RONKONKOMA, N.Y., Dec. 10, 2014 /PRNewswire/ -- Lakeland
Industries, Inc. (NASDAQ: LAKE), a leading global manufacturer of
industrial protective clothing for industry, municipalities,
healthcare and to first responders on the federal, state and local
levels, today announced financial results for its fiscal 2015 third
quarter ended October 31, 2014. For
financial reporting presentation purposes, the operating results in
Brazil are excluded from many of
the statements in this announcement because the Company's
commercial lender has excluded Brazil from most covenant calculations as well
as other related factors and due to the restructuring of those
operations which has resulted in significant losses for the past
two years that distorts analysis for the balance of the global
businesses.
–Fiscal 2015 Third Quarter and Nine Month Financial Results
Highlights and Recent Company Developments
- Completed PIPE equity raise of $11.1
million ("M").
- Cash and equivalents increased by 14% from $6.2M at end of Q2 this year to $7.0M at end of Q3; Balance increased by 55%
since beginning of fiscal year.
- Paid off subordinated debt; Total debt reduced by $9.9M in Q3 from Q2 of this year. This is
expected to be accretive to EPS by $0.04 for Q4 FY15 and $0.16 for FY16 including reduction in the Senior
debt balances.
- Q3 Sales worldwide were $25.1M
this year and $22.8M last year, an
increase of 10.1%. Excluding Brazil, sales were $23.5M this year compared with $20.9M last year, an increase of 12.7%. Sales
growth was achieved in USA, Canada, UK, and Chile.
- Ebola-related sales were only shipped beginning in October; the
full impact of the Ebola sales will not be reflected until Q4.
- 9 month year-to-date sales were $73.2M this year and $69.2M last year, an increase of 5.9%. 9 month
worldwide sales excluding Brazil
were $68.1M this year compared with
$63.8M last year, an increase of
6.7%.
- Q3 Gross margin worldwide was a record 34.3%, compared to 22.1%
last year. Excluding Brazil, gross
margin increased from 28.4% last year to 34.9% this year.
- 9 month year-to-date gross margin was 32.5% compared with 26.9%
last year. Excluding Brazil, gross
margin was 32.5% this year and 29.5% last year.
- Q3 Operating expenses worldwide increased by $1.8M and increased as a percent of sales to
31.5% from 26.7% last year. Operating expenses for Lakeland
worldwide, excluding Brazil,
increased by $1.9M, mainly as a
result of increased freight out and commissions expense of
$0.3M associated with the increase in
consolidated sales and currency fluctuation expenses of
$0.3M, and as a result of a
$1.0 million non-cash charge for the
equity compensation relating to a change in the performance level
of the restricted stock plan from zero to maximum. Operating
expenses as a percent of sales, excluding Brazil, increased from 24.1% to 29.2%.
- Q3 Operating income increased to $0.7M from an operating loss of $1.0M last year. Excluding Brazil, operating income was $1.3M this year as compared with $0.9M last year. Brazil Q3 operating loss was reduced to
$586K this year from $1,931K last year.
- 9 month year-to-date operating income was $2.7M compared with $0 last year. Excluding Brazil, operating income was $3.9M in this year's 9-month period as compared
to $3.8M for the same period last
year.
- Q3 Adjusted EBITDA worldwide was $2.3M vs. $1.6M
last year. Excluding Brazil,
Adjusted EBITDA was $2.8M this year
vs. $2.1M last year.
- 9 month Adjusted EBITDA was $5.7M
this year and $4.2M last year.
Excluding Brazil, 9 month Adjusted
EBITDA was $6.6M this year and
$6.2M last year.
- 9 month year-to-date net loss this year included a non-cash
charge of $2.0M, net of tax of
$0.3M (or $0.35 per share net of tax), for early
extinguishment of Subordinated Debt, $0.6M, net of tax of $0.4M (or $0.11 per
share) for a non-cash charge for the equity compensation relating
to the change in the performance level of the restricted stock plan
to the maximum performance level and $0.2M (or $0.03 per
share) for tax on a dividend from China and various smaller foreign tax
adjustments; the early extinguishment charge consisted of writing
off original issue discount ("OID") and unamortized fees.
