Stock Profile: FPI Limited Symbol: FPL (TSE)

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Stats as of 4/06/01

• H/L Ratio: 1.35 • RS: 66.2 • Shares: 14,842,123 • P/E: 11.11 • Price: $10.00

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Newfoundland-based Fishery Products International is a major international seafood company with processing plants in Canada and the U.S. and sales teams in eight North American cities as well as one in England, one in Germany and one in China. It operates a fleet of nine deep sea fishing vessels as well as five scallop boats and a shrimp processing vessel. Its operations are complemented by independent fish harvesters.

The company produces a complete range of seafood products including shrimp, crab, scallops, cod, flounder, sole, halibut, and haddock. FPI also sells sea products secured from outside sources, including king crab, lobster, salmon and bass. Its procurement network includes suppliers in 30 countries.

The company maintains a full-time staff of food scientists and technologists coming up with new product concepts and packaging innovations to better serve its various food service, retail and industrial customers. Research includes new species, shapes, coating systems and portion sizes designed to meet flavor, presentation, preparation time and pricing demands. This has resulted in product differentiation, setting FPI apart from its competition.

Currently (early April 2001), a dissident shareholder group led by John Risley, President of Clearwater Fine Foods, is seeking to wrest control of the company from the current directors. Clearwater owns 13.6% of outstanding shares and launched an unsuccessful hostile takeover bid for the company in 1999. Now the dissidents are seeking election to the board at the next annual general meeting scheduled for May 1.

The dissident slate includes some prominent personalities including former federal cabinet minister John Crosbie, Derrick Rowe, former CEO of Stratos Global, and Frank Sobey, the grocery chain magnate. The group alleges "erratic and poor share performance".

Current CEO Victor Young vigorously disputes the allegations, noting that the company has been profitable for the last five years. Young is widely credited with turning the ailing company around in the early 1990's by expanding its crab, shrimp and foreign fish business when the business was suffering a slump from depleted cod stocks, its longtime staple.

Whichever way the battle for control turns out, it has refocused the company on profitability and shareholder value. The problems with foot and mouth disease in Europe should also increase demand for fish products.

Quarterly Earnings per Share

Annual Earnings per Share