| CONTACT: Tel: (604) 685-5200 Email: [email protected] |
|
NEWS
RELEASE
LEADING BRANDS, INC. ANNOUNCES Q3 RESULTS
Net Loss for Quarter Improves Over Last Year
During Q3 the Company recorded a net loss of ($434,000 US) [$539,000 Cdn] or ($0.03 US) [$0.04 Cdn] per share versus ($570,000 US) [$760,000 Cdn] or ($0.04 US) [$0.05 Cdn] in the same quarter last year.
Revenues for the quarter were $7,022,000 US [$8,731,000 Cdn] compared to $9,370,000US [$12,490,000 Cdn] in Q3 2003. The reduction in revenue principally resulted from (1) the discontinuance of the Little Debbie’s® snack cake distribution business; (2) change in mix of co-pack products sold that include the Company supplying raw materials; and (3) lower sales volumes in the United States due to the Company re-building its sales efforts there.
For the first nine months of its 2004 fiscal year ended February 28, 2005, the Company reported net income of $475,000 US [$677,000 Cdn] or $0.03 US [$0.04 Cdn] per share versus a net loss of ($262,000 US) [$336,000 Cdn] or ($0.02 US) [$0.02 Cdn] during the same period last year. Net income before taxes year to date is $1,331,000 US [$1,835,000 Cdn] or $0.09 US [$0.12 Cdn] per share, compared to a net loss before taxes of ($951,000 US) [$1,283,000 Cdn] or ($0.06 US) [$0.09 Cdn] for the first nine months of fiscal 2003. Revenues for the period were $27,434,000 US [$36,065,000 Cdn] versus $34,137,000 US [$47,354,000 Cdn] a year ago. The Company has adequate tax loss carry forwards to cover any income tax expense for this year and as such the income tax expense is a non-cash item in this period.
Leading Brands Chairman and CEO Ralph McRae said: “The key number for us is the comparative change in net income before taxes, year to date, which is a positive swing of $2,282,000 US, or $3,118,000 Cdn.”
Mr. McRae continued: “We continue to see margin improvements in virtually all areas of our company, but most significantly in our US and Canadian branded products and bottling plants. We anticipate that by the first quarter of fiscal 2005 the negative revenue comparison will have been eliminated due to an equalization of the reasons expressed.”
In conjunction with this release, you are invited to listen to the Company’s conference call, which will be held on Thursday, January 6, 2005, at 8:00 am, Pacific Time, (11:00 am Eastern Time), with Ralph McRae, Chairman and CEO of Leading Brands, Inc.
TO PARTICIPATE IN THE CONFERENCE CALL PLEASE DIAL-IN:
1-416-641-6715
The Company will continue to provide operational updates in its monthly newsletter on the first of most months, posted at www.LBIX.com.”
About Leading Brands, Inc.
Leading Brands, Inc. (NASDAQ: LBIX) is North America's only fully integrated premium beverage company. The Company's unique Integrated Distribution System™(IDS)™ offers turnkey, one-stop shopping to food and beverage brand owners, including product development, manufacturing, distribution, sales, marketing and licensing. In addition, Leading Brands produces their own line of beverages such as TrueBlue Blueberry Cocktail™, TREK®, Soy2O™, Pez® 100% Juices™, Country Harvest® Juices, Caesar's® Bloody Caesar Cocktails, Cool Canadian® Water, Infinity™ and Brand X Originals™.
Safe Harbor.Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934, and 1995 for all public news releases, newsletters and other statements. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, general economic conditions, weather conditions, changing beverage consumption trends, pricing, availability of raw materials, economic uncertainties (including currency exchange rates), government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcement.
