UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
December 15, 2015
__________________________________________
Lakeland Industries, Inc.
(Exact name of registrant as specified in
its charter)
Delaware |
0-15535 |
13-3115216 |
(State or other jurisdiction |
(Commission |
(IRS Employer |
of incorporation) |
File Number) |
Identification No.) |
3555 Veterans
Memorial Highway, Suite C, Ronkonkoma, New York 11779-7410
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including
area code (631) 981-9700
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition |
On December 15, 2015, Lakeland Industries, Inc. (the “Company”)
issued a press release announcing its financial results for the third quarter ended October 31, 2015. A copy of the press release
is attached hereto as Exhibit 99.1.
| Item 9.01. | Financial Statements and Exhibits. |
| 99.1 | Press Release, dated December 15, 2015 |
The financial information contained in the exhibit to this Form
8-K is being furnished in accordance with Item 2.02 and shall not be deemed to be “filed” for the purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities
of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LAKELAND INDUSTRIES, INC.
Date:
December 15, 2015
/s/ Christopher J. Ryan
Christopher J. Ryan
President & CEO
EXHIBIT INDEX
Exhibit |
|
|
Number |
|
Description |
|
|
|
99.1 |
|
Press Release, dated December 15, 2015 |
|
|
|
Exhibit 99.1
Lakeland Industries, Inc. Reports Fiscal
2016 Third Quarter Financial Results
Significant Improvements in Margins,
Profitability and Free Cash Flow
RONKONKOMA, NY – December 15, 2015
-- Lakeland Industries, Inc. (NASDAQ: LAKE) (the “Company”), a leading global manufacturer of protective clothing for
industry, healthcare and to first responders on the federal, state and local levels, today announced financial results for its
fiscal 2016 third quarter ended October 31, 2015.
For financial reporting presentation purposes,
the operating results in Brazil are excluded from many of the statements in this announcement because the Company’s transfer
of the stock of its Brazilian subsidiary has resulted in discontinued operations accounting. Commencing with its first fiscal quarter
2016 ended April 30, 2015, historical and future financial results from the Brazilian operations are reflected as discontinued
operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Discontinued
operations accounting entails the reclassification of all of the financial results of the Brazil operations within the consolidated
financial results of the Company, and a restatement of prior periods to reflect the same treatment. The global operations of Lakeland
Industries excluding Brazil are shown in financial reports as continuing operations. All statements and information in this announcement
have been presented or are restated to exclude Brazil, except where noted. On July 31, 2015, the Company completed a conditional
closing of the transfer of all of the stock of its then wholly-owned Brazilian subsidiary (“Lakeland Brazil”), to Zap
Comércio de Brindes Corporativos Ltda (the “Transferee”), a company owned by an existing Lakeland Brazil
manager. This transfer is pursuant to a Shares Transfer Agreement entered into on June 19, 2015. The transactions contemplated
by the Shares Transfer Agreement, which were deemed to have been consummated as of July 31, 2015, were completed in October 2015.
Pursuant to the Shares Transfer Agreement, the Transferee has acquired
all of the shares of Lakeland Brazil owned by the Company.
Fiscal 2016 Third Quarter Financial
Results Highlights (from Continuing Operations, unless otherwise noted)
| o | Sales of $24.9 million (“M”) this year increased
6% from $23.5M in the comparable last year’s quarter |
| · | Margin Improvement and Expense Management |
| o | Gross margin was 37.2%, compared to 34.9% last year. |
| o | Operating expenses decreased by $0.9M and decreased as a percent
of sales to 24% from 29% last year |
| · | Significant Increases in Operating Income, Adjusted EBITDA* and
Free Cash Flow |
| o | Operating income increased to $3.2M from operating income of
$1.3M last year. |
| o | Operating income as a percentage of sales increased to 13% this
year vs. 5% last year |
| o | Adjusted EBITDA this year was $3.6M vs. $2.8M last year. |
| o | Free cash flow (defined as adjusted EBITDA less cash paid for
taxes and less capital expenditures) increased from $2.2M last year to $3.0M this year |
| o | Third quarter net income of $2.1M or $0.29 per share** this year
vs a loss of ($1.8)M and $(0.29) per share last year |
| o | Nine month net income of $7.9M or $1.10 per share this year vs.
