Ironclad Performance Wear Corporation, the recognized leader in high-performance task-specific work gloves, reported financial results for the first quarter ended March 31, 2014.
First Quarter 2014 Results
The Company reported Net Sales for the first quarter of 2014 of $5.1 million, a decrease of 4.5% percent from the first quarter total of $5.3 million for 2013. The decline primarily resulted from reduced sales to ORR Safety in our industrial/safety segment and AutoZone in our retail automotive segment.
As disclosed in the prior quarter, the decline with ORR Safety occurred as they completed an inventory rationalization that began during 2013. The Company expects sales to ORR Safety to rebound during the 2nd quarter of 2014. The decline with AutoZone was due to the wind down of our Snap-on license branded program. The Company did experience significant increases in sales with other customers in its industrial, international and private label segments.
Gross Profit was $1.5 million, or 28.9% of Net Sales in the first quarter of 2014, compared to $2.0 million, or 37.2% of Net Sales in the first quarter of 2013.
Gross Profit declined in our domestic industrial segment as a result of lower sales volume with our largest industrial customer, ORR Safety. However, higher revenues and Gross Profit in our international distribution segment offset the majority of the domestic industrial segment's shortfall.
Gross Profit in our private label business more than doubled for the first quarter, all of which was attributable to the increase in private label sales volume. While private label is an important part of our business, it does not generate the margins achieved in our industrial or international segments.
The retail segment recorded an approximate 57% decline in Gross Profit from the same period a year ago. The drop was due to the wind down of our Snap-on license program with AutoZone. The Company, for the quarter, recorded lower revenues, all sold at lower margins to close out products, as required by the license, and also incurred other promotional expenses.
Expenses as a percent of Net Sales in the first quarter of 2014 decreased to 38.5%, or $2.0 million, compared to 39.4% of Net Sales, or $2.1 million during the same period last year.
Loss from Operations in the first quarter of 2014 was $484,000, or 9.5%, as compared to a loss of $112,000, or 2.1%, during the same period in 2013.
Net Loss for the first quarter of 2014 was $491,000, or $0.01 per share, as compared to a loss of $122,000, or $0.01 per share, in the same period last year.