2009 represents an inflection point for Ironclad – Mr. Jarus
Ironclad Performance Wear Corporation a leader in high-performance work gloves and apparel for industrial workers, professional craftsmen and consumers, announced financial results for fourth quarter and fiscal year ended December 31, 2009.
Fourth Quarter 2009 Results
The Company reported net sales for the fourth quarter of 2009 of $4.4 million, an increase of 9.3% percent from the fourth quarter 2008 of $4.05 million.
Gross profit increased 18.8% to $1.7 million, or 38.5% of sales, compared to $1.44 million, or 35.4% of sales in the fourth quarter of 2008.
Operating expenses as a percent of sales decreased to 36.6%, or $1.62 million, compared to 39.7% of sales, or $1.61 million during the same period last year.
The net income from operations increased to $84,970 compared to a loss of $170,775 during the same period in 2008. This was the second straight quarter of positive net income from operations in 2009.
"In addition to increasing demand for Ironclad products, the Company continues to successfully execute on the financial plan it developed in early-2009, as evidenced by our achievement of a second profitable quarter for the year," said Scott Jarus, Chairman and CEO of Ironclad. "Despite the lingering global economic downturn, Ironclad has been successful in expanding into new markets and increasing penetration within its existing accounts."
Fiscal 2009 Year-End Results
Full-year net sales for 2009 were $13.6 million, representing a 14.1% increase from the 2008 net sales of $11.9 million.
Gross profit increased 13.8% to $5.2 million, or 38.1% of sales, compared to $4.6 million, or 38.2% of sales for full-year 2008.
Operating expenses as a percent of sales decreased to 42.6%, or $5.8 million, compared to 56.7% of sales, or $6.8 million for full-year 2008.
For the year, Ironclad had a net loss from operations of $609,037 compared to a net loss from operations of $2.2 million for fiscal year 2008. When FAS123r (stock options) of $505,112 and the 2009 employee profit-sharing expenses of $171,757 are removed from this year's number, the Company experienced a positive annual result of $67,832.
Net loss for 2009 declined to $709,742, representing a 71.6% improvement when compared to a net loss of $2.5 million in the prior year. As stated above, all of the losses for 2009 occurred in the first and second quarters, with the third and fourth quarters reporting positive net incomes.
Mr. Jarus added, "2009 represented an inflection point for Ironclad, and its ability to build a successful and sustainable business. Business with existing customers grew in 2009, despite current economic conditions, and we acquired several significant new customers. The Company's cost structure is now in line with its revenues, and we have the ability to leverage our vastly improved financial condition to take advantage of new opportunities."