- Delivers Year-over-Year Adjusted EBITDA
and Net Income Growth for Fiscal 2021 -
LUNENBURG, NS, Feb. 23, 2022 /CNW/ - High Liner Foods
Incorporated (TSX: HLF) ("High Liner Foods" or "the Company"), a
leading North American value-added frozen seafood company, today
reported improved financial results for the fifty-two weeks ended
January 1, 2022.
"We are pleased, despite the multi-headwind environment, that we
grew sales, increased our profitability and, for the third
successive year, delivered on our goal of generating year-over-year
EBITDA improvement," said Rod
Hepponstall, President and CEO of High Liner Foods. "This is
the result of executing against our branded, value-added strategy,
strong execution across our organization, and excellent work by our
supply chain team to maximize our product availability by
mitigating the impact of major global issues."
"We continue to benefit from our early action on supply chain
diversification, however given the extent of the global supply
chain challenges, we were unable to fully satisfy demand for our
products in the fourth quarter, impacting overall volumes. We will
continue to pursue all potential avenues to satisfy the strong
demand and build inventory in the face of supply challenges that we
anticipate will prevail for the first half of 2022."
Key financial results, reported in U.S. dollars ("USD"), for the
fifty-two weeks ended January 1, 2022, or Fiscal 2021, are as
follows (unless otherwise noted, all comparisons are relative to
the fifty-three weeks ended January 2, 2021, or "Fiscal
2020"):
- Sales increased by $47.9 million,
or 5.8%, to $875.4 million compared
to $827.5 million and sales volume
decreased by 7.2 million pounds, or 3.0%, to 233.7 million pounds
compared to 240.9 million pounds;
- Gross profit as a percentage of sales increased to 22.7%
compared to 21.5% and gross profit increased by $20.6 million, or 11.6%, to $198.5 million compared to $177.9 million;
- Adjusted EBITDA([1]) increased by $2.4 million, or 2.7%, to $90.4 million compared to $88.0 million and Adjusted EBITDA as a Percentage
of Sales(1) decreased to 10.3% compared to 10.6%;
- Net Debt(1) to Rolling Twelve-Month Adjusted
EBITDA(1) was 3.0x at January 1,
2022 compared to 2.8x at October 2,
2021 and 3.0x at the end of Fiscal 2020;
- Net income increased by $13.4
million, or 46.5%, to $42.2
million compared to $28.8
million and diluted earnings per share ("EPS") increased to
$1.20 per share compared to
$0.83 per share; and
- Adjusted Net Income(1) increased by $9.6 million, or 27.3%, to $44.8 million compared to $35.2 million and Adjusted Diluted
EPS(1) increased to $1.28
per share compared to $1.02 per
share.
______________________________________
(1)
|
Please refer to the
"Non-IFRS Financial Measures" section of this media
release.
|
Key financial results, reported in USD, for the thirteen weeks
ended January 1, 2022, or the fourth quarter of 2021, are as
follows (unless otherwise noted, all comparisons are relative to
the fourth quarter of 2020):
- Sales increased by $29.5 million,
or 14.9%, to $227.9 million compared
to $198.4 million and sales volume
decreased by 0.9 million pounds, or 1.5%, to 58.7 million pounds
compared to 59.6 million pounds;
- Gross profit as a percentage of sales decreased to 21.3%
compared to 21.9% and gross profit increased by $5.1 million, or 11.7%, to $48.6 million compared to $43.5 million;
- Adjusted EBITDA decreased by $0.6
million, or 2.8%, to $20.6
million compared to $21.2
million and Adjusted EBITDA as a Percentage of Sales
decreased to 9.0% compared to 10.7% ;
- Net income decreased by $0.2
million, or 2.7%, to $7.2
million compared to $7.4
million and diluted earnings per share ("EPS") decrease to
$0.20 per share compared to
$0.21 per share; and
- Adjusted Net Income decreased by $1.2
million, or 11.7%, to $9.1
million compared to $10.3
million and Adjusted Diluted EPS decreased to $0.26 per share compared to $0.29 per share.
