HIGH LINER FOODS REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR 2010

- Another year of strong earnings; quarterly dividend increased by 5.9% to $0.09 per share -

LUNENBURG, NS, Feb. 22 /CNW/ - High Liner Foods Incorporated (TSX: HLF; HLF.A), a leading North American value-added frozen seafood company, today reported financial results for the thirteen-week period and fiscal year 2010 ended January 1, 2011. All amounts are reported in Canadian dollars.

Financial and operational highlights for the fourth quarter include (all comparisons are relative to the fourth quarter of 2009, unless otherwise noted):

    <<
    -   Completed the acquisition of Viking Seafoods, Inc. in December 2010,
        which strengthens our position in the U.S. food service industry for
        broad line value-added seafood products;
    -   Common Stock price increased by 35% during the quarter to $16.25 from
        $12.00 at the end of the third quarter, resulting in an increase in
        stock option expense of $2.5 million for the quarter;
    -   Reported net income of $2.0 million, or diluted earnings per share
        ("EPS") of $0.13, compared with $3.8 million, or diluted EPS of
        $0.21, in the fourth quarter of 2009, with the decrease due to
        increased stock option expense and acquisition-related costs;
    -   Excluding stock option expense, Adjusted EBITDA(1) increased by 17.6%
        to $13.4 million from $11.4 million; and
    -   Excluding stock option expense, Adjusted Net Income(2) increased by
        22.5% to $6.8 million, or diluted EPS of $0.44, from $5.5 million, or
        diluted EPS of $0.30, in the fourth quarter of 2009.
    >>

Financial and operational highlights for the fiscal year include (all comparisons are relative to fiscal year 2009, unless otherwise noted):

    <<
    -   Common Stock price increased by 76% during the year to $16.25 from
        $9.25 at the end of fiscal year 2009, resulting in an increase in
        stock option expense of $4.0 million for the year;
    -   Reported net income of $19.8 million, or diluted EPS of $1.22, up
        from $19.7 million, or diluted EPS of $1.07;
    -   Excluding stock option expense, Adjusted EBITDA increased by 15.6% to
        $50.8 million from $43.9 million;
    -   Excluding stock option expense, Adjusted Net Income increased by
        22.9% to $25.6 million, or diluted EPS of $1.58, from $20.8 million,
        or diluted EPS of $1.13, for fiscal year 2009
    -   Sales volume increased by 1.6% during the year; and
    -   Sales of $584.7 million, compared with $627.2 million, due primarily
        to a stronger Canadian dollar that reduced the sales of our U.S.
        subsidiary when reported in Canadian dollars.
    >>

"We are very pleased by our continued strong profitability in 2010, with meaningful growth in Adjusted EBITDA and operating cash flow, despite lower reported sales largely driven by the stronger Canadian dollar, lower prices on commodity products, increased promotions on value-added products, and lower volume in Canadian operations as consumers reacted to higher selling prices," said Henry Demone, president and CEO, High Liner Foods Incorporated. "We benefited from the growth in sales volumes in the U.S. in both our food service and retail businesses, as well as from our cost-reduction initiatives to expand our margins. Moreover, we improved on our key performance measures while executing our strategic goals."

Financial Results

Approximately half of the Company's operations and assets, and more than 50% of its liabilities, are denominated in U.S. dollars. As such, foreign currency fluctuations affect the reported values of individual lines on the Company's balance sheet and income statement.

    <<
    (In thousands except per share amounts, unless otherwise noted)

                                    Thirteen  Thirteen  Fifty-two  Fifty-two
                                       weeks     weeks      weeks      weeks
                                       ended     ended      ended      ended
                                       Jan 1,    Jan 2,     Jan 1,     Jan 2,
                                        2011      2010       2011       2010

    Sales in million pounds             42.9      42.8      176.6      173.9
    Sales in domestic currency      $139,799  $144,969   $575,742   $584,860
    Foreign exchange impact             $890    $3,858     $8,973    $42,326
    Sales in Canadian dollars       $140,689  $148,827   $584,715   $627,186
    Adjusted EBITDA                  $10,571   $11,039    $46,460    $43,573
    Net income                        $2,010    $3,798    $19,816    $19,747
    Adjusted net income               $3,610    $5,314    $21,366    $20,593
    EPS (Diluted)                      $0.13     $0.21      $1.22      $1.07
    Adjusted EPS (Diluted)(3)          $0.23     $0.29      $1.32      $1.12
    Average Shares Outstanding        15,374    18,350     16,186     18,396

    Excluding Stock Option Expenses:
    Adjusted EBITDA                  $13,360   $11,365    $50,813    $43,938
    Adjusted net income               $6,785    $5,538    $25,624    $20,843
    Adjusted EPS (Diluted)             $0.44     $0.30      $1.58      $1.13
    >>

