Fourth Quarter and Full Year 2012 Highlights
-Fourth quarter Net Sales increased 40% to record $10.7 million, driving Net Income before Taxes up 166% to a record $1.8 million.
-Full year 2012 Net Sales were up 22% to a record $26.2 million, with Net Income up 174% to a record $3.1 million.
Major new product introductions in the fourth quarter included the Ironclad Mechanic glove, designed specifically for auto mechanics and technicians; and the Ironclad TouchScreen performance work glove that addresses the growing use of touchscreen devices. The Company also introduced the newest member to the KONG glove family, the Cut Resistant KONG, designed for the particular hazardous conditions found on an oil and gas platform.
Fourth Quarter 2012 Results
The Company reported Net Sales for the fourth quarter of 2012 of $10.7 million, an increase of 39.8% percent from the fourth quarter 2011 of $7.7 million. Gross Profit increased 53.9% to $4.1 million, or 38.1% of Net Sales, compared to $2.7 million, or 34.6% of Net Sales in the fourth quarter of 2011.
Operating Expenses as a percent of Net Sales decreased to 20.5%, or $2.2 million, compared to 24.8% of Net Sales, or $1.9 million during the same period last year. Income from Operations increased 151% to $1.9 million compared to $752,680 during the same period in 2011.
Net Income increased $2.0 million to $2.6 million, or $0.03 per share, in the fourth quarter 2011, compared to $605,857, or $0.01 per share, in the same period last year. $857,500 of this increase in Net Income is the result of recording a deferred tax benefit.
"As reported in our financial results, the fourth quarter was exceptional on virtually all fronts – sales, operating leverage and profitability," said Scott Jarus, Chairman and CEO of Ironclad. "We experienced excellent growth within our international sales, industrial safety and co-branded private label channels, and the continuing growth in income from operations reflects the efficiencies and scalability of Ironclad's business model."
Fiscal 2012 Year-End Results
Full-year Net Sales for 2012 were $26.2 million; representing a 22.3% increase from the 2011 Net Sales of $21.4 million. Gross Profit increased 26.2% to $10.1 million or 38.4% of Net Sales in 2012, compared to $8.0 million, or 37.2% of Net Sales for full-year 2011.
Operating Expenses as a percent of Net Sales decreased to 29.0%, or $7.6 million, compared to 30.4% of Net Sales, or $6.5 million for full-year 2011. Income from Operations increased 69.1% to $2.5 million compared to an Income from Operations of $1.5 million for fiscal year 2011.
Net Income for 2012 increased to $3.1 million, or $0.04 per share, representing a 174% growth when compared to a Net Income of $1.1 million or $0.02 per share, in the prior year. A 30% reduction in the Company's valuation allowance for deferred tax assets, primarily net operating loss carry-forwards, contributed $0.01 per share to the increase.
Mr. Jarus added, "2012 was an exceptionally successful year for Ironclad. The strength of the Ironclad brand, representing quality, innovation, performance and value, has drawn customers to our products and enabled us to not only grow business with our existing customers, but to add entirely new distribution channels, such as those in the retail automotive sector."
Ironclad Performance Wear Corporation
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