High Liner Foods Reports Operating Results for the Fourth Quarter and Full Year 2023

Continued strong free cash flow and significant balance sheet improvement

LUNENBURG, NS, Feb. 21, 2024 /CNW/ - High Liner Foods Incorporated (TSX: HLF) ("High Liner Foods" or "the Company"), a leading North American value-added frozen seafood company, today announced financial results for the fifty-two weeks ended December 30, 2023.

"In fiscal 2023 we generated the highest free cash flow in our history and took the opportunity to significantly reduce debt, invest in our business and return capital to our shareholders", said Paul Jewer, President & Chief Executive Officer for High Liner Foods.  "While our Q4 results were below the potential of our business due to the ongoing challenges posed by the macro-economic environment, we are confident that the underlying fundamentals of our business, and our strategy, remain sound."

Mr. Jewer added, "In the year ahead, we will continue to deliver on our proven strategy of offering customers and consumers quality and choice across a range of price points to drive improved financial performance. We believe in the long-term market opportunity of frozen seafood as a healthy and sustainable source of protein, and we are well positioned to support our customers in driving category recovery through the course of the year ahead. We are similarly well positioned to invest in our own growth and are excited about the opportunities afforded by our balance sheet strength, ongoing diversification, and scale."

Key financial results, reported in U.S. dollars ("USD"), for the fifty-two weeks ended December 30, 2023, or Fiscal 2023, are as follows (unless otherwise noted, all comparisons are relative to the fifty-two weeks ended December 31, 2022, or "Fiscal 2022"):

• Sales volume increased by 6.1 million pounds, or 2.4%, to 257.0 million pounds compared to 250.9 million pounds and sales increased by $10.6 million, or 1.0%, to $1,080.3 million compared to $1,069.7 million;
• Gross profit decreased by $11.2 million, or 4.9%, to $218.7 million compared to $229.9 million, while gross profit as a percentage of sales decreased to 20.2% compared to 21.5%;
• Adjusted EBITDA⁽¹⁾ decreased by $8.8 million, or 8.5%, to $95.1 million compared to $103.9 million, and Adjusted EBITDA as a percentage of sales⁽¹⁾ decreased to 8.8% compared to 9.7%;
• Net income decreased by $23.0 million, or 42.0%, to $31.7 million compared to $54.7 million and diluted earnings per share ("EPS") decreased to $0.93 per share compared to $1.56 per share; and
• Adjusted Net Income⁽¹⁾ decreased by $13.0 million, or 25.1%, to $38.7 million compared to $51.7 million and Adjusted Diluted EPS⁽¹⁾ decreased to $1.14 per share compared to $1.48 per share.
• Cash Flows from Operations increased by $255.5 million, or 335.3%, to an inflow of $179.3 million compared to an outflow of $76.2 million.

Key financial results, reported in USD, for the thirteen weeks ended December 30, 2023, or the fourth quarter of 2023, are as follows (unless otherwise noted, all comparisons are relative to the fourth quarter of 2022): 

• Sales volume increased by 1.2 million pounds, or 2.1%, to 59.6 million pounds compared to 58.4 million pounds and sales decreased by $13.2 million, or 5.3%, to $237.1 million compared to $250.3 million;
• Gross profit decreased by $6.1 million, or 11.1%, to $48.7 million compared to $54.8 million, and gross profit as a percentage of sales decreased to 20.5% compared to 21.9%;
• Adjusted EBITDA⁽¹⁾ decreased by $3.5 million, or 13.8%, to $21.9 million compared to $25.4 million, and Adjusted EBITDA as a percentage of sales decreased to 9.2% compared to 10.1%;
• Net income decreased by $4.7 million, or 42.3%, to $6.4 million compared to $11.1 million and diluted earnings per share ("EPS") decreased to $0.20 per share, compared to $0.32 per share;
• Adjusted Net Income^([1]) decreased by $5.0 million, or 40.7% to $7.3 million compared to $12.3 million and Adjusted Diluted EPS⁽¹⁾ decreased to $0.23 per share compared to $0.35 per share;
• Cash Flows from Operations increased by $122.7 million, or 219.9%, to an inflow of $66.9 million compared to an outflow of $55.8 million; and
• Net Debt⁽¹⁾ to Rolling Twelve-Month Adjusted EBITDA⁽¹⁾ was 2.6x at December 30, 2023 compared to 3.7x at the end of Fiscal 2022 and 3.0x at end of Fiscal 2021. This ratio increased during the second half of Fiscal 2022 due to a planned increased investment in inventory.

