LEADING BRANDS, INC. ANNOUNCES Q3 RESULTS
.QUARTERLY REVENUE GROWTH RECORD Q3 AND YTD OPERATING RESULTS PROMOTION OF DALLYN WILLIS, CA TO CFO
VANCOUVER, CANADA - January 12, 2012 - LEADING BRANDS, INC.
ANNOUNCES
QUARTERLY REVENUE GROWTHRECORD Q3 AND YTD OPERATING
RESULTSPROMOTION OF DALLYN WILLIS, CA TO CFO
Q3 Gross Revenue Increases 3%Q3 Net Revenue Increases 5%
Q3 Net Income rises to $245,000 or $0.07 per share ($0.07
fully diluted)YTD Net Income climbs to $1,339,000 or $0.39
per share ($0.37 fully diluted)
Q3 EBITDAS rises to $556,000 or $0.17 Per Share ($0.16 fully
diluted)YTD EBITDAS climbs to $2,789,000 or $0.80 per share
($0.76 fully diluted)
Vancouver, Canada, January 12, 2012, Leading Brands, Inc.
(NASDAQ: LBIX), North America's only fully integrated healthy
branded beverage company, announces results for its third
quarter of fiscal 2011, which ended November 30, 2011. All
financial amounts are denominated in Canadian dollars, with
all financial figures rounded to the nearest $000.
Gross revenue for Q3 2011 was $4,474,000, versus $4,348,000
in the same period of last year, an increase of 3%. That was
despite the Company having discontinued distribution of a
licensed beverage brand in January 2011. It is the first
comparative quarterly revenue increase since Q2 of fiscal
2008 before the Company downsized its operations in response
to the World economic crisis.
Q3 2011 net income was $245,000 or $0.07 per share [$0.07
fully diluted] versus net income of $47,000 or $0.01 per
share [$0.01 fully diluted] in the same quarter of fiscal
2010. YTD net income was $1,339,000 or a record $0.39 per
share [$0.37 fully diluted], versus a net loss of ($94,000)
or ($0.02) in the first three quarters of last year.
Q3 2011 net income before stock based compensation (SBC)
increased to $272,000 or $0.08 per share [$0.08 fully
diluted] versus $252,000 or $0.06 per share [$0.06 fully
diluted] in the same quarter last year. YTD net income before
SBC rose to $1,599,000 or $0.46 per share [$0.44 fully
diluted] from $1,362,000 or $0.35 [$0.35 fully diluted] a
year ago.Q3 2011 EBITDAS (Earnings Before Interest,
Depreciation, Amortization and SBC) was $556,000 or $0.17 per
share [$0.16 fully diluted], versus $521,000 or $0.13 per
share [$0.13 fully diluted] during the same period last year.
YTD EBITDAS increased to $2,789,000 or $0.80 per share [$0.76
fully diluted] from $2,551,000 or $0.65 per share [$0.65
fully diluted] in the first three quarters of fiscal
2010.
Non-GAAP Net Income before SBC is determined as follows:
Q32011 Q32010 YTD2011 YTD2010 Net Income (loss) $245,000
$47,000 $1,339,000 ($94,000) Add back SBC 27,000 205,000
260,000 1,456,000 Net income before SBC $272,000 $252,000
$1,599,000 $1,362,000
Non-GAAP Net Income per share before SBC is determined as
follows:
Q32011 Q32010 YTD2011 YTD2010 Net Income (loss) per share
$0.07 $0.01 $0.39 ($0.02) Add back SBC per share 0.01 0.05
0.07 0.37 Net Income per share before SBC $0.08 $0.06 $0.46
$0.35
Pro-forma results for EBITDAS, as defined below, are
determined as follows:
Q3 Q3 YTD YTD 2011 2010 2011 2010 Net Income (loss) $245,000
$47,000 $1,339,000 ($94,000) Add back: Interest 14,000 35,000
64,000 121,000 Depreciation and Amortization 170,000 177,000
506,000 521,000 Non-cash stock based compensation 27,000
205,000 260,000 1,456,000 Non-cash income tax expense 100,000
57,000 620,000 547,000 Total Add Backs 311,000 474,000
1,450,000 2,645,000 EBITDAS $556,000 $521,000 $2,789,000
$2,551,000
EBITDAS per share reconciles to earnings per share as
follows:
Q32011 Q32010 YTD2011 YTD2010 Net Income (loss) per share
$0.07 $0.01 $0.39 $(0.02) Add back: Interest 0.01 0.01 0.02
0.03 Depreciation and Amortization 0.05 0.05 0.14 0.13
Non-cash stock based compensation 0.01 0.05 0.07 0.37
Non-cash income tax expense 0.03 0.01 0.18 0.14
EBITDAS per share $0.17 $0.13 $0.80 $0.65
Gross profit margin for the quarter was 36.9%, down slightly
from 37.1% in the same quarter last year. In Q4 of fiscal
2010 the Company adjusted how it applied certain overhead,
freight and warehousing costs, thereby increasing cost of
goods sold and reducing SG&A costs.