Q4 Operational Update
The Company's foodservice business continues to rebound and
demand from hospitality and institutional customers continues to
increase. High Liner Foods is taking all available steps to
satisfy customer demand but is constrained from doing so due to
global supply chain challenges, which impacted the Company's sales
volumes by approximately 4 million pounds in the fourth quarter.
Like others in the industry, the Company is experiencing shipping
delays and raw material supply issues due to global labour
shortages, limited shipping container availability, and port
congestion and shutdowns. Without the various steps taken to
mitigate the impact of these supply challenges, the impact to the
Company would have been more pronounced.
The Company continued to take appropriate pricing actions during
the quarter to offset the additional costs incurred and manage the
inflationary environment. These pricing actions, along with
favorable product mix due to increased branded and commodity sales,
resulted in a 14.9% increase in net sales in the fourth quarter
versus a year ago.
"Our sales revenue growth speaks to our successful early action
on pricing and is indicative of our commitment to tackle the
challenges in our operating environment proactively, while
maximizing the benefits of our integrated supply chain, scale and
longstanding customer and supplier relationships," said Mr.
Hepponstall.
High Liner Foods continues to take prudent and proactive
measures designed to protect the health and safety of its employees
and mitigate disruption to the Company's supply chain and
operations.
Financial Results
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.
The financial results for the thirteen and fifty-two weeks ended
January 1, 2022 and fourteen and fifty-three weeks ended
January 2, 2021 are summarized in the following table:
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks
ended
|
|
Fourteen weeks
ended
|
|
Fifty-two weeks
ended
|
|
Fifty-three weeks
ended
|
(Amounts in 000s,
except per share amounts, unless
otherwise noted)
|
|
January 1,
2022
|
|
January 2,
2021
|
|
January 1,
2022
|
|
January 2,
2021
|
Sales volume
(millions of lbs)
|
|
58.7
|
|
59.6
|
|
233.7
|
|
240.9
|
Average foreign
exchange rate (USD/CAD)
|
|
1.2606
|
|
1.3045
|
|
1.2535
|
|
1.3409
|
Sales
|
|
$
|
227,879
|
|
$
|
198,415
|
|
$
|
875,405
|
|
$
|
827,453
|
Gross
profit
|
|
$
|
48,605
|
|
$
|
43,520
|
|
$
|
198,544
|
|
$
|
177,924
|
Gross profit as a
percentage of sales
|
|
21.3%
|
|
21.9%
|
|
22.7%
|
|
21.5%
|
Adjusted
EBITDA
|
|
$
|
20,600
|
|
$
|
21,185
|
|
$
|
90,422
|
|
$
|
88,045
|
Adjusted EBITDA as
a percentage of sales
|
|
9.0%
|
|
10.7%
|
|
10.3%
|
|
10.6%
|
Net
income
|
|
$
|
7,223
|
|
$
|
7,372
|
|
$
|
42,249
|
|
$
|
28,802
|
Diluted
EPS
|
|
$
|
0.20
|
|
$
|
0.21
|
|
$
|
1.20
|
|
$
|
0.83
|
Adjusted Net
Income
|
|
$
|
9,079
|
|
$
|
10,315
|
|
$
|
44,798
|
|
$
|
35,211
|
Adjusted Diluted
EPS
|
|
$
|
0.26
|
|
$
|
0.29
|
|
$
|
1.28
|
|
$
|
1.02
|
Diluted weighted
average number of shares outstanding
|
|
35,171
|
|
34,375
|
|
35,121
|
|
34,519
|
Sales volume for the thirteen weeks ended January 1, 2022, or the fourth quarter of 2021,
decreased by 0.9 million pounds, or 1.5%, to 58.7 million pounds
compared to 59.6 million pounds in the fourteen weeks ended
January 2, 2021, or the fourth
quarter of 2020. In our foodservice business, sales volume was
lower due to the impact of global supply chain challenges on raw
material supply to North America.
In our retail business, sales volume was consistent with the same
period last year due to evolving consumer behaviour during the
COVID-19 pandemic. Sales volume was favorably impacted by new
business and new product sales.