Sales for the fourth quarter decreased to $140.7 million from $148.8 million for the same period a year ago. The stronger Canadian dollar accounted for approximately $3.0 million of the decline, as sales generated by our U.S. operations were translated at a lower U.S. dollar value. Sales in domestic currency, which excludes the impact of currency translation, were $139.8 million compared with $145.0 million for fourth quarter of 2009. Total sales volume was 42.9 million pounds, an increase of 0.1 million pounds from the same period last year, which consists of an increase of 0.6 million pounds related to the acquisition of Viking Seafoods, Inc. and a 0.5-million pound decrease largely attributable to the effect of price increases, offset by increased sales volume in our U.S. food service operations and the launch of several new products.

Adjusted EBITDA for the quarter declined by 4.2% to $10.6 million, or 7.5% of sales, from $11.0 million, or 7.4% of sales, for the fourth quarter last year. While approximately $0.4 million of the decline was due to the stronger Canadian dollar, a significant increase in stock option expense during the quarter offset improvements in operating profitability. Stock option expense increased to $2.8 million from $0.3 million during the same period last year due to the increase in High Liner's Common Stock price from $12.00 to $16.25 per share during the quarter.

Our acquisition of the assets of Viking Seafoods, Inc. late in the fourth quarter contributed $1.7 million in sales and $0.1 million in EBITDA from December 13, 2010 to January 1, 2011.

Net income for the quarter was $2.0 million, or diluted EPS of $0.13, compared with $3.8 million, or diluted EPS of $0.21, for the fourth quarter of 2009. In addition to stock option expenses, net income was impacted by non-recurring business acquisition costs and a higher effective tax rate. The higher taxes were due to a $1.0 million withholding tax on inter-company dividends related to the tax-efficient financing of the Viking acquisition, as well as changes in income tax rules regarding the tax deductibility of stock option expenses. Adjusted net income(2) was $3.6 million, compared with $5.3 million for the same period last year.

Excluding stock option expense that resulted from the substantial stock price increase during the quarter, Adjusted EBITDA increased by 17.6% to $13.4 million from $11.4 million and adjusted net income increased by 22.5% to $6.8 million, or diluted EPS of $0.44, from $5.5 million, or diluted EPS of $0.30, from the same quarter last year. The retraction of 3.2 million non-voting shares during the second quarter of 2010 partly accounts for the increase in diluted EPS.

Dividends

Today, the Board of Directors of the Company resolved to pay a quarterly dividend of $0.09 per Common and Non-Voting Equity Share payable on March 15, 2011 to shareholders of record on March 1, 2011. This represents a 5.9% increase from the $0.085-per-share quarterly dividend paid on December 15, 2010, reflecting the Board's continued confidence in the Company's operations.

Outlook

"We are encouraged by our strong operating results and strategic initiatives in 2010, and believe that we are well positioned for further growth in 2011," added Mr. Demone. "We are making significant progress in integrating the Viking acquisition, and we expect Viking to substantially increase our market share for broad line value-added seafood products in the U.S. food service industry. We continue to develop innovative, new products, such as "Fire Roasters(TM)," which are flame-seared seafood products for the U.S. food service market launched in December and receiving excellent market response, and "High Liner(R) Pan-Sear Selects," whose Lime Chili Tilapia & Savoury Herb Cod offering was recently awarded Best New Product in the frozen fish category by Canadian Living. We expect to mitigate higher average raw material costs in 2011 with increased operating efficiencies and product pricing adjustments. Supported by a strong balance sheet and a continuing commitment to the sustainability of our industry, we are well positioned in the value-added frozen seafood market in North America."

Financial Statements

For convenience, this news release includes the Company's Fiscal Fourth Quarter Balance Sheets and Statements of Income, Statements of Comprehensive Income, Statements of Retained Earnings, Statements of Cash Flows and Segment Information. This news release is not in any way a substitute for reading High Liner's financial statements, including notes to the financial statements, and Management's Discussion and Analysis.

The Company's audited consolidated financial statements for the year ended January 1, 2011 will be issued and filed on SEDAR on or before April 1, 2011. Management's Discussion and Analysis for the year ended January 1, 2011, including further discussion and analysis of fourth quarter events or items that affected results of operations, financial position, and cash flows, will also be issued and filed on or before April 1, 2011. Both documents will also be available in the Investor Information section of the Company's website at www.highlinerfoods.com.

Icelandic Status

On January 4, 2011, High Liner announced interest in acquiring all of the assets of Icelandic Group. Icelandic Group, a leading seafood supplier in Europe and one of the largest suppliers of value-added seafood to the U.S. food service market, was in private negotiations with a single buyer at the time.

