RONKONKOMA, N.Y., Aug.16, 2017
/PRNewswire/ -- Lakeland Industries, Inc. (NASDAQ: LAKE) (the
"Company" or "Lakeland"), a
leading global manufacturer of protective clothing for industry,
healthcare and to first responders on the federal, state and local
levels, today announced certain preliminary unaudited financial
results for its fiscal 2018 second quarter ended July 31, 2017. The Company also announced today
that it intends to offer shares of its common stock in an
underwritten public offering. The offering is subject to
market and other conditions, and there can be no assurance as to
whether or when the offering may be completed, or as to the actual
size or terms of the offering.
Preliminary Fiscal 2018 Second Quarter Financial
Results
For the second quarter of fiscal year 2018, Lakeland estimates its revenue to range from
$23.0 million to $25.0 million, net
income to range from $1.4 million to $1.6
million, earnings per share to range from $0.19 to $0.21 and Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA*) to range from
$2.2 million to $2.4 million.
The revenue, net income, earnings per share and EBITDA estimates
presented above are preliminary and subject to revision based upon
the completion of the Company's quarter-end financial closing
process and completion of our consolidated financial statements and
are not meant to be comprehensive for this period. These
preliminary estimates have been prepared by, and are the
responsibility of, the Company's management based upon the most
current information available to them. Such preliminary
estimates have not been subject to any audit procedures, review
procedures, or any procedures by our independent registered public
accounting firm. Following the completion of our quarter-end
financial closing process, we may report financial results that
could differ significantly from these estimates.
For more information on the non-GAAP financial measures, please
see the Reconciliation of GAAP to non-GAAP Financial Measures table
in this press release.
The information presented herein should not be considered a
substitute for the financial information to be filed with the SEC
in the Company's Quarterly Report on Form 10-Q for the fiscal
quarter ended July 31, 2017 once it
becomes available. The Company has no intention or obligation to
update the preliminary estimated unaudited financial results in
this release prior to filing its Quarterly Report on Form 10-Q for
quarter ended July 31, 2017.
Financial Results Conference Call
Lakeland will issue its actual
financial results for the fiscal 2018 second quarter and conduct a
conference call on Wednesday, September
13, 2017. Details for the conference call will be
announced in advance of the issuance of the earnings press
release.
Additional Offering Information
Roth Capital Partners and Craig-Hallum Capital Group are acting
as joint book-running managers for the offering. The
underwriters are expected to have a 45-day option to purchase an
additional 15% of the shares of common stock sold in the primary
offering to cover overallotments, if any.
The Company expects to use the net proceeds from the offering
for building additional overseas manufacturing facilities, payment
of capital expenditures associated with equipment, repayment of all
borrowings under its line of credit, and general corporate
purposes.
The shares described above are being offered by the Company
pursuant to a shelf registration statement on Form S-3 previously
filed with and declared effective by the U.S. Securities and
Exchange Commission (the "SEC") on April 11,
2017. The shares may be offered only by means of a
prospectus. Once available, copies of the preliminary prospectus
supplement and accompanying base prospectus relating to this
offering will be filed with the SEC and will be available on the
SEC's website at http://www.sec.gov and may also be obtained from
Roth Capital Partners, LLC, 888 San Clemente Drive, Suite 400,
Newport Beach, California 92660,
telephone (949) 720-7227 or email at rothecm@roth.com and from
Craig-Hallum Capital Group LLC, 222 South 9th Street,
Suite 350, Minneapolis, MN 55402,
telephone (612) 334-6300 or email at prospectus@chlm.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
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 measure: EBITDA.
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 this non-GAAP financial measure for
financial and operational decision making and as a means to
evaluate period-to-period comparisons. The Company believes that it
provides useful information about operating results, enhances the
overall understanding of past financial performance and future
prospects, and allows for greater transparency with respect to key
metrics used by management in its financial and operational
decision making. The non-GAAP financial measure used by the Company
in this press release may be different from the methods used by
other companies. A reconciliation of GAAP to non-GAAP
Financial Measures will be provided with the announcement of
complete financial results for the quarter ended July 31, 2017. These accompanying tables
will 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.
Reconciliation to
GAAP ($000)
|
|
|
|
|
GUIDANCE RANGE
MINIMUM
|
|
GUIDANCE RANGE
MAXIMUM
|
|
|
|
|
Net
income
|
$1,420
|
|
$1,560
|
Depreciation and
amortization
|
220
|
|
220
|
Interest
Expense
|
60
|
|
60
|
income
tax
|
500
|
|
560
|
EBITDA
|
$2,200
|
|
$2,400
|
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SOURCE Lakeland Industries, Inc.