TO LETTER SHAREHOLDERS High Liner Foods achieved record net sales and  Adjusted Net Income in 2013, aided by the acquisition  of American Pride Seafoods. However, we did not  achieve the level of Sales, Adjusted EBITDA, and  Adjusted Net Income we expected due to a number of  challenges, including weak consumer spending in the  U.S. casual dining market and complexities associated  with the consolidation of our U.S. production and  distribution facilities. Nevertheless, the value of  our common shares increased 48.5 percent during  2013 and closed the year at $46.03 CAD. We were  also pleased to be added to the S&P/TSX Canadian  Dividend Aristocrats® Index on December 20, 2013,  following several years of strong growth, rising  liquidity and increasing dividends. Sales in domestic currency increased for  the fifth consecutive year, but at a slower  pace, reaching $956.3 million compared to $942.3 million in 2012. Adjusted Net  Income increased by $3.2 million to $41.3 million and diluted EPS based on  Adjusted Net Income rose 7.7 percent to  $2.65 per share.  FINANCIAL RESULTS Increased sales reflect the acquisition of American Pride Seafoods, strong club  store sales, higher branded retail sales in the U.S., and higher food service sales in Canada, partially offset by a decline in U.S. food service sales and retail private  label sales in both countries. While the U.S. economy experienced a modest  recovery in 2013, U.S. restaurant sales  remained soft, particularly in the casual  dining segment, which is a key driver for our business.  Adjusted EBITDA decreased from $91.7 million to $85.3 million, due in large  part to what was, in retrospect, an overly  ambitious schedule for the consolidation of our U.S. production facilities, and to a  lesser extent, a shorter Lent-promotion  season, which limited sales during the most important period of the year. 2 HIGH LINER FOODS INCORPORATED