Lakeland Industries Q1 net income rises 5.9% for FY'07
09 Jun '06
4 min read
Sales of chemical suits were slightly higher in February and March compared to same months sales last year, but weakened substantially in April and May due to a generally weak market, although margins on chemical suits were and remain strong.
Operating margins were also impacted negatively by Sales, General and Administrative expenses which increased significantly due to the company's new ventures in India, Chile and Japan. However, Management feels these areas will contribute significantly to future growth later in FY07 and beyond. Also increasing SG&A expense in Q1 were Mifflin Valley's operations (first acquired in Q3 of FY06). Mifflin runs at a higher gross margin with higher SG&A costs than the rest of the company's operations.
The Company's effective tax rate for Q1 FY07 was 30.8 percent. Losses in India, Chile and Japan for which no current tax benefit could be recognized, effectively raised our current global tax rates.
Net income decreased $0.25 million, or 14.7 percent, to $1.46 million for the three months ended April 30, 2006 from $1.71 million for the three months ended April 30, 2005. Earnings per share were $0.29 for the three months ended April 30, 2006 compared to $0.34 for the three months ended April 30, 2005.
On April 30, 2006, the Company's balance sheet included total assets of $73.4 million, cash of $1.5 million, working capital of $58.9 million, bank debt of $4.8 million and stockholders' equity of $62.3 million or $12.41 per share of book value.
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