High Liner Foods Inc T.HLF

Alternate Symbol(s): HLNFF

Consumer Defensive Packaged Foods

High Liner Foods Incorporated is a Canada-based processor and marketer of value-added frozen seafood. The Company produces a range of products from breaded and battered items to seafood entrees, that are sold to North American food retailers and foodservice distributors. In addition, it is a supplier of commodity products in the North American market. The retail channel includes grocery and club stores, and its products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day labels. The foodservice channel includes sales of seafood that is usually eaten outside the home and its branded products are sold through distributors to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood1 and FPI labels. The Company is also a supplier of private-label value-added frozen premium seafood products to North American food retailers and foodservice distributors.

TSX:HLF - Post by User

High Liner Foods Inc

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Post by DunceMonkon Jul 22, 2018 1:58pm

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Post# 28350330

Dividend cut is on the way

If you read 2018Q1 financial report, you may notice about the following:

"Under the term loan facility, dividends cannot exceed $17.5 million per year. This amount increases to the greater of $25.0 million per year or the defined available amount based on excess cash flow accumulated over the term of the loan when the defined total leverage ratio is below 4.5x and becomes unlimited when the defined total leverage ratio is below 3.75x. The defined total leverage ratio was 5.5x on March 31, 2018. NCIBs are subject to an annual limit of $10.0 million under the term loan facility"

So the dividend will have to be cut to 5 cents. I just do not understand the show of dividend increase not long ago.

I was hit due to ... :) Hope all you guys are ok.

However I still holds confidence on this company if we are getting real "Wild catch" stuff.

GLTA

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