High Liner has been informed that Icelandic Group intends to initiate an open process to sell its plant operations in the United States and its manufacturing business in China, but not its other assets. High Liner continues to have an interest in the Icelandic Group assets that are expected to be for sale in an open process, and expects to receive further information on the process from Enterprise Investment Fund.

High Liner does not intend to provide any additional updates on its interest in Icelandic Group, or the open sale process, until High Liner's involvement in the process concludes.

Conference Call

The Company will host a conference call on Wednesday, February 23, at 10:30 a.m. ET (11:30 a.m. AT) to discuss its fourth quarter and full-year financial results. To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately ten minutes prior to the beginning of the call to ensure participation. The conference call will be archived for replay by telephone until Wednesday, March 2, 2011 at midnight. To access the archived conference call, dial 1-800-642-1687 and enter the reservation number 37326260.

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 webcast will be archived at the above website for one year.

About High Liner Foods Incorporated

High Liner Foods Incorporated is a leading North American processor and marketer of prepared, value-added frozen seafood. High Liner's branded products are sold throughout the United States, Canada and Mexico under the High Liner(R), Fisher Boy(R), Mirabel(R) and Sea Cuisine(TM) labels, and are available in most grocery and club stores. The Company also sells its High Liner(R), FPI(R), Mirabel(R), and Viking(TM) food service products to restaurants and institutions, and is a major supplier of private label seafood products to North American food retailers and food service distributors. High Liner Foods is a publicly traded Canadian company, trading under the symbols HLF and HLF.A on the Toronto Stock Exchange.

This document contains forward-looking statements. Forward-looking statements can generally be identified by the use of the conditional tense, the words "may", "should", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective" or "continue" or the negative of these terms or variations of them or words and expressions of similar nature. Specific forward-looking statements in this document include, but are not limited to expectations with respect to, planned volume growth, expectations that Viking will substantially increase our market share for broad line value-added seafood products in the U.S. food service industry, higher average raw material costs in 2011 and our ability to mitigate with increased operating efficiencies and product pricing adjustments, anticipated financial performance, and our market position. These statements are based on a number of factors and assumptions including, but not limited to: availability, demand and prices of raw materials, energy and supplies; the condition of the Canadian and United States economies; product pricing; foreign exchange rates, especially the rate of exchange of the Canadian dollar to the U.S. dollar; our ability to attract and retain customers and our operating costs. The statements are not a guarantee of future performance. By their nature, forward-looking statements involve uncertainties and risks that the forecasts and targets will not be achieved. Readers are cautioned not to place undue reliance on forward-looking statements, as actual results may differ materially from those expressed in such forward-looking statements. 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.

The Company reports its financial results in accordance with Canadian generally accepted accounting principles ("GAAP"). We have included in this media release certain non-GAAP financial measures. These non-GAAP financial measures are Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Share.

The Company believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company. These measures do not have a standardized meaning prescribed by Canadian GAAP 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 Canadian GAAP.

For further information about the Company, please visit our website at www.highlinerfoods.com or send an e-mail to investor@highlinerfoods.com.

    <<
    -------------------------------
    (1) Adjusted EBITDA is earnings before interest, taxes, depreciation and
        amortization, excluding business acquisition and integration costs
        and other non-operating transactions, as disclosed in the
        consolidated statements of income.
    (2) Adjusted net income is net income excluding business acquisition and
        integration costs, non-operating items, and withholding tax related
        to the financing of the Viking acquisition. In addition, 2009 has
        been adjusted to normalize the effective income tax rate of its U.S.
        subsidiary as though it was taxable throughout the year.
    (3) Adjusted EPS is Adjusted net income, as defined, divided by the
        average diluted number of shares.



                        HIGH LINER FOODS INCORPORATED

                            As at January 1, 2011
               (with comparative figures as at January 2, 2010)
                                 (Unaudited)
                         CONSOLIDATED BALANCE SHEETS
                     (in thousands of Canadian dollars)