- Q3 Net loss of $(2.5M) or
$(0.42) per share vs. net loss of
$(1.8M) or $(0.31) per share last year.
- Brazil net loss this year was
$(0.7M) or ($0.13) per share compared with a net loss of
$(2.1M) or $(0.36) per share last year.
- Q3 Net income this year, without Brazil, the equity compensation relating to
the change to the maximum performance level of restricted stock and
without the charges related to the early extinguishment of debt
charge, and without the tax on the dividend, would have been
$0.20 per share compared with
$0.05 in Q3 of the prior year. Net
income per share for the 9 months of fiscal 2015 without
Brazil, the equity compensation
relating to the change to the maximum performance level of
restricted stock, taxes on dividends and the charges related to the
early extinguishment of debt would have been $0.42. Fiscal 2014's 9 month Net income per share
excluding Brazil and excluding the
tax valuation allowance would have been $0.21 per share.
- The banking covenants are mainly based on world-wide adjusted
EBITDA, excluding Brazil. Further,
there is a covenant prohibiting any new cash investment or advances
from the parent company into Brazil. The bank has structured this in a way
that allows management the freedom to restructure in Brazil.
*Includes non-GAAP measures – see table included herein for
reconciliation to GAAP measures
Management's Comments
Christopher J. Ryan, President
and Chief Executive Officer of Lakeland Industries, stated, "On a
consolidated basis for Lakeland's growing global operations, the
strategies that have been implemented and the favorable trends we
had begun to experience in prior quarters have continued to be
realized in our most recently completed quarter and are now even
more pronounced, particularly in key areas of our operating
performance and financial metrics.
"Driven by increases in domestic and foreign demand,
consolidated sales in the third quarter grew by 10% as compared
with last year. Sales increases primarily reflect the growth
being experienced by Lakeland with its traditional customers.
For the second consecutive quarter, our gross margin as a
percentage of sales set another Company record. While we
increase spending in most of international operations to
accommodate future growth and market share attainment, management
is presently planning a major restructuring for Brazil as more fully disclosed in our Form
10-Q. In Brazil, for the third
consecutive quarter, operating losses declined by approximately 70%
as compared with prior year periods and our consolidated operating
profit improved to $0.7 million in
the third quarter of fiscal 2015, up from a loss of $1 million in the prior year period.
"The positive momentum in cash flow generated from our
consolidated operations along with the net proceeds of the equity
offering completed in October 2014
enabled us to increase our cash balance at the end of the quarter
by 14% while reducing our debt by approximately 50% since the end
of the fiscal second quarter. We remain encouraged by the
global growth trends and our strengthening operational and
financial condition which should enable us to drive improved
profitability from the leverage in our business.
"Furthermore and as previously disclosed, Lakeland has
experienced a significant increase in order activity from demand
relating to the Ebola crisis. The main impact from
Ebola-related orders will begin to be realized in our fiscal 2015
fourth quarter ended January 31,
2015. To the extent that this demand continues, we will be
able to drive incremental leverage and profits beyond the
improvements as reported in our third quarter."
