Exhibit
99.1
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202 Pride Lane SW
Decatur, AL 35603
(256) 350-3873 - www.lakeland.com
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Lakeland
Industries, Inc. Reports Fiscal 2020 Fourth Quarter
and
Year End Financial Results
Annual Revenues Increase 9% to Record Level as Net Income Jumps
125%;
Fourth Quarter Revenues Increase Over 12% Driven by Organic Growth
and COVID-19 Demand
DECATUR,
AL – April 15, 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 2020
fourth quarter and year ended January 31, 2020.
Fiscal 2020 Fourth Quarter Financial Results
Highlights
●
Net sales for 4Q20
of $28.2 million, as compared with 4Q19 of $25.0
million
●
4Q20 sales include
approximately $1.0 million of demand related to
COVID-19
●
Gross profit for
4Q20 of $10.6 million, compared with 4Q19 of $6.9
million
●
Gross margin as a
percentage of net sales in 4Q20 was 37.7%, compared to 27.7% in
4Q19
●
Operating expenses
of $8.9 million in 4Q20, up from $8.4 million in 4Q19
●
Operating profit of
$1.7 million in 4Q20, up from an operating loss of $(1.5) million
in 4Q19
●
Net income of $1.2
million or $0.15 per basic/diluted share in 4Q20, up from a net
loss of $(1.9) million or $(0.24) per basic/diluted share in
4Q19
●
Earnings before
interest, taxes, depreciation and amortization (EBITDA)* of $2.3
million, compared with a loss of $(0.9) million in
4Q19
●
Capital
expenditures for fiscal 2020 fourth quarter were approximately $0.3
million as compared with approximately $1.0 million in the fiscal
2019 period
Annual Highlights
●
Net sales for
fiscal 2020 of $107.8 million, up from $99.0 million in fiscal
2019
●
Gross profit for
fiscal 2020 of $37.9 million, as compared with $33.9 million in
fiscal 2019
●
Gross margin as a
percentage of net sales in fiscal 2020 was 35.2%, up from 34.2% in
fiscal 2019
●
Operating expenses
of $32.0 million in fiscal 2020, up from $30.3 million in fiscal
2019
●
Operating profit of
$5.9 million in fiscal 2020, up from $3.6 million in fiscal
2019
●
Net income for
fiscal 2020** of $3.3 million or $0.41 per basic/diluted share
compares with fiscal 2019 net income of $1.5 million or $0.18 per
basic/diluted share
●
*EBITDA of $7.1
million for fiscal 2020, up from $5.3 million in fiscal
2019
●
Capital
expenditures for fiscal 2020 were $1.0 million, down from $3.1
million in fiscal 2019
●
Cash of $14.6
million at 1/31/20, up from $12.8 million at beginning of the
fiscal year
1
●
Total debt of $1.2
million at 1/31/20, down from $1.3 million at beginning of fiscal
year
●
Stockholders'
equity at the end of fiscal 2020 increased by $1.9 million to $85.1
million from $83.2 million at the beginning of fiscal
year
●
$0.5 million was
spent to acquire 47,153 shares as part of the Company's $2.5
million stock repurchase program which was approved on July 19,
2016.
●
Management Team
Strengthened
o
Christopher J. Ryan
appointed Executive Chairman (effective 2/1/20)
o
Charles D. Roberson
appointed Chief Executive Officer (effective 2/1/20)
o
Allen E. Dillard
appointed Chief Financial Officer (effective 8/12/19)
●
Considerable
investments in digital transformation and global
diversification
o
ERP and IT system
enhanced productivity
o
Vietnam and India
manufacturing capacity increased
o
New product
development targeting higher margin niche markets
*
EBITDA is a non-GAAP financial measure. Reconciliation is provided
in the tables of this press release.
**
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.