a loss of $(0.8)M and $(0.14) per share last year |
| o | Cash and equivalents decreased by $0.8 M from the end of the
second quarter to $4.3M at end of Q3FY16 with the payment of the arbitration settlement of $3.4M during Q3FY16 to settle the remaining
arbitration debt. |
| o | Current ratio improved by 25% from the beginning of the fiscal
year |
| o | Book value per share at October 31, 2015 was $9.58, an increase
of 3% from July 31, 2015 |
| o | Stockholders’ equity increased by 9.7% from the beginning
of the fiscal year |
*Includes non-GAAP measures – see
table included herein for reconciliation to GAAP measures
**All shares presented are Basic,
unless otherwise noted.
Management’s Comments
Christopher J. Ryan, President and Chief
Executive Officer of Lakeland Industries, stated, “We delivered solid improvements across the board for our continuing operations
in the third quarter of fiscal 2016, which is a period that is notable for being the closest we’ve had to a normalized quarter
in quite a long time. Absent were large one-time charges, significant event-driven sales increases, aside from some increased orders
due to the Bird Flu crisis in the US, and financial and capitalization modifications. More evident was the leverage we have in
our model and the investments we’ve made to capture greater global market share given our unique operating platform which
we believe is a competitive advantage amid persistent industry capacity constraints.
“We are very pleased with our performance in the
third quarter which for the most part did not contain a material event-driven or crisis situation impact on sales that
distorted year over year comparisons. Third quarter fiscal 2016 sales in the US increased by $1.7 million or 13% from the
prior year, $1.1 million of which was due primarily to orders for protective apparel related to the Company’s response
to the US bird flu, while in the fiscal 2015 period we benefited from Ebola-related sales of an estimated $1.4 million in our
US and European businesses. On a consolidated basis, the Company’s top line grew by 6%, despite international revenues
reported in US dollars being weighed down by the strength of this currency against foreign denominations and the devaluations
of currencies in China, Chile and the UK. International revenues were $10.2 million or 41% of total sales in the third
quarter of fiscal 2016, as compared with $10.5 million or 45% of total sales in the prior year. Furthermore, our consolidated
sales were impressive given the cyclical and dramatic downturn of the oil and gas sector which has represented nearly 5-10%
of our total revenues globally. As these trends moderate or reverse, we believe the traction we have gained in the markets in
which we operate worldwide will further bolster our growth profile.
“Lakeland
continues to benefit its international diversification and broadening customer base from which we derive recurring sales. We have
proven our ability to deliver large quantities of protective apparel in normal periods as well as during emergency and crisis situations
where there are global capacity shortages. Over the last several quarters we implemented strategies to enhance our marketing presence
and scale production. We have the manufacturing capacity and operational expertise to respond to market demand while improving
our profitability. As a result of higher volume, improved gross margins and selling, general and administrative expenses largely
being fixed other than freight out and commissions as well as overall cost control efforts, operating profit from continuing operations
increased to $3.2 million for the third quarter from $1.3 million in the prior year. Operating income as a percentage of sales
increased to 13% this year as compared with 5% last year.