Sales in the fourth quarter of 2021 increased by $29.5 million to $227.9
million compared to $198.4
million in the same period in 2020, reflecting pricing
actions related to inflationary increases on input costs and
favorable changes in sales mix, partially offset by the lower sales
volumes discussed above. In addition, the stronger Canadian dollar
in fourth quarter of 2021 compared to the same quarter of 2020
increased the value of reported USD sales from our CAD-denominated
operations by approximately $1.9
million relative to the conversion impact last year.
Gross profit in the fourth quarter of 2021 increased by
$5.1 million to $48.6 million compared to $43.5 million in the same period in 2020 and
gross profit as a percentage of sales decreased by 60 basis points
to 21.3% compared to 21.9%. The increase in gross profit reflects
favorable changes in product mix, offset by higher than expected
inflation and the lower sales volume discussed above. In addition,
the stronger Canadian dollar increased the value of reported USD
gross profit from our Canadian operations in 2021 by approximately
$0.4 million relative to the
conversion impact last year.
Adjusted EBITDA in the fourth quarter of 2021 decreased by
$0.6 million to $20.6 million compared to $21.2 million in the same period in 2020 and
Adjusted EBITDA as a percentage of sales decreased to 9.0% compared
to 10.7%. The decrease in Adjusted EBITDA reflects the increase in
gross profit, partially offset by an increase in distribution
expenses and net SG&A expenses.
Reported net income in the fourth quarter of 2021 decreased by
$0.2 million to net income of
$7.2 million (diluted EPS of
$0.20) compared to $7.4 million (diluted EPS of $0.21) in the same period in 2020. The decrease
in net income reflects the decrease in Adjusted EBITDA, a decrease
in share-based compensation expense and a decrease in finance
costs, partially offset by an increase in income tax expense.
Reported net income in the fourth quarter of 2021 included
certain non-routine expenses classified as "business acquisition,
integration and other expense". Excluding the impact of these
non-routine items or other non-cash expenses and share-based
compensation, Adjusted Net Income in the fourth quarter of 2021
decreased by $1.2 million or 11.7% to
$9.1 million compared to $10.3 million in 2020. Correspondingly, Adjusted
Diluted EPS decreased by $0.03 to
$0.26 compared to $0.29 in 2020.
Net cash flows provided by operating activities in the fourth
quarter of 2021 decreased by $30.3
million to an outflow of $8.0
million compared to an inflow of $22.3 million in the same period in 2020 due to
unfavorable changes in non-cash working capital, offset by lower
interest and income taxes paid, and higher cash flows provided by
operations.
Net Debt increased by $18.5
million to $271.0 million at
the end of the fourth quarter of 2021 as compared to $252.6 million at October 2, 2021, primarily
reflecting higher bank loans on January 1, 2022 as compared to
the third quarter of 2021, partially offset by lower cash and lease
liabilities.
Net Debt to Rolling Twelve-Month Adjusted EBITDA was 3.0x at
January 1, 2022 compared to 2.8x at October 2, 2021 and
3.0x at the end of Fiscal 2020. In the absence of any major
acquisitions or unplanned capital expenditures in 2022, we expect
this ratio to be below the Company's long-term target of 3.0x at
the end of Fiscal 2022.
Outlook
"We have demonstrated our resilience and our ability to execute
as we have delivered ongoing Adjusted EBITDA growth and
strengthened our customer relationships during the COVID-19
pandemic," said Mr. Hepponstall. "We are confident that we will
continue to accelerate sales growth and generate year-over-year
Adjusted EBITDA growth in Fiscal 2022 as we execute on our strategy
to be the leader in branded, value-added seafood in North America."
Demand for the Company's products remains strong, however, like
others in the retail and foodservice space, the Company continues
to navigate global supply challenges, inflationary pressures on raw
material and ongoing uncertainty related to the COVID-19 pandemic.
High Liner Foods is taking all necessary steps to mitigate ongoing
supply challenges by drawing on the scale of its global supply
chain and the diversification of species, product, procurement and
strong customer and supplier relationships to support its
position.
With a strong balance sheet and cash flow, the Company is well
equipped to navigate current market conditions and invest in the
business, with anticipated capital expenditures of approximately
$25.0 million in Fiscal 2022, as we
modernize our asset base, explore automation opportunities and
maintain and upgrade our facilities.