Although
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
GILTI, although there are “Proposed Regulations” that,
if adopted, would cause the calculation to include only the income
from Lakeland CFCs that are taxed at a rate lower than 90% of the
current US tax rate of 21% (18.9%). This proposed “High-Tax
Exception” rule, if approved, would then align the actual
income inclusion with the actual title to only include CFC income
that is taxed at a low rate in its home country. The proposed
regulations, however, specifically forbid application of these
proposed regulations until US Treasury issues them in
“Final” form. The Company awaits the final tax
regulations regarding the “High-Tax Exception” to
determine how this GILTI tax will be recorded in the
future.
Management’s Comments
Charles
D. Roberson, who was appointed as President and Chief Executive
Officer of Lakeland Industries on February 1, 2020, stated,
“It is an honor to succeed Chris Ryan as CEO, and fitting
that Chris should punctuate his transition from CEO to Executive
Chairman with an historic year for Lakeland. A founding investor in
Lakeland and a member of its leadership team for more than 30
years, we are fortunate to continue to drive forward with him as
our Executive Chairman. Working alongside Chris for the past 15
years, most recently as Chief Operating Officer, I share his vision
for growth and the passion he has for Lakeland and I look forward
to working with Chris in his new role to further realize our
potential. To that end, we are pleased to have added Allen Dillard,
as our Chief Financial Officer, in the middle of fiscal 2020 to
strengthen our leadership team, which made considerable operational
and financial progress in the year. Together with our deep bench of
talent globally, particularly within our senior and middle
management, and the progress we have made in centralizing our
operating systems, we are confident in our ability to build on the
success achieved in fiscal 2020 and navigate the challenges and
opportunities presented by the COVID-19 pandemic.
2
“Lakeland
has experienced significant interest globally in its products in
the wake of the coronavirus outbreak. Before we service our
customers or the COVID-19 market, our first course of action was to
ensure the safety of our global team. We are pleased to report,
thus far, that our workforce is healthy and continues to abide by
all relevant safety guidelines. I’d like to congratulate our
employees, who have risen to the occasion, kept our workplaces,
their communities and families safe while contributing to our
efforts to increase production.
“Coronavirus-related
demand has added approximately $1.0 million to our fiscal 2020
fourth quarter sales during the last three weeks of the period. The
majority of these orders were fulfilled with products already in
inventory. In anticipation of prolonged, heightened demand, we
commenced manufacturing capacity expansion efforts toward the end
of the fourth quarter. Fourth quarter revenue increased from the
prior year by 12.6% to $28.2 million, the highest level for
Lakeland in any quarter in our history. Without the incremental
COVID-19 demand, fourth quarter revenue would still have reached a
record level for the period with an increase of 9% from the prior
year, a growth rate that is well in excess of what we believe to be
the industry growth rate. Our organic growth initiatives also
contributed to us reaching a record for the entire year with
revenues of $107.8 million, an increase of 9% from fiscal
2019.
“With
our strong product portfolio, global sales distribution platform
and manufacturing in six countries around the world, Lakeland is
well positioned to continue to provide personal protective
equipment for the COVID-19 response. From our past experience in
emergency situations, we recognize that there may be stockpiling of
products throughout the supply chain and end user markets. Should
this develop, we anticipate inventory levels and our production to
be back to normal limits within the next 6-9 months. To this end,
we have been prioritizing our manufacturing for our regular
industrial customers, allocating excess or additional capacity to
coronavirus related demand.
“The
outlook for Lakeland is favorable at the present time given our
many market drivers, market diversification, and resilient
manufacturing capability but these are unprecedented times and we
must be prepared for any eventuality. This includes the potential
impact of the temporary closure of many manufacturing facilities,
the uncertainty of the oil sector, a market from which we derive
approximately 20% of our sales, and the possibility of a recession.
Our focus will remain on our organic growth initiatives, inventory
management, and the generation as well as preservation of
cash.
“Adjusted
free cash flow in fiscal 2020 was over $4 million, an increase of
$3.9 million from the prior year driven by our improved
profitability and reduced capital expenditures. We ended the year
with $14.6 million in cash, an increase of 14% from the beginning
of the fiscal year which is an indication that we are realizing
operational efficiency gains in our new facilities in Vietnam and
India and from the installation of our enterprise resource planning
(ERP) system in our U.S. business unit. We believe there remain
opportunities for top line growth and further performance
improvements as we expand the use of the ERP system into the
remaining 50% of our global businesses, along with other means for
increasing margins and cash flow through fiscal
2021.”
