Full Press Release Details
Industries, Inc. Reports Fiscal 2020 Fourth Quarter
Year End Financial Results
Annual Revenues Increase 9% to Record Level as Net Income Jumps
Fourth Quarter Revenues Increase Over 12% Driven by Organic Growth
AL April 15, 2020 -- 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 financial results for its fiscal 2020
fourth quarter and year ended January 31, 2020.
Fiscal 2020 Fourth Quarter Financial Results
of $28.2 million, as compared with 4Q19 of $25.0
approximately $1.0 million of demand related to
4Q20 of $10.6 million, compared with 4Q19 of $6.9
percentage of net sales in 4Q20 was 37.7%, compared to 27.7% in
of $8.9 million in 4Q20, up from $8.4 million in 4Q19
$1.7 million in 4Q20, up from an operating loss of $(1.5) million
million or $0.15 per basic/diluted share in 4Q20, up from a net
loss of $(1.9) million or $(0.24) per basic/diluted share in
interest, taxes, depreciation and amortization (EBITDA)* of $2.3
million, compared with a loss of $(0.9) million in
expenditures for fiscal 2020 fourth quarter were approximately $0.3
million as compared with approximately $1.0 million in the fiscal
fiscal 2020 of $107.8 million, up from $99.0 million in fiscal
fiscal 2020 of $37.9 million, as compared with $33.9 million in
percentage of net sales in fiscal 2020 was 35.2%, up from 34.2% in
of $32.0 million in fiscal 2020, up from $30.3 million in fiscal
$5.9 million in fiscal 2020, up from $3.6 million in fiscal
fiscal 2020** of $3.3 million or $0.41 per basic/diluted share
compares with fiscal 2019 net income of $1.5 million or $0.18 per
million for fiscal 2020, up from $5.3 million in fiscal
expenditures for fiscal 2020 were $1.0 million, down from $3.1
million in fiscal 2019
million at 1/31/20, up from $12.8 million at beginning of the
million at 1/31/20, down from $1.3 million at beginning of fiscal
equity at the end of fiscal 2020 increased by $1.9 million to $85.1
million from $83.2 million at the beginning of fiscal
spent to acquire 47,153 shares as part of the Company's $2.5
million stock repurchase program which was approved on July 19,
appointed Executive Chairman (effective 2/1/20)
appointed Chief Executive Officer (effective 2/1/20)
appointed Chief Financial Officer (effective 8/12/19)
investments in digital transformation and global
enhanced productivity
manufacturing capacity increased
development targeting higher margin niche markets
EBITDA is a non-GAAP financial measure. Reconciliation is provided
in the tables of this press release.
Lakeland's fiscal 2020 financial results as reported on a
U.S. GAAP basis was subject to non-cash income tax expense
pertaining to Global Intangible Low-Taxed Income
( GILTI ) accounting policies. GILTI relates to income
earned by foreign affiliates of U.S. companies in excess of
allowable returns from intangible assets associated with such
operations, which went into effect in 2018 following the passage of
the 2017 Tax Cuts and Jobs Act. The 2017 Act, among other things, lowered the U.S. federal
corporate income tax rate from 35% to 21%, and requires companies
to pay a one-time transition tax on earnings of certain foreign
subsidiaries that were previously tax deferred and creates the
GILTI tax applicable to certain foreign sourced earnings. A
minimum tax for GILTI of 10.5% was implemented to discourage U.S.
multinational corporations from shifting domestic profits to lower
taxed foreign operations. The GILTI tax provisions are being
reviewed for companies with a net operating loss
( NOL ) carryforward asset which are typically used to
shield taxable consolidated U.S. corporate income from income taxes
paid in cash. Current GILTI rules allow a deduction of 50% of GILTI
income to the extent the U.S. parent company has net taxable income
after NOLs. Additionally, a foreign tax credit can offset U.S.
cash tax calculated on the GILTI income. However,
since Lakeland has enough NOL's to completely offset U.S.
income tax on GILTI income, there is no net U.S. taxable income or
tax liability to claim the deduction or foreign tax credits.
Lakeland recorded the GILTI non-cash income tax expense based upon
the tax regulations as they exist today. There are proposed changes
to the GILTI regulations that may reduce future non-cash tax
charges. Any impact due to this change will be recognized in the
period in which the change is enacted.
this new US anti-deferral tax provision uses the words
Intangible Low-Taxed Income in its' title,
based on current regulations, the result is an inclusion of income
from all of Lakeland's controlled foreign corporations (CFCs)
into its consolidated corporate income tax return, regardless of
the type of income or the tax rate in the foreign country. Final
regulations have been issued regarding the mechanics of calculating
GILTI, although there are Proposed Regulations that,
if adopted, would cause the calculation to include only the income
from Lakeland CFCs that are taxed at a rate lower than 90% of the
current US tax rate of 21% (18.9%). This proposed High-Tax
Exception rule, if approved, would then align the actual
income inclusion with the actual title to only include CFC income
that is taxed at a low rate in its home country. The proposed
regulations, however, specifically forbid application of these
proposed regulations until US Treasury issues them in
Final form. The Company awaits the final tax
regulations regarding the High-Tax Exception to
determine how this GILTI tax will be recorded in the
Management's Comments
D. Roberson, who was appointed as President and Chief Executive
Officer of Lakeland Industries on February 1, 2020, stated,