Leading Brands, Inc. Announces Q1 Results

Leading Brands, Inc. Announces Q1 Results

       Q1 Net Income $179,000 or $0.06 per share ($0.06 fully diluted)

         Q1 EBITDAS $431,000 or $0.14 per share ($0.13 fully diluted)

VANCOUVER, British Columbia, July 10, 2014 (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 2014,
which ended May 31, 2014. All financial amounts are denominated in Canadian
dollars, with all financial figures rounded to the nearest $000.

Q1 2014 net income was $179,000 or $0.06 per share ($0.06 fully diluted)
versus net income of $689,000 or $0.24 per share in the same quarter of fiscal

Q1 2014 net income before stock based compensation (SBC) was $187,000 or $0.06
per share ($0.06 fully diluted) versus $729,000 or $0.25 per share in the same
quarter last year.

Q1 2014 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC)
was $431,000 or $0.14 per share ($0.13 fully diluted), versus $1,173,000 or
$0.40 per share during the same period last year.

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

                     Q1 2014    Q1 2013
Net Income            $179,000 $689,000
Add Back SBC          8,000      40,000
Net income before SBC $187,000  $729,000

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

                             Q1 2014 Q1 2013
Net Income                    $0.06  $0.24
Add Back SBC                  --      0.01
Net income before SBC - Basic $0.06  $0.25

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

                                 Q1 2014   Q1 2013
Net Income                        $179,000 $689,000
Add Back:                                  
Interest, net                     (3,000)   3,000
Depreciation and amortization     177,000   182,000
Non-cash stock based compensation 8,000     40,000
Non-cash income tax expense       70,000    259,000
Total Add Backs                   252,000   484,000
EBITDAS                           $431,000 $ 1,173,000

EBITDAS per share reconciles to earnings per share as follows:

                                 Q1 2014 Q1 2013
Net Income                        $0.06  $0.24
Add Back:                                
Interest, net                     --      --
Depreciation and Amortization     0.06    0.06
Non-cash stock based compensation --      0.01
Non-cash income tax expense       0.02    0.09
Total Add Backs                   0.08    0.16
EBITDAS                           $0.14  $0.40

Gross profit margin for the quarter was 44.0%, down from 47.0% in the same
quarter last year.

Gross revenue for Q1 2014 was $3,904,000, versus $5,123,000 in the comparative
period of last year. A decrease in demand for co-packing services was the
primary contributor to both the drop in revenue and gross profit margin in the

Discounts, rebates and slotting fees were $129,000 in Q1 2014, a decrease of
$78,000 compared to the same period of the prior year as a result of lower
discounts on the Company's licensed brands and co-packing services. SG&A
expenses were $1,232,000 in Q1 of fiscal 2014, versus $1,148,000 in Q1 of the
previous year.

As at May 31, 2014 the Company had cash and available credit totaling
approximately $2,563,000.

During Q1 2014 the Company repurchased an additional 600 shares of its common
stock at an average price, before offering costs, of USD$4.22 per share,
pursuant to its share repurchase program.As at May 31, 2014 the Company had
outstanding 2,912,397 common shares.The Company believes that its common
share price remains undervalued and will continue with its share repurchase
program which now has approximately USD$599,000 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.


The Company's Annual General Meeting was held on July 9, 2014.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.James Corbett was re-elected as a director of the
Company, 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

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)                                  
                                                   Three months ended
                                                   May 31, 2014  May 31, 2013
Gross Revenue                                       $3,903,911 $5,123,363
Less: Discounts, rebates and slotting fees          (128,811)     (206,482)
Net Revenue                                         3,775,100     4,916,881
Cost of sales                                       2,113,656     2,608,141
Operations, selling, general & administration       1,232,016     1,148,192
Depreciation of property, plant and equipment       176,592       181,695
Interest                                            960           3,240
Foreign exchange gain (loss)                        (2,308)       248
Interest income                                     (3,527)       --
Change in fair value of derivative liability        8,992         27,447
Loss on disposal of assets                          82           332
                                                   3,526,463     3,969,295
Net income before taxes                             248,637       947,586
Income tax expense                                  69,950        258,852
Net and Comprehensive Income                        $178,687    $688,734

Earnings per share                                               
Basic income per share                              $0.06       $0.24
Weighted average number of shares outstanding -    2,912,960   2,930,220
Fully diluted income per share                      $0.06       $0.22
Weighted average number of shares outstanding -    3,205,936    3,183,776

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

Leading Brands, Inc. Company Logo
Press spacebar to pause and continue. Press esc to stop.