3
Fiscal 2020 Fourth Quarter Financial Results
Net
sales were $28.2 million for the three months ended January 31,
2020, as compared to $25.0 million for the three months ended
January 31, 2019. On a consolidated basis for the fourth quarter of
fiscal 2020, domestic sales were $14.4 million or 51% of total
revenues and international sales were $13.8 million or 49% of total
revenues. This compares with domestic sales of $12.3 million or 49%
of the total and internationals sales of $12.7 million or 51% of
the total in the same period of fiscal 2019.
The
Company experienced organic growth across all product lines and was
able to penetrate several new product markets as domestic order
processing and deliveries normalized from disruptions associated
with the ERP implementation in the prior year. COVID-19 related
demand of approximately $1.0 million contributed to sales in the
final three weeks of the fiscal 2020 fourth quarter. Sales in all
major foreign operations except Mexico experienced year-over-year
growth or remained essentially steady. Sales in China were reduced
during most of the year due to slower economic activity in the
region and ongoing international trade negotiations. Fourth quarter
sales into China increased with demand related to COVID-19. Foreign
exchange currency translations negatively impacted sales in the
UK/Europe, Canada, and China as reported on a consolidated basis in
US dollars by approximately $0.2 million or 0.7% in the fourth
quarter.
Gross
profit of $10.6 million for fiscal 2020 fourth quarter increased
from $6.9 million for the same period of the prior year. Gross
profit as a percentage of net sales was 37.7% for fiscal 2020
fourth quarter, increase of 10 percentage points from 27.7% a year
ago. Gross margin in dollars benefited from higher volume which in
part resulted from easing of ERP implementation issues and overall
improved factory utilization on higher sales. The higher gross
margin as a percentage of sales reflects the higher level of sales,
select price increases, and fully reserved stock sold into COVID-19
demand.
Operating
expenses increased 5.5% to $8.9 million for the three months ended
January 31, 2020 increasing from $8.4 million for the three months
ended January 31, 2019. Operating expenses as a percentage of net
sales was 31.6% for the three months ended January 31, 2020,
compared to 33.7% for the three months ended January 31, 2019. The
increase in operating expenses primarily relate to higher shipping,
currency adjustments and commissions/compensation pertaining to the
higher sales volumes, partially offset by reduced general and
administrative costs and lower professional fees.
Lakeland
reported operating profit of $1.7 million for the three months
ended January 31, 2020, up from an operating loss of $(1.5) million
for the three months ended January 31, 2019. Operating margins were
6.1% for the three months ended January 31, 2020 and (6.0)% for the
three months ended January 31, 2019.
Income
tax expense consists of federal, state and foreign income taxes.
Income tax expense was $0.5 million for the three months ended
January 31, 2020, compared to $0.4 million for the three months
ended January 31, 2019. The Company’s foreign earnings are
subject to taxation under the Global Intangible Low-Taxed Income
(GILTI) regime. The GILTI provisions have an effect of increasing
the effective non-cash tax provision by absorbing the
Company’s available net operating loss carryforward (NOL).
There are proposed changes to the GILTI rules that will make
certain credits and deductions available to the Company if enacted.
The Company will record the impact of these changes in the period
any such change is enacted. The Company has not paid cash income
taxes for U.S. consolidated corporate income in the fourth quarter
of fiscal 2020 due to the utilization of its NOL. The approximate
NOL balance was $15.9 million at January 31, 2020.
4
The
Company reported net income of $1.2 million or $0.15 per basic and
diluted share for the three months ended January 31, 2020, compared
to the net loss of $(1.9) million or $(0.24) per basic and diluted
share for the three months ended January 31, 2019. The improved
results for three months ended January 31, 2020 as compared to the
prior period reflects higher sales and gross margin, expense
management and enhanced operating efficiencies due in part to the
ERP system and factory utilization.
