Net Income: $0.30 per share
Cash Flow From Operations: $4,433,000
Leading Brands, Inc. (Nasdaq:LBIX),North America's only fully
integrated healthy branded beverage company, announces results for
its 2009 fiscal year ended February 28, 2010. All financial amounts
are denominated in Canadian dollars.
Net income for the year was $1,178,000 ($0.30 per share)
compared to a net loss of $5,667,000 ($1.42 per share, including
write downs of intangible assets of $3,354,000) in fiscal 2008 (see
below). That dramatic improvement in financial performance is
a direct consequence of increasing gross margin in concert with
reductions in fixed overheads and SG&A expenses.
Gross profit margin for the year was 44.9%, up from 32.4% in
fiscal 2008.
Gross revenue for the year was $22,173,000, versus $32,498,000
last year, a decrease of 31.8%. The decline in
revenues is directly attributable to the Company's decision to no
longer distribute its low margin food and beverage products and
instead focus on higher margin, fiscally sustainable, branded
beverage sales. The Company ceased its food distribution
business in mid-Q1 of fiscal 2009.
Discounts, rebates and slotting fees were reduced significantly
to $1,646,000 from $4,302,000 the prior year. Non-cash stock
based compensation expense for the year was $249,000. SG&A
expenses were $6,355,000, down 35.7% from $9,892,000 the previous
year. The Company also recorded non-cash income tax expense of
$735,000 during the year.
As at February 28, 2010, the Company had only 3,923,275 shares
outstanding and cash and available credit of $3,340,000. Cash
flow from operations for the year was $4,433,000.
Gross revenue for Q4 of fiscal 2009 was $4,982,000, generating a
net income of $100,000. This is the first time in its history
that the Company has recorded net income in its last, and
seasonally slowest, quarter. The Company also recorded
non-cash income taxes of $119,000 in Q4.
In conjunction with the ongoing review of its financial
statements, the Company has determined to write off the goodwill on
its balance sheet as at February 28, 2009, due to its low market
capitalization on that date. That transaction has no impact on
the Company's earnings for its 2009 fiscal year ended February 28,
2010, which are reported here, or on its tangible net worth.
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®,
PureRed®, PureBlack® SuperJuices and
Caesar's® Cocktails 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.
The Leading Brands, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=2681
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.
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.
Better Ingredients | Better Brands™
©2010 Leading Brands, Inc.
This news release is available at www.LBIX.com
LEADING BRANDS, INC.
|
|
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CONSOLIDATED STATEMENT OF INCOME (LOSS)
|
|
|
(EXPRESSED IN CANADIAN DOLLARS)
|
|
|
|
February 28, 2010
|
February 28, 2009
|
|
|
(Restated)
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|
|
|
Gross revenue
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$22,172,673
|
$32,497,912
|
Less: Discounts, rebates and slotting fees
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( 1,646,440)
|
(4,302,262)
|
Net revenue
|
20,526,233
|
28,195,650
|
|
|
|
Expenses (Income)
|
|
|
Cost of sales
|
11,317,750
|
19,071,688
|
Selling, general & administration expenses
|
6,354,825
|
9,892,150
|
Depreciation and amortization
|
728,993
|
767,798
|
Interest expense
|
229,557
|
464,569
|
Loss (gain) on sale of assets
|
8,515
|
(250,880)
|
Loss on contract settlements
|
--
|
308,280
|
Write down of goodwill
|
--
|
3,353,543
|
Foreign exchange gain
|
(21,330)
|
--
|
Interest income
|
(5,066)
|
(33,545)
|
Total Expenses
|
18,613,244
|
33,573,603
|
|
|
|
Net income (loss) before taxes
|
1,912,989
|
(5,377,953)
|
Income tax expense
|
(735,133)
|
(289,285)
|
|
|
|
Net income (loss)
|
1,177,856
|
(5,667,238)
|
|
|
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Income (loss) per share
|
|
|
Basic and diluted
|
$ 0.30
|
$ (1.42)
|
|
|
|
Weighted average common shares outstanding
|
3,980,202
|
3,991,625
|
CONTACT: Leading Brands, Inc.
(604) 685-5200
info@LBIX.com
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