Leading Brands, Inc. Announces Q3 and YTD Results

Leading Brands, Inc. Announces Q3 and YTD Results

        Q3 Net Income $95,000 or $0.03 per share ($0.03 fully diluted)

      YTD Net Income $1,218,000 or $0.42 per share ($0.37 fully diluted)

         Q3 EBITDAS $309,000 or $0.11 Per Share ($0.09 fully diluted)

       YTD EBITDAS $2,329,000 or $0.80 per share ($0.72 fully diluted)

VANCOUVER, British Columbia, Jan. 9, 2014 (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 2013,
which ended November 30, 2013. All financial amounts are denominated in
Canadian dollars, with all financial figures rounded to the nearest $000.

Q3 2013 net income was $95,000 or $0.03 per share ($0.03 fully diluted) versus
net loss of $(376,000) or ($0.13) per share in the same quarter of fiscal
2012. YTD net income increased to $1,218,000 or $0.42 per share ($0.37 fully
diluted), from $628,000 or $0.21 in the first three quarters of last year.

Q3 2013 net income before stock based compensation (SBC) was $102,000 or $0.03
per share ($0.03 fully diluted) versus net loss before SBC of $(344,000) or
($0.12) per share in the same quarter last year. YTD net income before SBC was
$1,300,000 or $0.45 per share ($0.40 fully diluted) up from $750,000 or $0.25
per share a year ago.

Q3 2013 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC)
was $309,000 or $0.11 per share ($0.09 fully diluted), versus $(261,000) or
$(0.09) per share during the same period last year. YTD EBITDAS increased to
$2,329,000 or $0.80 per share ($0.72 fully diluted) from $1,567,000 or $0.51
per share for the first three quarters of fiscal 2012.

                                                                
Non-GAAP Net Income before SBC is                                
determined as follows:
                                    Q3       Q3         YTD        YTD
                                    2013     2012       2013       2012
Net Income (Loss)                    $95,000  $(376,000) $1,218,000 $628,000
Add back SBC                         7,000    32,000     82,000     122,000
Net income (Loss) before SBC         $102,000 $(344,000) $1,300,000 $750,000
                                                                
Non-GAAP Net Income per share before                             
SBC is determined as follows:
                                    Q3       Q3         YTD        YTD
                                    2013     2012       2013       2012
Net Income (Loss) per share          $0.03    $(0.13)    $0.42      $0.21
Add back SBC per share              0.00     0.01       0.03       0.04
Net Income (Loss) per share before   $0.03    $(0.12)    $0.45      $0.25
SBC
                                                                
Pro-forma results for EBITDAS, as
defined below, are determined as                                 
follows:
                                    Q3      Q3        YTD        YTD
                                    2013     2012       2013       2012
                                                                
Net Income (Loss)                    $95,000  $(376,000) $1,218,000 $628,000
Add back:                                                        
Interest, net                        (2,000)  4,000      4,000      11,000
Depreciation and Amortization        191,000  177,000    561,000    499,000
Non-cash stock based compensation    7,000    32,000     82,000     122,000
Non-cash income tax expense          18,000   (98,000)   464,000    307,000
Total Add Backs                      214,000  115,000    1,111,000  939,000
EBITDAS                              $309,000 $(261,000) $2,329,000 $1,567,000
                                                                
EBITDAS per share reconciles to                                  
earnings per share as follows:
                                    Q3      Q3        YTD        YTD
                                    2013     2012       2013       2012
Net Income (Loss) per share          $0.03    $(0.13)    $0.42      $0.21
Add back:                                                        
Interest                             0.00     0.00       0.00       0.00
Depreciation and Amortization        0.07     0.06       0.19       0.16
Non-cash stock based compensation    0.00     0.01       0.03       0.04
Non-cash income tax expense          0.01     (0.03)     0.16       0.10
Total Add Backs                      0.08     0.04       0.38       0.30
EBITDAS per share                    $0.11    $(0.09)    $0.80      $0.51
                                                                

Gross profit margin for the quarter was 43.4%, representing a significant
increase over the same quarter of last year.

Gross revenue for Q3 2013 was $3,328,000, versus $4,081,000 in the comparative
period of last year. The decline in revenues was principally due to a
reduction of co-pack volume, reduced sales of certain branded beverage
products and discontinuation by the Company of a licensed brand.

Discounts, rebates and slotting fees were $123,000 in Q3 2013, a decrease of
$193,000 compared to the same period of the prior year as a result of lower
discounts on the Company's licensed brands and third party services. SG&A
expenses decreased by $121,000 to $1,141,000 in Q3 of fiscal 2013 due to
decreases in administrative costs, trade spend and marketing costs.

As at November 30, 2013 the Company had free cash of $1,696,000.

During Q3 2013 the Company repurchased an additional 17,483 shares of its
common stock at an average price of USD$4.26 per share, pursuant to its share
repurchase program. As at November 30, 2013 the Company had outstanding
2,919,697 common shares. The Company believes that its common share price
remains undervalued and will continue with its share repurchase program which
now has approximately $629,000 US remaining authorized under it.

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™

©2014 Leading Brands, Inc.

                This news release is available at www.LBIX.com

                                                             
LEADING BRANDS, INC.
CONDENSED CONSOLIDATED INTERIM STATEMENT
OF INCOME (LOSS)
(UNAUDITED)
(EXPRESSED IN CANADIAN
DOLLARS)
                                                             
                        Three months ended        Nine months ended
                        November 30, November 30, November 30,  November 30,
                         2013         2012         2013          2012
                                                             
Gross revenue            $3,327,983 $4,080,852 $12,708,649 $14,715,968
Less: Discounts, rebates (122,543)    (315,365)    (524,848)     (868,282)
and slotting fees
Net Revenue              3,205,440    3,765,487    12,183,801    13,847,686
                                                             
Cost of sales            1,814,943    2,778,952    6,519,060     8,714,255
Operations, selling,
general & administration 1,140,667    1,261,799    3,355,305     3,610,394
expenses
Depreciation of
property, plant and      191,099      176,760      560,514       498,501
equipment
Interest                 2,080        4,219        7,947         14,371
Interest income          (3,798)      --          (3,798)       (2,907)
Foreign exchange loss    629          3,785        2,638         4,336
Change in fair value of  (53,370)     (20,158)     58,851        21,154
derivative liability
Loss on disposal of      --          34,466       808           52,606
assets
                        3,092,250    4,239,823    10,501,325    12,912,710
                                                             
Net income (loss) before 113,190      (474,336)    1,682,476     934,976
taxes
                                                             
Income Tax Expense       17,932       (98,043)     463,993       307,313
                                                             
Net and comprehensive
income (loss) after      95,258       (376,293)    1,218,483     627,663
income taxes
                                                             
                                                             
Earnings (loss) per                                           
share
Basic                    $0.03      $(0.13)    $0.42       $0.21
                        2,930,352    2,958,262    2,933,693     3,048,719
                                                             
Fully diluted            $0.03      $(0.13)    $0.37       $0.19
                        3,288,623    2,958,262    3,256,485     3,362,244
                                                             

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

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