Maple Leaf Refiles Financial Statements to Reflect Previously Announced Restatement of Tax Liability on Sale of Discontinued Business



    
    TSX: MFI
    www.mapleleaf.com
    

    TORONTO, Feb. 12 /CNW/ - Maple Leaf Foods Inc. (TSX: MFI) today refiled
its consolidated annual financial statements and related management's
discussion and analysis for fiscal 2007 to reflect a previously announced
restatement of understated future tax expense related to the sale of its
animal nutrition business in 2007. The Company has also restated and refiled
its interim financial statements for the three, six and nine month periods
ended March 31, 2008, June 30, 2008 and September 30, 2008 (the "2008 Interim
Statements"), respectively, and its related management's discussion and
analysis for these periods for the same reason. The restated management's
discussion and analysis for fiscal 2007 also contains an update on
management's assessment of the design and effectiveness of the Company's
disclosure controls and procedures and the design of its internal control over
financial reporting.
    On July 20, 2007, the Company sold its animal nutrition business for
gross proceeds of $524.8 million and recognized a gain on the sale of $219.4
million, net of income taxes of $65.1 million. As disclosed on February 3,
2009, the Company identified an understatement of future tax expense
recognized on this transaction in earnings from discontinued operations of
$12.2 million and an understatement of its net future tax liability of the
same amount. The Company does not expect this restatement to have an impact on
cash flows for at least the next three to five years. The Company has now
restated and refiled its consolidated annual financial statements for the year
ended December 31, 2007 and its 2008 Interim Statements to reflect the
increase in tax expense and the increase in its net future tax liability. The
impact of reflecting the above restatement results in revised net earnings for
the year ended December 31, 2007 of $194.9 million (previously reported net
earnings were $207.1 million) and in revised basic and diluted earnings per
share ("EPS") of $1.53 and $1.50, respectively (previously reported basic and
diluted EPS were $1.63 and $1.59, respectively).
    As the sale of the animal nutrition business was reflected in the 2007
financial statements as a discontinued operation, the restatement does not
affect earnings from continuing operations in fiscal 2007 or net earnings
(loss) in fiscal 2008. Accordingly, earnings from continuing operations
previously reported for the fiscal year ended December 31, 2007 and net
earnings (loss) for the interim periods in fiscal 2008 remain unchanged.

    Maple Leaf Foods Inc. is a leading food processing company, headquartered
in Toronto, Canada. The Company employs approximately 23,500 people at its
operations across Canada and in the United States, the United Kingdom and
Asia. The Company had sales of $5.2 billion in 2007.

    Forward-Looking Statements

    This press release may contain forward-looking statements. Such
statements include, but are not limited to, statements with respect to the
Company's expectations concerning the effect of the restatement on the amount
and timing of future cash flows. These statements are not guarantees of future
performance and involve assumptions and risks and uncertainties that are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed, implied or forecasted in such
forward-looking statements. Factors that could cause actual results or
outcomes to differ materially from the results expressed, implied or
forecasted by these forward-looking statements are discussed more fully in the
Company's filings with the securities regulatory authorities, including its
management's discussion and analysis, all of which are available on SEDAR at
www.sedar.com. The Company does not intend, and the Company disclaims any
obligation to update any forward-looking statements, whether written or oral,
or whether as a result of new information, future events or otherwise except
as required by law.





For further information:

For further information: Michael Vels, Chief Financial Officer, (416)
926-2048


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