RONKONKOMA, N.Y., April 16, 2018 /PRNewswire/ -- 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 2018
fourth quarter and year ended January 31,
2018.
Fiscal 2018 Fourth Quarter Financial Results Highlights and
Recent Developments
- Net sales for 4Q18 of $25.2
million increased 23.9% from $20.3
million in 4Q17
- Gross profit for 4Q18 of $9.9
million increased 27.7% from $7.8
million in 4Q17
- Gross margin as a percentage of net sales in 4Q18 was 39.4%, up
from 38.2% in 4Q17
- Non-cash impairment charge of $0.8
million included in operating expenses relating to write
down of assets held-for-sale in Brazil
- Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA)* for 4Q18, which excludes one-time items and
non-cash expenses including stock based compensation, is
$2.2 million as compared to
$2.4 million in 4Q17
- Adjusted free cash flow* for 4Q18, which is Adjusted EBITDA
less cash paid for foreign taxes and capital expenditures of
$1.6 million increased 0.4% from
$1.6 million in 4Q17
- One-time, non-cash income tax expense of $5.1 million in connection with the 2017 Tax Cuts
and Jobs Act ("Tax Act")
- Net loss for 4Q18, which includes one-time items and non-cash
expenses mentioned above of $4.9
million or $0.64 per basic
share compared to net income of $0.9
million or $0.13 per basic
share in 4Q17
*Please see reconciliations of Non-GAAP financial measures in
the tables of this press release.
Annual Highlights
- Net sales for fiscal 2018 of $96.0
million increased 11.4% from $86.2
million in 2017
- Sales growth in all major and emerging market operating
regions
- Gross profit for fiscal 2018 of $36.2
million increased 14.4% from $31.6
million in 2017
- Gross margin as a percentage of net sales in fiscal 2018 was
37.7%, up from 36.7% in 2017
- Operating expenses of $27.7
million in fiscal 2018 increased nearly 12% from
$24.8 million in 2017 while remaining
at approximately 29% of sales in both years for continued
investment to support expanded reach into existing and new markets
as well as product development
- Operating income in fiscal 2018 of $8.5
million, which includes certain one-time expenses incurred
in the year, benefited from sales growth, margin improvement and
operating leverage throughout the year with an increase of 23.8%
from $6.8 million in 2017
- Net income for fiscal 2018 (which includes one-time items and
non-cash expenses mentioned above) of $0.4
million or $0.06 per basic
share compares to net income of $3.9
million or $0.54 per basic
share in 2017
- Adjusted earnings before interest, taxes, depreciation and
amortization (EBITDA)* for FY18, which excludes one-time items and
non-cash expenses including stock based compensation, of
$10.5 million increased 16% from
$9.0 million in FY17
- Adjusted free cash flow* for FY18, which is Adjusted EBITDA
less cash paid for foreign taxes and capital expenditures of
$8.3 million increased 19% from
$7.0 million in FY17
- Completed a public offering of approximately 809,000 shares of
common stock at a price of $13.80 per
share for net proceeds of approximately $10.1 million
- Completed the refinancing of revolving credit facility with
more attractive interest rates and terms
- Cash at end of fiscal year increased to $15.8 million from $10.4
million at beginning of year
- Total debt reduced by 71% to $1.7
million at end of fiscal year from $5.8 million at beginning of year
- Stockholders' equity increased by 15.8% to $82.8 million at end of 4Q18 from beginning of
fiscal year
*Please see reconciliations of Non-GAAP financial measures in
the tables of this press release.
Management's Comments
Christopher J. Ryan, President
and Chief Executive Officer of Lakeland Industries, stated, "At the
end of our fiscal year 2017, I spoke about the traction we had
begun to experience for the strategic initiatives taken to improve
our global presence and competitiveness while executing with
operational effectiveness. Our financial results in fiscal
2018 demonstrate significant execution of our plans as we have made
considerable progress across the board. Having served the
Company for nearly 32 years, I can say with complete confidence
that we have never been in a better position."
"Through the course of fiscal 2018, our share price reached
valuations which were at the high end of our historical
range. We capitalized on that opportunity by issuing common
stock to raise over $10 million,
which solidified our ability to put in place a series of additional
strategies to extend our brand globally while creating an even more
profitable enterprise."