(TABLES FOLLOW)
####
LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(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,
2004 2003 2004 2003
---------------------------------------------------------------------------------------------------------------------
Sales $ 8,731,984 $ 12,490,163 $ 36,064,901 $ 47,354,806
Expenses (Income)
Cost of sales 6,447,310 9,726,051 25,251,756 36,012,902
Operations, selling, general
& administration expenses 2,593,038 3,039,739 8,638,844 11,058,965
Depreciation and amortization 310,154 398,152 917,658 1,203,917
Interest expense 102,707 109,987 306,349 350,086
Other income from settlements and sale of assets 32 11,568 (884,932) 11,568
----------------------------------------------------------------
Total Expenses 9,453,241 13,285,497 34,229,675 48,637,438
----------------------------------------------------------------
Net income (loss) before taxes (721,257) (795,334) 1,835,226 (1,282,632)
----------------------------------------------------------------
Income tax - current 5,142 - 4,738 -
Income tax - provision future income tax 176,692 35,755 (1,162,898) 946,785
---------------------------------------------------------------
Net Income (539,423) (759,579) 677,066 (335,847)
---------------------------------------------------------------
Deficit, beginning of period, as previously reported (25,636,604) (22,789,132) (25,735,980) (23,212,864)
Adjustment for change in accounting for stock-based
compensation - - (1,117,113) -
---------------------------------------------------------------
Accumulated deficit, beginning of period, as restated (25,636,604) (22,789,132) (26,853,093) (23,212,864)
---------------------------------------------------------------
Deficit, end of period ($ 26,176,027) ($ 23,548,711) ($ 26,176,027) ($ 23,548,711)
---------------------------------------------------------------
EARNINGS (LOSS) PER SHARE
Basic $ (0.04) $ (0.05) $ 0.04 $ (0.02)
Fully diluted $ (0.04) $ (0.05) $ 0.04 $ (0.02)
Weighted average number of shares outstanding 15,042,807 15,037,971 15,041,042 14,919,597
-----------------------------------------------------------------------------------------------------------------------
LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(Unaudited)
(EXPRESSED IN UNITED STATES DOLLARS)
Three months Three months Nine months Nine months
ending November ending November ending November ending November
30, 2004 30, 2003 30, 2004 30, 2003
---------------------------------------------------------------------------------------------------------------------
Sales $ 7,021,538 $ 9,369,965 $ 27,434,496 $ 34,137,067
Expenses (Income)
Cost of sales 5,184,392 7,296,362 19,229,363 25,969,953
Operations, selling, general
& administration expenses 2,085,107 2,280,375 6,601,932 7,985,255
Depreciation and amortization 249,400 298,689 702,881 870,908
Interest expense 82,589 82,589 234,572 253,295
Other income from settlements and sale of assets 26 8,678 (664,936) 8,678
---------------------------------------------------------------
Total Expenses 7,601,514 9,966,615 26,103,812 35,088,089
---------------------------------------------------------------
Net income (loss) before taxes (579,976) (596,650) 1,330,684 (951,022)
---------------------------------------------------------------
Income tax - current 4,135 - 3,835 -
Income tax - provision future income tax 142,081 26,823 (859,514) 688,764
---------------------------------------------------------------
Net Income (433,760) (569,827) 475,005 (262,258)
---------------------------------------------------------------
Deficit, beginning of period, as previously reported (17,451,636) (15,368,992) (17,524,051) (15,676,561)
Adjustment for change in accounting for stock-based
compensation - - (836,350) -
---------------------------------------------------------------
Accumulated deficit, beginning of period, as restated (17,451,636) (15,368,992) (18,360,401) (15,676,561)
---------------------------------------------------------------
Deficit, end of period ($ 17,885,396) ($ 15,938,819) ($ 17,885,396) ($ 15,938,819)
---------------------------------------------------------------
EARNINGS (LOSS) PER SHARE
Basic $ (0.03) $ (0.04) $ 0.03 $ (0.02)
Fully diluted $ (0.03) $ (0.04) $ 0.03 $ (0.02)
Weighted average number of shares outstanding 15,042,807 15,037,971 15,041,042 14,919,597
-----------------------------------------------------------------------------------------------------------------------
We Build Brands™
©2005 Leading Brands, Inc.