Financial Results and Operational Update

For the purpose of presenting the Consolidated Financial Statements in USD, CAD-denominated assets and liabilities in the Company's operations are converted using the exchange rate at the reporting date, and revenue and expenses are converted at the average exchange rate of the month in which the transaction occurs. As such, foreign currency fluctuations affect the reported values of individual lines on our balance sheet and income statement. When the USD strengthens (weakening CAD), the reported USD values of the Parent's CAD-denominated items decrease in the Consolidated Financial Statements, and the opposite occurs when the USD weakens (strengthening CAD).

Investors are reminded for purposes of calculating financial ratios, including dividend payout and share price-to-earnings ratios, to take into consideration that the Company's share price and dividend rate are reported in CAD and its earnings, EPS and financial statements are reported in USD.

______________________________

¹ This is a non-IFRS financial measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in our Fourth Quarter 2023 Management's Discussion and Analysis ("4Q2023 MD&A").

The financial results in USD for the thirteen and fifty-two weeks ended December 30, 2023 and December 31, 2022 are summarized in the following table:

		Thirteen weeks ended					Fifty-two weeks ended
(Amounts in 000s, except per share amounts, unless otherwise noted)		December 30, 2023		December 31, 2022			December 30, 2023		December 31, 2022
Sales volume (millions of lbs)		59.6		58.4			257.0		250.9
Average foreign exchange rate (USD/CAD)		1.3620		1.3572			1.3497		1.3017
Sales		$         237,126		$          250,346			$      1,080,338		$       1,069,714
Gross profit		$           48,657		$            54,838			$         218,689		$          229,928
Gross profit as a percentage of sales		20.5 %		21.9 %			20.2 %		21.5 %
Adjusted EBITDA		$           21,887		$            25,385			$           95,092		$          103,867
Adjusted EBITDA as a percentage of sales		9.2 %		10.1 %			8.8 %		9.7 %
Net income		$             6,416		$            11,131			$           31,677		$            54,730
Diluted EPS		$               0.20		$                0.32			$               0.93		$                1.56
Adjusted Net Income		$             7,293		$            12,318			$           38,680		$            51,712
Adjusted Diluted EPS		$               0.23		$                0.35			$               1.14		$                1.48
Diluted weighted average number of shares outstanding		33,776		35,130			33,934		35,069

Sales volume for the thirteen weeks ended December 30, 2023, or the fourth quarter of 2023, increased by 1.2 million pounds, or 2.1%, to 59.6 million pounds compared to 58.4 million pounds in the thirteen weeks ended December 31, 2022 due to higher volume in our foodservice business, partially offset by lower volume in our retail business. In our foodservice business, sales volume was higher due to increased contract manufacturing business and improved customer service levels. This was partially offset by lower sales volume in our retail business due to the continued impact of inflation. This resulted from softer demand for protein, including seafood product as consumers switch to lower cost alternatives.

Sales in the fourth quarter of 2023 decreased by $13.2 million, or 5.3%, to $237.1 million compared to $250.3 million in the same period in 2022, reflecting changes in sales mix and lower pricing most notably on some of our commodity products during the fourth quarter of fiscal 2023 compared to the inflationary environment in the same period last year. This decrease was partially offset by higher sales volumes mentioned previously. The weaker Canadian dollar in 2023 compared to the same quarter of 2022 decreased the value of reported USD sales from our CAD-denominated operations by approximately $0.2 million relative to the conversion impact last year.

Gross profit in the fourth quarter of 2023 decreased by $6.1 million to $48.7 million compared to $54.8 million in the same period in 2022 and gross profit as a percentage of sales decreased by 140 basis points to 20.5% compared to 21.9%. The decrease in gross profit reflects changes in product mix,  lower pricing on some of our commodity products and some inefficiencies at our plants. The decrease in gross profit was partially offset by the increase in sales volume, discussed previously. In addition, the weaker Canadian dollar decreased the value of reported USD gross profit from our CAD-denominated operations by nominal amounts  relative to the conversion impact last year.

Adjusted EBITDA in the fourth quarter of 2023 decreased by $3.5 million to $21.9 million compared to $25.4 million in the same period in 2022 and Adjusted EBITDA as a percentage of sales decreased to 9.2% compared to 10.1%. The decrease reflects the decrease in gross profit, partially offset by the decrease in distribution costs and net SG&A expenses.

