Leading Brands, Inc. Announces Q3 and YTD Results Q3 Net Loss $0.13 per share ($0.11 fully diluted) YTD Net Income $0.21 per share ($0.19 fully diluted) VANCOUVER, British Columbia, Jan. 4, 2013 (GLOBE NEWSWIRE) -- Leading Brands, Inc. (Nasdaq:LBIX), North America's only fully integrated healthy branded beverage company, announces results for its third quarter of fiscal 2012, which ended November 30, 2012. All financial amounts are denominated in Canadian dollars, with all financial figures rounded to the nearest $000. Gross revenue for Q3 2012 was $4,081,000, versus $4,474,000 in the same period of last year. The decrease was due to a reduction in demand for the Company's co-packing services in the quarter, a delay in delivery of product for a seasonal promotion and a lag in listings of the Company's juice brands due to a change in packaging format. Q3 2012 net loss was $(376,000) or $(0.13) per share [$(0.11) fully diluted] versus net income of $245,000 or $0.07 per share [$0.07 fully diluted] in the same quarter of fiscal 2011. YTD net income was $627,000 or $0.21 per share [$0.19 fully diluted], versus a net income of $1,339,000 or $0.39 per share [$0.37 fully diluted] in the first three quarters of last year. Q3 2012 net loss before stock based compensation (SBC) was $(344,000) or $(0.12) per share [$(0.10) fully diluted] versus $272,000 or $0.08 per share [$0.08 fully diluted] in the same quarter last year. YTD net income before SBC $750,000 or $0.25 per share [$0.22 fully diluted] as compared to $1,599,000 or $0.40 [$0.38 fully diluted] a year ago. Q3 2012 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC) was $(261,000) or $(0.09) per share [$(0.08) fully diluted], versus a positive $556,000 or $0.17 per share [$0.16 fully diluted] during the same period last year. YTD EBITDAS was $1,567,000 or $0.51 per share [$0.47 fully diluted] versus $2,789,000 or $0.80 per share [$0.76 fully diluted] in the first three quarters of fiscal 2011. The Company is extremely disappointed in this quarterly loss, following on 14 consecutive quarters of positive EBITDAS generating $11,000,000. Approximately $150,000 of this loss was occasioned by extraordinary items. Additionally, the Company could have – as in past years – reacted more quickly and decisively to its seasonal slowdown to mitigate the impact on profitability. Changes are in the process of being implemented to avoid a recurrence. Non-GAAP Net Income before SBC is determined as follows: Q3 Q3 YTD YTD 2012 2011 2012 2011 Net Income (loss) $(376,000) $245,000 $628,000 $1,339,000 Add back SBC 32,000 27,000 122,000 260,000 Net income before SBC $(344,000) $272,000 $750,000 $1,599,000 Non-GAAP Net Income per share before SBC is determined as follows: Q3 Q3 YTD YTD 2012 2011 2012 2011 Net Income (loss) per share $(0.13) $0.07 $0.21 $0.39 Add back SBC per share 0.01 0.01 0.04 0.07 Net Income per share before SBC $(0.12) $0.08 $0.25 $0.46 Pro-forma results for EBITDAS, as defined below, are determined as follows: Q3 Q3 YTD YTD 2012 2011 2012 2011 Net Income (loss) $(376,000) $245,000 $628,000 $1,339,000 Add back: Interest 4,000 14,000 11,000 64,000 Depreciation and Amortization 177,000 170,000 499,000 506,000 Non-cash stock based compensation 32,000 27,000 122,000 260,000 Non-cash income tax expense (98,000) 100,000 307,000 620,000 Total Add Backs 115,000 311,000 939,000 1,450,000 EBITDAS $261,000 $556,000 $1,567,000 $2,789,000 EBITDAS per share reconciles to earnings per share as follows: Q3 Q3 YTD YTD 2012 2011 2012 2011 Net Income (loss) per share $(0.13) $0.07 $0.21 $0.39 Add back: Interest 0.00 0.01 0.00 0.02 Depreciation and Amortization 0.06 0.05 0.16 0.14 Non-cash stock based compensation 0.01 0.01 0.04 0.07 Non-cash income tax expense (0.03) 0.03 0.10 0.18 EBITDAS per share $(0.09) $0.17 $0.51 $0.80 Gross profit margin for the quarter was 26.2%, down from 36.9% in the same quarter last year. This quarter's margin was directly impacted by extraordinary items, listing fees and poor promotional performance. In the past several years the Company has maintained gross profit margin in excess of 35%, as presently calculated. Discounts, rebates and slotting fees were $315,000 in Q3 2012, up from $240,000 in Q3 of the prior year. SG&A expenses were $1,261,000 in Q3 of fiscal 2012, versus $1,070,000 in the comparative period of the previous year. The principal differences were costs relating to the test marketing of a new brand. As at the end of Q3 2012 the Company had cash and available credit totaling approximately $997,000. During Q3 2012 the Company