“Last
quarter, with our exit from Brazil, we set our sights on the implementation of global organic growth initiatives, driving sustainable
long term profitability, and enhancing our overall financial position. We continue to seek ways to strengthen our management and
sales teams while deploying information systems and other capital investments to help respond to market demand and maximize our
resources. A great amount of effort has recently been put toward online marketing campaigns to highlight and promote Lakeland products
as well as to develop two new products which we’ll be introducing in 2016. Amid these investments and strategic spending,
we are pleased to have reduced our total liabilities nearly $8 million or 26% since the beginning of the fiscal year. At the end
of the third quarter, our current ratio improved by 25% from the beginning the fiscal year despite inventories rising to $43.5
million due to a lack of capacity in the industry. We believed we have made solid progress this year and are well positioned for
continued long term improvements in all facets of the business.”
Operating Results with 2014 Restated for Discontinued Operations
($ 000) Reconciliation to GAAP Results | |
| | |
| |
| |
Quarter Ended October 31, 2015 | | |
Quarter Ended October 31, 2014 | |
Net sales from continuing operations | |
$ | 24,888 | | |
$ | 23,543 | |
Year over year growth | |
| 5.7 | % | |
| ----- | |
Gross profit from continuing operations | |
| 9,248 | | |
| 8,223 | |
Gross profit % | |
| 37.2 | % | |
| 34.9 | % |
Operating expenses from continuing operations | |
| 6,056 | | |
| 6,940 | |
Operating expenses as a percentage of sales | |
| 24.3 | % | |
| 29.5 | % |
Operating income from continuing operations | |
| 3,192 | | |
| 1,283 | |
Operating income as a percentage of sales | |
| 12.8 | % | |
| 5.4 | % |
Interest expense from continuing operations | |
| 183 | | |
| 511 | |
Other (income) expense from continuing operations | |
| (7 | ) | |
| (2,245 | ) |
Pretax income (loss) from continuing operations | |
| 3,002 | | |
| (1,473 | ) |
Income tax expense from continuing operations | |
| 882 | | |
| 282 | |
Net income from continuing operations | |
| 2,120 | | |
| (1,755 | ) |
Loss from discontinued operations | |
| ----- | | |
| (745 | ) |
Net (loss) from discontinued operations | |
| ----- | | |
| (745 | ) |
Net income (loss) | |
$ | 2,120 | | |
$ | (2,500 | ) |
| |
| | | |
| | |
Weighted average shares for EPS-Basic | |
| 7,234,914 | | |
| 5,951,613 | |
Income (loss) per share from continuing operations | |
$ | 0.29 | | |
$ | (0.29 | ) |
Loss per share from discontinued operations | |
$ | ----- | | |
$ | (0.13 | ) |
Income (loss) per share | |
$ | 0.29 | | |
$ | (0.42 | ) |
| |
| | | |
| | |
Operating income from continuing operations | |
$ | 3,192 | | |
$ | 1,283 | |
Depreciation and amortization | |
| 232 | | |
| 276 | |
Other income (loss) from continuing operations | |
| (7 | ) | |
| (2,245 | ) |
EBITDA from continuing operations | |
| 3,417 | | |
| (686 | ) |
Equity Compensation | |
| 165 | | |
| 1,024 | |
Severance and recruiter charges in the USA | |
| ----- | | |
| 103 | |
Early extinguishment of debt | |
| ----- | | |
| 2,295 | |
Adjusted EBITDA | |
| 3,582 | | |
| 2,736 | |
Cash paid for taxes (foreign) | |
| 382 | | |
| 426 | |
Capital expenditures | |
| 241 | | |
| 157 | |
Free cash flow | |
$ | 2,959 | | |
$ | 2,153 | |
Operating
Results with 2014 Restated for Discontinued Operations
