Full Press Release Details
Industries, Inc. Reports Fiscal 2022 First Quarter Financial
Sustainable Performance Improvements Delivered as Growth Resumes in
Industrial Segments,
Margins Remain Strong, and Cash Balances Improve
AL June 9, 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 2022 first quarter
ended April 30, 2021.
Fiscal 2022 First Quarter Financial Results Highlights
of $34.1 million, compared with 1Q21 of $45.6 million and $36.9
contributed sales of approximately $4.4 million in
industrial economic growth strengthening as COVID-19 related sales
decline; international markets continue to outpace domestic
Wear, Fire and Woven product lines in 1Q22 increase over 1Q21 when
PPE demand initially shifted to Disposables (and Chemical) garments
1Q22 of $14.4 million, compared with $22.1 million in
percentage of net sales in 1Q22 was 42.2%, compared to 48.6% in
of $8.1 million in 1Q22, down from $9.8 million in 1Q21 and $8.8
$6.2 million in 1Q22, compared with $12.4 million in
million or $0.58/$0.57 per basic/diluted common share in 1Q22, from
$8.6 million or $1.08/$1.07 per basic/diluted common share in
before interest, taxes, depreciation, and amortization (Adjusted
EBITDA)* of $7.1 million in 1Q22, compared with $12.9 million in
expenditures for 1Q22 of $0.1 million, down from $0.2 million in
acquired in 1Q22 as part of the Company's $5.0 million stock
Performance Bolstered by Sustainable Improvements
digital transformation: ERP, CRM and IT systems
opportunities through fixed and variable cost benefits
capital and cash management
Growth Strategy Advancements
million at 4/30/21, up by $7.7 million or 15% from beginning of
first quarter with up to $17.5 million available under credit
created position for VP of Corporate Development
and capacity expansion provide fixed cost absorption and margin
enhancement opportunities
EBITDA and Adjusted EBITDA are non-GAAP financial measures.
Reconciliation is provided in the tables of this press
Management's Comments
D. Roberson, President and Chief Executive Officer of Lakeland
Industries, stated, Lakeland delivered a very strong fiscal
2022 first quarter that demonstrates the sustainability of our
data-centric process improvements even as COVID-19-related demand
has pulled back as expected. In fact, while we have been a major
beneficiary of COVID-19 business conditions, we believe that it has
masked value generated by the fundamental operational and
organizational improvements the company has made.
to the onset of the global pandemic, we began a business
transformation and put in place a 5-year growth plan that assumed
successful implementation of our development plans. COVID-19
accelerated the pace of progress by approximately 1 year and in the
process elevated our cash balance to over $60 million today. We
expect continued free cash flow generation for the foreseeable
future which factors in the elimination of all COVID-19 demand as
early as the end of the present quarter. The critical elements of
our plan include the strengthening of our leadership team,
investing in capacity expansion and higher margin product
development, and focusing on profit enhancement initiatives led by
a new data-centric approach to planning and supporting our
addressable markets.
strengthening of our leadership team has been well documented. From
the boardroom, to the C-Suite, and even through middle management,
we've made additions during the past 18 months that enable us
to maximize our investments and grow organically and, now,
inorganically. Most recently, we added our first Vice President for
Corporate Development. This move is intended for Lakeland to put
its sizeable cash position to work increasing shareholder value.
The actionable elements of our plan are to utilize our
manufacturing operations and data centric culture as the
cornerstone of our ongoing success.
has always owned its manufacturing operations and is therefore
fairly unique in the PPE industry. We have shown that with under $2
million in capital investments for production capacity expansions
last year, we were able to increase revenues by approximately $50
million. Lakeland has tremendous operating leverage that is proving
to be sustainable outside of black swan events. Parallel
investments in IT systems have helped us become more efficient and
more profitable, as evidenced by our gross margin improvement. Our
gross margin as a percentage of sales has shown sustainability
above 40%, a vast improvement from 35.2% in fiscal 2020 and 34.2%
insights gained from our technology utilization, our focus on new
customer acquisition over the last year have yielded more than 500
new buyers. These new buyers are showing significant loyalty in the
first quarter of fiscal 2022, 68% of whom placed reorders in Q1
FY22. Overall, our ERP installation has only been a factor for our
US operations which are now less than 50% of our consolidated
revenues. As we implement the ERP system globally, we expect
incremental benefits from the balance of our business.
timing of our investment in technology could not have been better.
The current forecasts for economic growth, and the return of
industrial demand in most major markets around the world, bode well
for Lakeland to realize post-pandemic gains from increased market
penetration, rationalization of our product lines and our emphasis
on higher margin specialized protective apparel. Lakeland has
already elevated its profitability levels where we have fixed
overhead enabling us to flex production for even greater returns,
as variable expenses are limited primarily to success-based sales
commissions and freight costs. This is further confirmation of how
actively managing expenses and driving costs out of the business