Leading Brands, Inc. Announces Q1 Results
July 17 2017 - 8:30AM
Leading Brands, Inc.
(NASDAQ:LBIX)
, announces results for its first
quarter of fiscal 2017, which ended May 31, 2017. All
financial amounts are denominated in Canadian dollars, with all
financial figures rounded to the nearest $000.
The Company’s net loss from continuing operations for Q1 was
$778,000 (or $0.28 per share) versus a net loss of $549,000 (or
$0.19 per share) the prior year.
Gross revenue for Q1 2017 was $439,000, versus $427,000 in the
comparable period of last year.
Discounts, rebates and slotting fees were $94,000 in Q1 2017, a
decrease of $54,000 compared to the same period of the prior year.
Selling, General and Administrative Expenses (“SG&A”) were
$748,000 in Q1 of fiscal 2017, versus $783,000 in Q1 of the
previous year.
Gross profit margin for the quarter was (2.5%), up from (15.6%)
in the same quarter last year. The Company continues to
adjust its operations from a bottler/distributor to simply that of
a distributor and has made strides to reduce its cost of
goods. Overheads allocated to cost of goods sold have taken
longer to adjust.
Non-GAAP Net Income (Loss) before SBC is determined as
follows:
|
|
Q1 2017 |
|
Q1 2016 |
Net Income (Loss) from
continuing operations |
$ |
(778,000 |
) |
$ |
(549,000 |
) |
Add Back SBC |
|
- |
|
|
- |
|
Net income (loss)
before SBC |
$ |
(778,000 |
) |
$ |
(549,000 |
) |
Non-GAAP Net Income (Loss) per share before SBC is
determined as follows:
|
|
|
Q1 2017 |
|
Q1 2016 |
Net Income (Loss) per
share from continuing operations |
|
$ |
(0.28 |
) |
$ |
(0.19 |
) |
Add Back SBC |
|
|
- |
|
|
- |
|
Net income (loss) per
share before SBC |
|
$ |
(0.28 |
) |
$ |
(0.19 |
) |
Pro-forma results for EBITDAS, as defined below, are
determined as follows:
|
|
|
Q1 2017 |
|
Q1 2016 |
Net Income (Loss) from
continuing operations |
|
$ |
(778,000 |
) |
$ |
(549,000 |
) |
Add Back: |
|
|
|
|
|
Interest, net |
|
|
(9,000 |
) |
|
- |
|
Depreciation and
amortization |
|
|
32,000 |
|
|
56,000 |
|
Non-cash stock based
compensation |
|
|
- |
|
|
- |
|
Non-cash income tax
expense |
|
|
- |
|
|
- |
|
Total Add Backs |
|
|
23,000 |
|
|
56,000 |
|
EBITDAS |
|
$ |
(755,000 |
) |
$ |
(493,000 |
) |
EBITDAS per share reconciles to earnings per share as
follows:
|
|
|
Q1 2017 |
|
Q1 2016 |
Net Income (Loss) per
share from continuing operations |
|
$ |
(0.28 |
) |
$ |
(0.19 |
) |
Add Back: |
|
|
|
|
|
Interest, net |
|
|
- |
|
|
- |
|
Depreciation and
amortization |
|
|
0.01 |
|
|
0.02 |
|
Non-cash stock based
compensation |
|
|
- |
|
|
- |
|
Non-cash income tax
expense |
|
|
- |
|
|
- |
|
Total Add Backs |
|
|
0.01 |
|
|
(0.02 |
) |
EBITDAS |
|
$ |
(0.27 |
) |
$ |
(0.17 |
) |
As at May 31, 2017 the Company had 2,802,412 outstanding common
shares.
About Leading Brands, Inc.Leading Brands, Inc.
(NASDAQ:LBIX) and its subsidiaries are involved in the development,
marketing, and distribution of the Company’s branded beverage
products.
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.
©2017 Leading Brands, Inc.
(table follows)
LEADING BRANDS, INC. |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
(LOSS) |
(UNAUDITED) |
(EXPRESSED
IN CANADIAN DOLLARS) |
|
|
|
|
|
|
|
Three months ended |
|
|
|
May 31, 2017 |
|
May 31, 2016 |
|
|
|
|
|
|
Gross Revenue |
|
$ |
439,244 |
|
$ |
426,553 |
|
Less: Discount, rebates
and slotting fees |
|
|
(93,611 |
) |
|
(147,584 |
) |
Net
Revenue |
|
|
345,633 |
|
|
278,969 |
|
|
|
|
|
|
|
Cost of sales |
|
|
354,132 |
|
|
322,559 |
|
Operations, selling,
general & administration expenses |
|
|
748,408 |
|
|
782,635 |
|
Depreciation of
property, plant and equipment |
|
|
31,616 |
|
|
55,939 |
|
Interest, net |
|
|
(9,377 |
) |
|
- |
|
Change in fair value of
derivative liability |
|
|
(2,207 |
) |
|
(26,042 |
) |
Gain (loss) on disposal
of assets |
|
|
1,065 |
|
|
(306,774 |
) |
|
|
|
1,123,637 |
|
|
828,317 |
|
Net income (loss)
before taxes from continuing operations |
|
|
(778,004 |
) |
|
(549,348 |
) |
Income tax expense |
|
|
- |
|
|
- |
|
Net income
(loss) from continuing operations |
|
$ |
(778,004 |
) |
$ |
(549,348 |
) |
|
|
|
|
|
|
Net income (loss) from
discontinued operations |
|
|
(54,774 |
) |
|
844,223 |
|
Net and Comprehensive
income (loss) |
|
|
(832,778 |
) |
|
294,875 |
|
|
|
|
|
|
|
Basic earnings
(loss) per common share |
|
|
|
|
|
Continuing
operations |
|
$ |
(0.28 |
) |
$ |
(0.19 |
) |
Discontinued
operations |
|
|
(0.02 |
) |
|
0.29 |
|
Net basic earnings
(loss) per common share |
|
$ |
(0.30 |
) |
$ |
0.10 |
|
|
|
|
|
|
|
Diluted
earnings (loss) per common share |
|
|
|
|
|
Continuing
operations |
|
$ |
(0.28 |
) |
$ |
(0.19 |
) |
Discontinued
operations |
|
|
(0.02 |
) |
|
0.29 |
|
Net diluted earnings
(loss) per common share |
|
$ |
(0.30 |
) |
$ |
0.10 |
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
|
|
|
Basic |
|
|
2,802,412 |
|
|
2,859,697 |
|
Diluted |
|
|
2,802,412 |
|
|
2,859,697 |
|
CONTACT:
Leading Brands, Inc.
Tel: (604) 685-5200
Email: info@LBIX.com
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