912   51,126,912    51,126,912
    Fully diluted      62,323,941     62,323,941   62,323,941    62,323,941
    -------------------------------------------------------------------------
    1. Please see the Management's Discussion and Analysis for a
       reconciliation of these amounts to the financial statements.



The Fund does not consolidate the results of Clearwater's operations but rather 
accounts for the investment using the equity method.  Due to the limited amount 
of information that this would provide on the underlying operations of          
Clearwater, the financial highlights of Clearwater are included above.          

About Clearwater                                                                

Clearwater is recognized for its consistent quality, wide diversity and reliable
delivery of premium seafood, including scallops, lobster, clams, coldwater      
shrimp, crab and ground fish.                                                   

Since its founding in 1976, Clearwater has invested in science, people,         
technology, resource ownership and resource management to preserve and grow its 
seafood resource. This commitment has allowed it to remain a leader in the      
global seafood market.                                                          

For further information: Robert Wight, Chief Financial Officer, Clearwater,     
(902) 457-2369; Tyrone Cotie, Director of Corporate Finance and Investor        
Relations, Clearwater, (902) 457-8181.