"There were a lot of developments taking place in our fiscal
2018 fourth quarter as well as the entire year. While certain
of these matters may cloud the analysis of our performance, we
reported adjusted figures that allow greater transparency of the
improvements in our operations and cash flow. Sales were up
by more than 11% for the year, as momentum in the fourth quarter
led to 24% growth in the period. Through the course of the
year, we focused on expansion into new and existing territories,
while all along benefiting from global industrial growth, a return
of activity in the oil field services sector, and favorable foreign
currency trends."
"In the fourth quarter, we delivered our fourth consecutive
quarter of revenue growth to achieve the highest level of fourth
quarter sales in 3 years. Although the fourth quarter is
seasonally our slowest period of the year, our fiscal 2018 fourth
quarter revenue on an annualized basis surpasses the $100 million mark, the first time at this level
since fiscal 2015. We experienced solid sales growth in all
of our major as well as emerging market operations."
"With an emphasis on effective management in all facets of our
business, we are pleased to have gone beyond the top line to
deliver improvements in our profitability. The fiscal 2018
fourth quarter gross margin of 39.4% reached the highest level in
recent memory except for our fiscal 2016 second quarter when we had
very high margins in connection with exigent demand from the Ebola
outbreak."
"Operating expenses increased in the fourth quarter and full
year as we invested in our future growth, including the hiring of
new sales associates, developing new higher margin products and
rolling out our Amazon distribution platform in the US which
already is delivering significant growth on a small scale.
Distribution on the Amazon platform will be rolling out in
Australia, Canada and the UK in fiscal 2019.
Another important investment is the build out, currently in
progress, of new production facilities in India and Vietnam, which will provide for lower cost
manufacturing as compared with the majority of our products made in
China and Mexico, and represents a regional presence to
focus on local and international sales with accommodating trade
regulations to reduce shipping and related costs. While
spending more, particularly in the fourth quarter, our operating
expenses as a percentage of revenues for all of fiscal 2018
remained essentially flat as compared with 2017."
"Lakeland's cash balance at the end of fiscal 2018 increased by
52% to $15.8 million since the
beginning of the year. This includes free cash flow generated
during the year and the proceeds from the equity raise in the third
quarter, partially offset by cash used for debt reduction and
inventory ramping. Total debt was reduced by 71% to
$1.7 million at year end. Cash
used for inventory was necessitated in many of our international
operations to address current demand and in anticipation of
continued growth."
"Fiscal 2018 was a year of considerable progress which truly was
a team effort. I'd like to acknowledge the dedication of our
global workforce, our executive management and our Board of
Directors who collectively have led us to this point, and express
our appreciation for the support of our expanded shareholder
base. As we look toward the year ahead, we are very
encouraged by our solid financial position and the growth prospects
that are within reach given our diversified business lines, our
optimized supply chain, and indications of continued global
economic strength."
Fiscal 2018 Fourth Quarter Financial Results
Net sales increased to $25.2
million for the three months ended January 31, 2018 compared to $20.3 million for the three months ended
January 31, 2017, an increase of
23.9%. On a consolidated basis for the fourth quarter of
fiscal 2018, domestic sales were $12.3
million or 49% of total revenues and international sales
were $12.9 million or 51% of total
revenues. This compares with domestic sales of $11.3 million or 56% of the total, and
internationals sales of $9.0 million
or 44% of the total in the same period of fiscal 2017.
Sales in the US increased $1.6
million or 14%, primarily due to increased sales of
disposables products to national accounts and oil field services
companies. Additionally, there was an increase in sales of
chemical line products into the oil field services and refinery
sectors along with demand from other industrial sectors, including
woven and fire retardant markets, as the US economy continues to
improve.
Among the Company's larger international operations, sales in
China and to the Asia Pacific Rim
increased $5.5 million or 54% as
compared to the prior year period. This growth is
attributable to higher overall volume which increased inter-company
sales (eliminated in consolidation), increased industrial activity
and several larger customers beginning to replace depleted
inventories as the Company worked through a large backlog.