The Company does not have any impending debt maturities and will
continue to utilize its $150.0
million working capital credit facility, if required, and
remains confident in its liquidity position. High Liner Foods
expects its Net Debt to Rolling Twelve-Month Adjusted EBITDA ratio
to be below the Company's long-term target of 3.0x at the end of
Fiscal 2022.
Dividend
Today, the Company's Board of Directors approved a quarterly
dividend of CAD$0.10 per share on the
Company's common shares, payable on March 15, 2022 to holders
of record on March 2, 2022. These dividends are considered
"eligible dividends" for Canadian income tax purposes.
Conference Call
The Company will host a conference call on Wednesday,
February 23, 2022, at 2:00 p.m.
ET (3:00 p.m. AT) during which
Rod Hepponstall, President &
Chief Executive Officer and Paul
Jewer, Executive Vice President & Chief Financial
Officer, will discuss the financial results for the fourth quarter
of 2021. 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
Wednesday, March 2, 2022 at midnight (ET). To access the
archived conference call, dial 1-888-390-0541 and enter the replay
entry code 738813#.
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 January 1,
2022 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. 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
|
|
Fourteen weeks
ended
|
(Amounts in
$000s)
|
|
January 1,
2022
|
|
January 2,
2021
|
Net
income
|
|
$
|
7,223
|
|
$
|
7,372
|
Add back
(deduct):
|
|
|
|
|
Depreciation and
amortization expense
|
|
5,770
|
|
6,044
|
Finance
costs
|
|
3,704
|
|
4,671
|
Income tax expense
(recovery)
|
|
1,333
|
|
(884)
|
Standardized
EBITDA
|
|
18,030
|
|
17,203
|
Add back
(deduct):
|
|
|
|
|
Business acquisition,
integration and other expenses
|
|
521
|
|
968
|
Impairment of property,
plant and equipment
|
|
—
|
|
—
|
Loss on disposal of
assets
|
|
67
|
|
60
|
Share-based
compensation expense
|
|
1,982
|
|
2,954
|
Adjusted
EBITDA
|
|
$
|
20,600
|
|
$
|
21,185
|
Net
Sales
|
|
$
|
227,879
|
|
$
|
198,415
|
Adjusted EBITDA as
Percentage of Sales
|
|
9.0%
|
|
10.7%
|
|
|
Fifty-two weeks
ended
|
|
Fifty-three weeks
ended
|
(Amounts in
$000s)
|
|
January 1,
2022
|
|
January 2,
2021
|
Net
income
|
|
$
|
42,249
|
|
$
|
28,802
|
Add back
(deduct):
|
|
|
|
|
Depreciation and
amortization expense
|
|
23,081
|
|
23,228
|
Finance
costs
|
|
7,494
|
|
19,483
|
Income tax
expense
|
|
6,833
|
|
7,870
|
Standardized
EBITDA
|
|
79,657
|
|
79,383
|
Add back
(deduct):
|
|
|
|
|
Business acquisition,
integration and other expenses
|
|
2,850
|
|
2,767
|
Impairment of property,
plant and equipment
|
|
42
|
|
—
|
Loss on disposal of
assets
|
|
122
|
|
34
|
Share-based
compensation expense
|
|
7,751
|
|
5,861
|
Adjusted
EBITDA
|
|
$
|
90,422
|
|
$
|
88,045
|
Net
Sales
|
|
$
|
875,405
|
|
$
|
827,453
|
Adjusted EBITDA as
a Percentage of Sales
|
|
10.3%
|
|
10.6%
|
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. 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
|
|
Fourteen weeks
ended
|
|
|
January 1,
2022
|
|
January 2,
2021
|
|
|
$000s
|
|
Adjusted
Diluted EPS
|
|
$000s
|
|
Adjusted
Diluted EPS
|
Net
income
|
|
$
|
7,223
|
|
$
|
0.20
|
|
$
|
7,372
|
|
$
|
0.21
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Business acquisition,
integration and other
expenses
|
|
521
|
|
0.01
|
|
968
|
|
0.03
|
Share-based
compensation expense
|
|
