Leading Brands, Inc. (Nasdaq: LBIX), Canada’s largest independent, fully integrated food and beverage brand management company, is pleased to announce record revenues for its fiscal 2000 third quarter and nine months ended November 30, 2000.
All reported figures are in U.S. dollars unless indicated otherwise.
Revenues for the quarter climbed 56% to $11,438,000 in the third quarter ending November 30, 2000, from $7,332,000 in the third quarter of fiscal 1999. The Company recorded a net loss of $487,000 or ($0.04) per share, compared to a loss (before unusual items) of $663,000 or ($0.09) per share, in the same period of last year.
Revenues for the nine months ended November 30, 2000 rose 76% to $41,963,000 from $23,871,000 for the first ten periods of fiscal 1999. The Company realized a dramatic improvement in net income. Net income for the nine months ended November 30, 2000 was $605,000 or $0.05 per share, compared to a loss (before unusual items) of $1,981,000 or ($0.28) per share for the first ten periods of fiscal 1999.
Leading Brands Chairman & CEO Ralph D. McRae commented:
“We have continued to improve our revenues and operating efficiencies through our historically slower than average third quarter. Our sales growth remains impressive and we are constantly working to enhance the mix of our counter-seasonal items.
“Unfortunately, our results in the third quarter were adversely impacted by more than $300,000, by a negative swing in the Canadian – US exchange rate – that has now corrected – and increased transportation costs from higher fuel prices. We have taken steps to minimize the impact of both of those factors on our overall operations going forward.
“In Q4 we will start to see the initial benefits of our private label juice venture with Cliffstar Corporation and the impact of the continued streamlining of our operations.”
About Leading Brands, Inc.:
Headquartered in Richmond, BC, Canada, Leading Brands, Inc. is the largest independent food and beverage integrated brand management company in Canada. The Company’s unique Integrated Distribution System (IDS) offers turnkey, one stop shopping to food and beverage brand owners.
LEADING BRANDS, INC.
CONSOLIDATED STATEMENT OF INCOME (LOSS)
Three Three Nine Ten
months periods months periods
ending ending ending ending
November December November December
30 4 30 4
DOLLARS) 2000 1999 2000 1999
Sales $ 11,438,145 $ 7,332,387 $ 41,963,022 $ 23,870,949
Cost of sales 7,884,677 5,068,735 28,974,638 15,203,746
expenses 3,503,059 2,626,095 10,891,887 9,411,508
amortization 458,646 397,912 1,341,014 1,235,562
Interest expense 185,360 (265,678) 546,529 161,429
Other income (107,093) (1,902,044) (395,957) (2,230,415)
11,924,649 5,925,020 41,358,111 23,781,830
Net income (loss)
before taxes (486,504) 1,407,367 604,911 89,119
Current – – 254,062 –
tax benefits – – (254,062) –
Net income (loss)
taxes (486,504) 1,407,367 604,911 89,119
of period (10,622,778) (12,339,910) (11,431,649) (11,021,662)
dividends – – (282,544) –
of period (11,109,282) (10,932,543) (11,109,282) (10,932,543)
Basic $ (0.04) $ 0.18 $ 0.05 $ –
Fully diluted $ (0.04) $ 0.11 $ 0.05 $ –
number of shares
outstanding 11,567,921 7,562,924 10,289,520 7,331,022
NOTE: Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, including currency fluctuations, intellectual property rights, and the outcome of competitive products, risks in product development, the results of financing effort, the ability to complete transactions, and other risks identified in this release and the Company’s Securities and Exchange Commission filings.
This press release is available at www.LeadingBrandsInc.com.