                                                      January 1,   January 2,
                                                           2011         2010
    -------------------------------------------------------------------------
    ASSETS
      Current:
        Cash and cash equivalents                   $       806        1,953
        Accounts receivable                              50,538       59,553
        Income tax receivable                               701        1,288
        Inventories                                     133,670      119,586
        Prepaid expenses                                  1,890        2,024
        Future income taxes                               2,389        3,846
    -------------------------------------------------------------------------
      Total current assets                              189,994      188,250
    -------------------------------------------------------------------------
      Property, plant and equipment                      58,829       59,528
    -------------------------------------------------------------------------
      Other:
        Future income taxes                                   -          349
        Other receivables and sundry investments            295          243
        Employee future benefits                          3,065        7,391
        Intangible assets                                20,577       19,785
        Goodwill                                         43,632       28,701
    -------------------------------------------------------------------------
                                                         67,569       56,469
    -------------------------------------------------------------------------
                                                        316,392      304,247
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
      Current:
        Bank loans                                       42,423       22,786
        Accounts payable and accrued liabilities         64,249       54,876
        Income taxes payable                              3,230           29
        Current portion of long-term debt                 4,426        4,582
        Current portion of capital lease obligations        972          864
    -------------------------------------------------------------------------
      Total current liabilities                         115,300       83,137
    -------------------------------------------------------------------------
      Long-term debt                                     44,119       50,848
    -------------------------------------------------------------------------
      Long-term capital lease obligations                 3,045        2,700
    -------------------------------------------------------------------------
      Other long-term liabilities                           673        1,254
    -------------------------------------------------------------------------
      Future income taxes                                 8,872        4,688
    -------------------------------------------------------------------------
      Employee future benefits                              842        4,540
    -------------------------------------------------------------------------
      Shareholders' Equity:
        Common shares                                    79,563      108,804
        Minority interests                                   50            -
        Contributed surplus                              10,634          364
        Retained earnings                                72,682       64,690
        Accumulated other comprehensive loss            (19,388)     (16,778)
    -------------------------------------------------------------------------
                                                        143,541      157,080
    -------------------------------------------------------------------------
                                                        316,392      304,247
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                       HIGH  LINER FOODS INCORPORATED

         For the thirteen and fifty-two weeks ended January 1, 2011
               (with comparative figures for the thirteen and
                   fifty-two weeks ended January 2, 2010)
                                 (Unaudited)
                      CONSOLIDATED STATEMENTS OF INCOME
         (in thousands of Canadian dollars, except per share amounts)

                              For the      For the      For the      For the
                             thirteen     thirteen    fifty-two    fifty-two
                          weeks ended, weeks ended, weeks ended, weeks ended,
                            January 1,   January 2,   January 1,   January 2,
                                 2011         2010         2011         2010
    ----------------------------------------------- -------------------------
    Sales                 $   140,689  $   148,827  $   584,715  $   627,186
    Cost of sales             105,715      114,455      444,359      492,564
    Distribution expenses       6,942        7,561       29,591       32,352
    ----------------------------------------------- -------------------------
    Gross profit               28,032       26,811      110,765      102,270
    Foreign exchange gain         145           64           35          264
    Selling, general and
     administrative
     expenses, excluding
     stock option expense     (16,451)     (17,109)     (66,477)     (65,206)
    Stock option expense       (2,789)        (326)      (4,353)        (365)
    Business acquisition,
     integration and other
     costs                       (986)        (922)        (875)      (1,382)
    Amortization of
     intangibles assets          (297)        (436)      (1,204)      (1,499)
    Interest expense:
      Short-term                 (360)        (353)      (1,501)      (1,680)
      Long-term                  (951)        (932)      (3,736)      (3,765)
    Loss on asset
     disposals                    (64)         (40)         (60)        (492)
    ----------------------------------------------- -------------------------
    Income before income
     taxes                      6,279        6,757       32,594       28,145
    ----------------------------------------------- -------------------------
    Income taxes
      Current                  (2,503)        (206)      (6,380)      (2,548)
      Future                   (1,766)      (2,753)      (6,398)      (5,850)
    ----------------------------------------------- -------------------------
    Total income taxes         (4,269)      (2,959)     (12,778)      (8,398)
    ----------------------------------------------- -------------------------
    Net income                  2,010        3,798       19,816       19,747
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------

    PER SHARE INFORMATION
    Earnings per Common Share
      Basic                      0.13         0.21         1.23         1.07
      Diluted                    0.13         0.21         1.22         1.07

    Average shares outstanding
     for the period
      Basic                15,148,633   18,330,663   16,096,010   18,384,940
      Diluted              15,373,635   18,350,378   16,244,728   18,396,067
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                        HIGH LINER FOODS INCORPORATED

         For the thirteen and fifty-two weeks ended January 1, 2011
               (with comparative figures for the thirteen and
                   fifty-two weeks ended January 2, 2010)
                                 (Unaudited)
           CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
                     (in thousands of Canadian dollars)

