VANCOUVER, CANADA— EBITDA Increases 259% Over Same Period Last Year – LEADING BRANDS, INC. (NASDAQ:LBIX), Canada’s largest independent, fully integrated food and beverage brand management company, is pleased to announce record earnings for its fiscal third quarter ended November 30, 2001.
Revenues for the third quarter were $14.2 million Cdn ($8.9 million US), versus $17.3 million Cdn ($11.4 million US) for the third quarter of fiscal 2001. The reduction in revenues this year versus last was directly attributable to a change in the Company’s SoBe relationship from distribution to co-pack. Excluding SoBe, revenue increased 11.1% over the same period last year, as all other areas of the business improved substantially, including profitability of existing and new business. EBITDA for the three-month period was $855,275 Cdn ($537,099 US) versus $238,410 Cdn ($157,502 US) in the same period last year. The Company reported net income for the third quarter of $86,486 Cdn ($54,312 US) or $0.01 Cdn per share, compared to net loss of $736,421 Cdn ($486,504 US) or $0.06 Cdn ($0.04 US) per share in the same period of last year.
Revenues for the first nine months were $51.4 million Cdn ($33.0 million US), versus $62.3 million Cdn ($42.0 million US) for the first nine months of fiscal 2001. EBITDA for the nine-month period was $4.6 million Cdn ($3.0 million US) versus $3.7 million Cdn ($2.5 million US) in the same period last year. Net income for the first nine months of fiscal 2002 was $2.2 million Cdn ($1.4 million US) or $0.16 Cdn ($0.10 US) per share, compared to net income of $873,854 Cdn ($604,911 US) or $0.07 Cdn ($0.05 US) per share in the same period of last year.
Ralph D. McRae, Chairman & Chief Executive Officer of Leading Brands, stated, “We are extremely pleased to report a profit, despite the third quarter being a seasonally weak period. Importantly, our EBITDA for the third quarter rose over 250 percent year to date, which represents a dramatic improvement in our financial position. Specifically, we have benefited tremendously from our cost controls, employee incentive programs and efficiency initiatives.”
Mr. McRae continued, “Looking ahead, we will be well positioned for rapid and profitable growth, as we unveil our highly anticipated new product lines in the weeks ahead. Additionally, we continue to build our new business pipeline and we plan to fully utilize our extensive network of US relationships we have cultivated over the past five years by continually adding new beverage products.”
Mr. McRae concluded, “In closing, I would like to wish all of our shareholders the very best for 2002. We at Leading Brands look to the future with boundless optimism.”
We Build Brands(TM)
Leading Brands, Inc. is the largest independent, fully integrated food and beverage brand management company in Canada. The Company’s unique Integrated Distribution System (IDS) offers turnkey, one-stop shopping to food and beverage brand owners. Its subsidiary, Quick, Inc. is building a home replenishment and delivery system for the new economy.
Statements in this news release that are not historical are to be regarded as forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties with respect to the Company’s business include general economic conditions, weather conditions, changing beverage consumption trends, pricing, and the availability of raw materials and economic uncertainties, including currency.
This news release is available at www.LeadingBrandsInc.com
LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(EXPRESSED IN CANADIAN DOLLARS)
Three months Three months Nine months Nine months
ending ending ending ending
November 30 November 30 November 30 November 30
2001 2000 2001 2000
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Sales $14,213,983 $17,313,920 $51,367,627 $62,347,280
Expenses (Income)
Cost of sales,
operations,
selling, general
& administration
expenses 13,340,992 17,237,617 47,075,035 59,251,817
Depreciation and
amortization 569,910 694,252 1,721,767 1,995,933
Interest expense 198,879 280,579 693,168 813,367
Other 17,716 (162,107) (291,397) (587,690)
-------------------------------------------------
14,127,497 18,050,341 49,198,573 61,473,427
-------------------------------------------------
Net income
before taxes 86,486 (736,421) 2,169,054 873,853
-------------------------------------------------
Income Taxes - - - -
-------------------------------------------------
Net income after
income taxes 86,486 (736,421) 2,169,054 873,853
Deficit,
beginning of
period (13,441,668) (15,716,818) (15,524,236) (16,910,840)
Preferred
Share Dividends - - - (416,252)
-------------------------------------------------
Deficit, end
of period ($13,355,182)($16,453,239)($13,355,182)($16,453,239)
-------------------------------------------------
EARNINGS
PER SHARE
Basic $ 0.01 $ (0.06) $ 0.16 $ 0.07
Fully diluted $ 0.01 $ (0.06) $ 0.15 $ 0.07
Weighted average
number of shares
outstanding 13,558,878 11,567,921 13,606,377 10,289,520
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LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(EXPRESSED IN UNITED STATES DOLLARS)
Three months Three months Nine months Nine months
ending ending ending ending
November 30 November 30 November 30 November 30
2001 2000 2001 2000
--------------------------------------------------------------------
Sales $ 8,926,139 $11,438,145 $33,005,847 $41,963,022
Expenses (Income)
Cost of sales,
operations,
selling, general
& administration
expenses 8,377,915 11,387,736 30,239,681 39,866,525
Depreciation and
amortization 357,894 458,646 1,105,050 1,341,014
Interest expense 124,893 185,360 445,432 546,529
Other 11,125 (107,093) (187,908) (395,957)
-------------------------------------------------
8,871,827 11,924,649 31,602,255 41,358,111
-------------------------------------------------
Net income
before taxes 54,312 (486,504) 1,403,592 604,911
-------------------------------------------------
Income Taxes - - - -
-------------------------------------------------
Net income after
income taxes 54,312 (486,504) 1,403,592 604,911
Deficit,
beginning
of period (9,389,591) (10,622,778) (10,738,871) (11,431,649)
Preferred
Share Dividends - - - (282,544)
-------------------------------------------------
Deficit, end
of period ($ 9,335,279)($11,109,282)($ 9,335,279)($11,109,282)
-------------------------------------------------
EARNINGS
PER SHARE
Basic - $ (0.04) $ 0.10 $ 0.05
Fully diluted - $ (0.04) $ 0.09 $ 0.05
Weighted average
number of shares
outstanding 13,558,878 11,567,921 13,606,377 10,289,520
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FOR FURTHER INFORMATION PLEASE CONTACT :
Leading Brands, Inc.
Derek Henrey
CFO
Phone: Toll Free: 1 (800) 729-2746 ext. 313
E-mail: dhenr@LeadingBrandsInc.com
or
Strategic Growth International, Inc.
Stan Altschuler/David Waldman
Phone: (516) 829-7111
E-mail: saltschuler@strategicgrowthint.com
INDUSTRY : SFT
SUBJECT : ERN