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Ralph D. McRae
Chairman and CEO
Leading Brands, Inc.
Toll Free: 1-800-729-2746 ext. 238
LEADING BRANDS REPORTS RECORD Q3 & NINE MONTH RESULTS:SALES INCREASE 56% & 76%, RESPECTIVELY; EPS ($0.04) & $0.05
VANCOUVER, CANADA - January 29, 2001 - LEADING BRANDS, INC. (NASDAQ:LBIX), Canada's largest independent, fully integrated food and beverage brand management company, is pleased to announce record revenues for its fiscal 2000 third quarter and nine months ended November 30, 2000. All reported figures are in U.S. dollars unless indicated otherwise.
Revenues for the quarter climbed 56% to $11,438,000 in the third quarter ending November 30, 2000, from $7,332,000 in the third quarter of fiscal 1999. The Company recorded a net loss of $487,000 or ($0.04) per share, compared to a loss (before unusual items) of $663,000 or ($0.09) per share, in the same period of last year.
Revenues for the nine months ended November 30, 2000 rose 76% to $41,963,000 from $23,871,000 for the first ten periods of fiscal 1999. The Company realized a dramatic improvement in net income. Net income for the nine months ended November 30, 2000 was $605,000 or $0.05 per share, compared to a loss (before unusual items) of $1,981,000 or ($0.28) per share for the first ten periods of fiscal 1999.
Leading Brands Chairman & CEO Ralph D. McRae commented:
"We have continued to improve our revenues and operating efficiencies through our historically slower than average third quarter. Our sales growth remains impressive and we are constantly working to enhance the mix of our counter-seasonal items.
Unfortunately, our results in the third quarter were adversely impacted by more than $300,000, by a negative swing in the Canadian - US exchange rate - that has now corrected - and increased transportation costs from higher fuel prices. We have taken steps to minimize the impact of both of those factors on our overall operations going forward.
In Q4 we will start to see the initial benefits of our
private label juice venture with Cliffstar Corporation and the impact of the
continued streamlining of our operations."
About Leading Brands, Inc.:
Headquartered in Richmond, B.C., Canada, Leading Brands, Inc. is the largest independent food and beverage integrated 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 Quick.com, Inc. subsidiary is building a consumer home replenishment system for the Internet economy.
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NOTE: Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, including currency fluctuations, intellectual property rights, and the outcome of competitive products, risks in product development, the results of financing effort, the ability to complete transactions, and other risks identified in this release and the Company's Securities and Exchange Commission filings.