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Ralph D. McRae
Chairman and CEO
Leading Brands, Inc.
Toll Free: 1-800-729-2746 ext. 238
Paul Holm/Sheldon Lutch
LEADING BRANDS REPORTS RECORD Q2 & SIX MONTH RESULTS: SALES INCREASE 57% & 86%, RESPECTIVELY; EPS $0.05 & $0.11
VANCOUVER, CANADA -- October 30, 2000-- LEADING BRANDS, INC. (NASDAQ:LBIX), Canada's largest independent, fully integrated food and beverage brand management company, is pleased to announce record revenues and profits for its fiscal 2000 second quarter and six months ended August 31, 2000. All reported figures are in U.S. dollars unless indicated otherwise.
Revenues for the quarter climbed 57% to $15,875,000 in the second quarter ending August 31, 2000, from $10,235,000 in the second quarter of fiscal 1999. Net income for the period was $546,000 or $0.05 per share compared to a loss of ($672,000), or ($0.10) per share, in the same period of last year.
This year the Company changed from reporting in 13 four-week periods to calendar quarters. Consequently, Q2 1999 was 11 days longer than Q2 2000.
Revenues for the six months ended August 31 rose 86% to $30,814,000 from $16,539,000 for the equivalent period of fiscal 1999. The Company realized a dramatic improvement in net income for the period, reaching $1,091,000, or $0.11 per share, versus a loss of ($1,318,000) or ($0.19) per share last year.
Leading Brands Chairman & CEO Ralph D. McRae commented: "We are very positive about these record results, achieved during a Summer when all other beverage companies reported disappointing sales due to inclement weather. We attribute these results to several key strategic factors: expansion into more markets and more listings within our territories; geographic expansion across central and eastern Canada; the successful introduction of new product brands such as SoBe and Virgin drinks; and greater revenues from our longstanding co-pack customers."
Mr. McRae continued, "On a comparative basis, we have seen an almost 100% increase in sales in the first six months of this year and, more importantly, a $2,410,000 positive swing in net income. Cash flow from operations during the first two quarters was more than $1,970,000. This shows that the efforts we have put into our business over the past year have really taken hold.
"The rapid growth of our business will be enhanced by our recent announcements concerning new products and our recent relationship with Cliffstar Corporation, the largest U.S. independent private label juice company. Our joint venture with them will create the largest North American private label juice entity, which itself could add 15% to our 2001 revenues."
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.