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Vancouver, British Columbia--(Newsfile Corp. - May 29, 2018) - Leading Brands, Inc. (NASDAQ: LBIX) announces results for its 2017 fiscal year, which ended February 28, 2018. 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 2017 Fiscal Year was $(830,115) or $(0.30) per share [$(0.30) fully diluted] versus a net loss of $(713,945) or $(0.25) per share the prior year. Net loss from discontinued operations for the 2017 Fiscal Year was $(2,557,034) or $(0.91) per share [$(0.91) fully diluted] versus a net loss of $(5,795,744) or $(2.05) per share the prior year.
These losses primarily arose from the discontinuance of the Company's legacy beverage operations, hot-fill co-packing business, and disposition of its plant equipment.
The Company is continuing to pursue its arrangement agreement with Liquid Media Group, Inc.
Non-GAAP Net loss before SBC is determined as follows:
| | FY 2017 | FY 2016 |
| Net loss from continuing operations | $ (830,115) | $ (713,945) |
| Add back SBC | - | - |
| Net loss before SBC | $(830,115) | $(713,945) |
Non-GAAP Net loss per share before SBC is determined as follows:
| | FY 2017 | FY 2016 |
| Net loss per share from continuing operations | $ (0.30) | $ (0.25) |
| Add back SBC per share | - | - |
| Net loss per share before SBC | $ (0.30) | $ (0.25) |
Pro-forma results for EBITDAS, as defined below, are determined as follows:
| | FY 2017 | FY 2016 |
| Net loss from continuing operations | $ (830,115) | $ (713,945) |
| Add back: | | |
| Interest, net | - | - |
| Depreciation and Amortization | 1,053 | 1,053 |
| Non-cash stock based compensation | - | - |
| Non-cash income tax expense | - | - |
| Total Add Backs | 1,053 | 1,053 |
| EBITDAS | $(829,062) | $(712,892) |
EBITDAS per share reconciles to earnings per share as follows:
| | FY 2017 | FY 2016 |
| Net loss per share from continuing operations | $ (0.30) | $ (0.25) |
| Add back: | | |
| Interest | - | - |
| Depreciation and Amortization | 0.00 | 0.00 |
| Non-cash stock based compensation | - | - |
| Non-cash income tax expense (recovery) | - | - |
| EBITDAS per share | $ (0.30) | $ (0.25) |
As at February 28, 2018 the Company had free cash of $786,340 as well as restricted cash of $583,012.
As at February 28, 2018 the Company had outstanding 2,802,412 common shares.
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.