($ 000) Reconciliation to GAAP Results | |
| | |
| |
| |
Nine-Months Ended
October 31, 2015 | | |
Nine-Months Ended
October 31, 2014 | |
Net sales from continuing operations | |
$ | 79,172 | | |
$ | 68,114 | |
Year over year growth | |
| 16.2 | % | |
| ----- | |
Gross profit from continuing operations | |
| 30,322 | | |
| 22,165 | |
Gross profit % | |
| 38.3 | % | |
| 32.5 | % |
Operating expenses from continuing operations | |
| 18,211 | | |
| 18,226 | |
Operating expenses as a percentage of sales | |
| 23.0 | % | |
| 26.8 | % |
Operating income from continuing operations | |
| 12,111 | | |
| 3,939 | |
Operating income as a percentage of sales | |
| 15.3 | % | |
| 5.8 | % |
Interest expense from continuing operations | |
| 576 | | |
| 1,515 | |
Other (income) expense from continuing operations | |
| 9 | | |
| (2,282 | ) |
Pretax income (loss) from continuing operations | |
| 11,544 | | |
| 142 | |
Income tax expense from continuing operations | |
| 3,676 | | |
| 981 | |
Net income (loss) from continuing operations | |
| 7,868 | | |
| (839 | ) |
Non-cash reclassification of Other Comprehensive Income to Statement of Operations with no impact on stockholder’s equity | |
| (1,286 | ) | |
| ----- | |
Loss from operations from discontinued operations | |
| (1,253 | ) | |
| (2,047 | ) |
Loss from disposal of discontinued operations | |
| (515 | ) | |
| ----- | |
Loss before taxes for discontinued operations | |
| (3,054 | ) | |
| (2,047 | ) |
Income tax expense (benefit) from discontinued operations | |
| (569 | ) | |
| ----- | |
Net (loss) from discontinued operations | |
| (2,485 | ) | |
| (2,047 | ) |
Net income (loss) | |
$ | 5,383 | | |
$ | (2,886 | ) |
| |
| | | |
| | |
Weighted average shares for EPS-Basic | |
| 7,148,430 | | |
| 5,933,229 | |
Net income (loss) per share from continuing operations | |
$ | 1.10 | | |
$ | (0.14 | ) |
Net loss per share from discontinued operations | |
$ | (0.35 | ) | |
$ | (0.35 | ) |
Net income (loss) per share | |
$ | 0.75 | | |
$ | (0.49 | ) |
| |
| | | |
| | |
Operating income from continuing operations | |
$ | 12,111 | | |
$ | 3,939 | |
Depreciation and amortization | |
| 704 | | |
| 851 | |
Other (income) expense from continuing operations | |
| (24 | ) | |
| (2,193 | ) |
EBITDA from continuing operations | |
| 12,791 | | |
| 2,597 | |
Equity Compensation | |
| 420 | | |
| 1,073 | |
Inventory reserve in USA and China – discontinued product lines raw material/finished goods | |
| ----- | | |
| 300 | |
PA plant shutdown costs | |
| ----- | | |
| 235 | |
Severance and recruiter charges in the USA | |
| ----- | | |
| 103 | |
Early extinguishment of debt | |
| ----- | | |
| 2,295 | |
Adjusted EBITDA | |
| 13,211 | | |
| 6,603 | |
Cash paid for taxes (foreign) | |
| 1,377 | | |
| 1,098 | |
Capital expenditures | |
| 715 | | |
| 397 | |
Free cash flow | |
$ | 11,119 | | |
$ | 5,108 | |
Lakeland Brazil Update -- Subsequent to the End of Fiscal
2016 Third Quarter
Labor Cases
In November 2015 the Company’s former
Brazilian subsidiary (“Lakeland Brazil”) settled a labor case (the “Lana dos Santos case”) for R$1 million
or approximately US $250,000 which approximates the reserves on the books of the Company. Several other smaller cases also were
settled for immaterial amounts. The Company does not anticipate any significant further charges for Labor issues beyond
what has been accrued.
VAT claims
The State of Bahia in Brazil, declared an amnesty beginning November 1, 2015 and expiring December 18, 2015.
