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Leading Brands, Inc. Announces Year End and Q4 Financial Results

Leading Brands, Inc. Announces Year End and Q4 Financial Results

  Fiscal 2013 Net Income $1,163,300 or $0.40 per share [$0.37 fully diluted]

          Fiscal 2013 EBITDAS $0.76 per share [$0.70 fully diluted]

VANCOUVER, British Columbia, May 20, 2014 (GLOBE NEWSWIRE) -- Leading Brands,
Inc. (Nasdaq:LBIX), North America's only fully integrated healthy branded
beverage company, announces results for its fourth quarter and Fiscal 2013
year end, which ended February 28, 2014. All financial amounts are denominated
in Canadian dollars, with all financial figures rounded to the nearest $000 
and, have been prepared in accordance with United States generally accepted
accounting principles (U.S. GAAP).

Net income for the 2013 Fiscal Year was $1,163,300 or $0.40 per share [$0.37
fully diluted] versus a net income of $591,000 or $0.20 the prior year. Gross
Revenue for the year dropped 13.1% to $15,953,000 from $18,366,000 as the
company experienced lower demand for co-pack services.

Gross revenue for Q4 2013 was $3,244,000, versus $3,650,000 in the same period
of last year, a decrease of 11.1%. Q4 2013 net loss was ($55,000) or ($0.02)
per share [($0.02) fully diluted] versus net loss of ($36,000) or ($0.01) per
share [($0.01) fully diluted] in the same quarter of fiscal 2012.EBITDAS
(Earnings Before Interest, Depreciation, Amortization and SBC) in Q4 2013
decreased to ($101,000) or ($0.03) per share [$0.03 fully diluted] from
$180,000 or $0.06 per share [$0.06 fully diluted] in the prior year.

2013 net income before stock based compensation (SBC) increased to $1,217,000
or $0.42 per share [$0.38 fully diluted] versus $743,000 or $0.25 per share
[$0.22 fully diluted] in the same quarter last year.2013 EBITDAS was
$2,227,000 or $0.76 per share [$0.70 fully diluted], versus $1,746,000 or
$0.58 per share [$0.53 fully diluted] last year.

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

                            FY         FY        Q4        Q4
                             2013       2012      2013      2012
Net Income (loss)            $1,163,000 $591,000 ($55,000) ($36,000)
Add back SBC                 54,000     152,000  (28,000)  30,000
Net income (loss) before SBC $1,217,000 $743,000  ($83,000) ($6,000)

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

                                      FY    FY      Q4     Q4
                                       2013  2012    2013    2012
Net Income (loss) per share            $0.40 $0.20 ($0.02) ($0.01)
Add back SBC per share                 0.02 0.05    (0.01)  0.01
Net Income (loss) per share before SBC $0.42 $0.25  ($0.03) $0.00

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

                                 FY        FY        Q4         Q4
                                 2013      2012      2013       2012
Net Income (loss)                 $1,163,000 $591,000   ($55,000)  ($36,000)
                                                               
Add back:                                                       
Interest, net                     2,000      15,000    (2,000)    4,000
Depreciation and Amortization     753,000    681,000   193,000    183,000
Non-cash stock based compensation 54,000     152,000    (28,000)   30,000
Non-cash income tax expense       255,000    307,000   (209,000)  (1,000)
                                                               
Total Add Backs                   1,064,000  1,155,000  (46,000)   216,000
                                                               
EBITDAS                           $2,227,000 $1,746,000 ($101,000) $180,000

EBITDAS per share reconciles to earnings per share as follows:

                                 FY    FY     Q4      Q4
                                  2013  2012   2013    2012
Net Income (loss) per share       $0.40 $0.20 ($0.02) ($0.01)
                                                   
Add back:                                           
Interest                          0.00  0.00   0.00    0.00
Depreciation and Amortization     0.25  0.23   0.07    0.06
Non-cash stock based compensation 0.02  0.05   (0.01)  0.01
Non-cash income tax expense       0.09  0.10   (0.07)  0.00
                                                   
EBITDAS per share                 $0.76 $0.58 ($0.03) $0.06

Gross profit margin for the fiscal year was 45.1%, up from 37.2% in the same
period last year.

Discounts, rebates and slotting fees were $639,000 in 2013, down from
$1,126,000 the prior year.SG&A expenses were $4,683,000 in 2013, versus
$4,740,000 in the previous year.

The Company paid $225,000 to repurchase 48,348 of its common shares at an
average price of $4.65 per share during fiscal 2013.

As at February 28, 2014 the Company had free cash of $2,394,000.

As at February 28, 2014 the Company had outstanding 2,912,997 common shares.
The Company believes that its common share price remains undervalued and will
continue with the repurchase of its shares 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 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

                               (table follows)

LEADING BRANDS, INC.                                             
CONSOLIDATED STATEMENT OF INCOME                                 
(EXPRESSED IN CANADIAN DOLLARS)                                  
                                                     Year ended   Year ended
                                                    February 28, February 28,
                                                     2014         2013

                                                                
Gross revenue                                        $15,952,929  $18,365,871
Less: Discounts, rebates and slotting fees           (639,461)    (1,125,529)
Net revenue                                          15,313,468   17,240,342
                                                                
Expenses (Income)                                                
Cost of sales (excluding depreciation shown          8,408,558    10,832,783
separately below)
Selling, general & administration expenses           4,682,576    4,740,375
Depreciation                                         753,210      681,045
Interest on long-term debt                           9,396        17,891
Interest on current debt                             78           274
Foreign exchange loss                                6,560        593
Interest income                                      (7,012)      (2,908)
Change in fair value of derivative liability         39,304       (18,252)
Loss on disposal of assets                           2,095        90,585
Total Expenses                                       13,894,765   16,342,386
                                                                
Income before taxes                                  1,418,703    897,956
                                                                
Income tax expense                                   255,408      306,652
                                                                
Net income                                           $1,163,295   $591,304
                                                                
Earnings per share                                               
Basic income per share                               $0.40        $0.20
Weighted average number of common shares outstanding 2,929,722    3,012,647
- basic
                                                                
Diluted income per share                             $0.37        $0.17
Weighted average number of common shares outstanding 3,246,223    3,314,762
- diluted

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

Leading Brands, Inc. Company Logo
 
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