Fiscal 2020 Full Year Financial Results
Net
sales increased to $107.8 million for the fiscal year ended January
31, 2020 compared to $99.0 million for prior year, an increase of
8.9%. On a consolidated basis, domestic sales were $55.9 million or
52% of total revenues and international sales were $51.9 million or
48% of total revenues. This compares with domestic sales of $49.9
million or 50% of the total, and international sales of $49.1
million or 50% of the total in fiscal 2019. Sales in the US
increased by approximately $6.0 million or 12.0% while
international sales increased $2.8 million or 5.7%.
Gross
profit for fiscal 2020 was $37.9 million, an increase of $4.0
million or 11.8% from $33.9 million in 2019. Gross margin as a
percentage of net sales in fiscal 2020 was 35.2%, up from 34.2% in
2019.
Operating
expenses of $32.0 million in fiscal 2020 increased $1.7 million or
5.5% from $30.3 million in 2019 and was approximately 29.7% and
30.6% of sales, respectively. The increase in operating expenses
primarily relate to higher shipping expenses, currency adjustments
and commissions/compensation pertaining to the higher sales
volumes, partially offset by a reversal of certain stock based
compensation and lower professional fees.
Operating
income in fiscal 2020 of $5.9 million increased $2.3 million or
64.8% from $3.6 million in 2019 which included certain one-time
expenses. All major sales generating operating regions except for
Mexico contributed operating profit or were breakeven in fiscal
year 2020, with all regions being profitable in 2019.
Income
tax expense was $2.5 million for the year ended January 31, 2020
which included a non-cash charge of $1.0 million associated with
the GILTI component of the Tax Act of 2017, as compared to an
income tax expense of $2.0 million for the year ended January 31,
2019 which included a non-cash charge of $0.6 million for the GILTI
component. The Company has the benefit of a tax credit from the
worthless stock deduction relating to its exit from Brazil in
fiscal year 2016, so there should be no cash taxes in the US for
approximately the next year, depending on profitability. 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 fiscal 2020
was $1.7 million, the same as in the prior year.
5
Net
income for fiscal 2020 was $3.3 million of $0.41 per basic and
diluted share which included the non-cash GILTI tax expense,
compared to net income in fiscal 2019 of $1.5 million or $0.18 per
basic and diluted share.
As of
January 31, 2020, Lakeland had cash and cash equivalents of
approximately $14.6 million as compared to $9.5 million at October
31, 2019 and $12.8 million at January 31, 2019. The increase in
cash from the end of the third quarter primarily is a result of a
$3.6 million decrease of inventories as order processing advanced
with improved functionality of the ERP system and heightened demand
toward the end of the fourth quarter relating to the COVID-19
response effort. Accounts receivable at January 31, 2020 increased
$0.6 million from October 31, 2019 and was $1.5 million higher than
at January 31, 2019 due to higher sales particularly late in the
fourth quarter of fiscal 2020. Days sales outstanding remained
steady at approximately 60 at the end of fiscal year 2020 and
2019.
Working
capital at January 31, 2020 was $66.9 million, increased from $66.0
million at October 31, 2019 and increased from $65.1 million at
January 31, 2019. As a result of new lease accounting adopted
during fiscal 2020 in accordance with accounting principles
generally accepted in the U.S., working capital was decreased in
recognition of the current portion of the operating lease
liability. The Company’s $20 million revolving credit
facility had no borrowings as of January 31, 2020, which is
unchanged from the prior year end. Total debt outstanding at
January 31, 2020 was less than $1.2 million, which is the same as
at October 31, 2019 and down from $1.3 million at January 31,
2019.
The
Company incurred capital expenditures of approximately $0.3 million
during the fourth quarter of fiscal 2020, up from approximately
$0.1 million in the third quarter and $0.6 million in the fourth
quarter of the prior year. Capital expenditures for all of fiscal
2020 were $1.0 million as planned, down from $3.1 million in fiscal
2019. A substantial portion of the fiscal 2020 spending was
allocated toward the phased global rollout of the ERP
system.