Canada sales increased
$0.7 million or 58% as that country
continues to experience an oil and gas turnaround. UK sales
increased by $0.6 million or 31% as
new distributors placed stocking orders. Russia and
Kazakhstan sales combined for an increase in sales of
$0.2 million. Amid continuously
improving economies within Latin
America, sales of $1.3 million
increased by 27% from the prior year. Favorable foreign
exchange currency translations for sales in China, Canada, Mexico, the UK and Chile as reported in US dollars also
contributed to the Company's consolidated revenue growth
Gross profit increased $2.1
million or 28% to $9.9 million
for the three months ended January 31,
2018, from $7.8 million for
the three months ended January 31,
2017. Gross profit as a percentage of net sales
increased to 39.4% for the three-month period ended January 31, 2018, from 38.2% for the three months
ended January 31, 2017. Gross
margin increases benefited from a mix of sales of higher margin
products, including chemical suits, fire retardant apparel and
other woven products, which was partially offset by labor cost
increases in the Company's manufacturing facilities in
China.
Operating expense increased 48.1% from $5.9 million for the three months ended
January 31, 2017 to $8.7 million for the three months ended
January 31, 2018. Operating
expense as a percentage of net sales was 34.8% for the three months
ended January 31, 2017 as compared
with 29.1% for the prior year period. The main factors for
the higher operating expenses are the costs associated with the
addition of new manufacturing facilities in India and Vietnam, increases in salaries for additional
sales personnel as the Company expands internationally and
domestically, the Amazon distribution strategy implementation, one-
time non-cash charges associated with the assets held for sale in
Brazil, increased expenses for
freight costs and commissions based on higher sales volumes, and
new product development costs.
During fiscal 2018, conditions in the Brazilian economy caused
Lakeland management to believe that the Company's assets held for
sale in that country should be analyzed for impairment. The
analysis resulted in an impairment write-down of $0.8 million for assets that have been identified
as held-for-sale by the Company. The write-down is included in
operating expenses in the Company's fiscal 2018 fourth quarter. The
estimated fair value less costs to sell the assets written down,
consisting primarily of buildings and land, was approximately
$0.2 million at the end of fiscal
2018.
Operating income of $1.2 million
for the three months ended January 31,
2018 compares to $1.9 million
for the three months ended January
31, 2017. Operating margins were 4.8% for the three
months ended January 31, 2018,
compared to 9.1% for the three months ended January 31, 2017.
On December 22, 2017, the United States passed the 2017 Tax Cuts and
Jobs Act (the "Tax Act"), effective January
1, 2018. The Tax Act requires Lakeland to recognize
the effect of the tax law changes in the period of enactment, such
as determining the transition tax, re-measuring any US deferred tax
assets as well as reassessing the net realizability of deferred tax
assets. The Company completed this re-measurement and
reassessment in the recently completed fiscal year. The
corporate income tax rate change, along with certain immaterial
changes in tax basis resulting from the 2017 Tax Act, resulted in a
reduction of the Company's net deferred tax asset to $7.6 million with a corresponding deferred income
tax expense of $5.1 million in fiscal
year 2018. Though this one-time, non-cash adjustment had a
materially negative impact on fiscal 2018 earnings, the Tax Act
also changes the taxation of foreign earnings, and companies
generally will not be subject to United
States federal income taxes upon the receipt of dividends
from foreign subsidiaries.
Income tax expense for the fourth quarter of fiscal 2018 was
$6.1 million, compared with
$0.8 million in income tax expense
for the prior year period. The increase in tax expense was a
result of a non-cash charge explained above of $5.1 million in connection with changes in the US
tax law. The Company has the benefit of a tax credit
from the worthless stock deduction relating to its exit from
Brazil in FY16, so there should be
no cash taxes in the US for approximately the next 2 years,
depending on profitability in these periods. Lakeland
subsidiaries also may be required to pay local taxes on certain
country operations where those operations were profitable on a
local basis. Cash paid for foreign subsidiary taxes in the
fourth quarter of fiscal 2018 was $0.3
million, as compared with $0.5
million in the same period of the prior year.
