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effectively reduced our product cost. In domestic currency, Adjusted EBITDA 4  as a percentage of sales was 8.2%, up a fraction of a percentage point from the previous year. 

Adjusted EBITDA 4  in domestic dollars was affected by the following: 

• seafood and other input cost increases (partially offset by the effect of a stronger Canadian dollar on purchases of seafood for the Company’s Canadian operations); 

• Viking and Icelandic USA added $5.4 million to Adjusted EBITDA 4 ; 

• higher slotting and couponing costs on the launch of new products and expansion of distribution for existing products; 

• price increases to counteract the increase in cost; 

• higher distribution and storage costs, resulting from an increase in sales relative to the previous year and higher energy costs; 

• selling and administrative costs increased compared to last year as a result of the Viking Acquisition; 

• stock compensation expense decreased in 2011 as the increase in the Company’s share price in 2010 was not repeated to the same extent in 2011, and; 

• we realized increased efficiencies in our operations. 

The table below reconciles our Adjusted EBITDA 4  with measures that are found in our financial statements. It should be noted that Standardized EBITDA includes a stock option expense of $0.7 million in 2011 compared to $3.7 million in 2010. The larger stock option expense in 2011 was the result of the significant appreciation in the Company’s stock price in 2010. 

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Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, business acquisition, integration and other expense as disclosed on the consolidated statements of income Management believes that this is a useful performance measure as it approximates cash generated from operations, before capital expenditures and changes in working capital and excludes non-operating items Adjusted EBITDA also assists comparison among companies as it eliminates the differences in earnings due to how a company is financed Adjusted EBITDA does not have a standardized meaning prescribed by generally accepted accounting principles and therefore may not be comparable to similar measures presented by others Our definition of Adjusted EBITDA follows the October 2008 general principles and guidance for reporting EBITDA issued by the Canadian Institute of Chartered Accountants (CICA) 

We discuss Adjusted EBITDA 4 , sometimes referred to simply as EBITDA 4 , and both terms are used interchangeably in various places in this document. We also refer to Adjusted EBITDA 4  of our Canadian operations and of our U.S. operations. These are calculated in the same fashion as described above and can be reconciled to our operating segment information disclosure Note 19 to the consolidated financial statements. 

