Leading Brands, Inc. Announces Q1 Results

Leading Brands, Inc. Announces Q1 Results

       Q1 Net Income $689,000 or $0.24 per share ($0.22 fully diluted)

        Q1 EBITDAS $1,173,000 or $0.40 per Share ($0.37 fully diluted)

                       Quarterly Revenues increase 3.7%

VANCOUVER, British Columbia, July 11, 2013 (GLOBE NEWSWIRE) -- Leading Brands,
Inc. (Nasdaq:LBIX), North America's only fully integrated healthy branded
beverage company, announces results for its first quarter of fiscal 2013,
which ended May 31, 2013. All financial amounts are denominated in Canadian
dollars, with all financial figures rounded to the nearest $000.

Q1 2013 net income was $689,000 or $0.24 per share ($0.22 fully diluted)
versus net income of $411,000 or $0.13 per share in the same quarter of fiscal
2012.

Q1 2013 net income before stock based compensation (SBC) was $729,000 or $0.25
per share ($0.23) fully diluted) versus $457,000 or $0.14 per share in the
same quarter last year.

Q1 2013 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC)
was $1,173,000 or $0.40 per share ($0.37 fully diluted), versus $796,000 or
$0.25 per share during the same period last year.

Non-GAAP Net Income before SBC is determined as follows:
                                         Q1 2013           Q1 2012
Net Income                                $ 689,000         $ 411,000
Add Back SBC                              40,000            46,000
Net income before SBC                     $ 729,000         $ 457,000
                                                          
Non-GAAP Net Income per share before SBC is determined as follows:
                                         Q1 2013           Q1 2012
Net Income                                $0.24            $0.13
Add Back SBC                              0.01              0.01
Net income before SBC - Basic             $0.25            $0.14
                                                          
Pro-forma results for EBITDAS, as defined below, are determined as follows:
                                         Q1 2013           Q1 2012
Net Income                                $689,000         $411,000
Add Back:                                                  
Interest                                  3,000             3,000
Depreciation and amortization             182,000           158,000
Non-cash stock based compensation         40,000            46,000
Non-cash income tax expense               259,000           178,000
Total Add Backs                           484,000           385,000
EBITDAS                                   $ 1,173,000       $796,000
                                                          
EBITDAS per share reconciles to earnings per share as follows:
                                         Q1 2013           Q1 2012
Net Income                                $0.24            $0.13
Add Back:                                                  
Interest                                  --                --
Depreciation and Amortization             0.06              0.05
Non-cash stock based compensation         0.01              0.01
Non-cash income tax expense               0.09              0.06
Total Add Backs                           0.16              0.12
EBITDAS                                   $0.40            $0.25

Gross profit margin for the quarter was 47.0% representing a significant
increase over the same quarter of last year.

Gross revenue for Q1 2013 was $5,123,000, an increase of 3.7% over $4,940,000
in the comparative period of last year.The increase in revenue was
principally due to a rise in demand for co-packing services although sales of
the Company's new Happy Water^® brand rose significantly as well.

Discounts, rebates and slotting fees were $206,000 in Q1 2013, a decrease of
$70,000 compared to the same period of the prior year as a result of lower
discounts on the Company's licensed brands. SG&A expenses were $1,148,000 in
Q1 of fiscal 2013, versus $1,081,000 in Q1 of the previous year.

As at May 31, 2013 the Company had cash and available credit totaling
approximately $1,647,000.

During Q1 2013 the Company repurchased an additional 18,996 shares of its
common stock at an average price of USD$4.56 per share, pursuant to its share
repurchase program.As at May 31, 2013 the Company had outstanding 2,942,349
common shares.The Company's Board of Directors has increased the amount of
the repurchase program by an additional USD$500,000 as it believes that the
Company's common shares remain undervalued. Following this increase, the share
repurchase program now has approximately USD$730,000 remaining.

The repurchase program will continue concurrent with this announcement and
expire upon the expenditure of the committed amount.It is subject to
applicable laws, the insider-trading windows imposed by the Company's trading
policy and may be suspended or terminated at any time by the Company's Board,
without prior notice.Under the program, the Company may, but is not required
to, purchase its shares from time to time through open market or privately
negotiated transactions, as market and business conditions permit.Any
repurchased shares will be returned to authorized but unissued shares of its
common stock.

AGM

The Company's Annual General Meeting was held on July 10, 2013.All motions
put to the Meeting, being those described in the Notice of Meeting and
supporting materials mailed to shareholders, were passed with significantly
greater percentages than required.Ralph McRae and Darryl Eddy were re-elected
as directors of the Company, each for a three year term.

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 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.

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.                                            
INTERIM CONSOLIDATED STATEMENT OF INCOME                        
(UNAUDITED)                                                     
(EXPRESSED IN CANADIAN DOLLARS)                                 
                                                               
                                                               
                                              Three months ended
                                               May 31, 2013     May 31, 2012
                                                               
Gross revenue                                   $5,123,363     $4,939,938
Less: Discounts, rebates and slotting fees      (206,482)       (275,827)
Net Revenue                                     4,916,881       4,664,111
                                                               
Cost of sales                                   2,608,141       2,787,039
Operations, selling, general & administration   1,148,192       1,081,478
expenses
Depreciation of property, plant and equipment   181,695         158,498
Interest on long-term debt                      3,240           5,243
Interest income                                 --              (2,636)
Foreign exchange loss                           248             8,477
Change in fair value of derivative liability    27,447          18,003
Loss on disposal of assets                      332             18,140
                                               3,969,295     4,074,242
                                               _______________ ____________
Net income before taxes                         947,586       589,869
                                                               
Income tax expense                              258,852       178,390
                                                               
Net income and other comprehensive income       $688,734     $411,479
                                                               

                                                               
Earnings per share                                              
Basic income per share                          $0.24          $0.13
Weighted average number of shares - basic       2,930,220     3,236,668
                                                               
Diluted income per share                        $0.22          $0.12
Weighted average number of shares - diluted     3,183,776     3,509,326


CONTACT: Leading Brands, Inc.
         Tel: (604) 685-5200
         Email: info@LBIX.com

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