Full Press Release Details
Koehler Avenue, Suite 7 - Ronkonkoma, NY 11779
(631) 981-9700 - www.lakeland.com
Industries, Inc. Reports Fiscal 2009 Second Quarter Financial
of $0.30 versus $0.14 Last Year on Record Revenue of $27.6 Million
RONKONKOMA, NY - September 9, 2008 -
Lakeland Industries, Inc. (NASDAQ: LAKE), a leading 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 second quarter and six months ended July 31,
Financial Results Highlights
and Recent Company Developments
quarter again showed that Lakeland is clearly making progress in its overseas
expansion and in translating that growth into strong bottom line results," said
Christopher J. Ryan, President and CEO. "After successfully
completing the initial phases of integrating our Brazilian acquisition, we are
pleased to report that the operations there are meeting our expectations - with
gross margins continuing to rise and new sales channels accelerating our market
penetration. At the same time, we are preparing for our entry into
Russia and other former Soviet states, while evaluating new products and
expanding our manufacturing footprint in China. In addition, our
Indian operation commenced production this quarter and is presently shipping our
new line of chemically-resistant gloves to our sales and warehousing
facilities in Chile, Canada, the UK, China, and the U.S., effectively
positioning the Company to take advantage of regional demand and favorable
international trade policies."
overall strategy - to manage costs domestically while rapidly expanding overseas
- remains intact, and we are constantly reviewing all major markets to rapidly
deploy assets where appropriate to maximize returns to our
shareholders. While we delivered an impressive 27% increase in
overall quarter-over-quarter revenues, our internally generated growth
initiatives have led to the highest level of increased sales in the Company's
recent history with an improvement of 13% in the latest quarter as compared to
the prior year, excluding Brazil. We continue to see excellent top-line and
bottom-line growth in fiscal 2009 and the years to come outside of the
Financial Results for Three
Months Ended July 31, 2008 as Compared with the Three Months Ended July 31,
were a record $27.6 million in the second quarter of 2009, up 27% from the $21.7
million posted in the comparable 2008 period. The increase in revenue
was primarily due to foreign expansion. Brazil sales included in the
current quarter were $3.1 million, reflecting the Company's recent acquisition.
External sales from China increased by $0.9 million, or 123%, driven by sales to
the Company's Australian distributor. Canadian sales, UK sales, and
Chile sales increased by 10%, 13%, and 93%, respectively. U.S.
domestic sales increased by $1.3 million or 7% as new product introductions in
all of the Company's domestic divisions begin to take hold.
profit increased by $3.0 million, or 57%, to $8.2 million for the second quarter
of 2009, as compared with $5.2 million for the same period in
2008. Gross profit as a percentage of net sales rose to 29.6% for the
quarter ended July 31, 2008, up from 23.9% last year. This
improvement was primarily due to the inclusion of Brazilian operations with a
56% gross profit and the end of the prior year's sales rebate program to meet
competitive conditions, offset slightly by losses in India resulting from
delayed start up conditions. Operating profit increased by $1.3 million, or
140%, to $2.2 million, versus $0.9 million recorded in the second quarter of
fiscal 2008. Operating income as a percentage of net sales increased
to 8.0% for the second quarter of 2009, up from 4.2% for the same period in
fiscal 2008. The improvement in operating profit and margins is due
to the increased level of total revenues including high margin contributions
from Brazil, the use of lower-cost raw materials, new product introductions, new
customers, the Mexican restructuring program in 2008, and the end of the rebate
program initiated early in fiscal year 2008.
expenses increased by $.20 million for the three months ended July 31, 2008 as
compared to the three months ended July 31, 2007 due to higher borrowing levels
outstanding mainly due to the funding for the Brazil acquisition, partially
offset by lower interest rates in the current year. Net income for
the second quarter of FY09 was $1.6 million, compared with $0.8 million for the
second quarter of fiscal 2008. Earnings per share for the second
quarter of fiscal 2009 was $0.30, an increase of 114% as compared with $0.14 for
the second quarter of fiscal 2008.
Financial Results for Six
Months Ended July 31, 2008 as Compared with the Six Months Ended July 31,
increased $7.5 million, or 15.9%, to $54.8 million for the six months ended July
31, 2008 from $47.3 million for the six months ended July 31,
2007. The net increase was mainly due to international growth. Gross
profit increased $4.4 million or 41.6% to $14.8 million for the six months ended
July 31, 2008 from $10.5 million for the six months ended July 31,
2007. Gross profit as a percentage of net sales increased to 27.1% in
fiscal 2009 from 22.1% in fiscal 2008, primarily due to the inclusion of
Brazilian operations, the end of the prior year's sales rebate program to meet
competitive conditions, and favorable claims experience in our medical insurance
program. Operating profit increased 91% to $3.6 million for the six months ended
July 31, 2008 from $1.9 million for the six months ended July 31,
2007. Year-to-date, the Company had an operating margin of 6.6%,
versus 4.0% last year.
expenses increased to $0.4 million for the six months ended July 31, 2008 as
compared to $0.1 million in the six months ended July 31, 2007 due to higher
borrowing levels outstanding, mainly due to the funding for the Brazil
acquisition, partially offset by lower interest rates in the current year. Net
income increased $1.2 million, or 85%, to $2.5 million for the six months ended
July 31, 2008 from $1.4 million for the six months ended July 31,
will host a conference call at 10:00 AM (EDT) on September 9, 2008 to discuss
the Company's second quarter results. The call will be hosted by Christopher J.
Ryan, Lakeland's President and CEO. Investors can listen to the call
by dialing 877-723-9523
(Domestic) or 719-325-4758 (International),
replay of this call dial 888-203-1112 (Domestic) or 719-457-0802
(International), Passcode: 4538960.
Lakeland Industries, Inc.:
Industries, Inc. (Nasdaq: LAKE) manufactures and sells a comprehensive line of
safety garments and accessories for the industrial protective clothing