|
Operating Earnings
and Adjusted EBITDA – Lakeland Consolidated with and without
Brazil
|
|
($000)
|
Quarter
Ended
October 31,
2014
|
|
Quarter
Ended
October 31,
2013
|
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
Sales
|
$25,093
|
$1,549
|
$23,544
|
|
$22,787
|
$1,914
|
$20,873
|
Year over year
growth
|
10.1%
|
(19.1%)
|
12.8%
|
|
(6.0%)
|
(55.3%)
|
4.6%
|
|
|
|
|
|
|
|
|
Gross
profit
|
8,608
|
384
|
8,224
|
|
5,042
|
(895)
|
5,937
|
Gross
margin
|
34.3%
|
24.8%
|
34.9%
|
|
22.1%
|
(46.7%)
|
28.4%
|
Operating
expenses
|
7,911
|
970
|
6,941
|
|
6,073
|
1,037
|
5,036
|
Operating expense as % of sales
|
31.5%
|
62.6%
|
29.5%
|
|
26.7%
|
54.2%
|
24.1%
|
Operating income
(loss)
|
697
|
(586)
|
1,283
|
|
(1,030)
|
(1,932)
|
902
|
Less other (income)
expenses mainly early extinguishment of debt
|
(2,360)
|
-----
|
(2,360)
|
|
116
|
116
|
-----
|
Add other
income
|
144
|
-----
|
144
|
|
57
|
-----
|
57
|
Add depreciation and
amortization
|
313
|
37
|
276
|
|
449
|
87
|
362
|
EBITDA
|
$(1,206)
|
$(549)
|
$(657)
|
|
$(408)
|
$(1,729)
|
$1,321
|
|
|
|
|
|
|
|
|
Equity
compensation
|
23
|
-----
|
23
|
|
20
|
-----
|
20
|
Equity compensation
relating to non-cash effect of Restricted Stock Plan change to
maximum level
|
1,000
|
-----
|
1,000
|
|
-----
|
-----
|
-----
|
Additional Brazil
severance and executive recruiter fee
|
-----
|
-----
|
-----
|
|
74
|
42
|
32
|
Brazil additional
foreign exchange losses (gains)
|
65
|
65
|
-----
|
|
(116)
|
(116)
|
-----
|
Brazil additional VAT
tax charge
|
-----
|
-----
|
-----
|
|
153
|
153
|
-----
|
Brazil additional
inventory reserve unusual charge
|
-----
|
-----
|
-----
|
|
1,159
|
1,159
|
-----
|
Change in accounting
estimate-OH rates revised
|
-----
|
-----
|
-----
|
|
354
|
-----
|
354
|
Inventory reserve in
USA and China-discontinued product lines raw material/finished
goods
|
-----
|
-----
|
-----
|
|
375
|
-----
|
375
|
Severance and
recruiter charges in USA
|
103
|
-----
|
103
|
|
-----
|
-----
|
-----
|
Early extinguishment
of OID debt-fee write-off
|
2,295
|
-----
|
2,295
|
|
-----
|
-----
|
-----
|
ADJUSTED
EBITDA
|
$2,280
|
$(484)
|
$2,764
|
|
$1,611
|
$(491)
|
$2,102
|
|
|
|
|
|
|
|
|
|
|
|
Numbers may not add
due to rounding
|
*This table is a
reconciliation of GAAP to non-GAAP Financial Measures.
|
**Brazil numbers, as
presented in this table, include immaterial intercompany
transactions.
|
|
Operating Earnings
and Adjusted EBITDA - Lakeland Consolidated with and without
Brazil
|
|
($000)
|
Nine-Months
Ended
October 31,
2014
|
|
Nine-Months
Ended
October 31,
2013
|
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
Sales
|
$73,210
|
$5,096
|
$68,114
|
|
$69,163
|
$5,398
|
$63,765
|
Year over year
growth
|
5.9%
|
(5.6%)
|
6.8%
|
|
(3.6%)
|
(61.9%)
|
10.8%
|
|
|
|
|
|
|
|
|
Gross
profit
|
23,770
|
1,605
|
22,165
|
|
18,584
|
(478)
|
19,063
|
Gross
margin
|
32.5%
|
31.5%
|
32.5%
|
|
26.9%
|
(8.9%)
|
29.9%
|
Operating
expenses
|
21,023
|
2,797
|
18,226
|
|
18,554
|
3,264
|
15,290
|
Operating expense as % of sales
|
28.7%
|
54.9%
|
26.8%
|
|
26.8%
|
60.5%
|
24.0%
|
Operating
income
|
2,747
|
(1,192)
|
3,939
|
|
30
|
(3,742)
|
3,772
|
Less other (income)
expenses mainly early extinguishment of subordinated debt in
current year and foreign exchange losses in Brazil in the prior
year
|
(2,347)
|
(411)
|
(1,936)
|
|
(271)
|
(271)
|
-----
|
Less other (loss)
income
|
(282)
|
(25)
|
(257)
|
|
20
|
-----
|
20
|
Add depreciation and
amortization
|
1,030
|
178
|
852
|
|
1,226
|
276
|
950
|
EBITDA
|
$1,148
|
(1,450)
|
$2,598
|
|
$1,005
|
$(3,737)
|
$4,742
|
|
|
|
|
|
|
|
|
Equity
compensation
|
73
|
-----
|
73
|
|
179
