Leading Brands, Inc. Announces Q2 and YTD Results

Leading Brands, Inc. Announces Q2 and YTD Results

       Q2 Net Income $434,000 or $0.15 per share ($0.13 fully diluted)
      YTD Net Income $1,123,000 or $0.38 per share ($0.35 fully diluted)

         Q2 EBITDAS $848,000 or $0.28 Per Share ($0.26 fully diluted)
       YTD EBITDAS $2,021,000 or $0.69 per share ($0.62 fully diluted)

VANCOUVER, British Columbia, Oct. 10, 2013 (GLOBE NEWSWIRE) --Leading Brands,
Inc. (Nasdaq:LBIX), North America's only fully integrated healthy branded
beverage company, announces results for its second quarter and first half of
fiscal 2013, which ended August 31, 2013. All financial amounts are
denominated in Canadian dollars, with all financial figures rounded to the
nearest $000.

Q2 2013 net income was $434,000 or $0.15 per share ($0.13 fully diluted)
versus net income of $592,000 or ($0.19) per share in the same quarter of
fiscal 2012. YTD net income increased to $1,123,000 or $0.38 per share ($0.35
fully diluted), from $1,004,000 or $0.32 in the first half of last year.

Q2 2013 net income before stock based compensation (SBC) was $470,000 or $0.16
per share ($0.14 fully diluted) versus $636,000 or $0.20 per share in the same
quarter last year. YTD net income before SBC was $1,199,000 or $0.41 per share
($0.37 fully diluted) up from $1,094,000 or $0.35 ($0.33 fully diluted) a year
ago.

Q2 2013 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC)
was $848,000 or $0.28 per share ($0.26 fully diluted), versus $1,031,000 or
$0.32 per share during the same period last year. YTD EBITDAS increased to
$2,021,000 or $0.69 per share ($0.62 fully diluted) from $1,828,000 or $0.58
per share ($0.54 fully diluted) in the first half of fiscal 2012.

The reductions in net income, net income before SBC and EBITDAS were
principally due to a decrease in demand for the Company's co-packing service.

Non-GAAP Net Income before SBC is determined as follows:

                     Q2        Q2        YTD        YTD
                      2013      2012      2013      2012
Net Income            $434,000 $592,000 $1,123,000 $1,004,000
Add back SBC          36,000   44,000   76,000     90,000
Net income before SBC $470,000 $636,000 $1,199,000 $1,094,000

Non-GAAP Net Income per share before SBC is determined as follows:

                               Q2     Q2     YTD   YTD
                                2013   2012   2013 2012
Net Income per share            $0.15  $0.19 $0.38 $0.32
Add back SBC per share          0.01  0.01  0.03  0.03
Net Income per share before SBC $0.16 $0.20 $0.41 $0.35
                                                

Pro-forma results for EBITDAS, as defined below, are determined as follows:

                                 Q2      Q2        YTD        YTD
                                 2013    2012      2013       2012
                                                             
Net Income                        $434,000 $592,000   $1,123,000 $1,004,000
Add back:                                                     
Interest                          3,000   5,000     6,000      8,000
Depreciation and Amortization     188,000 163,000   370,000    321,000
Non-cash stock based compensation 36,000   44,000    76,000     90,000
Non-cash income tax expense       187,000 227,000   446,000    405,000
Total Add Backs                   414,000  439,000   898,000    824,000
EBITDAS                           $848,000 $1,031,000 $2,021,000 $1,828,000
                                                             

EBITDAS per share reconciles to earnings per share as follows:

                                 Q2    Q2    YTD   YTD
                                  2013  2012  2013 2012
Net Income per share              $0.15 $0.19 $0.38 $0.32
Add back:                                          
Interest                          0.00   0.00   0.00  0.00
Depreciation and Amortization     0.06   0.05   0.13  0.10
Non-cash stock based compensation 0.01   0.01   0.03  0.03
Non-cash income tax expense       0.06   0.07   0.15  0.13
                                 $0.28 $0.32 $0.69 $0.58
EBITDAS per share

Gross profit margin for the quarter was 48.4% representing a significant
increase over the same quarter of last year.

Gross revenue for Q2 2013 was $4,257,000, versus $5,695,000 in the comparative
period of last year. The decline in revenues was principally due to decrease
in demand for the Company's co-packing services and discontinuation by the
Company of a licensed brand.

Discounts, rebates and slotting fees were $196,000 in Q2 2013, a decrease of
$81,000 compared to the same period of the prior year as a result of lower
discounts on the Company's licensed brands. SG&A expenses decreased by
$201,000 to $1,066,000 in Q2 of fiscal 2013 due to decrease in administrative
costs and trade spend and marketing costs.

As at August 31, 2013 the Company had free cash of $1,436,000.

During Q2 2013 the Company repurchased an additional 5,169 shares of its
common stock at an average price of USD$5.17 per share, pursuant to its share
repurchase program. As at August 31, 2013 the Company had outstanding
2,937,180 common shares. The Company believes that its common share price
remains undervalued and will continue with its share repurchase program which
now has approximately $704,000 US remaining authorized under it.

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.

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.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
(EXPRESSED IN CANADIAN DOLLARS)
                                                             
                         Three months ended        Six months ended
                         August 31,   August 31,   August 31,   August 31,
                          2013         2012         2013         2012
                                                             
Gross revenue             $4,257,303 $5,695,178 $9,380,666 $10,635,116
Less: Discounts, rebates  (195,823)    (277,090)    (402,305)    (552,917)
and slotting fees
Net Revenue               4,061,480    5,418,088    8,978,361    10,082,199
                                                             
Cost of sales             2,095,976    3,148,264    4,704,117    5,935,303
Operations, selling,
general & administration  1,066,446    1,267,114    2,214,638    2,348,594
expenses
Depreciation of property, 187,720      163,243      369,415      321,741
plant and equipment
Interest                  2,627        4,909        5,867        10,152
Interest income           --          (271)        --          (2,907)
Foreign exchange loss     1,761        (7,926)      2,009        551
(gain)
Change in fair value of   84,774       23,310       112,221      41,312
derivative liability
Loss on disposal of       476          --          808          18,140
assets
                         3,439,780    4,598,643    7,409,075    8,672,886
                                                             
Net income before taxes   621,700      819,445      1,569,286    1,409,313
                                                             
Income Tax Expense        187,209      226,966      446,061      405,356
                                                             
Net and Comprehensive     $434,491   $592,479   $1,123,225 $1,003,957
income after income taxes
                                                             

                                                             
Earnings per share                                            
Basic income per share    $0.15      $0.19      $0.38      $0.32
Weighted average number   2,940,467    3,051,827    2,935,345    3,108,936
of shares - basic
                                                             
Fully diluted income per  $0.13      $0.17      $0.35      $0.30
share
Weighted average number   3,284,073    3,412,097    3,238,999    3,357,197
of shares - diluted

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

Leading Brands, Inc. Company Logo
 
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