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Ralph D. McRae
Chairman and CEO
Leading Brands, Inc.
Toll Free: 1-800-729-2746 ext. 238
Strategic Growth International, Inc.
Leading Brands, Inc. Announces Record Earnings For The Third Quarter And Nine Month Period
VANCOUVER, BRITISH COLUMBIA, JANUARY 8, 2002 -- 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
© 2002 Leading Brands, Inc
Leading Brands, Inc. is the largest independent, fully integrated food and beverage brand company in Canada. The Company's unique Integrated Distribution System (IDS) (TM) 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 rawmaterials and economic uncertainties, including currency.