|
-----
|
179
|
Equity compensation
relating to non-cash effect of Restricted Stock Plan change to
maximum level
|
1,000
|
-----
|
1,000
|
|
-----
|
-----
|
-----
|
Additional Brazil
severance and executive recruiter fee
|
-----
|
-----
|
-----
|
|
154
|
122
|
32
|
Financing fees in
other expenses (adjustments)
|
-----
|
-----
|
-----
|
|
75
|
-----
|
75
|
Qingdao plant
shutdown costs and costs of sale
|
-----
|
-----
|
-----
|
|
480
|
-----
|
480
|
Brazil additional
foreign exchange losses
|
52
|
52
|
-----
|
|
271
|
271
|
-----
|
Brazil additional VAT
tax charge
|
76
|
76
|
-----
|
|
153
|
153
|
-----
|
Brazil additional
inventory reserve unusual charge
|
|
|
-----
|
|
1,159
|
1,159
|
-----
|
Brazil labor
litigation
|
374
|
374
|
-----
|
|
-----
|
-----
|
-----
|
Change in accounting
estimate-OH rates revised
|
-----
|
-----
|
-----
|
|
354
|
-----
|
354
|
Inventory reserve in
USA and China-discontinued product lines raw material/finished
goods
|
300
|
-----
|
300
|
|
375
|
-----
|
375
|
Severance and
recruiter charges in USA
|
103
|
-----
|
103
|
|
-----
|
-----
|
-----
|
Pennsylvania plant
shutdown costs
|
235
|
-----
|
235
|
|
-----
|
-----
|
-----
|
Early extinguishment
of debt-fee write-off
|
2,295
|
-----
|
2,295
|
|
-----
|
-----
|
-----
|
ADJUSTED
EBITDA
|
$5,656
|
$(948)
|
$6,604
|
|
$4,205
|
$(2,032)
|
$6,237
|
|
|
|
|
|
|
|
|
|
|
|
Numbers may not add
due to rounding
|
*This table is a
reconciliation of GAAP to non-GAAP Financial Measures.
|
**Brazil numbers, as
presented in this table, include immaterial intercompany
transactions.
|
|
Earnings and EPS -
Lakeland - Consolidated with and without Brazil
|
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
($000)
|
Quarter
Ended
October 31,
2014
|
|
Quarter
Ended
October 31,
2013
|
EARNINGS AND
EPS:
|
|
|
|
|
|
|
|
Operating
income
|
697
|
(586)
|
1,283
|
|
(1,030)
|
(1,932)
|
902
|
Other (expenses)
income
|
(2,360)
|
-----
|
(2,360)
|
|
116
|
116
|
-----
|
Additional other
income
|
144
|
-----
|
144
|
|
57
|
-----
|
57
|
Interest
expense
|
(700)
|
(159)
|
(541)
|
|
(649)
|
(302)
|
(347)
|
Pretax (loss)
income
|
(2,218)
|
(745)
|
(1,473)
|
|
(1,506)
|
(2,118)
|
612
|
Income tax
expense
|
(282)
|
-----
|
(282)
|
|
(329)
|
-----
|
(329)
|
Net (loss) income
|
$(2,500)
|
$(745)
|
$(1,755)
|
|
$(1,835)
|
$(2,118)
|
$283
|
#
Shares for basic EPS (000s)
|
5,952
|
5,952
|
5,952
|
|
5,919
|
5,919
|
5,919
|
EPS
|
$(0.420)
|
$(0.125)
|
$(0.295)
|
|
$(0.310)
|
$(0.358)
|
$0.048
|
|
|
|
|
|
Nine-Months Ended
October 31, 2014
|
|
Nine-Months Ended
October 31, 2013
|
Operating
income
|
2,747
|
(1,192)
|
3,939
|
|
30
|
(3,744)
|
3,774
|
Other (expenses)
income
|
(2,347)
|
(411)
|
(1,936)
|
|
(272)
|
(272)
|
-----
|
Add other (expenses)
income
|
(282)
|
(25)
|
(257)
|
|
21
|
-----
|
21
|
Interest
expense
|
(2,023)
|
(507)
|
(1,516)
|
|
(1,391)
|
(511)
|
(880)
|
Pretax (loss)
income
|
(1,905)
|
(2,135)
|
230
|
|
(1,612)
|
(4,527)
|
2,915
|
Income tax (expense)
benefit
|
(981)
|
-----
|
(981)
|
|
3,103
|
-----
|
3,103
|
Net (loss) income
|
(2,886)
|
(2,135)
|
(751)
|
|
1,491
|
(4,527)
|
6,018
|
#
Shares for basic EPS (000s)
|
5,933
|
5,933
|
5,933
|
|
5,608
|
5,608
|
5,608
|
EPS
|
$(0.486)
|
$(0.360)
|
$(0.127)
|
|
$0.266
|
$(0.807)
|
$1.073
|
FY 14 includes
reversal of deferred tax valuation $4.5 mm
|
|
|
|
|
4,544
|
$0.000
|
4,544
|
EPS Effect
|
|
|
|
|
$0.810
|
$0.000
|
$0.810
|
EPS without valuation
reserve reversal
|
|
|
|
|
$(0.544)
|
$0.000
|
$0.262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numbers may not add
due to rounding
|
*This table is a
reconciliation of GAAP to non-GAAP Financial Measures.
