Full Press Release Details
Lakeland Industries, Inc. Reports Fiscal 2021 Third Quarter
Sustainable Improvements and Continued COVID 19 Demand Lead to
Third Quarter Records
for Revenues, Gross Margin, Operating Income, and Free Cash
Revenues from International Markets Outpace Domestic
Gross Margins of 52.3% Highest Level in Company History, up from
Operating Leverage Drives Significantly Improved EBITDA and Free
Cash Jumps to $40.2 Million at 10/31/20, Up 15% from End of
AL December 10, 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 third
quarter ended October 31, 2020.
Fiscal 2021 Third Quarter Financial Results Highlights
of $41.5 million, up 50.9% as compared with 3Q20 of $27.5
3Q21 of $21.7 million, up 133% as compared with 3Q20 of $9.3
percentage of net sales in 3Q21 was 52.3%, compared to 33.9% in
of $9.2 million in 3Q21, up from $7.5 million in 3Q20; 3Q21
includes $0.7 million in non-cash expense for recapture of
stock-based compensation dating back to 2018
$12.5 million in 3Q21, up 594% from $1.8 million in
million or $1.16 per basic common share in 3Q21, up from $1.1
million or $0.14 per basic common share in 3Q20
before interest, taxes, depreciation and amortization (EBITDA)* of
$13.9 million in 3Q21, up 632% from $1.9 million in
expenditures for 3Q21 of $0.6 million, up from $0.1 million in
million at 10/31/20, up 175% from 1/31/20
improves to 6.70:1 at 10/31/20, up 8.9% from 1/31/20
equity of $113.6 million at 10/31/20, up $28.5 million from $85.1
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, The third quarter of fiscal 2021 for
Lakeland further improved upon the record performance levels
achieved earlier this year. We have demonstrated our ability to
flex our global manufacturing capacity while supporting PPE demand
around the world during these critical times. The Lakeland brand is
strengthening as our reputation for reliable delivery and quality
continues to grow, as evidenced by the unprecedented number of
container shipment orders placed with us from new customers and
existing customers alike. While we set a new standard of excellence
for PPE manufacturers at the end of our second quarter, we have now
exceeded that measure. More importantly we believe we will exit the
COVID 19 era with critical market share gains and an enhanced
visibility into sustainable improvements that are expected to
significantly elevate our business performance from what was
reported before the pandemic set in.
economic activity began recovering in the third quarter which led
to our traditional industrial business growing from the second
quarter even though our base revenues remain below pre-pandemic
levels. Our traditional core business touching industrial markets
globally was off by an estimated 19% in the third quarter as
compared to the prior year period but is expected to continue to
improve from the lowest levels in the fiscal second quarter as
COVID 19 sales taper off in the coming quarters. Amid the
sequential quarter improvement, our traditional industrial business
growth continues to be eclipsed by PPE demand for the COVID 19
response. For the fourth consecutive quarter, we experienced
increased demand for our products relating to COVID 19. An
estimated 35% of our fiscal 2021 third quarter sales are related to
for disposable and chemical garments remains heightened, although
the supply of product from manufacturers in key markets like the US
has been catching up with demand. Pricing and order flow are
expected to remain elevated from pre-pandemic levels but are
expected to decline moderately through mid-2021. Lakeland grew
total U.S. revenues by 18% from the second quarter and 20% from the
third quarter of fiscal 2020, while delivering more meaningful
international growth through our enviable competitive position as a
leading global PPE manufacturer with highly resilient
manufacturing. International sales in the third quarter increased
by 19% sequentially from the second quarter and by 84% from the
believe a new era of institutional cleaning and the need for PPE
has begun to emerge and may provide for a large, permanent market
opportunity long after the pandemic has subsided. Stockpiling
requests for disposable and chemical apparel by government entities
in the U.S., Europe and other developing countries have already
been made public. Because we own our manufacturing and continue to
invest in facilities, technology, processes and personnel, we have
gained significant ground and are poised to further benefit from
favorable market dynamics. This is evidenced by the substantial
number of new customers we have amassed over the past 9 months and
the significant increase in container-sized orders in the third
quarter as we could deliver product when many others could
shipments, higher consolidated volume, manufacturing efficiencies,
and product mix management were the primary drivers of our gross
profit as a percentage of sales, setting a company record in the
third quarter. We have learned a lot during the past four quarters
which we believe will provide for sustainable growth in revenue and
profitability. Our strategy for elevating gross margins is making a
lasting impact. Critical to this program has been a reduction of
underperforming SKUs and the launch of new, higher margin product
lines for Critical Environment and High Performance Wear. These
higher value, advanced product lines are unique in the industry, so
we expect less global competition as compared to lower priced
traditional disposable garments. The target markets for both
product lines are insensitive to economic trends and independent of
Covid 19 response and therefore should serve as a solid platform
for expansion of our core business product offering well into the