RONKONKOMA, N.Y., Dec. 21, 2015 /PRNewswire/ -- 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
provided an update on certain outstanding liabilities associated
with its former business in Brazil
which had been classified as discontinued operations.
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On December 17, 2015, the Company
announced that it entered into a Loan Agreement in the amount of
nearly R$8.6 million (approximately
US $2.3 million) the purpose of which
was to permit its former subsidiary in Brazil ("Lakeland Brazil") to completely
resolve, pay and close the two largest outstanding VAT (value added
tax) claims under an amnesty agreement with the State of Bahia in
Brazil. On December 18, 2015,
the Company was notified that the amnesty agreement and payment
were made. Whatever reserves may be needed against the $2.3 million loan will be reported in the fourth
quarter of the current fiscal year as loss from discontinued
operations and will not impact continuing operations results.
Commenting on recent developments, Christopher J. Ryan, President and Chief
Executive Officer of Lakeland Industries, stated, "We are pleased
that the improvement in performance from our continuing operations,
the Company's strengthened balance sheet, and an outlook for
continued growth have enabled the Company to have the financial
fortitude to accelerate and likely resolve the remaining
liabilities associated with our exit from Brazil. As previously disclosed, the Company
was subject to certain liability and contingent liability exposure
in connection with the prior operations of our former Brazilian
subsidiary. As a result of the VAT settlement, Lakeland
believes that it is unlikely to have to provide any further funds
to, or in respect of the prior operations of, Lakeland Brazil,
whether as payment of liabilities or contingent liabilities or as
loans."
In separate developments in November
2015, 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.
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.
"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.
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SOURCE Lakeland Industries, Inc.