Net loss for the three months ended January 31, 2018 was $4.9
million or $0.64 per basic
share, as compared to net income of $0.9
million or $0.13 per basic
share in the same period of 2017. Net loss for the fourth
quarter of fiscal 2018 includes one-time items and non-cash
expenses mentioned above as well as the non-cash tax expense
associated with the Tax Act described above.
Fiscal 2018 Full Year Financial Results
Net sales increased to $96.0
million for the fiscal year ended January 31, 2018 compared to $86.2 million for prior year, an increase of
11.4%. On a consolidated basis, domestic sales were
$50.4 million or 53% of total
revenues and international sales were $45.5
million or 47% of total revenues. This compares with
domestic sales of $46.5 million or
54% of the total, and international sales of $39.6 million or 46% of the total in fiscal
2017. Sales in the US increased $3.9
million or 8.4%, while international sales increased
$5.9 million or 14.9%. In
addition to strong unit sales growth, revenue as reported on
consolidated basis in US dollars also benefited from foreign
currency exchange rates which strengthened against the US
dollar.
Gross profit for fiscal 2018 was $36.2
million, an increase of 14.4% from $31.6 million in 2017. Gross margin as a
percentage of net sales in fiscal 2018 was 37.7%, up from 36.7% in
2017. Operating expenses of $27.7
million in fiscal 2018 increased nearly 12% from
$24.8 million in 2017 while remaining
at approximately 29% of sales in both years. The Company
continues to invest in its operations, including the hiring of new
sales people, new product development, and new technologies to
supports the implementation of its Amazon distribution platform as
well as a global MIS/ERP systems which will allow for improved
operational efficiencies and cash management.
Operating income in fiscal 2018 of $8.5
million, which includes certain one-time expenses, benefited
from sales growth, margin improvement and operating leverage
throughout the year with an increase of 24% from $6.8 million in 2017. Net income for fiscal
2018, which includes one-time items and non-cash expenses mentioned
above, was $0.4 million or
$0.06 per basic share, compared to
net income of $3.9 million or
$0.54 per basic share in
2017.
As of January 31, 2018, Lakeland
had cash and cash equivalents of approximately $15.8 million and working capital of $66.1 million. To accommodate continued
global growth, inventories increased to $42.9 million at the end of fiscal 2018 as
compared to $35.5 million at the
beginning of the year. Cash and cash equivalents increased
$5.4 million or 52% from the
beginning of the fiscal year, while working capital increased by
$18.3 million for an improvement of
38%. In addition to cash flow from operations of $0.6 million in fiscal 2018, the Company's cash
position increased by $10.1 million
from the net proceeds of the common stock offering in the third
quarter of fiscal 2018. The Company's $20 million revolving credit facility had a
$0 balance as of January 31, 2018. Total debt outstanding at
January 31, 2018 was $1.7 million, down from $5.8 million at January
31, 2017 and $13.4 million at
January 31, 2016.
The Company incurred capital expenditures of approximately
$0.3 million during the fourth
quarter of fiscal year 2018, compared to $0.3 million in the prior year period.
Capital expenditures for all of fiscal 2018 was $0.9 million which includes the cost for a phased
global rollout of a new enterprise resource planning ("ERP")
system, up from $0.5 million in the
prior year. Third and fourth quarter fiscal 2018 capital
expenditures principally relate to additions to equipment in
China and for new manufacturing
facilities in India and
Vietnam.
No stock was acquired as part of the Company's $2.5 million stock repurchase program which was
approved on July 19, 2016.
During the quarter ended October 31,
2017, the Company completed a public offering of 808,750
shares of common stock (including the initial offering and
overallotment exercise) at a price of $13.80 per share for net proceeds of
approximately $10.1 million.
The Company has been using the net proceeds from the offering for
building additional overseas manufacturing facilities, payment of
capital expenditures associated with equipment, repayment of debt
and general corporate purposes.
Financial Results Conference Call
Lakeland will host a conference call at 4:30 pm eastern today to discuss the Company's
fiscal 2018 fourth quarter financial results. The call will be
hosted by Christopher J. Ryan,
Lakeland's President and CEO, and Teri W.
Hunt, Lakeland's Chief Financial Officer. Investors can
listen to the call by dialing 888-347-6609 (Domestic) or
412-902-4291 (International) or 855-669-9657 (Canada).
