8-K
Leatt Corp (LEAT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 ___________________________
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 30, 2021
LEATT CORP.(Exact name of registrant as specified in its charter)
| Nevada | 000-54693 | 20-2819367 |
|---|---|---|
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
12 Kiepersol Drive, Atlas Gardens, Contermanskloof Road
Durbanville, Western Cape, South Africa
7550
\(Address of principal executive offices\) \(ZIP Code\)
Registrant’s telephone number, including area code:
+27-21-557-7257
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbols | Name of each exchange on which registered |
|---|---|---|
| — | — | — |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b -2 of this chapter).
Emerging growth company ☑
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☑
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 12, 2021, the Company issued a press release announcing its financial results for the quarter ended September 30, 2021. A copy of the press release, which the Company is furnishing to the Securities and Exchange Commission (the "Commission") is attached as Exhibit 99.1 and incorporated by reference herein.
In accordance with General Instruction B.2 of Current Report on Form 8-K, the information contained in this Report and the exhibit attached hereto shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information or such exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 7.01 REGULATION FD DISCLOSURE.
The information set forth in Item 2.02 above is incorporated by reference herein.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release, dated November 12, 2021 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LEATT CORPORATION | ||
|---|---|---|
| Dated: November 12, 2021 | By: | /s/ Sean Macdonald |
| Sean Macdonald | ||
| Chief Executive Officer and Chief Financial Officer |
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release, dated November 12, 2021 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Leatt Corp.: Exhibit 99.1 - Filed by newsfilecorp.com
Leatt Corp Announces Record Breaking Results for Third Quarter 2021
94% Increase in Global Revenues to $22.1 million;
166% Increase in Net Income to $4.3 million;
Global Year to Date Revenues of 49.3 million
CAPE TOWN, South Africa (November 12, 2021) - Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of protective equipment and ancillary products for sports, especially extreme high-velocity sports, today announced record financial results for the 2021 third quarter. All financial numbers are in U.S. dollars.
Third Quarter 2021 Performance and Recent Highlights
- Record third quarter revenues of $22.1 million, up 94%, compared to the 2020 third quarter
- Income from operations of $5.8 million, up 170%, compared to the 2020 third quarter
- Record third quarter net income of $4.3 million, up 166% compared to the 2020 third quarter
- Earnings per share increased to $0.79, up 163%, compared to $0.30 in the 2020 second quarter
- New 43,056 square foot warehouse in Reno, Nevada to boost US operations
Chief Executive Officer, Sean Macdonald, commented: "By nearly every measure this was a ground-breaking quarter for Leatt, the best in our company's history. For the third quarter of 2021, revenues increased by 94%, gross profit increased by 93%, and net income increased by 166%, when compared to the 2020 third quarter, led by an exceptionally strong increase in international revenues from global orders of our highly anticipated 2022 line of products.
"We have achieved record-breaking quarterly revenue for 5 consecutive quarters, and year-over-year revenue growth for the last 14 quarters, as we continue to build the Leatt brand and increase global recognition for the design and engineering of exceptional products for the sporting industry. Despite the dynamic and challenging environment, we expect the year-over-year growth trend to continue in the fourth quarter, as our global supply chain team and manufacturing partners have kept pace with our inventory requirements to provide timely shipments of Leatt products to meet growing customer demand levels.
"Broken down by product category, third quarter growth was impressive across our entire "head-to-toe" line with a $6.6 million increase in body armor sales, a $1.5 million increase in neck brace sales, a $1.5 million increase in the sales of other products, parts and accessories and a $1.1 million increase in helmet sales.
"Although revenues in the U.S. grew marginally during the third quarter due to temporary domestic port congestions, dealer and consumer demand for our products remains strong in this market, and we expect to fulfill significant orders in the current quarter in time for the holiday season. Our new warehouse in Reno, Nevada has the capacity for high volume order fulfilment which will be a key driver of our continued development in the U.S.
"This extraordinary 2021 third quarter has again demonstrated our ability to grow year to date revenues, remain operationally efficient and generate significant shareholder value. Revenues for the first nine months of 2021 were up 91%, to $49.3 million. Net income year to date grew by 231%, to $8.8 million, a return on revenue of 18% and earnings of $1.61 per basic share."
Founder and Chairman, Dr. Christopher Leatt, remarked: "As we continue to design and build an innovative product pipeline, our team is adopting new technologies that change the way our products are sourced, produced and delivered.
Financial Summary
Total revenues for the third quarter of 2021 increased to $22.1 million, up 94%, compared to $11.4 million for the third quarter of 2020.
Gross profit for the third quarter of 2021 increased to $9.5 million, up 93%, compared to $4.9 million for the third quarter of 2020.
Income from operations for the third quarter of 2021 increased to $5.8 million, up 170%, compared to $2.1 million for the third quarter of 2020.
Net income for the third quarter of 2021 was $4.3 million, or $0.79 per basic and $0.69 per diluted share, up 166%, compared to $1.6 million, or $0.30 per basic and $0.27 per diluted share for the third quarter of 2020.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At September 30, 2021, the Company had cash and cash equivalents of $2.6 million, a current ratio of 2:1, and there was no long-term debt.
Business Outlook
Mr. Macdonald added: "We continue to evolve the Company and the brand through our consistent focus on developing a diverse line of products, our growing sales and marketing efforts, and the nimble resilience of our global supply chain team during these dynamic times.
"Demand for our exceptional "head-to-toe" protective gear for off-road motorcycle and MTB riders continues to surge around the world. This sustained consumer demand, along with recognition by the media, athletes and our business partners, energizes our entire team to continue our efforts to increase our global market share and refine our already strong pipeline of attractive innovative products. We believe that we are well positioned to deliver an incredible financial performance in 2021 and beyond."
Conference Call
The Company will host a conference call on Friday, November 12 at 10:00 am ET to discuss the 2021 third quarter results.
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-877-407-9716 (U.S.A) or +1-201-493-6779 (international) to access the call.
Audio Webcast
There will also be a simultaneous live webcast through the Company's website, www.leatt-corp.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.
Replay
An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (U.S.A) or +1-412-317-6671 (international). The replay PIN Number is 13724984.
For those unable to attend the call, a recording of the live webcast, will be archived shortly following the event for 30 days on the Company's website.
About Leatt Corp
Leatt Corporation develops personal protective equipment and ancillary products for all forms of sports, especially extreme motor sports. The Leatt-Brace® is an award-winning neck brace system considered the gold standard for neck protection for anyone wearing a crash helmet as a form of protection. It was designed for participants in extreme sports or riding motorcycles, bicycles, mountain bicycles, all-terrain vehicles, snowmobiles and other vehicles. For more information, visit www.leatt.com. ****
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Forward-looking Statements:
This press release may contain forward-looking statements regarding Leatt Corporation (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the likelihood that the Company's momentum of record-breaking revenue growth will continue; the ability of the Company to continue to maintain its diverse pipeline of branded products or to financially benefit from its sales and marketing efforts; the ability of the Company's global supply chain to remain stable to fulfill the Company's customer demand; the financial outlook of the Company; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.
Contact:
Investor Relations
Investor-info@leatt.com