                              For the      For the      For the      For the
                             thirteen     thirteen    fifty-two    fifty-two
                          weeks ended  weeks ended  weeks ended  weeks ended
                            January 1,   January 2,   January 1,   January 2,
                                 2011         2010         2011         2010
    ----------------------------------------------- -------------------------
    Net income for the
     period                     2,010        3,798       19,816       19,747
    ----------------------------------------------- -------------------------
    Other comprehensive
     income, net of future
     income taxes
      Unrealized foreign
       exchange losses on
       translation of self-
       sustaining foreign
       operations, net of
       $0.1 million income
       tax expense for the
       thirteen and fifty-
       two weeks in 2010
       ($0.3 million income
       tax recovery for the
       thirteen and fifty-
       two weeks in 2009)      (1,702)      (1,846)      (3,122)      (6,586)
    ----------------------------------------------- -------------------------
      Net loss on derivative
       financial instruments
       designated as cash
       flow hedges, net of
       $0.9 million and
       $0.4 million income
       tax recovery for the
       thirteen and fifty-
       two weeks in 2010
       ($2.1 million and
       $0.3 million income
       tax recovery for the
       thirteen and fifty-
       two weeks in 2009)        (903)        (885)      (2,251)      (5,358)

      Net gain (loss) on
       derivative financial
       instruments designated
       as cash flow hedges in
       prior periods trans-
       ferred to net income
       in the current period,
       net of $1.2 million
       and $0.1 million income
       tax expense for the
       thirteen and fifty-two
       weeks in 2010 ($0.6
       million income recovery
       and $0.7 million income
       tax expense for the
       thirteen and fifty-two
       weeks in 2009)             202        1,536        2,763       (1,140)
    ----------------------------------------------- -------------------------
      Change in gains
       (losses) on derivatives
       designated as cash flow
       hedges                    (701)         651          512       (6,498)
    ----------------------------------------------- -------------------------
      Other comprehensive loss (2,403)      (1,195)      (2,610)     (13,084)
    ----------------------------------------------- -------------------------
      Comprehensive (loss)
       income                    (393)       2,603       17,206        6,663
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------



                        HIGH LINER FOODS INCORPORATED

         For the thirteen and fifty-two weeks ended January 1, 2011
               (with comparative figures for the thirteen and
                   fifty-two weeks ended January 2, 2010)
                                 (Unaudited)
                 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
                     (in thousands of Canadian dollars)

                              For the      For the      For the      For the
                             thirteen     thirteen    fifty-two    fifty-two
                          weeks ended  weeks ended  weeks ended  weeks ended
                            January 1,   January 2,   January 1,   January 2,
                                 2011         2010         2011         2010
    ----------------------------------------------- -------------------------
    Balance, beginning of
     period                    78,424       62,267       64,690       49,897
    Net income for the
     period                     2,010        3,798       19,816       19,747
    Voting common share
     dividends paid            (1,128)        (995)      (4,379)      (3,592)
    Non-voting common
     share dividends paid        (160)        (380)        (859)      (1,367)
    Shares cancelled           (6,477)           -       (6,477)           -
    Share (retraction)
     issuance expenses             13            -         (109)           5
    ----------------------------------------------- -------------------------
    Balance, end of period     72,682       64,690       72,682       64,690
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------



                       HIGH  LINER FOODS INCORPORATED

         For the thirteen and fifty-two weeks ended January 1, 2011
               (with comparative figures for the thirteen and
                   fifty-two weeks ended January 2, 2010)
                                 (Unaudited)
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                     (in thousands of Canadian dollars)