For a replay of this call through April
23, 2018, dial 877-344-7529 (Domestic) or 412-317-0088
(International) or 855-669-9658 (Canada), Pass Code 10118727.
About Lakeland Industries, Inc.:
Lakeland Industries, Inc. (NASDAQ: LAKE) manufactures and sells
a comprehensive line of safety garments and accessories for the
industrial protective clothing market. The Company's products
are sold by a direct sales force and through independent sales
representatives to a network of over 1,200 safety and mill supply
distributors. These distributors in turn supply end user industrial
customers such as chemical/petrochemical, automobile, steel, glass,
construction, smelting, janitorial, pharmaceutical and high
technology electronics manufacturers, as well as hospitals and
laboratories. In addition, Lakeland supplies federal, state, and
local government agencies, fire and police departments, airport
crash rescue units, the Department of Defense, the Centers for
Disease Control and Prevention, and many other federal and state
agencies. For more information concerning Lakeland, please
visit the Company online at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Forward-looking statements involve risks,
uncertainties and assumptions as described from time to time in
Press Releases and Forms 8-K, registration statements, quarterly
and annual reports and other reports and filings filed with the
Securities and Exchange Commission or made by management. All
statements, other than statements of historical facts, which
address Lakeland's expectations of sources or uses for capital or
which express the Company's expectation for the future with respect
to financial performance or operating strategies can be identified
as forward-looking statements. As a result, there can be no
assurance that Lakeland's future results will not be materially
different from those described herein as "believed," "projected,"
"planned," "intended," "anticipated," "estimated" or "expected," or
other words which reflect the current view of the Company with
respect to future events. We caution readers that these
forward-looking statements speak only as of the date hereof.
The Company hereby expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
such statements to reflect any change in the Company's expectations
or any change in events conditions or circumstances on which such
statement is based.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are
prepared and presented in accordance with Generally Accepted
Accounting Principles (GAAP), the Company uses the following
non-GAAP financial measures: EBITDA, Adjusted EBITDA and Free Cash
Flow. The presentation of this financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP. The Company uses these non-GAAP financial
measures for financial and operational decision making and as a
means to evaluate period-to-period comparisons. The Company
believes that they provide useful information about operating
results, enhance the overall understanding of past financial
performance and future prospects, and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making. The non-GAAP financial
measures used by the Company in this press release may be different
from the methods used by other companies.
For more information on the non-GAAP financial measures, please
see the Reconciliation of GAAP to non-GAAP Financial Measures
tables in this press release. These accompanying tables
include details on the GAAP financial measures that are most
directly comparable to non-GAAP financial measures and the related
reconciliations between these financial measures.