As previously disclosed by the
Company, the Company may be exposed to certain liabilities in connection with the prior operations of Lakeland Brazil,
including, without limitation, from lawsuits pending in the labor courts of Brazil and VAT taxes. The Company entered into a
loan agreement on December 11, 2015 with Lakeland Brazil for the amount of nearly R$8.6 million (approximately US $2.3
million), for the purpose of providing funds necessary for Lakeland Brazil settling the two largest outstanding VAT claims
with the State of Bahia. Settlement of the VAT claims under amnesty would benefit the Company in that it eliminates
these large VAT claims, which the Company believes will render the continued viability of Lakeland Brazil immaterial to
Lakeland Industries. It should also eliminate the possibility of the transfer of the shares of Lakeland Brazil being
found fraudulent on the basis of evading VAT claims and would subsequently eliminate the possibility of future encumbrance of
the real estate by the State of Bahia in connection with any VAT claims. It is expected that Lakeland Brazil will complete
the amnesty agreement with the State of Bahia on or before December 18, 2015. US $250,000 in continuing business incentives
provided by the Company to Lakeland Brazil will be waived by Lakeland Brazil as partial payment of the loan
agreement.
The loan agreement provides for the following repayment provisions:
| · | R$3.4 million (approximately US $900,000) in VAT credits will become available to Lakeland Brazil
from the State of Bahia to be used against future VAT payments. Lakeland Brazil has agreed to pay amounts equal to this credit
to the Company in accordance with monthly sales volume. |
| · | Lakeland Brazil will transfer the rights to a judicial deposit on a tax claim to the Company.
There is a judicial deposit of R$3.0 (approximately US $800,000), however, Lakeland Brazil will continue to make monthly deposits
to the judicial account until the case is ruled upon by the regional Supreme Court of Brazil or the deposit is fully funded.
Attorney success fee will be deducted before any disbursements to the Company or Lakeland Brazil. While Lakeland Brazil’s
legal representation pertaining to the tax claim anticipates a favorable outcome, this counsel believes a resolution may take years
to reach. |
| · | Credits of R$1.0 (approximately US $275,000) relating to the above case may be generated if and when the case is resolved.
Lakeland Brazil has agreed to pay amounts equal to this credit to the Company in accordance with monthly sales volume. |
| · | A minimum quarterly payment by Lakeland Brazil to the Company of R$300,000 (approximately US $80,000) will be required commencing
in October 2016. |
The VAT loan agreement will be accounted for by the Company
in its fiscal 2016 fourth quarter ended January 31, 2016. The Company has not yet determined the collectability or reserve needed
in connection with the loan agreement which will result in an additional charge to the loss on disposal of discontinued operations.
Any additional such losses will be available as additional tax loss carryforwards to offset cash taxes payable against future taxable
income in the USA.
Financial Results Conference Call
Lakeland will host a conference call at
4:30 pm eastern today to discuss the Company’s fiscal 2016 third quarter financial results. The call will be hosted by Christopher
J. Ryan, Lakeland’s President and CEO, and Teri W. Hunt, 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 10077364.
For a replay of this call through December
22, 2015, dial 877-344-7529 (Domestic) or 412-317-0088 (International) or 855-669-9658 (Canada), Pass Code 10077364.
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
1,000 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 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.
