Full Press Release Details
Industries, Inc. Reports Fiscal 2021
Quarter and Year End Financial Results
Annual Revenues Increase for Fourth Consecutive Year as Fiscal 2021
Sales Reach Record $159 Million, Up 47% from 2020, Primarily from
COVID 19-Related Demand
Net Income for Fiscal 2021 Increases 970% Driven by Operating
Revenues from International Markets Continue to Outpace Domestic
Performance Bolstered by Sustainable Improvements
Technology Implementation
Increased Market Penetration
Inventory and Manufacturing Production Management
Continuing SKU Rationalization
Cash Jumps $38 Million in Fiscal 2021, Ending Year at $52.6 Million
AL April 15, 2021 -- 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
fourth quarter and full year ended January 31, 2021.
Fiscal 2021 Fourth Quarter Financial Results
of $36.9 million, up 31% as compared with 4Q20 of $28.2
4Q21 of $18.1 million, up 71% as compared with $10.6 million in
percentage of net sales in 4Q21 was 48.9%, compared to 37.7% in
of $8.8 million in 4Q21, down from $8.9 million in
$9.3 million in 4Q21, up 447% from $1.7 million in
million or $0.99 per basic common share in 4Q21, up from $1.2
million or $0.15 per basic common share in 4Q20
interest, taxes, depreciation, and amortization (EBITDA)* of $10.3
million in 4Q21, up 348% from $2.3 million in 4Q20
expenditures for 4Q21 of $0.4 million, up from $0.3 million in
Fiscal 2021 Full Year Financial Results Highlights
fiscal 2021 of $159.0 million, up from $107.8 million in fiscal
include an estimated $48 million to $56 million (30% to 35%) of
demand related to COVID 19, up from $1 million in fiscal
fiscal 2021 of $79.3 million, as compared with $37.9 million in
percentage of net sales in fiscal 2021 was 49.8%, up from 35.2% in
of $35.4 million in fiscal 2021, up from $32.0 million in fiscal
$43.9 million in fiscal 2021, up from $5.9 million in fiscal
fiscal 2021 of $35.1 million or $4.40/$4.31 per basic/diluted share
compares with fiscal 2020 net income** of $3.3 million or $0.41 per
$47.5 million for fiscal 2021, up from $7.1 million in fiscal
expenditures for fiscal 2021 were $1.7 million, up from $1.0
million in fiscal 2020
million at 1/31/21, up from $14.6 million at beginning of the
improves to 8.0:1 at 1/31/21, up 26% from 1/31/20
down from $1.2 million at beginning of fiscal year
equity at the end of fiscal 2021 increased by $37.8 million or 44%
to $122.9 million from $85.1 million at the beginning of fiscal
Operational Highlights
Improvement Initiatives
digital transformation: ERP, CRM and IT systems
manufacturing capacity increased
development targeting higher margin niche markets
capital and cash management
appointed Executive Chairman (effective 2/1/20)
appointed Chief Executive Officer (effective 2/1/20)
appointed Chief Financial Officer (effective 8/12/19)
appointed to new post of EVP Global Sales/Marketing (effective
Nikki L. Hamblin appointed to Board of Directors (effective
repurchase program authorized on February 11, 2021; replaces prior
program with $800,000 remaining
EBITDA and Adjusted EBITDA are non-GAAP financial measures.
Reconciliation is provided in the tables of this press
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