Reported net income in the fourth quarter of 2023 decreased by $4.7 million to net income of $6.4 million (diluted EPS of $0.20) compared to $11.1 million (diluted EPS of $0.32) in the same period in 2022. The decrease in net income was due to the decrease in Adjusted EBITDA, an increase in depreciation and amortization costs and income taxes in the fourth quarter of 2023 compared to the same period last year, partially offset by lower finance costs.

Reported net income in the fourth quarter of 2023 and 2022 included certain non-routine expenses classified as "business acquisition, integration and other expense (income)." Excluding the impact of these non-routine items or other non-cash expenses, and share-based compensation, Adjusted Net Income in the Fiscal 2023 decreased by $5.0 million, or 40.7% to $7.3 million compared to $12.3 million in 2022 and Adjusted Diluted EPS decreased $0.12 in the Fiscal 2023 to $0.23 as compared to $0.35 in 2022.

Net cash flows provided by (used in) operating activities in the fourth quarter of 2023 increased by $122.7 million to an inflow of $66.9 million compared to an outflow of $55.8 million in the same period in 2022 due to favourable changes in non-cash working capital balances, partially offset by lower cash flows provided by operations, and higher interest paid. Capital expenditures were $19.0 million in 2023 compared to $20.7 million in the prior year reflecting the continued significant investment in the business.

Net Debt decreased by $135.6 million to $249.9 million at December 30, 2023 compared to $385.5 million at December 31, 2022, reflecting lower bank loans and lower long-term debt, partially offset by higher lease liabilities as at December 30, 2023, as compared to December 31, 2022.

Net Debt to Rolling Twelve-Month Adjusted EBITDA was 2.6x at December 30, 2023 compared to 3.7x at the end of Fiscal 2022 and 3.0x at January 1, 2022.  Net Debt to Rolling Twelve-Months Adjusted EBITDA increased during the second half of Fiscal 2022 primarily as a result of increased investment in working capital in Fiscal 2022 and inflation in raw materials. In the absence of any major acquisitions or unplanned capital expenditures in 2024, we expect this ratio to continue to be lower than the Company's long-term target of 3.0x at the end of Fiscal 2024.

Outlook 

"Overall, I am optimistic about the outlook for our business in 2024 and beyond", said Mr. Jewer. "We have a proven strategy and are building a track record of consistent execution. We have the financial strength and discipline needed to withstand the near-term challenges of our operating environment, including category volume declines, while our focus on profitable growth positions us well to generate Adjusted EBITDA growth and continued strong free cash flow in 2024."

With a strong balance sheet, High Liner Foods is well equipped to invest in organic growth, explore opportunities for transformative growth through potential M&A activities to build shareholder value, and continue to return capital to shareholders.  High Liner will continue to carefully manage capital resources and anticipates $20-$25 million in capital expenditures in fiscal 2024 to continue to maintain, upgrade and modernize its asset base.

While the Company anticipates that operating conditions will improve through the course of the fiscal year, additional challenges in the geopolitical and economic environment may impact the timeline for improvements to its financial performance and its growth agenda.

Dividend

Today, the Company's Board of Directors approved a quarterly dividend of CAD$0.15 per share on the Company's common shares, payable on March 15, 2024 to holders of record on March 1, 2023. These dividends are considered "eligible dividends" for Canadian income tax purposes.

Conference Call

The Company will host a conference call on Thursday, February 22, 2024, at 10:00 a.m. ET (11:00 a.m. AT) during which Paul Jewer, Chief Executive Officer, Deepak Bhandari, Interim Chief Financial Officer and Anthony Rasetta, Chief Commercial Officer, will discuss the financial results for the fourth quarter of 2023. To access the conference call by telephone, dial 416-764-8659 or 1-888-664-6392. Please connect approximately 10 minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay by telephone until Friday, March 22, 2024 at midnight (ET). To access the archived conference call, dial 1-888-390-0541 and enter the replay entry code 820534#.

A live audio webcast of the conference call will be available at www.highlinerfoods.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

The Company's Audited Consolidated Financial Statements and MD&A as at and for the fifty-two weeks ended December 30, 2023 were filed concurrently on SEDAR+ with this news release and are also available at www.highlinerfoods.com.

