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International revenues grow 14% at Lakeland
14 Dec '10
4 min read
“We implemented a headcount reduction at our manufacturing facilities in China during the recession and amid a modified agreement with DuPont whereby they would supply us with finished goods and we would be able to reallocate our production capacity. The additional capacity was not needed until recently as the global economic recovery took effect. In October we added nearly 200 sewers hired from a neighboring company that did not plan accordingly in facing the recession, and just completed an expansion of our plant capacity in Brazil by 30%.
"Now, with our manufacturing capacity returning, the Company's global asset utilization provides significant upside to our financial results as there is a substantial opportunity gap to capitalize on. Capital investments are minimal from this point forward. Incremental to this growth potential is the agreement with DuPont whereby we resell finished goods they send to us, which through the third quarter had been hampered by their raw material constraints but has more recently eased up.
"Our working capital and cash position increased in the fiscal year, with a cash balance at October 31, 2010 of $5.5 million. At the same time, we have reduced our debt from the beginning of the year to a very low and manageable level below $6 million. With a credit facility of $23.5 million at our disposal, we are provided with significant access to over $17 million for growth capital and acquisitions.
"Reflecting the confidence we have in Lakeland's fundamental strengths and growth prospects as well as the belief that our current share price valuation does not reflect the Company's underlying long term value, we announced in November a stock repurchase program for up to $2,000,000 worth of outstanding common stock. We believe the repurchase of our common stock and our favorable outlook should enhance shareholder value."
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"Now, with our manufacturing capacity returning, the Company's global asset utilization provides significant upside to our financial results as there is a substantial opportunity gap to capitalize on. Capital investments are minimal from this point forward. Incremental to this growth potential is the agreement with DuPont whereby we resell finished goods they send to us, which through the third quarter had been hampered by their raw material constraints but has more recently eased up.
"Our working capital and cash position increased in the fiscal year, with a cash balance at October 31, 2010 of $5.5 million. At the same time, we have reduced our debt from the beginning of the year to a very low and manageable level below $6 million. With a credit facility of $23.5 million at our disposal, we are provided with significant access to over $17 million for growth capital and acquisitions.
"Reflecting the confidence we have in Lakeland's fundamental strengths and growth prospects as well as the belief that our current share price valuation does not reflect the Company's underlying long term value, we announced in November a stock repurchase program for up to $2,000,000 worth of outstanding common stock. We believe the repurchase of our common stock and our favorable outlook should enhance shareholder value."
Click here for more details
Lakeland Industries Inc
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