Lakeland Industries Announces Stock Repurchase Plan
November 01 2010 - 9:39AM
Marketwired
Lakeland Industries, Inc. (NASDAQ: LAKE), a market leader in
protective apparel, today announced that the Company's Board of
Directors has authorized the repurchase of up to $2,000,000 worth
of Lakeland's outstanding common stock.
Christopher J. Ryan, Lakeland Industries President and Chief
Executive Officer, commented, "The Board's approval of this
repurchase program is a reflection of the confidence that the Board
and management have in Lakeland's operating fundamentals and growth
prospects and, accordingly, our shared belief that our current
valuation does not reflect Lakeland's underlying long-term value.
Accordingly, we believe that the acquisition of Lakeland stock is
an attractive and appropriate investment in the current market and
an appropriate use of our cash. This repurchase program reflects
the ongoing commitment of the Lakeland Board to taking tangible
steps intended to enhance shareholder value."
"For the most recently reported quarter ended July 31, 2010,
Lakeland demonstrated its ability to deliver strong financial
performance driven by growth in its international operations and
streamlining of its global operating structure," continued Mr.
Ryan. "Net sales increased 6.5% to $24.6 million in the quarter
from the same period of the prior fiscal year. As a result of
higher sales and improved margins, second fiscal quarter diluted
earnings per share increased to $0.10 from $0.00 in the year
earlier period. In the fiscal year to date, Lakeland significantly
reduced its bank debt while increasing its cash position. As we
continue to execute on our business initiatives through the balance
of the fiscal year, we believe we are well positioned for further
growth."
Under this new program, share repurchases may be made from time
to time depending on market conditions, share price and
availability and other factors at Lakeland's discretion. Lakeland's
repurchase of shares will take place in open market transactions or
in privately negotiated transactions in accordance with applicable
securities and other laws, including the Securities Exchange Act of
1934.
Depending on market conditions and other factors, the repurchase
program may be commenced or suspended at any time without prior
notice. The repurchased shares will be held as treasury stock and
will be principally used for ongoing stock issuances under employee
stock plans and other general corporate purposes.
About Lakeland Industries, Inc.:
Lakeland Industries manufactures and sells a comprehensive line
of safety garments and accessories for the industrial protective
clothing market. The Company's products are sold by an in-house
sales force and independent sales representatives to a network of
over 1,000 safety and mill supply distributors. These distributors
in turn supply end user industrial customers such as
chemical/petrochemical, automobile, steel, glass, construction,
smelting, janitorial, pharmaceutical and high technology
electronics manufacturers, as well as hospitals and laboratories.
In addition, Lakeland supplies fire and police departments, airport
crash rescue units, and numerous federal, state and municipal
agencies for a variety of uses including Homeland Security
Protection for chemical and biological warfare. For more
information concerning Lakeland, please visit us at:
www.lakeland.com.
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), including
statements, without limitation, statements relating to our belief
about Lakeland's future, our belief about Lakeland's long-term
value and our belief that the repurchase of our stock is an
attractive investment. We intend that such forward-looking
statements be subject to the safe-harbor provided by the Private
Securities Litigation Reform Act of 1995. The forward-looking
information is based upon current information and expectations.
These estimates and statements speak only as of the date on which
they are made, are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to
predict. Therefore, actual outcomes and results could materially
differ from what is expressed, implied, or forecasted in such
forward-looking statements. Factors that could cause actual events
or results to differ materially include, among others, the
following: general economic factors and capital market conditions,
general industry trends, the potential effects on us of competition
in the protective apparel market, growth rates in the protective
apparel markets, rapid technological change that can adversely
affect the demand for our products, shifts in customer demand,
market acceptance of new or enhanced products developed, marketed
or sold by us, delays in scheduled product availability dates,
actions or announcements by our competitors, reduction in sales to
or loss of any significant customers, our ability to successfully
integrate acquisitions, our dependence on certain licenses from
third parties, our ability to attract and retain qualified
personnel and our failure to reduce costs. These and other risks
are detailed from time to time in our periodic reports filed with
the Securities and Exchange Commission, copies of which may be
obtained from the SEC at www.sec.gov. Lakeland is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result
of new information, future events or otherwise.
Lakeland Industries Contacts: Christopher J. Ryan CEO
631-981-9700 Email Contact Gary Pokrassa CFO 631-981-9700 Email
Contact Investor Relation Contact: Jordan Darrow Darrow Associates
631-367-1866 Email Contact
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