|
**Brazil numbers, as
presented in this table, include immaterial intercompany
transactions.
|
|
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
|
Lakeland
consolidated
|
Brazil
|
Lakeland worldwide
excluding Brazil
|
|
Quarter
Ended
October 31,
2014
|
|
Quarter
Ended
October 31,
2013
|
Other impact on
EPS:
|
|
|
|
Tax charge for China
dividend and various one-time tax adjustments in Canada, China and
Chile
|
203
|
-----
|
203
|
|
-----
|
-----
|
-----
|
EPS
|
$0.034
|
-----
|
$0.034
|
|
-----
|
-----
|
-----
|
Equity compensation
relating to non-cash effect of Restricted Stock Plan change to
maximum level
|
1,000
|
-----
|
1,000
|
|
-----
|
-----
|
-----
|
EPS net of tax impact
of $350
|
$0.110
|
-----
|
$0.110
|
|
-----
|
-----
|
-----
|
Early extinguishment
of sub debt
|
2,295
|
-----
|
2,295
|
|
-----
|
-----
|
-----
|
Tax impact
|
235
|
-----
|
235
|
|
-----
|
-----
|
-----
|
Effect on net income
early extinguishment sub debt
|
$2,060
|
-----
|
$2,060
|
|
-----
|
-----
|
-----
|
EPS
|
$0.348
|
-----
|
$0.348
|
|
-----
|
-----
|
-----
|
EPS without early
extinguishment of sub debt equity compensation of restricted stock
change to maximum performance level and various tax
issues
|
$0.071
|
$(0.125)
|
$0.196
|
|
$(0.310)
|
$(0.358)
|
$0.048
|
|
|
|
|
|
|
|
|
|
Nine-Months Ended
October 31, 2014
|
|
Nine-Months Ended
October 31, 2013
|
Tax charge for WF
dividend Q3
|
325
|
-----
|
325
|
|
-----
|
-----
|
-----
|
EPS
|
$0.055
|
-----
|
$0.055
|
|
-----
|
-----
|
-----
|
Tax charge for China
dividend and various one-time tax adjustments in Canada, China and
Chile
|
203
|
-----
|
203
|
|
-----
|
-----
|
-----
|
EPS
|
$0.034
|
$0.000
|
$0.034
|
|
-----
|
-----
|
-----
|
Equity compensation
relating to non-cash effect of Restricted Stock Plan change to
maximum level
|
1,000
|
-----
|
1,000
|
|
-----
|
-----
|
-----
|
EPS net of tax impact
of $350
|
$0.110
|
-----
|
$0.110
|
|
-----
|
-----
|
-----
|
Early extinguishment
of sub debt
|
2,295
|
-----
|
2,295
|
|
-----
|
-----
|
-----
|
Tax impact
|
235
|
-----
|
235
|
|
-----
|
-----
|
-----
|
Effect on net income
early extinguishment sub debt
|
$2,060
|
$0.000
|
$2,060
|
|
-----
|
-----
|
-----
|
EPS
|
$0.348
|
$0.000
|
$0.348
|
|
-----
|
-----
|
-----
|
EPS without Brazil,
early extinguishment of debt, change in performance level of
restricted stock and without Tax on WF dividend/without tax
valuation reserve PY
|
$0.060
|
$(0.360)
|
$0.420
|
|
$(0.544)
|
$(0.807)
|
$0.262
|
|
Numbers may not add
due to rounding
|
*This table is a
reconciliation of GAAP to non-GAAP Financial Measures.
|
**Brazil numbers, as
presented in this table, include immaterial intercompany
transactions.
|
Financial Results Conference Call
Lakeland will host a conference call at 4:30 pm eastern today to discuss the Company's
fiscal 2015 third quarter financial results. The conference call
will be hosted by Christopher J.
