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Leading Brands, Inc. Announces Fiscal 2004 Year End Results
Net Income of $0.04 US [$0.05Cdn] per share
VANCOUVER, CANADA - May 25, 2005 - LEADING BRANDS, INC. (NASDAQ: LBIX), North America's only fully integrated premium beverage company, announces results for its 2004 fiscal year ended February 28, 2005.
Net Income was $626,000US [$806,000Cdn] versus a net loss of $1,847,000US ($2,523,000Cdn) or $0.12 US [$0.17Cdn] per share in the prior fiscal year. That is an improvement of almost $2,500,000US [$3,329,000Cdn]. Gross revenue for the year was $34,416,000US [$44,355,000Cdn] versus $41,774,000US [$57,050,000Cdn] the prior year. As noted on several prior occasions, the decrease in year over year revenues is directly attributable to (1) the discontinuance of the marginally profitable Little Debbie'sŪ snack cake distribution business; (2) change in mix of co-pack products sold that include the Company supplying raw materials; and (3) lower sales volumes in the United States due to the Company re-building its sales efforts there.
Leading Brands Chairman and CEO Ralph McRae said: "We are pleased with the turnaround that we were able to engineer this past year. Our plants are running very well, our Canadian margins have improved markedly and our US distribution business is back on its feet and growing strong."
Mr. McRae added: "In my view, the most impressive number to be drawn from these results is the change in Income Before Income Taxes, which improved almost $2,840,000US [$3,816,000Cdn] year over year."
Mr. McRae continued: "You will also note a small but important change in our financial statement presentation this year. After 'Gross Sales' we have specifically identified, and deducted, 'Discounts, Allowances and Rebates' producing an amount for 'Net Sales'. We have changed the presentation for the prior comparative years to match. We believe this provides the statement reader with better information concerning our sales and promotion efforts and hope you agree."
Mr. McRae concluded: "Our negative revenue trend has all but reversed itself now. The Company's US sales volume is growing dramatically once again, but this time at sustainable margins."
In conjunction with this release, you are invited to listen to the Company's conference call, which will be held on Wednesday, May 25, 2005, at 8:00 am, Pacific Time, (11:00 am Eastern Time), with Ralph McRae, Chairman and CEO of Leading Brands, Inc.
TO PARTICIPATE IN THE CONFERENCE CALL PLEASE DIAL-IN:
1-416-641-6701
LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(EXPRESSED IN CANADIAN DOLLARS)
February 28, February 29,
2005 2004
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Gross sales $ 44,355,146 $ 57,050,171
Less: Discounts, allowances and rebates (1,095,022) (1,333,809)
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Net sales 43,260,124 55,716,362
Expenses (Income)
Cost of sales 30,342,666 42,887,609
Operations, selling, general
& administration expenses 11,053,059 13,476,583
Depreciation and amortization 1,236,653 1,629,664
Interest expense 406,192 463,833
Other (840,290) 12,405
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Total Expenses 42,198,280 58,470,094
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Net income (loss) before taxes 1,061,844 (2,753,732)
Income tax - current 4,756 (5,385)
Income tax - provision future income tax (260,272) 1,099,912
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Net income (loss) after income taxes 806,328 (1,659,205)
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Write down of deferred costs - (863,912)
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Net Income (Loss) 806,328 (2,523,117)
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Deficit, beginning of period, as previously reported (25,735,980) (23,212,863)
Adjustment for change in accounting for stock-based
compensation (1,117,113) -
Accumulated deficit, beginning of period, as restated (26,853,093) (23,212,863)
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Deficit, end of period (26,046,765) (25,735,980)
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EARNINGS (LOSS) PER SHARE
Basic $ 0.05 $ (0.17)
Fully diluted $ 0.05 $ (0.17)
Weighted average number of shares outstanding 15,042,035 14,949,575
---------------------------------------------------------------------------------------- LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(EXPRESSED IN UNITED STATES DOLLARS)
February 28, February 29,
2005 2004
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Gross sales $ 34,415,849 $ 41,773,575
Less: Discounts, allowances and rebates (849,645) (976,649)
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Net sales 33,566,204 40,796,926
Expenses (Income)
Cost of sales 23,543,348 31,403,389
Operations, selling, general
& administration expenses 8,576,241 9,867,894
Depreciation and amortization 959,538 1,193,281
Interest expense 315,170 339,630
Other (651,995) 9,083
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Total Expenses 32,742,302 42,813,277
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Net income (loss) before taxes 823,902 (2,016,351)
Income tax - current 3,690 (3,943)
Income tax - provision future income tax (201,949) 805,383
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Net income (loss) after income taxes 625,643 (1,214,911)
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Write down of deferred costs - (632,579)
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Net Income (Loss) 625,643 (1,847,490)
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Deficit, beginning of period, as previously reported (17,524,051) (15,676,561)
Adjustment for change in accounting for stock-based
compensation (836,350) -
Accumulated deficit, beginning of period, as restated (18,360,401) (15,676,561)
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Deficit, end of period (17,734,758) (17,524,051)
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EARNINGS (LOSS) PER SHARE
Basic $ 0.04 $ (0.12)
Fully diluted $ 0.04 $ (0.12)
Weighted average number of shares outstanding 15,042,035 14,949,575
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About Leading Brands, Inc.
Leading Brands, Inc. (NASDAQ:LBIX) is North America’s only fully integrated premium beverage company. The Company’s unique Integrated Distribution System (IDS) ™ offers turnkey, one-stop shopping to food and beverage brand owners, including manufacturing, distribution, sales/marketing and licensing. In addition, Leading Brands produces their own line of beverages such as TrueBlue®, LiteBlue®, TREK® Natural Sports Drinks, NITRO® Energy Drinks, INFINITY® Health Water™, Country Harvest® Juices, and Caesar’s® Cocktails.
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.
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