1,982
|
|
0.06
|
|
2,954
|
|
0.08
|
Tax impact of
reconciling items
|
|
(647)
|
|
(0.02)
|
|
(979)
|
|
(0.03)
|
Adjusted Net
Income
|
|
$
|
9,079
|
|
$
|
0.26
|
|
$
|
10,315
|
|
$
|
0.29
|
Average shares for
the period (000s)
|
|
|
|
35,171
|
|
|
|
34,375
|
|
|
Fifty-two weeks
ended
|
|
Fifty-three weeks
ended
|
|
|
January 1,
2022
|
|
January 2,
2021
|
|
|
$000s
|
|
Adjusted
Diluted EPS
|
|
$000s
|
|
Adjusted
Diluted EPS
|
Net
income
|
|
$
|
42,249
|
|
$
|
1.20
|
|
$
|
28,802
|
|
$
|
0.83
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
Business acquisition,
integration and other
expenses
|
|
2,850
|
|
0.08
|
|
2,767
|
|
0.08
|
Gain on modification of
debt (1)
|
|
(7,901)
|
|
(0.22)
|
|
—
|
|
—
|
Impairment of property,
plant and equipment
|
|
42
|
|
—
|
|
—
|
|
—
|
Share-based
compensation expense
|
|
7,751
|
|
0.23
|
|
5,861
|
|
0.17
|
Tax impact of
reconciling items
|
|
(193)
|
|
(0.01)
|
|
(2,219)
|
|
(0.06)
|
Adjusted Net
Income
|
|
$
|
44,798
|
|
$
|
1.28
|
|
$
|
35,211
|
|
$
|
1.02
|
Average shares for
the period (000s)
|
|
|
|
35,121
|
|
|
|
34,519
|
(1)
|
Included in the
"Finance costs" line in the consolidated statements of income for
the fifty-two weeks ended January 1, 2022 and represents a
gain on the modification of debt related to the debt refinancing
completed in March 2021 (see the Recent Developments section
on page 5 of
the Company's MD&A and Note 14 to the Consolidated Financial
Statements).
|
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 Adjusted EBITDA. 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)
|
|
January 1,
2022
|
|
January 2,
2021
|
Bank loans
|
|
$
|
4,388
|
|
$
|
—
|
Add-back: Deferred
finance costs included in bank loans (1)
|
|
163
|
|
—
|
Total bank
loans
|
|
4,551
|
|
—
|
Long-term
debt
|
|
244,994
|
|
268,048
|
Current portion of
long-term debt
|
|
5,625
|
|
20,185
|
Add-back: Deferred
finance costs included in long-term debt (2)
|
|
5,810
|
|
5,979
|
Less: Net loss on
modification of debt (3)
|
|
(674)
|
|
(8,897)
|
Total term loan
debt
|
|
255,755
|
|
285,315
|
Long-term portion of
lease liabilities
|
|
6,851
|
|
10,722
|
Current portion of
lease liabilities
|
|
4,327
|
|
4,866
|
Total lease
liabilities
|
|
11,178
|
|
15,588
|
Less: Cash
|
|
(443)
|
|
(32,935)
|
Net
Debt
|
|
$
|
271,041
|
|
$
|
267,968
|
Adjusted
EBITDA
|
|
$
|
90,422
|
|
$
|
88,045
|
Net Debt to
Rolling Twelve-Month Adjusted EBITDA
|
|
3.0x
|
|
3.0x
|
(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)
|
A gain on
modification of debt related to the refinancing completed in March
2021 (see the Recent Developments section on page 5 of
the
Company's MD&A), net of a loss on the modification of debt
related to debt refinancing completed in October 2019, has been
excluded from
the calculation of Net Debt as it does not represent the expected
cash outflows from the term loan facility. See Note 14 to the
Consolidated
Financial Statements.
|
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
fifty-two weeks ended January 1, 2022
and the Risk Factors section of our 2021 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 workplan, 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; and the potential impact of a pandemic outbreak of
a contagious illness, such as the 2019 coronavirus/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
investor@highlinerfoods.com.
SOURCE High Liner Foods Incorporated