(tables follow)
LAKELAND
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS ($000's) Except Share Information
|
|
|
|
ASSETS
|
January 31,
2018
|
January 31,
2017
|
Current
assets
|
|
Cash and cash
equivalents
|
$15,788
|
$10,365
|
Accounts receivable,
net of allowance for doubtful accounts of $480 and $417 at
January 31, 2018 and 2017, respectively
|
14,119
|
10,704
|
Inventories, net of
allowance of $2,422 and $2,305 at January 31, 2018 and 2017,
respectively
|
42,919
|
35,535
|
Prepaid VAT and other
taxes
|
2,119
|
1,361
|
Other current
assets
|
1,555
|
2,121
|
Total current
assets
|
76,500
|
60,086
|
Property and
equipment, net
|
8,789
|
8,527
|
Assets held for
sale
|
150
|
901
|
Deferred tax
assets
|
7,557
|
13,515
|
Prepaid VAT and other
taxes
|
310
|
478
|
Other
assets
|
354
|
176
|
Goodwill
|
871
|
871
|
Total
assets
|
$94,531
|
$84,554
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
$7,057
|
$4,928
|
Accrued compensation
and benefits
|
1,771
|
1,311
|
Other accrued
expenses
|
1,182
|
1,024
|
Current maturity of
long-term debt
|
158
|
50
|
Short-term
borrowings
|
211
|
153
|
Borrowings under
revolving credit facility
|
-----
|
4,865
|
Total current
liabilities
|
10,379
|
12,331
|
Long-term portion of
debt
|
1,312
|
716
|
Total
liabilities
|
11,691
|
13,047
|
Commitments and
contingencies
|
|
|
Stockholders'
equity
|
|
|
Preferred stock, $0.01
par; authorized 1,500,000 shares (none issued)
|
-----
|
-----
|
Common stock, $0.01
par; authorized 10,000,000 shares,
Issued 8,472,640 and
7,620,215; outstanding 8,116,199 and 7,263,774 at
January 31, 2018 and 2017, respectively
|
85
|
76
|
Treasury stock, at
cost; 356,441 shares at January 31, 2018 and 2017
|
(3,352)
|
(3,352)
|
Additional paid-in
capital
|
74,917
|
64,764
|
Retained
earnings
|
12,841
|
12,401
|
Accumulated other
comprehensive loss
|
(1,651)
|
(2,382)
|
Total stockholders'
equity
|
82,840
|
71,507
|
Total liabilities and
stockholders' equity
|
$94,531
|
$84,554
|
LAKELAND
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS ($000's) Except Share
Information
|
|
|
Year Ended
January 31,
2018
|
Year Ended
January 31,
2017
|
Year Ended
January 31,
2016
|
Net sales from
continuing operations
|
$95,987
|
$86,183
|
$99,646
|
Cost of goods sold
from continuing operations
|
59,784
|
54,546
|
63,313
|
Gross profit from
continuing operations
|
36,203
|
31,637
|
36,333
|
Operating expenses
from continuing operations
|
27,726
|
24,790
|
24,521
|
Operating profit from
continuing operations
|
8,477
|
6,847
|
11,812
|
Other income, net
from continuing operations
|
29
|
46
|
(120)
|
Interest expense from
continuing operations
|
(163)
|
(620)
|
(785)
|
Income before taxes
from continuing operations
|
8,343
|
6,273
|
10,907
|
Income tax expense
from continuing operations
|
7,903
|
2,380
|
3,117
|
Net income from
continuing operations
|
$440
|
$3,893
|
$7,790
|
Noncash
reclassification of Other Comprehensive Income
To Statement
of Operations (no impact on stockholders' equity)
|
-----
|
-----
|
(1,286)
|
Loss from operations
from discontinued operations
|
-----
|
-----
|
(3,538)
|
Loss from disposal of
discontinued operations
|
-----
|
-----
|
(515)
|
Loss before taxes for
discontinued operations
|
-----
|
-----
|
(5,339)
|
Income tax benefit
from discontinued operations
|
-----
|
-----
|
(1,403)
|
Net loss from
discontinued operations
|
-----
|
-----
|
$(3,936)
|
Net income
|
$440
|
$3,893
|
$3,854
|
Net income per common
share - Basic:
|
|
|
|
Income from continuing
operations
|
$0.06
|
$0.54
|
$1.09
|
Loss from
discontinued operations
|
-----
|
-----
|
$(0.55)