Contacts:
|
Lakeland Industries |
|
Darrow Associates |
|
631-981-9700 |
|
631-367-1866 |
|
Christopher Ryan, CJRyan@lakeland.com |
|
Jordan Darrow, jdarrow@darrowir.com |
|
Teri W. Hunt, TWHunt@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 Free Cash Flow. 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
(UNAUDITED)
October 31, 2015 and January 31,
2015
| |
| | |
| |
ASSETS | |
October 31, | | |
January 31, | |
| |
2015 | | |
2015* | |
Current assets | |
| ($000’s) | | |
| ($000’s) | |
Cash and cash equivalents | |
$ | 4,288 | | |
$ | 6,709 | |
Accounts receivable, net of allowance for doubtful accounts of $434 and $484 at October 31, 2015 and January 31, 2015, respectively | |
| 14,566 | | |
| 13,277 | |
Inventories, net of reserves of $2,519 and $2,454 at October 31, 2015 and January 31, 2015, respectively | |
| 43,501 | | |
| 37,092 | |
Deferred income taxes | |
| 2,978 | | |
| 1,144 | |
Assets of discontinued operations in Brazil | |
| ----- | | |
| 6,335 | |
Prepaid VAT tax | |
| 1,695 | | |
| 1,717 | |
Other current assets | |
| 2,818 | | |
| 2,361 | |
Total current assets | |
| 69,846 | | |
| 68,635 | |
Property and equipment, net | |
| 9,614 | | |
| 10,144 | |
Assets held for sale | |
| 1,101 | | |
| ----- | |
Deferred income tax, noncurrent | |
| 9,700 | | |
| 13,101 | |
Prepaid VAT and other taxes | |
| 173 | | |
| 173 | |
Security deposits | |
| 94 | | |
| 113 | |
Intangibles, prepaid bank fees and other assets, net | |
| 118 | | |
| 171 | |
Goodwill | |
| 871 | | |
| 871 | |
Total assets | |
$ | 91,517 | | |
$ | 93,208 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
Current liabilities | |
| | | |
| | |
Accounts payable | |
$ | 7,417 | | |
$ | 7,763 | |
Accrued compensation and benefits | |
| 817 | | |
| 1,120 | |
Other accrued expenses | |
| 1,738 | | |
| 1,462 | |
Liabilities of discontinued operations in Brazil | |
| 532 | | |
| 6,574 | |
Current maturity of long-term debt | |
| 50 | | |
| 50 | |
Current maturity of accrued arbitration award | |
| ----- | | |
| 1,000 | |
Short-term borrowing | |
| 2,325 | | |
| 2,611 | |
Borrowings under revolving credit facility | |
| 8,391 | | |
| 5,642 | |
Total current liabilities | |
| 21,270 | | |
| 26,222 | |
Accrued arbitration award, less current portion | |
| ----- | | |
| 2,870 | |
Long-term portion of Canada loan | |
| 747 | | |
| 800 | |
Deferred taxes long term | |
| 112 | | |
| 60 | |
Total liabilities | |
| 22,129 | | |
| 29,952 | |
Stockholders’ equity | |
| | | |
| | |
Preferred stock, $.01 par; authorized 1,500,000 shares (none issued) | |
| ----- | | |
| ----- | |
Common stock, $.01 par; authorized 10,000,000 shares, Issued 7,597,355 and 7,414,037; outstanding 7,240,914 and 7,057,596 at October 31, 2015 and January 31, 2015, respectively | |
| 76 | | |
| 74 | |
Treasury stock, at cost; 356,441 shares at October 31, 2015 and January 31, 2015 | |
| (3,352 | ) | |
| (3,352 | ) |
Additional paid-in capital | |
| 64,336 | | |
| 64,594 | |
Retained earnings | |
| 10,037 | | |
| 4,654 | |
Accumulated other comprehensive loss | |
| (1,709 | ) | |
| (2,714 | ) |
Total stockholders' equity | |
| 69,388 | | |
| 63,256 | |
Total liabilities and stockholders' equity | |
$ | 91,517 | | |
$ | 93,208 | |
*Restated for discontinued operations
Numbers may not add due to rounding
LAKELAND INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(UNAUDITED)
Three and Nine Months Ended October