During
the three-month period ended January 31, 2020, 37,953 shares were
purchased as part of the Company’s $2.5 million stock buyback
program approved on July 19, 2016. Approximately $500,000 was spent
to repurchase shares in fiscal 2020. To date, $1.7 million was
spent to repurchase 152,801 shares, with $800,000 remaining
available under the buyback program.
Financial Results Conference Call
Lakeland
will host a conference call at 4:30 pm eastern time today to
discuss the Company’s fiscal 2020 fourth quarter and full
year financial results. The conference call will be hosted by
Charles D. Roberson, President and CEO, and Allen E. Dillard, Chief
Financial Officer. Investors can listen to the call by dialing
844-369-8770 (Domestic)
or 862-298-0840 (International). For a replay of this call through
April 22, 2020, dial 877-481-4010, Pass Code 33950.
6
About Lakeland Industries, Inc.:
We
manufacture and sell a comprehensive line of industrial protective
clothing and accessories for the industrial and public protective
clothing market. Our products are sold globally by our in-house
sales teams, our customer service group, and authorized independent
sales representatives to a network of over 1,600 global safety and
industrial supply distributors. Our authorized distributors supply
end users, such as integrated oil, chemical/petrochemical,
automobile, steel, glass, construction, smelting, cleanroom,
janitorial, pharmaceutical, and high technology electronics
manufacturers, as well as scientific, medical laboratories and the
utilities industry. In addition, we supply federal, state and local
governmental agencies and departments, such as fire and law
enforcement, airport crash rescue units, the Department of Defense,
the Department of Homeland Security and the Centers for Disease
Control. Internationally, we sell to a mixture of end users
directly, and to industrial distributors depending on the
particular country and market. Sales are made to more than 50
countries, the majority of which were into the United States,
China, the European Economic Community ("EEC"), Canada, Chile,
Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India,
Uruguay and Southeast Asia.
For
more information concerning Lakeland, please visit the Company
online at www.lakeland.com.
Contacts:
|
Lakeland
Industries, Inc.
|
Darrow
Associates
|
|
256-445-4000
|
512-551-9296
|
|
Allen
Dillard
|
Jordan
Darrow
|
“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 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)
7
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($000’s Except Share Information)
|
ASSETS
|
|
|
|
|
|
|
|
|
January
31,
|
|
|
|
2020
|
2019
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$14,606
|
$12,831
|
|
Accounts
receivable, net of allowance for doubtful accounts of $497 and $434
at January 31, 2020 and 2019, respectively
|
17,702
|
16,477
|
|
Inventories
|
44,238
|
42,365
|
|
Prepaid VAT and
other taxes
|
1,228
|
1,478
|
|
Other current
assets
|
2,033
|
2,319
|
|
Total current
assets
|
79,807
|
75,470
|
|
Property and
equipment, net
|
10,113
|
10,781
|
|
Operating leases
right-of-use assets
|
2,244
|
-----
|
|
Deferred tax
assets
|
5,939
|
7,267
|
|
Prepaid VAT and
other taxes
|
333
|
176
|
|
Other
assets
|
98
|
158
|
|
Goodwill
|
871
|
871
|
|
Total
assets
|
$99,405
|
$94,723
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$7,204
|
$6,214
|
|
Accrued
compensation and benefits
|
1,300
|
1,137
|
|
Other accrued
