[Back to Corporate Page]
Ralph D. McRae,
Chairman and CEO
Leading Brands, Inc.
(604) 214-9722 ext. 238
Chief Financial Officer
Leading Brands, Inc.
(604) 214-9722 Ext.313
Strategic Growth International
Stan Altschuler/David Waldman
Leading Brands, Inc. Announces Results
for First Quarter of Fiscal 2002
-Net Income $0.08Cdn ($0.05US) Per Share
-Bottling Plants Set Monthly Production Records
-Mt. Woodside Spring Sells Record 1,200,000 US gals. in both May and June
-Response to TREK Exceeds Expectations in Test Markets
VANCOUVER, CANADA, July 8, 2002, LEADING BRANDS, INC. (NASDAQ: LBIX, TSX: LBI), Canada's largest independent, fully integrated premium beverage company, is pleased to announce financial results for the first quarter of its 2002 fiscal year ending February 28, 2003.
Net income for the period was $1,106,000Cdn ($703,000US) or $0.08Cdn ($0.05US) per share versus $1,181,000Cdn ($760,000US) or $0.09Cdn ($0.06US) per share for the first quarter ending May 31, 2002. Revenue for the quarter was $17,977,000Cdn ($11,431,000US) versus $20,126,000Cdn ($12,964,000US) in the prior year.
The quarterly revenue reduction is attributable to the Company's transition of its SoBe® beverage business from distribution to co-pack and the consequently lower revenue per case. This is the last year over year quarter revenue comparison which will be adversely affected by that change.
Chairman & CEO Ralph D. McRae said: "Much of our focus over this past
quarter has been on preparation for the launch of our two major new brands: TREK
Optimized Performance Beverage which started its roll out in late June and
our PEZ® 100% Juice line which is to follow later this Summer. I am proud
that our people were able to maintain focus on the bottom line and increasing
our core business with all of the activity swirling around these highly anticipated
new brands. Our bottling plants are busier than ever, setting monthly volume records."
Mr. McRae added: "We have also recently signed up a major new customer for sales of bulk water from our 22 acre Mt. Woodside Spring Site just outside Vancouver. In the months of May and June, we sold almost 1,200,000 US gallons of water from that site."
Mr. McRae concluded, "Initial consumer response to TREK as measured by sales at the limited number of retail outlets presently carrying the product has greatly exceeded our most optimistic expectations. We are now extending our rollout to a wider market area."
In accordance with Generally Accepted Accounting Principles, at each balance sheet date the Company is required to reassess any unrecognized future income tax assets and adjust their valuation accordingly. During the quarter the Company determined that, based on current and forecasted earnings trends, it should record future income tax assets in the amount of $576,000Cdn ($366,000US).
We Build Brands(TM)
About Leading Brands, Inc.