Full Press Release Details
Industries, Inc. Reports Fiscal 2021
Quarter Financial Results
Revenues Increase 85% to $45.6 Million as Net Income Jumps to $8.6
Million, Both Record Levels;
Performance Driven by COVID-19 Demand as Manufacturing Capabilities
and Operating Leverage Magnified;
Company Ends Quarter with Cash Increasing $8.9 Million to $23.5
AL June 9, 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 2021 first quarter
ended April 30, 2020.
Fiscal 2021 First Quarter Financial Results Highlights
of $45.6 million, up 84.7% as compared with 1Q20 of $24.7
approximately $11.2 million of demand directly attributable to
1Q21 of $22.1 million, compared with 1Q20 of $7.6
percentage of net sales in 1Q21 was 48.6%, compared to 30.6% in
of $9.8 million in 1Q21, up from $7.9 million in 1Q20
$12.4 million in 1Q21, up from an operating loss of $(315,000) in
million or $1.08 per basic common share in 1Q21, up from a net loss
of $(465,000) or $(0.06) per basic common share in
interest, taxes, depreciation and amortization (EBITDA)* of $12.8
million, compared with $68,000 in 1Q20
expenditures for fiscal 2021 first quarter were approximately $0.2
million, the same as in the comparable fiscal 2020
million at 4/30/20, up 61% from $14.6 million at beginning of the
short term debt as of 4/30/20, down from $1.2 million at beginning
equity at the end of 1Q21 increased by $8.5 million to $93.5
million from $85.0 million at the beginning of fiscal
acquired in 1Q21 as part of the Company's $2.5 million stock
repurchase program which was approved on July 19,
EBITDA is a non-GAAP financial measure. Reconciliation is provided
in the tables of this press release.
Management's Comments
D. Roberson, President and Chief Executive Officer of Lakeland
Industries, stated, Our fiscal 2021 first quarter
performance was extraordinary with record setting financial results
that validate our belief that owning our own manufacturing and
having a resilient supply chain are essential to being a global
leader in the PPE market. As a branded PPE provider, we are unique
in owning our manufacturing facilities around the world and not
relying on outsourced contractors. This important differentiator,
combined with the capabilities of our ERP system that was recently
installed in our U.S. operations, enabled us to scale our
production output and manage our raw materials supply chain to not
only achieve, but exceed our organic growth targets while
contributing to the global pandemic response for emergency
are grateful to our global workforce and management team for their
dedication to their coworkers, our customers and those in need.
Their adherence to our safety protocols, at work and at home, and
their willingness to work extended hours, led to record quarterly
sales which increased by an impressive 85% to nearly $46 million.
Leveraging our centralized operating systems and emerging
data-centric planning processes, we were able to respond to the
demand for our products relating to the COVID-19 pandemic while
continuing to support and expand our traditional industrial
customer base. Globally we have added in excess of 150 new
industrial end users in the first quarter, with demand resulting
from shortages attributable COVID-19, but not directly associated
with COVID-19 applications, while over 180 new customers were added
in the healthcare sector for what we believe are orders relating
directly to coronavirus defense.
Coronavirus-related demand added
approximately $11.2 million to our fiscal 2021 first quarter sales.
Approximately $6.8 million of these orders were fulfilled with
products already in inventory. Additional sales which we believe
were influenced by the coronavirus outbreak were not determinable.
Gross margins benefited from improved manufacturing efficiencies
resulting from a management decision to limit our product offering
during the pandemic period that increased our manufacturing
throughput beyond the increase in manufacturing capacity due to
extended plant operations schedules. Gross margins also benefited
by sales of inventory that had been fully or partially reserved in
previous periods. On a consolidated basis for the first quarter,
gross margin as a percentage of revenue reached a record 48.6%,
compared to 30.6% in the prior year period and 37.7% in the fourth
quarter of last year when we had approximately $1.0 million of
COVID-19 related demand.
previously disclosed, in anticipation of continued heightened
demand relating to COVID-19, we commenced manufacturing capacity
expansion efforts. By the end of the first quarter, we had
accelerated a previously
planned expansion of our sealed seam manufacturing capacity by 30%
which is principally used for our chemical product lines. This
expansion required minimal investment, with total capital
expenditures flat year-over-year at less than $200,000 in each
period. Effective February 14, 2020, we increased the
operating hours of certain facilities making disposable and select
chemical garments which had previously been curtailed in order to
draw down inventories. In
aggregate, we estimate the scheduling changes amounted to a nearly
50% increase in capacity above our curtailment schedule and about
20% above our normal operating schedule. However, it should be
noted that even with this significant increase in capacity, revenue
for the first quarter of fiscal 2021 of $45.6 million would not
have been attainable absent our inventory position at the onset of
The COVID-19 pandemic is unique among black swan
events in terms of its breadth, global reach, and its duration, at
a minimum 6 to 9 months but probably longer when considering global