Ryan, Lakeland's Chief Executive Officer, and Gary Pokrassa, Lakeland's Chief Financial
Officer. Investors can listen to the call by dialing
888-347-6609 (Domestic) or 412-902-4291 (International) or
855-669-9657 (Canada), Pass Code
10056295.
For a replay of this call through December 17, 2014, dial 877-344-7529 (Domestic)
or 412-317-0088 (International) or 855-669-9658 (Canada), Pass Code 10056295.
About Lakeland Industries, Inc.:
Lakeland Industries,
Inc. (NASDAQ: LAKE) manufactures and sells a comprehensive line of
safety garments and accessories for the industrial protective
clothing market. The Company's products are sold by a direct
sales force and through independent sales representatives to a
network of over 1,200 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 federal, state, and local government
agencies, fire and police departments, airport crash rescue units,
the Department of Defense, the Centers for Disease Control and
Prevention, and many other federal and state agencies. For
more information concerning Lakeland, please visit the Company
online at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Forward-looking statements involve risks,
uncertainties and assumptions as described from time to time in
Press Releases and Forms 8-K, registration statements, quarterly
and annual reports and other reports and filings filed with the
Securities and Exchange Commission or made by management. All
statements, other than statements of historical facts, which
address Lakeland's expectations of sources or uses for capital or
which express the Company's expectation for the future with respect
to financial performance or operating strategies can be identified
as forward-looking statements. As a result, there can be no
assurance that Lakeland's future results will not be materially
different from those described herein as "believed," "projected,"
"planned," "intended," "anticipated," "estimated" or "expected," or
other words which reflect the current view of the Company with
respect to future events. We caution readers that these
forward-looking statements speak only as of the date hereof.
The Company hereby expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
such statements to reflect any change in the Company's expectations
or any change in events conditions or circumstances on which such
statement is based.
Non-GAAP Financial Measures
To supplement its
consolidated financial statements, which are prepared and presented
in accordance with Generally Accepted Accounting Principles (GAAP),
the Company uses the following non-GAAP financial measures: EBITDA,
Adjusted EBITDA and consolidated income, excluding Brazil. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared
and presented in accordance with GAAP. The Company uses these
non-GAAP financial measures for financial and operational decision
making and as a means to evaluate period-to-period comparisons. The
Company believes that they provide useful information about
operating results, enhance the overall understanding of past
financial performance and future prospects, and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. The non-GAAP financial
measures used by the Company in this press release may be different
from the methods used by other companies.
For more information on the non-GAAP financial measures, please
see the Reconciliation of GAAP to non-GAAP Financial Measures
tables in this press release. These accompanying tables
include details on the GAAP financial measures that are most
directly comparable to non-GAAP financial measures and the related
reconciliations between these financial measures.
