Leading Brands, Inc. Announces Year End Financial Results
May 30 2017 - 8:30AM
Leading Brands, Inc. (NASDAQ:LBIX) announces
results for its 2016 fiscal year, which ended February 28, 2017.
All financial amounts are denominated in Canadian dollars, with all
financial figures rounded to the nearest $000 and, have been
prepared in accordance with United States generally accepted
accounting principles (U.S. GAAP).
Net loss from continuing operations for the 2016 Fiscal Year was
$(3,103,000) or $(1.10) per share [$(1.10) fully diluted] versus a
net loss of $(3,920,000) or $(1.36) the prior year. Net loss from
discontinued operations for the 2016 Fiscal Year was $(3,406,000)
or $(1.21) per share [$(1.21) fully diluted] versus a net income of
$2,616,000 or $0.91 the prior year. Gross Revenue from continuing
operations for the year increased 43.8% to $1,718,000 from
$1,195,000.
These losses primarily arose from the discontinuance of the
Company’s hot-fill co-packing business and disposition of its plant
equipment.
Non-GAAP Net Income (Loss) before SBC is determined as
follows: |
|
|
|
|
FY 2016 |
FY 2015 |
|
Net Income (Loss) from
continuing operations |
|
|
$ |
(3,103,000 |
) |
$ |
(3,920,000 |
) |
|
Add back SBC |
|
|
|
- |
|
|
105,000 |
|
|
Net income (Loss)
before SBC |
|
|
$ |
(3,103,000 |
) |
$ |
(3,815,000 |
) |
Non-GAAP Net Income (Loss) per share before SBC is
determined as follows: |
|
FY 2016 |
FY 2015 |
|
Net Income (Loss) per
share from continuing operations |
|
|
$ |
(1.10 |
) |
$ |
(1.36 |
) |
|
Add back SBC per
share |
|
|
|
- |
|
|
0.04 |
|
|
Net Income (Loss) per
share before SBC |
|
|
$ |
(1.10 |
) |
$ |
(1.32 |
) |
Pro-forma results for EBITDAS, as defined below, are
determined as follows: |
|
|
|
|
FY 2016 |
FY 2015 |
|
Net Income (Loss) from
continuing operations |
|
|
$ |
(3,103,000 |
) |
$ |
(3,920,000 |
) |
|
Add back: |
|
|
|
|
|
Interest, net |
|
|
|
- |
|
|
(5,000 |
) |
|
Depreciation and
Amortization |
|
|
|
208,000 |
|
|
229,000 |
|
|
Non-cash stock based
compensation |
|
|
|
- |
|
|
105,000 |
|
|
Non-cash income tax
expense |
|
|
|
- |
|
|
- |
|
|
Total Add Backs |
|
|
|
208,000 |
|
|
329,000 |
|
|
EBITDAS |
|
|
$ |
(2,895,000 |
) |
$ |
(3,591,000 |
) |
EBITDAS per share reconciles to earnings per share as
follows: |
|
|
|
FY 2016 |
FY 2015 |
Net Income (Loss) per
share from continuing operations |
|
|
$ |
(1.10 |
) |
$ |
(1.36 |
) |
Add back: |
|
|
|
|
Interest |
|
|
|
- |
|
|
- |
|
Depreciation and
Amortization |
|
|
|
0.07 |
|
|
0.08 |
|
Non-cash stock based
compensation |
|
|
|
- |
|
|
0.04 |
|
Non-cash income tax
expense (recovery) |
|
|
|
- |
|
|
- |
|
EBITDAS per share |
|
|
$ |
(1.03 |
) |
$ |
(1.24 |
) |
Gross margin percentage from continuing operations for the
fiscal year was (11.3%), increased from (19.2%) in the same period
last year. Gross margin percentage from continuing
operations, excluding slotting fees, was 2.4% compared to 5.4% for
the previous fiscal year.
Discounts, rebates and slotting fees were $505,000 in 2016, up
from $400,000 the prior year. SG&A expenses dropped to
$3,054,000 from $3,612,000 in the previous year.
The Company paid $140,000 to repurchase 57,425 of its common
shares at an average price of USD $1.86 per share during fiscal
2016.
As at February 28, 2017 the Company had free cash of
$4,315,000.
As at February 28, 2017 the Company had outstanding 2,802,412
common shares.
As we announced in April 2015, management continues to explore
new strategic opportunities to enhance shareholder value.
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 taxes.
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.
This news release is available at
www.LBIX.com(table follows)
Leading Brands, Inc. |
Consolidated Statements of Comprehensive
Income (loss) |
(Expressed in Canadian Dollars) |
|
For the year ended |
Feb. 28, 2017 |
Feb. 29, 2016 |
|
|
|
|
|
|
|
Gross Sales |
$ |
1,717,521 |
|
$ |
1,194,796 |
|
|
|
|
|
|
|
|
Less: Discounts, rebates and slotting fees |
|
(504,992 |
) |
|
(400,255 |
) |
|
|
|
|
|
|
|
Net
Sales |
|
1,212,529 |
|
|
794,541 |
|
|
|
|
|
|
|
|
|
Expenses (income) |
|
|
|
|
|
|
|
Cost of sales (excluding depreciation shown separately
below) |
|
1,349,734 |
|
|
946,909 |
|
Selling, general and administrative |
|
3,054,182 |
|
|
3,612,461 |
|
Depreciation of property, plant, equipment and intangible
asset |
|
207,993 |
|
|
229,347 |
|
Foreign exchange (gain) loss |
|
(2,916 |
) |
|
9,865 |
|
Interest income |
|
- |
|
|
(4,900 |
) |
Change in fair value of derivative liability |
|
(13,638 |
) |
|
(81,317 |
) |
Loss (gain) on disposal of assets |
|
(279,505 |
) |
|
1,757 |
|
|
|
4,315,850 |
|
|
4,714,122 |
|
|
|
|
|
|
|
|
Loss before income tax |
|
(3,103,321 |
) |
|
(3,919,581 |
) |
|
|
|
|
|
|
|
Income tax provision (recovery) |
|
- |
|
|
- |
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations |
$ |
(3,103,321 |
) |
$ |
(3,919,581 |
) |
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from discontinued operations |
$ |
(3,406,368 |
) |
$ |
2,616,297 |
|
|
|
|
|
|
|
|
|
|
|
Net
and Comprehensive income (loss) |
$ |
(6,509,689 |
) |
$ |
(1,303,284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share |
|
|
|
|
Continuing operations |
$ |
(1.10 |
) |
$ |
(1.36 |
) |
Discontinued operations |
|
(1.21 |
) |
|
0.91 |
|
Net basic earnings (loss) per common share |
$ |
(2.31 |
) |
$ |
(0.45 |
) |
|
|
|
|
|
Diluted earnings (loss) per common share |
|
|
|
|
Continuing operations |
$ |
(1.10 |
) |
$ |
(1.36 |
) |
Discontinued operations |
|
(1.21 |
) |
|
0.91 |
|
Net diluted earnings (loss) per common share |
$ |
(2.31 |
) |
$ |
(0.45 |
) |
CONTACT:
Leading Brands, Inc.
Tel: (604) 685-5200
Email: info@LBIX.com
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