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Lakeland Q2 FY'14 sales excluding Brazil up 22%

13 Sep '13

2 min read

Lakeland Industries, Inc., a leading global manufacturer of industrial protective clothing for industry, municipalities, healthcare and to first responders on the federal, state and local levels, announced financial results for its second quarter of fiscal year 2014 ended July 31, 2013.

The Company completed a new financing of $15.0 million Senior debt and $3.5 million Junior debt during the recently completed second quarter. Excluding operations in Brazil, the Company is reporting the most profitable quarter in many years.

Financial Results Highlights-second quarter of fiscal 2014, and Recent Company Developments:

-The Company has earned operating income in the US of $479,000 in Q2 of the fiscal year ending January 31, 2014, compared with an operating loss in the US of $787,000 in Q2 of last year.

-Sales of Lakeland worldwide increased 4.9% and, excluding Brazil, increased 22.0% year over year.

-Gross margin for Lakeland worldwide was 30.3%, the same as last year, but excluding Brazil, increased from 30.9% last year to 32.0% this year.

-Operating expenses worldwide decreased by $814,000 and decreased as a percent of sales to 25.0% from 29.7% last year. Operating expenses for Lakeland worldwide, excluding Brazil, decreased by $247,000 even as sales increased by $4,134,000. SGA as a percent of sales, excluding Brazil, decreased from 28.8% to 22.5%.

-Adjusted EBITDA increased to $1.9 million this year from $543,000 last year. Adjusted EBITDA for Lakeland worldwide, excluding Brazil, increased from $721,000 last year to $2,704,000 this year.

-Most of this improvement was generated in the United States and China.

-The Company believes it has now completely recovered from the loss of the DuPont license in July 2011, as far as gross margins and profitability.

-Net sales (including Brazil) of $24.6 million in Q2FY14 compared with $23.5 million in Q2FY13.

-Operating income of $1,297,000 Q2FY14 vs. operating income of $152,000 in Q2FY13, but this year includes $160,000 for plant relocation costs for its factory in Qingdao, China which has been sold.

-Q2 of fiscal 2014 included a benefit for income taxes of $3.6 million, resulting from a reversal of a deferred tax asset valuation allowance of $4.5 million.

-Q2 of fiscal 2013 was positively affected due to a $2.1 million adjustment due to the settlement of the Brazilian arbitration at less than the amount awarded.

-Net profit of $4.2 million ($0.75 per share) this year vs. $3.3 million profit ($0.61 per share) last year.

-The Company completed the sale of its plant in Qingdao, China and one of the plants in India.

Lakeland

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