Non-IFRS Measures

The Company reports its financial results in accordance with International Financial Reporting Standards ("IFRS"). Included in this media release are the following non-IFRS financial measures: Adjusted EBITDA, Adjusted EBITDA as a Percentage of Net Sales, Adjusted Net Income, Adjusted Diluted EPS, Net Debt and Net Debt to Rolling Twelve-Month Adjusted EBITDA.

The Company believes these non-IFRS financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company for the reasons outlined below. These measures do not have any standardized meaning as prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. 

Adjusted EBITDA and Adjusted EBITDA as a Percentage of Sales

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization adjusted for items that are not considered representative of ongoing operational activities of the business. The related margin, Adjusted EBITDA as a Percentage of Sales, is defined as Adjusted EBITDA divided by net sales, where net sales is defined as "Sales" on the consolidated statements of income.

We use Adjusted EBITDA (and Adjusted EBITDA as a percentage of sales) as a performance measure as it approximates cash generated from operations before capital expenditures and changes in working capital, and it excludes the impact of expenses and recoveries associated with certain non-routine items that are not considered representative of the ongoing operational activities, as discussed above, and share-based compensation expense related to the Company's share price. For the fifty-two weeks ended December 31, 2022, Adjusted EBITDA also excludes the $10.0 million in insurance proceeds. We believe investors and analysts also use Adjusted EBITDA (and Adjusted EBITDA as a percentage of sales) to evaluate the performance of our business. The most directly comparable IFRS measure to Adjusted EBITDA is "Net income" on the consolidated statements of income. Adjusted EBITDA is also useful when comparing to other companies, as it eliminates the differences in earnings that are due to how a company is financed. Also, for the purpose of certain covenants on our credit facilities, "EBITDA" is based on Adjusted EBITDA, with further adjustments as defined in the Company's credit agreements.

The following table reconciles Adjusted EBITDA with measures that are found in our Consolidated Financial Statements, and calculates Adjusted EBITDA as a Percentage of Sales.

				Thirteen weeks ended
(Amounts in $000s)		December 30, 2023		December 31, 2022
Net income		$                                 6,416		$                                11,131
Add back (deduct):
Depreciation and amortization expense		7,977		6,170
Finance costs		5,817		5,951
Income tax expense		666		307
Standardized EBITDA		20,876		23,559
Add back (deduct):
Business acquisition, integration and other expenses (income)		410		945
Impairment of property, plant and equipment		—		164
(Gain) loss on disposal of assets		(67)		30
Share-based compensation expense		668		687
Adjusted EBITDA		$                               21,887		$                                25,385
Net Sales		$                             237,126		$                              250,346
Adjusted EBITDA as Percentage of Sales		9.2 %		10.1 %

				Fifty-two weeks ended
(Amounts in $000s)		December 30, 2023		December 31, 2022
Net income		$                             31,677		$                              54,730
Add back (deduct):
Depreciation and amortization expense		26,373		23,578
Finance costs		26,178		18,261
Income tax expense		2,434		11,094
Standardized EBITDA		86,662		107,663
Add back (deduct):
Business acquisition, integration and other expenses (income)^(1)		7,070		(7,173)
Impairment of property, plant and equipment		—		332
(Gain) loss on disposal of assets		(109)		163
Share-based compensation expense		1,469		2,882
Adjusted EBITDA		$                             95,092		$                            103,867
Net Sales		$                       1,080,338		$                        1,069,714
Adjusted EBITDA as a Percentage of Sales		8.8 %		9.7 %

^(1)

The business acquisition, integration and other expenses (income) for the fifty-two weeks ended December 30, 2023, includes $7.1 million in legal and consulting fees relating to the lawsuit High Liner Foods filed against Mr. Brian Wynn. For the fifty-two weeks ended December 31, 2022, this amount includes insurance proceeds of $10.0 million relating to the lawsuit High Liner Foods filed against Mr. Brian Wynn, which is excluded in Adjusted EBITDA.

Adjusted Net Income and Adjusted Diluted EPS

Adjusted Net Income is net income adjusted for the after-tax impact of items which are not representative of ongoing operational activities of the business and certain non-cash expenses or income. Adjusted Diluted EPS is Adjusted Net Income divided by the average diluted number of shares outstanding.

We use Adjusted Net Income and Adjusted Diluted EPS to assess the performance of our business without the effects of the above-mentioned items, and we believe our investors and analysts also use these measures. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. For the fifty-two weeks ended December 31, 2022, Adjusted Net Income also excludes the $10.0 million in insurance proceeds. The most comparable IFRS financial measures are net income and EPS.