repurchased an additional 34,785 shares of its common stock at an average price of $4.13 US per share, pursuant to its share repurchase program. As at November 30, 2012 the Company had outstanding 2,927,563 common shares. The Company believes that its common share price remains undervalued and will continue with its share repurchase program at appropriate times. About Leading Brands, Inc. Leading Brands, Inc. (Nasdaq:LBIX) is North America's only fully integrated healthy beverage company. Leading Brands creates, designs, bottles, distributes and markets its own proprietary premium beverage brands such as TrueBlue^® Blueberry Juice, LiteBlue^® Blueberry Juice, PureBlue^®, UnWine^®, PureRed^®, and PureBlack^® SuperJuices via its unique Integrated Distribution System (IDS)™ which involves the Company finding the best and most cost-effective route to market. The Company strives to use the best natural ingredients hence its mantra: Better Ingredients – Better Brands. The Leading Brands, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2681 Non-GAAP Measures Any non-GAAP financial measures referenced in this release do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. EBITDAS is a non-GAAP financial measure. EBITDAS is defined as net income (loss) before income taxes, interest expense, depreciation and amortization and stock-based compensation. EBITDAS should not be construed as a substitute for net income (as determined in accordance with GAAP) for the purpose of analyzing operating performance, as EBITDAS is not defined by GAAP. However, the Company regards EBITDAS as a complement to net income and income before taxes. Forward Looking Statements Certain information contained in this press release includes forward-looking statements. Words such as "believe," "expect," "will," or comparable terms, are intended to identify forward-looking statements concerning the Company's expectations, beliefs, intentions, plans, objectives, future events or performance and other developments. All forward-looking statements included in this press release are based on information available to the Company on the date hereof. Such statements speak only as of the date hereof. Important factors that could cause actual results to differ materially from the Company's estimations and projections are disclosed in the Company's securities filings and include, but are not limited to, the following: 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 risk factors described from time to time in securities reports filed by Leading Brands, Inc. For all such forward-looking statements, we claim the safe harbor for forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Better Ingredients | Better Brands™ ©2013 Leading Brands, Inc. This news release is available at www.LBIX.com (table follows) LEADING BRANDS, INC. CONSOLIDATED STATEMENT OF INCOME (LOSS) (UNAUDITED) (EXPRESSED IN CANADIAN DOLLARS) Three Three months Nine months Nine months months ended ended ended ended November 30, November 30, November 30, November 2011 2012 2011 30, 2012 Gross revenue $4,080,852 $4,474,037 $14,715,968 $15,548,894 Less: Discounts, rebates (315,365) (239,533) (868,282) (837,728) and slotting fees Net revenue 3,765,487 4,234,504 13,847,686 14,711,166 Expenses (Income) Cost of sales 2,778,952 2,670,187 8,714,255 8,809,493 Selling, general and 1,261,799 1,070,709 3,610,394 3,359,611 administration expenses Depreciation of property, 176,760 170,002 498,501 505,645 plant and equipment Interest expense 4,219 17,282 14,371 73,577 Loss on disposal of assets 34,466 - 52,606 9,622 Interest income - (2,852) (2,907) (9,578) Change in fair value of (20,158) (24,607) 21,154 19,258 derivative liability Foreign exchange gain 3,785 (11,045) 4,336 (16,217) 4,239,823 3,889,676 12,912,710 12,751,411 Income (loss) before (474,336) 344,828 934,976 1,959,755 income taxes Income tax expense (98,043) 99,702 307,313 620,579 (recovery) Net income (loss) and other comprehensive income $(376,293) $245,126 $627,663 $1,339,176 (loss) Basic income (loss) per $(0.13) $0.07 $0.21 $0.39 share Weighted average number of 2,958,262 3,283,304 3,048,719 3,466,462 shares outstanding – basic Diluted income (loss) per $(0.11) $0.07 $0.19 $0.37 share Weighted average number of shares outstanding – 3,291,429 3,467,719 3,362,244 3,650,877 diluted CONTACT: Leading Brands, Inc. Tel: (604) 685-5200 Email: info@LBIX.com Leading Brands, Inc. Company Logo
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Leading Brands, Inc. Announces Q3 and YTD Results
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