                              For the      For the      For the      For the
                             thirteen     thirteen    fifty-two    fifty-two
                          weeks ended, weeks ended, weeks ended, weeks ended,
                            January 1,   January 2,   January 1,   January 2,
                                 2011         2010         2011         2010
    ----------------------------------------------- -------------------------
    Cash provided by (used
     in) operations:
      Net income from
       operations for the
       period                   2,010        3,798       19,816       19,747
      Charges (credits) to
       income not involving
       cash from operations:
         Depreciation and
          amortization          2,127        2,268        8,357        9,048
         Stock compensation
          expense               2,151          326        3,715          365
         Loss on asset
          disposals                63           56          139          516
         Payments of
          employee future
          benefits less
          than expense             84           68          638           77
         Future income taxes    1,766        2,753        6,398        5,850
         Unwound foreign
          exchange contract
          gains reclassed
          from Accumulated
          Other Comprehensive
          Loss                      -         (451)        (165)      (7,245)
        Unrealized foreign
         exchange (gain) loss     (17)         (10)        (161)         700
    ----------------------------------------------- -------------------------
      Cash flow from
       operations before
       changes in non-cash
       working capital:         8,184        8,808       38,737       29,058
      Net change in non-cash
       working capital
       balances                (5,835)      (5,293)      11,631       (4,471)
    ----------------------------------------------- -------------------------
                                2,349        3,515       50,368       24,587
    ----------------------------------------------- -------------------------
    Cash provided by (used in)
     financing activities:
      Increase (decrease) in
       current working capital
       facilities              28,802        3,500       20,674      (13,277)
      Proceeds from lease
       financing                    -        2,671          668        2,671
      Repayment of long-term
       debt                    (1,120)           -       (4,511)           -
      Repayment of capital
       lease obligations         (228)        (149)        (806)        (475)
      Minority interest             -            -           50            -
      Common dividends:
        Voting common share
         dividends paid        (1,128)        (995)      (4,379)      (3,592)
        Non-voting common
         share dividends
         paid                    (160)        (380)        (859)      (1,367)
      Share (retraction)/
       issuance expenses            -            -         (150)           5
      Repurchase of capital
       stock                        -            -      (25,480)        (983)
      Stock options exercised       -            -           32            -
    ----------------------------------------------- -------------------------
                               26,166        4,647      (14,761)     (17,018)
    ----------------------------------------------- -------------------------
    Cash provided by (used
     in) investing activities:
      Purchase of property,
       plant and equipment
       (net of investment
       tax credits)            (1,637)      (7,995)      (4,413)     (12,153)
      Net proceeds
       (expenditures) on
       disposal of assets          (1)          13           34           25
      Acquisition of
       business               (31,802)           -      (31,802)           -
      Decrease in other
       receivables               (354)        (110)        (391)        (110)
    ----------------------------------------------- -------------------------
                              (33,794)      (8,092)     (36,572)     (12,238)
    ----------------------------------------------- -------------------------
    Foreign exchange impact
     on cash and cash
     equivalents                  (56)         (41)        (182)        (410)
    ----------------------------------------------- -------------------------
    Change in cash and cash
     equivalents during the
     period                    (5,335)          29       (1,147)      (5,079)
    Cash and cash equivalents,
     beginning of period        6,141        1,924        1,953        7,032
    ----------------------------------------------- -------------------------
    Cash and cash equivalents,
     end of period                806        1,953          806        1,953
    ----------------------------------------------- -------------------------
    ----------------------------------------------- -------------------------



                       HIGH  LINER FOODS INCORPORATED

         For the thirteen and fifty-two weeks ended January 1, 2011
               (with comparative figures for the thirteen and
                   fifty-two weeks ended January 2, 2010)
                                 (Unaudited)
                            SEGMENTED INFORMATION
                     (in thousands of Canadian dollars)

    Segmented Sales:
                                Thirteen weeks            Fifty-two weeks
                               ----------------------------------------------
    ($000s)                      2010         2009         2010         2009
    -------------------------------------------------------------------------
    Canada direct to Canada    69,870       75,137      283,906      297,671
    Canada direct to other
     countries                      4            8          450           38
    -------------------------------------------------------------------------
                               69,874       75,145      284,356      297,709
    Canada intercompany to
     USA                        1,794        2,080        5,247        7,136
    -------------------------------------------------------------------------
    Total Canada               71,668       77,225      289,603      304,845
    -------------------------------------------------------------------------
    USA direct to USA          69,931       73,043      297,213      326,438
    USA direct to other
     countries                    884          639        3,146        3,039
    -------------------------------------------------------------------------
                               70,815       73,682      300,359      329,477
    USA intercompany to
     Canada                     1,486        1,657        6,292        8,866
    -------------------------------------------------------------------------
    Total USA                  72,301       75,339      306,651      338,343
    -------------------------------------------------------------------------
    Total sales               143,969      152,564      596,254      643,188
    -------------------------------------------------------------------------
    Less intercompany          (3,280)      (3,737)     (11,539)     (16,002)
    -------------------------------------------------------------------------
    Consolidated external
     sales                    140,689      148,827      584,715      627,186
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Segment Contributions to income before income tax from continuing
    operations:

                                                     2010
                              -----------------------------------------------
                                                Thirteen weeks
                              -----------------------------------------------

    ($000s)                    Canada          USA   Unallocated       Total
    -------------------------------------------------------------------------
    Income (loss) before
     the following:             9,472        5,937       (4,838)      10,571
    Depreciation and
     amortization                (661)      (1,099)        (171)      (1,931)
    Interest expense                -            -       (1,311)      (1,311)
    Other income/non-
     operating transactions       (73)           8         (985)      (1,050)
    -------------------------------------------------------------------------
    Income (loss) before
     income tax                 8,738        4,846       (7,305)       6,279
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital Expenditures
    Financed by operations        784          890            -        1,674
    Less: investment tax
     credits                        -            -            -            -
    -------------------------------------------------------------------------
    Subtotal                      784          890            -        1,674
    Financed by capital leases    261            -            -          261
    -------------------------------------------------------------------------
    Total capital expenditures  1,045          890            -        1,935
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                     2009
                              -----------------------------------------------
                                                Thirteen weeks
                              -----------------------------------------------