The table below reconciles our Adjusted Net Income with measures that are found in our Consolidated Financial Statements and calculates Adjusted Diluted EPS.

		Thirteen weeks ended				Thirteen weeks ended
		December 30, 2023				December 31, 2022
		$000s		Adjusted Diluted EPS		$000s		Adjusted Diluted EPS
Net income		$                 6,416		$                   0.20		$               11,131		$                   0.32
Add back (deduct):
Business acquisition, integration and other (income) expenses		410		0.01		945		0.03
Impairment of property, plant and equipment		—		—		164		—
Share-based compensation expense		668		0.03		687		0.02
Tax impact of reconciling items ^(1)		(201)		(0.01)		(609)		(0.02)
Adjusted Net Income		$                 7,293		$                   0.23		$               12,318		$                   0.35
Average shares for the period (000s)				33,776				35,130

		Fifty-two weeks ended				Fifty-two weeks ended
		December 30, 2023				December 31, 2022
		$000s		Adjusted Diluted EPS		$000s		Adjusted Diluted EPS
Net income		$             31,677		$                 0.93		$             54,730		$                 1.56
Add back (deduct):
Business acquisition, integration and other (income) expenses ^(2)		7,070		0.21		(7,173)		(0.20)
Impairment of property, plant and equipment		—		—		332		0.01
Share-based compensation expense		1,469		0.04		2,882		0.08
Tax impact of reconciling items ^(1)		(1,536)		(0.04)		941		0.03
Adjusted Net Income		$             38,680		$                 1.14		$             51,712		$                 1.48
Average shares for the period (000s)				33,934				35,069

⁽¹⁾ The tax impact of reconciling items includes the tax impact of the insurance proceeds of $10.0 million received during the second quarter of fiscal 2022 which is excluded in Adjusted Net Income.

⁽²⁾ The business acquisition, integration and other expenses (income) for the fifty-two weeks ended December 30, 2023, includes $7.1 million in legal and consulting fees relating to the lawsuit High Liner Foods filed against Mr. Brian Wynn. For the fifty-two weeks ended December 31, 2022 this amount includes insurance proceeds of $10.0 million relating to the lawsuit High Liner Foods filed against Mr. Brian Wynn, which is excluded in Adjusted Net Income.

Net Debt and Net Debt to Rolling Twelve-Month Adjusted EBITDA

Net Debt is calculated as the sum of bank loans, long-term debt (excluding deferred finance costs and modification gains/losses) and lease liabilities, less cash.

We consider Net Debt to be an important indicator of our Company's financial leverage because it represents the amount of debt that is not covered by available cash. We believe investors and analysts use Net Debt to determine the Company's financial leverage. Net Debt has no comparable IFRS financial measure, but rather is calculated using several asset and liability items in the consolidated statements of financial position.

Net Debt to Rolling Twelve-Month Adjusted EBITDA is calculated as Net Debt divided by Rolling Twelve-Month Adjusted EBITDA (see above). We consider Net Debt to Rolling Twelve-Month Adjusted EBITDA to be an important indicator of our ability to generate earnings sufficient to service our debt, that enhances understanding of our financial performance and highlights operational trends. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies; however, the calculations of Adjusted EBITDA may not be comparable to those of other companies, which limits their usefulness as comparative measures.

The following table reconciles Net Debt to IFRS measures reported as at the end of the indicated periods in the consolidated statements of financial position and calculates Net Debt to Rolling Twelve-Month Adjusted EBITDA.

(Amounts in $000s)		December 30, 2023		December 31, 2022
Bank loans		$                2,559		$            127,554
Add-back: Deferred finance costs included in bank loans ^(1)		441		574
Total bank loans		3,000		128,128
Long-term debt		233,791		238,200
Current portion of long-term debt		5,625		7,500
Add-back: Deferred finance costs included in long-term debt ^(2)		3,607		4,972
Less: Net loss on modification of debt ^(3)		(393)		(542)
Total term loan debt		242,630		250,130
Long-term portion of lease liabilities		6,997		2,813
Current portion of lease liabilities		4,589		4,622
Total lease liabilities		11,586		7,435
Less: Cash		(7,300)		(155)
Net Debt		$            249,916		$            385,538
Rolling Twelve-Month Adjusted EBITDA		$              95,092		$            103,867
Net Debt to Rolling Twelve-Month Adjusted EBITDA		2.6x		3.7x

⁽¹⁾ Represents deferred finance costs that are included in "Bank loans" in the consolidated statements of financial position. See Note 11 to the Consolidated Financial Statements.