|
Net Income
|
$0.06
|
$0.54
|
$0.54
|
Net income per common
share - Diluted:
|
|
|
|
Income from continuing
operations
|
$0.06
|
$0.53
|
$1.07
|
Loss from
discontinued operations
|
-----
|
-----
|
$(0.54)
|
Net Income
|
$0.06
|
$0.53
|
$0.53
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
7,638,264
|
7,257,553
|
7,171,965
|
Diluted
|
7,691,553
|
7,327,248
|
7,254,340
|
LAKELAND
INDUSTRIES, INC. AND SUBSIDIARIES
|
Operating Results
($000)
|
Reconciliation to
GAAP Results
|
(UNAUDITED)
|
|
|
Three Months
Ended
January 31,
|
Twelve Months
Ended
January 31,
|
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
Net sales
|
$25,157
|
$20,302
|
$95,987
|
$86,183
|
Year over year
growth
|
23.9%
|
-----
|
11.4%
|
-----
|
Gross
profit
|
9,902
|
7,754
|
36,203
|
31,637
|
Gross profit
%
|
39.4%
|
38.2%
|
37.7%
|
36.7%
|
Operating
expenses
|
8,745
|
5,904
|
27,726
|
24,790
|
Operating expenses as
a percentage of sales
|
34.8%
|
29.1%
|
28.9%
|
28.8%
|
Operating
income
|
1,157
|
1,850
|
8,477
|
6,847
|
Operating income as a
percentage of sales
|
4.6%
|
9.1%
|
8.8%
|
7.9%
|
Interest
expense
|
(16)
|
(98)
|
(163)
|
(620)
|
Other
income
|
16
|
26
|
29
|
46
|
Pretax
income
|
1,157
|
1,778
|
8,343
|
6,273
|
Income tax
expense
|
6,076
|
832
|
7,903
|
2,380
|
Net income
(loss)
|
($4,919)
|
$946
|
$440
|
$3,893
|
|
|
|
|
|
Weighted average
shares for EPS-Basic
|
8,116,199
|
7,262,282
|
7,638,264
|
7,257,553
|
Net income (loss)
per share
|
($0.64)
|
$0.13
|
$0.06
|
$0.54
|
|
|
|
|
|
Operating
income
|
$1,157
|
$1,850
|
$8,477
|
$6,847
|
Depreciation and
amortization
|
193
|
231
|
775
|
1,194
|
EBITDA
|
1,350
|
2,081
|
9,252
|
8,041
|
Equity
Compensation
|
133
|
99
|
424
|
276
|
USA Severance
Associated with Restructure
|
-----
|
-----
|
-
|
461
|
Adjusted
EBITDA
|
1,483
|
2,180
|
9,676
|
8,778
|
Cash paid for taxes
(foreign)
|
332
|
473
|
1,260
|
1,599
|
Capital
expenditures
|
286
|
297
|
905
|
413
|
Free cash
flow
|
$865
|
$1,410
|
$7,511
|
$6,766
|
|
|
|
|
|
TTM Adjusted
EBITDA
|
$9,676
|
$8,778
|
$9,676
|
$8,778
|
TTM cash paid for
taxes (foreign)
|
1,260
|
1,599
|
1,260
|
1,599
|
TTM capital
expenditures
|
905
|
413
|
905
|
413
|
TTM free cash
flow
|
$7,511
|
$6,766
|
$7,511
|
$6,766
|
LAKELAND
INDUSTRIES, INC. AND SUBSIDIARIES
|
Operating Results
($000)
|
Reconciliation of Non-GAAP
Results
|
|
|
|
|
|
|
Three Months
Ended January
31,
|
Twelve Months
Ended
January
31,
|
|
2018
|
2017
|
2018
|
2017
|
Net Income to
EBITDA
|
|
|
|
|
Net Income
|
$
(4,919)
|
$
946
|
$
440
|
$
3,893
|
Interest
|
16
|
98
|
163
|
620
|
Taxes
|
6,076
|
832
|
7,903
|
2,380
|
Depreciation and
amortization
|
193
|
231
|
775
|
1,194
|
Less Other
income
|
(16)
|
(26)
|
(29)
|
(46)
|
EBITDA
|
1,350
|
2,081
|
9,252
|
8,041
|
EBITDA to Adjusted
EBITDA
(excluding non-cash and one-time expenses)
|
|
|
|
|
EBITDA
|
1,350
|
2,081
|
9,252
|
8,041
|
Equity
compensation
|
133
|
99
|
424
|
276
|
Non-cash write down
of Brazil real estate
|
751
|
200
|
751
|
200
|
USA severance
associated with restructure
|
-
|
-
|
-
|
461
|
Adjusted
EBITDA
(excluding non-cash and one-time expenses)
|
2,234
|
2,380
|
10,427
|
8,978
|
Adjusted EBITDA to
Adjusted Free Cash Flow (excluding non-cash and one-time
expenses)
|
|
|
|
|
Adjusted
EBITDA
(excluding non-cash and one-time expenses)
|
2,234
|
2,380
|
10,427
|
8,978
|
Cash paid for taxes
(foreign)
|
332
|
473
|
1,260
|
1,599
|
Capital
expenditures
|
286
|
297
|
905
|
413
|
Adjusted Free Cash
Flow
(excluding non-cash and one-time expenses)
|
1,616
|
1,610
|
8,262
|
6,966
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Lakeland Industries, Inc.