2010 marks a very significant inflection point for Ironclad

07 Mar '11

4 min read

Ironclad Performance Wear Corporation, the recognized leader in high-performance task-specific work gloves and apparel, announced financial results for the fourth quarter and fiscal year ended December 31, 2010.

Fourth Quarter 2010 Results

The Company reported net sales for the fourth quarter of 2010 of $5.70 million, an increase of 28.7% percent from the fourth quarter 2009 of $4.43 million.

Gross profit increased 19.7% to $2.04 million, or 35.7% of net sales, compared to $1.70 million, or 38.4% of net sales in the fourth quarter of 2009.

Operating expenses as a percent of net sales decreased to 24.4%, or $1.39 million, compared to 36.5% of net sales, or $1.62 million during the same period last year.

Net income from operations increased 662% to $647,692 compared to $84,970 during the same period in 2009. This continuing improvement in net income from operations reflects the increasing financial strength and discipline of the Company, and its ability to execute consistently on its business plan.

"As evidenced by Ironclad's financial results, the fourth quarter was exceptional on all fronts – sales, margins and profitability," said Scott Jarus, Chairman and CEO of Ironclad. "Several new opportunities came to fruition during the quarter, including the introduction of Ironclad's Snap-on branded gloves in Costco and two national automotive parts stores. We also saw significant sales growth with our existing customer base across all market segments, industrial and retail/consumer."

Fiscal 2010 Year-End Results

Full-year net sales for 2010 were $15.0 million, representing a 10.1% increase from the 2009 net sales of $13.6 million.

Gross profit increased 14.6% to $5.9 million, or 39.5% of net sales in 2010, compared to $5.2 million, or 37.9% of net sales for full-year 2009.

Operating expenses as a percent of net sales decreased to 36.3%, or $5.4 million, compared to 42.4% of net sales, or $5.8 million for full-year 2009.

Net Income from operations increased 179% to $479,169 compared to a net loss from operations of $609,037 for fiscal year 2009.

Net Income for 2010 increased to $365,577, representing more than a $1 million improvement when compared to a net loss of $709,742 in the prior year. As a result, the Company had positive earnings per share of $0.01.

Mr. Jarus added, "As I expressed last year at this time, 2010 marked a very significant inflection point for Ironclad. The Company took advantage of many new opportunities which, when combined with a strong business discipline, enabled us to exceed expectations on every level. The foundation established in 2010 provides an excellent launching point for exceptional performance in 2011 and beyond."

Guidance for 2011

Ironclad expects that its Net Sales for 2011 will increase by 10% to 12%, EBITDA, including non-cash stock option expense (Earnings Before Interest, Taxes, Depreciation, Amortization and ASC 718 stock option expense) will grow, and earnings per share will marginally increase. This guidance is based upon organic growth only, and does not contemplate any acquisition opportunities which, if identified and concluded, are expected to be accretive to this 2011 guidance on both a Net Sales and Net Income basis.

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