Joseph S. Reichardt

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Joseph S. Reichardt ACG 2021, 330
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Exclusive summary

• www.leadingbrandsinc.com/media/lbix-2001.pdf

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Part A. Introduction

• Chief executive officer Ralph D. McRae
• Location Leading Brands Inc.
• 160-7400 River Road
• Richmond, BC Canada V6X 1X6
• Latest fiscal year Feb. 28, 2002

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Part A. Introduction cont.

• Leading Brands Inc. principal operations are
  comprised of an integrated bottling and
  distributing system for beverages, water and
  snack foods.

• As shown on the bottom left. The Geographic area
  mainly consists of The United States of America
  Southern parts of Canada.

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Part A. Audit Report

• Independent auditors /s/ BDO Dunwoody LLP
• In the audit Report the auditors found that the
  consolidated financial statements were present
  fairly, in all respects. The financial position
  of the company generally accepts accounting
  principals.

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Part A. Stock Market Information

• Most recent price of the companys stock Dec.
  31, 2003 2.00
• 12 month range 1.75 to Dec. 31, 2002
• 2.00 to Dec. 31, 2003

• Dividends per share 4414
• Date of Information Feb. 28, 2002 2001
• The company stock seems to be steady although the
  price of stock does not seem to increase much.

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Part B. Industry Situation and Company Plans

• On www.globeinvertor.com I found that the Leading
  Brands plans to expand their selection. They
  believe that the more beverages on the market the
  greater their income.
• www.bevnet.com writes on Leading Brands
  announcement of their new release of 2 new
  drinks.
• http//www.freeedgar.com/EdgarConstruct/Data/10629
  93/03-611/exhibit99b.htm wrote For the financial
  year ended February 28, 2003, compensation for
  executive officers of the Company consisted of a
  fixed base salary and long term compensation in
  the form of stock options. Bonuses may be
  allocated by the Compensation Committee. Salary
  levels will be reviewed periodically and
  adjustments may be made, if warranted, after an
  evaluation of executive and company performance,
  salary trends in the Companys business sector,
  and any increase in responsibilities assumed by
  the executive.

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Part C. Income Statement
The income statement seems to be in multistep
form.the net income is increasing drastically
with each year. Although the sales have gone
down. I believe this is a result of advertising.
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Part C. Balance Sheet Assets
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Part C. Balance Sheet Liabilities
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Part C. Balance SheetIncreases or Decreases

• By looking at the balance sheets shown on the two
  previous slides, I found that both the assets and
  liabilities tended to decrease from 2001 to 2002.
  
• Some of the major changes were Capital assets-
  (2,335,138)
• A/P (3,201,398)
• Long term investment- 986,090
• Bank dept.- (2,951,198)

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Part C. Statement of Cash Flows

• The cash flow from operations are less than the
  net income form the years before.
• The company is growing through investing
  activities.
• The companys primary source of financing is long
  term loans
• Overall the cash had increased over the past two
  years.

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Part D. Accounting Policies
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Part D. Accounting PoliciesTopics of notes to
the Financial statements

• Acquisitions and Dispositions
• Inventory
• Capital Assets
• Trademarks and Rights
• Goodwill
• Deferred Costs
• Long term Investment
• and Advances
• Bank Indebtedness
• Long term Debt
• Convertible Preferred Shares
• Share Capital
• Commitments

Contingencies Income taxes Changes in
Non-cash Operating Working Items Related
Party Transactions Fair Value of Financial
Instruments Credit Risk and Interest Rate
Risk Segmented Information Differences
between Canadian and US Generally Accepted
Accouting Principals
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Part E. Financial Analysis Liquidity Ratios
2002 2001

• Working Capital -208,400 -481132
• Current Raito .9649 .9607
• Receivable Turnover 10.6 13.17
• Average Days
• Sales Uncollected 33.96 27.33
• Inventory turnover 11.85 14.79
• Avg. days inventory
• on hand 30.38 24.34

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Part E. Financial Analysis Profitability Ratios
2002 2001

• Profit margin .0325 .0237
• Asset turnover 1.56 1.93
• Return on assets .05 .046
• Return on equity .068 .062

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Part E. Financial Analysis Solvency Ratio
2002 2001

• Debt to equity 1.686 2.4

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Part E. Financial Analysis Market Strength Ratios
2002 2001

• Price/ Earning
• per share 4.12 times 6.2 times
• Dividend yield .097 .0645

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This Will conclude my Annual Report
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Have a Great day and please drink responsibly
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