Discounts, rebates and slotting fees were $240,000 in Q3
2011, down from $301,000 in Q3 of the prior year. SG&A
expenses were $1,071,000 in Q3 of fiscal 2011, versus
$1,189,000 in the comparative period of the previous year.
The principal differences are the reduction of stock based
compensation charges and the ongoing impact of efficiency
measures and cost controls.
The Company repaid $1,239,000 of long term debt during Q3 and
a total of $1,742,000 during the 2011 fiscal year to date. As
at the end of Q3 2011 the Company had cash and available
credit totaling approximately $1,900,000.
During Q3 2011 the Company repurchased an additional 38,800
shares of its common stock at an average price of $3.12 US
per share, pursuant to its share repurchase program. As at
November 30, 2011 the Company had outstanding 3,262,668
common shares. The Company believes that its common share
price remains undervalued and will continue with its share
repurchase program at appropriate times.
The Company is also pleased to announce that Dallyn Willis,
CA has been promoted from Vice-President Finance and
Administration to Chief Financial Officer of the Company. Mr.
Willis joined the Company from PricewaterhouseCoopers in
February, 2011 where he had been an auditor in PWC's
Vancouver, Canada and Hamilton, Bermuda offices. Dallyn has
particular expertise in US GAAP and SOX compliance matters
and has been acting in the capacity of CFO since joining the
Company early last year.
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 such as TrueBlue® Blueberry Juice, LiteBlue® Blueberry
Juice, PureBlue®, UnWine®, PureRed®, PureBlack® and
PureWhite® SuperJuices and BabyBlue® childrens' superfruit
blends 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 MeasuresAny 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 StatementsCertain 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&™©2012 Leading Brands,
Inc.
This news release is available at www.LBIX.com# # #(table
follows)
LEADING BRANDS, INC. CONSOLIDATED STATEMENT OF INCOME (LOSS)
(UNAUDITED) (EXPRESSED IN CANADIAN DOLLARS) Three months
Three months Nine months Nine months ended ended ended ended
November 30, 2011 November 30, 2010 November 30, 2011
November 30, 2010 Gross revenue $ 4,474,037 $4,348,652
$15,548,894 $16,195,006 Less: Discounts, rebates and slotting
fees (239,533) (300,793) (837,728) (1,144,156) Net revenue
4,234,504 4,047,859 14,711,166 15,050,850 Expenses (Income)
Cost of sales 2,670,187 2,547,919 8,809,493 9,241,344
Selling, general and administration expenses 1,070,709
1,188,590 3,359,611 4,713,372 Depreciation of property, plant
and equipment 170,002 176,970 505,645 520,405 Interest
expense 17,282 39,983 73,577 131,476 Loss on disposal of
assets - 305 9,622 3,553 Interest income (2,852) (4,892)
(9,578) (10,311) Change in fair value of derivative liability
(24,607) - 19,258 - Foreign exchange gain (11,045) (3,847)
(16,217) (1,780) 3,889,676 3,945,028 12,751,411 14,598,059
Income (loss) before income taxes 344,828 102,831 1,959,755
452,791 Income tax expense 99,702 56,243 620,579 547,057 Net
income (loss) and other comprehensive income (loss) $245,126
$46,588 $1,339,176 $(94,260) Basic income per share $0.07
$0.01 $0.39 $(0.02) Weighted average number of shares
outstanding - basic 3,283,304 3,901,155 3,466,462 3,915,636
Diluted income per share $0.07 $0.01 $0.37 $(0.02) Weighted
average number of shares outstanding - diluted 3,467,719
3,901,155 3,650,877 3,915,636
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. .
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™
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