Ironclad Q1 results in-line with expectations

13 May '10

2 min read

Ironclad Performance Wear Corporation, a leader in high-performance task-specific work gloves and apparel for industrial workers, professional craftsmen and consumers, announced financial results for first quarter ended March 31, 2010.

First Quarter 2010 Results

The Company reported net sales for the first quarter of 2010 of $2.48 million, a slight decrease of 1.4% percent from the first quarter 2009 of $2.52 million.

Gross profit increased 20.4% to $1.1 million, or 44.0% of sales, compared to $0.9 million, or 36.1% of sales in the first quarter of 2009.

Operating expenses as a percent of sales increased to 58.2%, or $1.44 million, compared to 55.7% of sales, or $1.40 million during the same period last year.

Net loss from operations decreased 29% to ($351,068) compared to ($494,776) during the same period in 2009.

"The Company continues to successfully execute on its financial plan for 2010, as evidenced by a significant improvement in the Company's bottom-line financial performance," said Scott Jarus, Chairman and CEO of Ironclad. "It is important to remember that Ironclad's business has historically been seasonal, with approximately 40% of sales occurring in the first half of the year and 60% in the second half. From a cash and inventory perspective, Ironclad is now at the start of its "build cycle" for deliveries in the third and fourth quarters."

Guidance for 2010

Ironclad reaffirms its expectations that its Net Sales for 2010 will increase by 5% to 10%, and EBITDA, including non-cash stock option expenses (Earnings Before Interest, Taxes, Depreciation, Amortization and ASC 718) will be positive. The Company has recently retained the services of an investment bank to assist with the exploration of acquisition opportunities which, if successful, are expected to be accretive to this 2010 guidance on both a Net Sales and Net Income basis.

Mr. Jarus concluded, "Business with existing customers continues to grow and the number of new opportunities being pursued by Ironclad for 2010 and beyond are very significant. This growth and success comes despite current worldwide economic conditions when many companies are experiencing no or declining growth. In addition to the partnerships the Company established in the last couple of years, such as with 5.11 Tactical and Snap-on, Ironclad is expanding into new markets, such as technical task-specific gloves for outdoor sports and new industrial applications, including an expansion of its KONG line of gloves for the oil and gas industry."

Ironclad Performance Wear Corporation

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