⁽²⁾ Represents deferred finance costs that are included in "Long-term debt" in the consolidated statements of financial position. See Note 14 to the Consolidated Financial Statements.

⁽³⁾ The net gain/loss on modification of debt has been excluded from the calculation of Net Debt as it does not represent the expected cash outflows from the term loan facility.

Forward Looking Statements

Forward-looking statements can generally be identified by the use of the conditional tense, the words "may", "should", "would", "could", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective", "goal", "remain" or "continue" or the negative of these terms or variations of them or words and expressions of similar nature. Actual results could differ materially from the conclusion, forecast or projection stated in such forward-looking information. As a result, we cannot guarantee that any forward-looking statements will materialize. Assumptions, expectations and estimates made in the preparation of forward-looking statements and risks that could cause our actual results to differ materially from our current expectations are discussed in detail in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including the Risk Factors section of our MD&A for the thirteen and fifty-two weeks ended December 30, 2023, the Risk Factors section of our 2023 MD&A and the Risk Factors section of our 2023 Annual Information Form. The risks and uncertainties that may affect the operations, performance, development and results of High Liner Foods' business include, but are not limited to, the following factors: compliance with food safety laws and regulations; timely identification of and response to events that could lead to a product recall; volatility in the CAD/USD exchange rate; competitive developments including increases in overseas seafood production and industry consolidation; availability and price of seafood raw materials and finished goods and the impact of geopolitical events (and related economic sanctions) on the same; the impact of the U.S. Trade Representative's tariffs on certain seafood products; costs of commodity products, freight, storage and other production inputs, and the ability to pass cost increases on to customers; successful integration of acquired operations; potential increases in maintenance and operating costs; shifts in market demands for seafood; performance of new products launched and existing products in the market place; changes in laws and regulations, including environmental, taxation and regulatory requirements; technology changes with respect to production and other equipment and software programs; enterprise resource planning system risk; adverse impacts of cybersecurity attacks or breach of sensitive information; supplier fulfillment of contractual agreements and obligations; competitor reactions; completion and/or advancement of sustainability initiatives, including, without limitation, initiatives relating to the carbon work plan, carbon reduction initiatives and potential failure to meet such carbon reduction targets; the uncertainty of final results related to litigation and/or arbitration, including net amounts to be received by the Company and whether such amounts may be subject to subrogation rights by applicable insurers; waste reduction and/or seafood sustainability and traceability initiatives; High Liner Foods' ability to generate adequate cash flow or to finance its future business requirements through outside sources; credit risk associated with receivables from customers; volatility associated with the funding status of the Company's post-retirement pension benefits; adverse weather conditions and natural disasters; the availability of adequate levels of insurance; management retention and development; economic and geopolitical conditions such as Russia's invasion of Ukraine and the implementation and/or expansion of related sanctions policies; and the potential impact of a pandemic outbreak of a contagious illness, such as COVID-19 pandemic, on general economic and business conditions and therefore the Company's operations and financial performance. Forward-looking information is based on management's current estimates, expectations and assumptions, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Except as required under applicable securities laws, we do not undertake to update these forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, whether as a result of new information, future events or otherwise. We include in publicly available documents filed from time to time with securities commissions and The Toronto Stock Exchange, a discussion of the risk factors that can cause anticipated outcomes to differ from actual outcomes. Except as required under applicable securities legislation, we do not undertake to update forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, whether as a result of new information, future events or otherwise.

About High Liner Foods Incorporated

High Liner Foods Incorporated is a leading North American processor and marketer of value-added frozen seafood. High Liner Foods' retail branded products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine, and Catch of the Day labels, and are available in most grocery and club stores. The Company also sells branded products to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels and is a major supplier of private label value-added seafood products to North American food retailers and foodservice distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbol HLF on the Toronto Stock Exchange.

For further information about the Company, please visit our website at www.highlinerfoods.com or send an e-mail to [email protected]. 

SOURCE High Liner Foods Incorporated

Paul Jewer, FCPA, FCA, Chief Executive Officer, High Liner Foods Incorporated, Tel: [phone], [email protected]; Kimberly Stephens, CPA, CA, Vice President, Finance, High Liner Foods Incorporated, Tel: [phone], [email protected]