Lakeland
Industries, Inc. and Subsidiaries
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands
except share data)
|
|
|
October
31,
|
January
31,
|
|
2014
|
2014
|
ASSETS
|
(Unaudited)
|
(Unaudited)
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$7,047
|
$4,555
|
Accounts receivable,
net of allowance for doubtful accounts of $482,400
and $588,800 at October 31, 2014 and
January 31, 2014, respectively
|
15,098
|
13,795
|
Inventories, net of
reserves of approximately $2,992,000 and $3,572,000 at
October 31, 2014 and January 31,
2014, respectively
|
38,921
|
39,844
|
Deferred income
taxes
|
4,808
|
4,707
|
Prepaid income
tax
|
1,455
|
471
|
Other current
assets
|
2,544
|
2,108
|
Total current
assets
|
69,874
|
65,481
|
Property and
equipment, net
|
11,768
|
12,069
|
Prepaid VAT and other
taxes, noncurrent
|
2,459
|
2,379
|
Security deposits,
mainly judicial deposits in Brazil
|
1,296
|
1,415
|
Intangibles, prepaid
bank fees and other assets, net
|
494
|
1,533
|
Goodwill
|
871
|
871
|
Total
assets
|
$86,762
|
$83,750
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
$9,484
|
$8,181
|
Accrued compensation
and benefits, mainly accrued payroll
|
2,412
|
1,189
|
Other accrued
expenses
|
2,574
|
1,554
|
Current maturity of
long-term debt
|
50
|
50
|
Current maturity of
arbitration settlement
|
1,000
|
1,000
|
Short-term
borrowing
|
3,686
|
2,559
|
Borrowings under
revolving credit facility
|
5,134
|
12,415
|
Total current
liabilities
|
24,340
|
26,949
|
Accrued arbitration
award in Brazil (net of current maturities)
|
3,104
|
3,759
|
Long-term portion of
Canada and Brazil loans
|
924
|
1,111
|
Subordinated debt,
net of OID, including PIK interest
|
-----
|
1,525
|
Other liabilities -
accrued legal fees in Brazil
|
77
|
71
|
VAT taxes payable
long term
|
3,362
|
3,329
|
Total
liabilities
|
31,807
|
36,744
|
Stockholders'
equity
|
|
|
Preferred stock, $.01
par; authorized 1,500,000 shares
(none
issued)
|
-----
|
------
|
Common stock, $.01
par; authorized 10,000,000 shares,
issued 7,399,234 and 5,713,180; outstanding 7,042,793
and 5,356,739 at
October 31, 2014 and January 31,
2014, respectively
|
74
|
57
|
Treasury stock, at
cost; 356,441 shares at October 31, 2014 and January 31,
2014.
|
(3,352)
|
(3,352)
|
Additional paid-in
capital
|
64,568
|
53,365
|
Accumulated
deficit
|
(3,478)
|
(592)
|
Accumulated other
comprehensive loss
|
(2,857)
|
(2,472)
|
Total stockholders'
equity
|
54,955
|
47,006
|
Total liabilities and
stockholders' equity
|
$86,762
|
$83,750
|
|
Numbers may not add due
to rounding
|
LAKELAND
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands
except share data)
|
(Unaudited)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
October
31,
|
October 31
|
|
2014
|
2013
|
2014
|
2013
|
Net sales
|
$25,093
|
$22,787
|
$73,210
|
$69,163
|
Cost of goods
sold
|
16,485
|
17,745
|
49,440
|
50,579
|
Gross
profit
|
8,608
|
5,042
|
23,770
|
18,584
|
Operating
expenses
|
7,911
|
6,073
|
21,023
|
18,554
|
Operating profit
(loss)
|
698
|
(1,030)
|
2,747
|
30
|
Foreign exchange gain
(loss) Brazil
|
(65)
|
116
|
(52)
|
(272)
|
Early extinguishment
of subordinated debt
|
(2,295)
|
-----
|
(2,295)
|
-----
|
Other income (loss),
net
|
144
|
57
|
(282)
|
21
|
Interest
expense
|
(699)
|
(649)
|
(2,022)
|
(1,391)
|
Loss before
taxes
|
(2,218)
|
(1,506)
|
(1,905)
|
(1,612)
|
Income tax expense
(benefit)
|
282
|
329
|
981
|
(3,103)
|
Net income
(loss)
|
$(2,500)
|
$(1,835)
|
$(2,886)
|
$1,491
|
Net income (loss) per
common share:
|
|
|
|
|
Basic
|
$(0.42)
|
$(0.31)
|
$(0.49)
|
$0.27
|
Diluted
|
$(0.42)
|
$(0.31)
|
$(0.49)
|
$0.26
|
Weighted average
common and common
equivalent shares outstanding:
|
|
|
|
|
Basic
|
5,951,613
|
5,919,253
|
5,933,229
|
5,607,654
|
Diluted
|
5,951,613
|
5,919,253
|
5,933,229
|
5,715,151
|
|
Numbers may not add due
to rounding
|
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SOURCE Lakeland Industries, Inc.