31, 2015 and 2014
| |
Three Months Ended | | |
Nine Months Ended | |
| |
October 31, | | |
October 31, | |
| |
($000’s) except for share information | | |
($000’s) except for share information | |
| |
| 2015 | | |
| 2014 | * | |
| 2015 | | |
| 2014 | * |
Net sales from continuing operations | |
$ | 24,888 | | |
$ | 23,543 | | |
$ | 79,172 | | |
$ | 68,114 | |
Cost of goods sold from continuing operations | |
| 15,640 | | |
| 15,320 | | |
| 48,850 | | |
| 45,949 | |
Gross profit from continuing operations | |
| 9,248 | | |
| 8,223 | | |
| 30,322 | | |
| 22,165 | |
Operating expenses from continuing operations | |
| 6,056 | | |
| 6,940 | | |
| 18,211 | | |
| 18,226 | |
Operating profit from continuing operations | |
| 3,192 | | |
| 1,283 | | |
| 12,111 | | |
| 3,939 | |
Other income (loss), from continuing operations | |
| (7 | ) | |
| (2,245 | ) | |
| 9 | | |
| (2,282 | ) |
Interest expense from continuing operations | |
| 183 | | |
| 511 | | |
| 576 | | |
| 1,515 | |
Income (loss) before taxes from continuing operations | |
| 3,002 | | |
| (1,473 | ) | |
| 11,544 | | |
| 142 | |
Income tax expense from continuing operations | |
| 882 | | |
| 282 | | |
| 3,676 | | |
| 981 | |
Net income (loss) from continuing operations | |
$ | 2,120 | | |
$ | (1,755 | ) | |
$ | 7,868 | | |
$ | (839 | ) |
Non-cash reclassification of Other Comprehensive Income to Statement of Operations (no impact on stockholder’s equity) | |
$ | ----- | | |
$ | ----- | | |
$ | (1,286 | ) | |
$ | ----- | |
Loss from operations from discontinued operations | |
| ----- | | |
| (745 | ) | |
| (1,253 | ) | |
| (2,047 | ) |
Loss from disposal of discontinued operations | |
| ----- | | |
| ----- | | |
| (515 | ) | |
| ----- | |
Loss before taxes for discontinued operations | |
| ----- | | |
| (745 | ) | |
| (3,054 | ) | |
| (2,047 | ) |
Income tax benefit from discontinued operations | |
| ----- | | |
| ----- | | |
| (569 | ) | |
| ----- | |
Net loss from discontinued operations | |
$ | ----- | | |
$ | (745 | ) | |
$ | (2,485 | ) | |
$ | (2,047 | ) |
Net income (loss) | |
$ | 2,120 | | |
$ | (2,500 | ) | |
$ | 5,383 | | |
$ | (2,886 | ) |
Net income (loss) per common share – Basic: | |
| | | |
| | | |
| | | |
| | |
Income (loss) from continuing operations | |
$ | 0.29 | | |
$ | (0.29 | ) | |
$ | 1.10 | | |
$ | (0.14 | ) |
Loss from discontinued operations | |
$ | ----- | | |
$ | (0.13 | ) | |
$ | (0.35 | ) | |
$ | (0.35 | ) |
Net income (loss) | |
$ | 0.29 | | |
$ | (0.42 | ) | |
$ | 0.75 | | |
$ | (0.49 | ) |
Net income (loss) per common share – Diluted: | |
| | | |
| | | |
| | | |
| | |
Income (loss) from continuing operations | |
$ | 0.29 | | |
$ | (0.29 | ) | |
$ | 1.08 | | |
$ | (0.14 | ) |
Loss from discontinued operations | |
$ | ----- | | |
$ | (0.13 | ) | |
$ | (0.34 | ) | |
$ | (0.35 | ) |
Net income (loss) | |
$ | 0.29 | | |
$ | (0.42 | ) | |
$ | 0.74 | | |
$ | (0.49 | ) |
Weighted average common shares outstanding: | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 7,234,914 | | |
| 5,951,613 | | |
| 7,148,430 | | |
| 5,933,229 | |
Diluted | |
| 7,300,435 | | |
| 5,951,613 | | |
| 7,235,252 | | |
| 5,933,229 | |
*Restated for discontinued operations
Numbers may not add due to rounding
Lakeland Industries (NASDAQ:LAKE)
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Lakeland Industries (NASDAQ:LAKE)
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