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News Flash
Lakeland achieves 19th consecutive year of profitability
11 Apr '11
5 min read
"We are creating a more balanced and diversified platform for the long term, with sales and operating profit generated in North America, South America, Europe and Asia. Our business units in the Brazil, Russia, India and China -- or "BRIC" nations -- offer the most promise with gross domestic product growth well above the rest of the world. Although there is anecdotal evidence of inflation around the world, BRIC nations continue to be heavily reliant on industrial garments as these countries remain relatively low cost areas for manufacturing and also have a significant presence in the oil and gas and petrochemical industries where protective garments are increasingly being specified as a workplace safety requirement.
"Although our foreign exposure is relatively new and rapidly growing, we are pleased that they combine to contribute operating profits on a consolidated basis, adding to the operating profits generated domestically. Our consolidated operating expenses as a percentage of revenues of 25.6% in the fourth quarter reflects the management, sales and marketing personnel, and other overhead required to ramp up and maintain our global presence.
"While investing in our platform for international growth and diversification, we continue to effectively manage our operating performance. Lakeland's earnings before interest, taxes, depreciation and amortization (EBITDA) as a percent of sales was 8.5% or $2.1 million in Q4FY11, both the highest in the last 10 quarters. From this base, we have substantial operating leverage for continued sales, margin and profit expansion. This leverage along with our excess manufacturing capacity position us to benefit from the demand for industrial garments and protective apparel in the markets we serve.
"Given this outlook, we took the opportunity to capitalize on the Company's current stock price presently trading at about a 35% discount to our net book value per share of $14.12 at January 31, 2011 -- by repurchasing 231,119 outstanding common shares from December 2010 through mid-February 2011, representing cash value of approximately $2,000,000. The buyback will, upon full effect in our fiscal 2012 second quarter, result in an increase to diluted earnings per share by approximately 4%. Shareholders in Lakeland Industries may now look forward to their investment being enhanced by our international growth and diversification strategies as well as our capital markets initiatives."
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"Although our foreign exposure is relatively new and rapidly growing, we are pleased that they combine to contribute operating profits on a consolidated basis, adding to the operating profits generated domestically. Our consolidated operating expenses as a percentage of revenues of 25.6% in the fourth quarter reflects the management, sales and marketing personnel, and other overhead required to ramp up and maintain our global presence.
"While investing in our platform for international growth and diversification, we continue to effectively manage our operating performance. Lakeland's earnings before interest, taxes, depreciation and amortization (EBITDA) as a percent of sales was 8.5% or $2.1 million in Q4FY11, both the highest in the last 10 quarters. From this base, we have substantial operating leverage for continued sales, margin and profit expansion. This leverage along with our excess manufacturing capacity position us to benefit from the demand for industrial garments and protective apparel in the markets we serve.
"Given this outlook, we took the opportunity to capitalize on the Company's current stock price presently trading at about a 35% discount to our net book value per share of $14.12 at January 31, 2011 -- by repurchasing 231,119 outstanding common shares from December 2010 through mid-February 2011, representing cash value of approximately $2,000,000. The buyback will, upon full effect in our fiscal 2012 second quarter, result in an increase to diluted earnings per share by approximately 4%. Shareholders in Lakeland Industries may now look forward to their investment being enhanced by our international growth and diversification strategies as well as our capital markets initiatives."
Click here for more details
Lakeland Industries Inc
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