Lakeland Industries, Inc., a leading global manufacturer of industrial protective clothing for industry, municipalities, healthcare and to first responders on the federal, state and local levels, announced financial results for its fiscal 2015 first quarter ended April 30, 2014.
For financial reporting presentation purposes, the operating results in Brazil are excluded from many of the statements in this announcement because the Company's commercial lender has excluded Brazil from most covenant calculations as well as other related factors and due to the restructuring of those operations which has resulted in significant losses for the past two years that distorts analysis for the balance of the global businesses.
Financial Results Highlights -- First Quarter Fiscal 2015 and Recent Company Developments
Sales worldwide increased to $23.5M or 8.1% from $21.7M last year. Excluding Brazil, sales increased to $21.8M or 9.1% this year from $20.0M last year.
Sales growth achieved in China/Asia Pacific, UK, Latin America (excluding Brazil), and North America.
Gross margin worldwide was 30.2%, compared to 28.0% last year. Excluding Brazil, gross margin increased from 29.0% last year to 29.9% this year.
Operating expenses worldwide increased by $0.2 million and decreased as a percent of sales to 27.7% from 29.1% last year. Operating expenses for Lakeland worldwide, excluding Brazil, increased by $558,000. SGA as a percent of sales, excluding Brazil, increased from 25.5% to 26.0%.
Operating income was $582K vs. a loss of $237K last year. Excluding Brazil, operating income was $858K this year vs. $692K last year.
Brazil Q1 operating loss was reduced to $276K this year vs. $929K last year.
Adjusted EBITDA worldwide increased 124% to $1.6M vs. $0.7M last year. Excluding Brazil, Adjusted EBITDA was $1.8M this year vs. $1.5M last year.
Net loss of $(0.0) million, $(0.0) per share vs. $(0.8) million loss, $(0.16) per share, last year.
Christopher J. Ryan. President and Chief Executive Officer of Lakeland Industries, stated, "The Company's business rationalization and transition is nearly complete as we are experiencing solid growth internationally and domestically. We have made the necessary investments to grow our sales channels and enhance our product development, while reducing our cost structure and modifying operations for improved leverage.