    ($000s)                    Canada          USA   Unallocated       Total
    -------------------------------------------------------------------------
    Income (loss) before
     the following:             5,737        8,690       (3,388)      11,039
    Depreciation and
     amortization                (674)      (1,199)        (162)      (2,035)
    Interest expense                -            -       (1,285)      (1,285)
    Other income/non-
    operating transactions          -            -         (962)        (962)
    -------------------------------------------------------------------------
    Income (loss) before
     income tax                 5,063        7,491       (5,797)       6,757
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital Expenditures
    Financed by operations        941        7,054            -        7,995
    Less: investment tax
     credits                        -            -            -            -
    -------------------------------------------------------------------------
    Subtotal                      941        7,054            -        7,995
    Financed by capital leases    122            -            -          122
    -------------------------------------------------------------------------
    Total capital expenditures  1,063        7,054            -        8,117
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                                     2010
                              -----------------------------------------------
                                                Fifty-two weeks
                              -----------------------------------------------

    ($000s)                    Canada          USA   Unallocated       Total
    -------------------------------------------------------------------------
    Income (loss) before
     the following:            33,620       24,951      (12,111)      46,460
    Depreciation and
     amortization              (2,622)      (4,366)        (706)      (7,694)
    Interest expense                                     (5,237)      (5,237)
    Business acquisition
     costs                          -            -       (1,036)      (1,036)
    Other income/non-
     operating transactions      (144)         161           84          101
    -------------------------------------------------------------------------
    Income (loss) before
     income tax                30,854       20,746      (19,006)      32,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital Expenditures
    Financed by operations      2,112        2,338            -        4,450
    Less: investment tax
     credits                      (37)           -            -          (37)
    -------------------------------------------------------------------------
    Subtotal                    2,075        2,338            -        4,413
    Financed by capital leases    875            -            -          875
    -------------------------------------------------------------------------
    Total capital expenditures  2,950        2,338            -        5,288
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                     2009
                              -----------------------------------------------
                                                Fifty-two weeks
                              -----------------------------------------------

    ($000s)                    Canada          USA   Unallocated       Total
    -------------------------------------------------------------------------
    Income (loss) before
     the following:            28,377       23,191       (7,995)      43,573
    Depreciation and
     amortization              (2,620)      (4,869)        (620)      (8,109)
    Interest expense                -            -       (5,445)      (5,445)
    Business acquisition
     costs                          -            -         (460)        (460)
    Other income/non-
     operating transactions         -            -       (1,414)      (1,414)
    -------------------------------------------------------------------------
    Income (loss) before
     income tax                25,757       18,322      (15,934)      28,145
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital Expenditures
    Financed by operations      2,123       10,030            -       12,153
    Less: investment tax
     credits                        -            -            -            -
    -------------------------------------------------------------------------
    Subtotal                    2,123       10,030            -       12,153
    Financed by capital leases    515            -            -          515
    -------------------------------------------------------------------------
    Total capital expenditures  2,638       10,030            -       12,668
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Segmented Assets:

                                                      January 1,   January 2,
    ($000s)                                                2011         2010
    -------------------------------------------------------------------------
    Canada                                              125,284      139,727
    USA                                                 187,913      158,371
    -------------------------------------------------------------------------
                                                        313,197      298,098
    Unallocated                                           3,195        6,149
    -------------------------------------------------------------------------
                                                        316,392      304,247
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                        HIGH LINER FOODS INCORPORATED

         For the thirteen and fifty-two weeks ended January 1, 2011
               (with comparative figures for the thirteen and
                   fifty-two weeks ended January 2, 2010)
                     (in thousands of Canadian Dollars)
                                 (Unaudited)
        The tables that follow reconcile adjusted EBITDA and adjusted net
                  income to our reported financial results:

                      -------------------------------------------------------
                                   2010                       2009
                      -------------------------------------------------------
                                 Diluted Earnings           Diluted Earnings  
	                                Per Share                  Per Share
                                     Based on:                  Based on:
                                ------------------         ------------------
                                                                     Year end
                                 Average  Year end          Average    2010
                                  Shares   Shares            Shares   Shares
                                    Out-     Out-              Out-     Out-
                           $000  standing standing    $000  standing standing
                      -------------------------------------------------------
    Net income as
     reported          $ 19,816                   $ 19,747
    Add back:
      Income taxes     $ 12,778                   $  8,398
      Interest expense $  5,237                   $  5,445
      Amortization of
       intangible
       assets          $  1,204                   $  1,499
      Depreciation     $  6,490                   $  6,610
                      ----------                 ----------
    Standard EBITDA    $ 45,525                   $ 41,699
    Add back (deduct):
      Business
       acquisition,
       integration,
       and other
       costs           $    875                   $  1,382