expenses
|
2,445
|
2,825
|
|
Current maturity of
long-term debt
|
1,155
|
158
|
|
Current portion of
operating lease liability
|
835
|
-----
|
|
Total current
liabilities
|
12,939
|
10,334
|
|
Long-term portion
of debt
|
-----
|
1,161
|
|
Long-term portion
of operating lease liability
|
1,414
|
-----
|
|
Total
liabilities
|
14,353
|
11,495
|
|
Commitments and
contingencies
|
|
|
|
Stockholders’
equity
|
|
|
|
Preferred stock,
$0.01 par; authorized 1,500,000 shares (none issued)
|
-----
|
-----
|
|
Common stock, $0.01
par; authorized 20,000,000 shares,
Issued 8,481,665
and 8,475,929; outstanding 7,972,423 and 8,013,840 at January 31,
2020 and 2019, respectively
|
85
|
85
|
|
Treasury stock, at
cost; 509,242 and 462,089 shares at January 31, 2020 and 2019,
respectively
|
(5,023)
|
(4,517)
|
|
Additional paid-in
capital
|
75,171
|
75,612
|
|
Retained
earnings
|
17,581
|
14,300
|
|
Accumulated other
comprehensive loss
|
(2,762)
|
(2,252)
|
|
Total stockholders'
equity
|
85,052
|
83,228
|
|
Total liabilities
and stockholders’ equity
|
$99,405
|
$94,723
|
8
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($000’s Except Share Information)
|
|
Year Ended
January 31,
|
|
|
|
2020
|
2019
|
|
$107,809
|
$99,011
|
|
|
Cost of goods
sold
|
69,912
|
65,105
|
|
Gross
profit
|
37,897
|
33,906
|
|
Operating
expenses
|
32,021
|
30,341
|
|
Operating
profit
|
5,876
|
3,565
|
|
Other income
(expense), net
|
(7)
|
41
|
|
Interest
expense
|
(116)
|
(125)
|
|
Income before
taxes
|
5,753
|
3,481
|
|
Income tax
expense
|
2,472
|
2,022
|
|
Net
income
|
$3,281
|
$1,459
|
|
Net income per
common share:
|
|
|
|
Basic
|
$0.41
|
$0.18
|
|
Diluted
|
$0.41
|
$0.18
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
8,005,927
|
8,111,458
|
|
Diluted
|
8,037,019
|
8,170,401
|
9
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
Operating Results ($000)
Reconciliation to GAAP Results
|
|
Year Ended
January 31,
|
|
|
|
2020
|
2019
|
|
Net
sales
|
$107,809
|
$99,011
|
|
Year
over year growth
|
8.9%
|
3.2%
|
|
Gross
profit
|
37,897
|
33,906
|
|
Gross
profit %
|
35.2%
|
34.2%
|
|
Operating
expenses
|
32,021
|
30,341
|
|
Operating
expenses as a percentage of sales
|
29.7%
|
30.6%
|
|
Operating
income
|
5,876
|
3,565
|
|
Operating
income as a percentage of sales
|
5.5%
|
3.6%
|
|
Interest
expense
|
116
|
125
|
|
|
|
|
|
Other income
(expense), net
|
(7)
|
41
|
|
|
|
|
|
Pretax
income
|
5,753
|
3,481
|
|
Income
tax expense
|
2,472
|
2,022
|
|
Net income
|
$3,281
|
$1,459
|
|
|
|
|
|
Weighted
average shares for EPS-Basic
|
8,006
|
8,111
|
|
Net income per share
|
$0.41
|
$0.18
|
|
|
|
|
|
Operating
income
|
$5,876
|
$3,565
|
|
Depreciation
and amortization
|
1,645
|
965
|
|
EBITDA
|
7,521
|
4,530
|
|
Stock-based
compensation
|
(403)
|
744
|
|
Adjusted EBITDA
|
$7,118
|
$5,274
|
|
Cash
paid for taxes (foreign)
|
1,700
|
1,667
|
|
Capital
expenditures
|
1,033
|
3,103
|
|
Free cash flow
|
$4,385
|
$504
|
10
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
Operating Results ($000)
Reconciliation of Non-GAAP Results
|
|
Year Ended
January 31,
|
|
|
|
2020
|
2019
|
|
Net Income to
EBITDA
|
|
|
|
Net
Income
|
$3,281
|
$1,459
|
|
Interest
|
116
|
125
|
|
Taxes
|
2,472
|
2,022
|
|
Depreciation and
amortization
|
1,645
|
965
|
|
|
|
|
|
Other income
(expense)
|
(7)
|
41
|
|
EBITDA
|
7,521
|
4,530
|
|
EBITDA to Adjusted
EBITDA
|
|
|
|
(excluding non-cash
expenses)
|
|
|
|
Equity
compensation
|
(403)
|
744
|
|
|
|
|
|
Adjusted
EBITDA
|
$7,118
|
$5,274
|
11