      Loss on asset
       disposals       $     60                   $    492
                      ----------                 ----------
    Adjusted EBITDA    $ 46,460                   $ 43,573
      Add back stock
       option expense  $  4,353                   $    365
                      ----------                 ----------
    Adjusted EBITDA,
     excluding stock
     options           $ 50,813                   $ 43,938
                      ----------                 ----------

    Net Income         $ 19,816 $   1.22 $   1.29 $ 19,747  $  1.07 $   1.29
    Add back (deduct):
      After-tax
       business
       acquisition,
       integration,
       and other
       costs           $    544 $   0.03 $   0.04 $  1,142  $  0.07 $   0.07
      Income tax
       adjustment
       on US income    $      - $      - $      - $   (296) $ (0.02)$  (0.02)
      Intercompany
       dividend with-
       holding tax     $  1,006 $   0.07 $   0.07 $      -  $     - $      -
                      -------------------------------------------------------
                       $ 21,366 $   1.32 $   1.39 $ 20,593  $  1.12 $   1.34
      Stock option
       expense,
       including
       income tax
       adjustment      $  4,258 $   0.26 $   0.28 $    250  $  0.01 $   0.02
                      -------------------------------------------------------
    Adjusted Net
     Income            $ 25,624 $   1.58 $   1.67 $ 20,843  $  1.13 $   1.36
                      -------------------------------------------------------
    Shares outstanding
     - as reported
     (000)                        16,186   15,149            18,396   15,149
                                 --------                   --------
    Dilutive effect of
     stock options out-
     standing at year
     end (000)                                214                        214
                                          --------                   --------
    Year end 2010
     dilutive shares
     (000)                                 15,363                     15,363
                                          --------                   --------
                                          --------                   --------
                      -------------------------------------------------------



                      -------------------------------------------------------
                                 Q4 2010                    Q4 2009
                      -------------------------------------------------------
                                 Diluted Earnings           Diluted Earnings
                                    Per Share                  Per Share
                                     Based on:                  Based on:
                                ------------------         ------------------
                                                                     Year end
                                 Average  Year end          Average    2010
                                  Shares   Shares            Shares   Shares
                                    Out-     Out-              Out-     Out-
                           $000  standing standing    $000  standing standing
                      -------------------------------------------------------
    Net income as
     reported          $  2,010                   $  3,798
    Add back:
      Income taxes     $  4,269                   $  2,959
      Interest expense $  1,311                   $  1,285
      Amortization of
       intangible
       assets          $    297                   $    436
      Depreciation     $  1,634                   $  1,599
                      ----------                 ----------
    Standard EBITDA    $  9,521                   $ 10,077
    Add back (deduct):
      Business
       acquisition,
       integration,
       and other
       costs           $    986                   $    922
      Loss on asset
       disposals       $     64                   $     40
                      ----------                 ----------
    Adjusted EBITDA    $ 10,571                   $ 11,039
      Add back stock
       option expense  $  2,789                   $    326
                      ----------                 ----------
    Adjusted EBITDA,
     excluding stock
     options           $ 13,360                   $ 11,365
                      ----------                 ----------

    Net Income         $  2,010 $   0.13 $   0.13 $  3,798 $   0.21 $   0.25

    Add back (deduct):
      After-tax
       business
       acquisition,
       integration,
       and other
       costs           $    594 $   0.04 $   0.04 $    576 $   0.03 $   0.04
      Income tax
       adjustment on
       US income       $      - $      - $      - $    940 $   0.05 $   0.06
      Intercompany
       dividend with-
       holding tax     $  1,006 $   0.06 $   0.07 $      - $      - $      -
                      -------------------------------------------------------
                       $  3,610 $   0.23 $   0.23 $  5,314 $   0.29 $   0.35
      Stock option
       expense,
       including income
       tax adjustment  $  3,175 $   0.21 $   0.21 $    224 $   0.01 $   0.01
                      -------------------------------------------------------
    Adjusted Net
     Income            $  6,785 $   0.44 $   0.44 $  5,538 $   0.30 $   0.36
                      -------------------------------------------------------
    Shares outstanding
     - as reported (000)          15,374   15,149            18,350   15,149
                                 ---------                  ---------
    Dilutive effect of
     stock options out-
     standing at year
     end (000)                                214                        214
                                          --------                   --------
    Year end 2010
     dilutive shares
     (000)                                 15,363                     15,363
                                          --------                   --------
                                          --------                   --------
                      -------------------------------------------------------
    >>

SOURCE High Liner Foods Incorporated

For further information: K.L. Nelson, Vice President Corporate Services, Chief Financial Officer & Secretary, High Liner Foods Incorporated, Tel: (902) 634-6200, investor@highlinerfoods.com; Salvador Diaz, Investor Relations, TMX Equicom, Tel: (416) 815-0700 ext.242, sdiaz@equicomgroup.com


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