Lakeland Industries, Inc. Issues Updates on Fiscal 2013
RONKONKOMA, N.Y., May 1, 2013
RONKONKOMA, N.Y., May 1, 2013 /PRNewswire/ --Lakeland Industries, Inc.
(NASDAQ: LAKE), a leading global manufacturer of industrial protective
clothing for industry, municipalities, healthcare and to first responders on
the federal, state and local levels, today announced the Company has filed a
Form 12b-25 requesting delay in filing its Annual Report on Form 10-K. The
Company is working with a potential financing opportunity, currently in the
process of due diligence. The company can offer no assurance that such
financing will close on a timely basis or will close at all.
(Logo: http://photos.prnewswire.com/prnh/20120611/NY21959LOGO )
The following is the Company's preliminary revenue data:
Summary of Revenue ($000)
quarter ended January 31,
year ended January 31,
2013 2012 2013 2012
Sales 95,118 96,327 23,399 20,165
oThe Company took a $10 million goodwill impairment charge against our
Brazil operations as a result of poor sales in Brazil in the fourth
quarter of fiscal 2013, which we reported on March 7, 2013.
oThe Company anticipates that it will take an additional $800,000 markdown
on the Indian assets held for sale due to the difficulty in disposing of
this property and the likely realizable value.
oExcluding Brazil sales, Lakeland worldwide sales have had sequential
growth for four consecutive quarters starting with Q4 fiscal 2012 as the
low point resulting from the termination of the Company's supply contract
Lakeland sales with and without Brazil by quarter
Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q4 year over year
Lakeland consolidated 20,165 23,981 23,499 24,239 23,399 3,234 16.0%
Brazil sales 3,036 5,191 4,699 4,285 2,683 (353) (11.6%)
Lakeland worldwide sales
17,129 18,790 18,800 19,954 20,716 3,587 20.9%
Sequential growth by
9.7% 0.1% 6.1% 3.8%
oThe Company has paid a total of $1.6 million against the Brazil settlement
liability since September 2012 through March 2013. All of which came from
operating cash flow in the US with no borrowing needed.
oExternal sales growth in China, UK and Chile remain very strong.
Commenting on the recent developments, Lakeland Industries President and Chief
Executive Officer Christopher J. Ryan said, "We have had a difficult time in
Brazil starting with a judgment against the Company in the amount of
approximately US$12 million, followed by a precipitous drop in sales as an
indirect result of the judgment. We are working diligently on right sizing the
Brazil operations. We are looking into potentially selling this operation
while at the same time working on restructuring the operation. Readers should
consider that most of the problems we encountered over the past 11 months
result directly or indirectly from the Brazilian operations. Thus, we plan to
either resolve or extricate ourselves from this situation as quickly as
possible. Besides being a tremendous distraction to management, Brazil has
caused the US parent to incur a tremendous amount of additional legal, travel,
investment banking and banking expenses among other expenses to deal with all
the falling domino problems caused by Brazil."
Mr. Ryan also stated, "Lakeland will continue to seek to reduce operating
costs this coming year, dispose of low ROI assets and increase sales.
Financial Results Conference Call
Lakeland will host a conference following the release of our Annual Report
filed on Form 10-K.
About Lakeland Industries, Inc.:
Lakeland Industries, Inc. (NASDAQ: LAKE) manufactures and sells a
comprehensive line of safety garments and accessories for the industrial
protective clothing market. The Company's products are sold by a direct sales
force and through independent sales representatives to a network of over 1,200
safety and mill supply distributors. These distributors in turn supply end
user industrial customers such as chemical/petrochemical, automobile, steel,
glass, construction, smelting, janitorial, pharmaceutical and high technology
electronics manufacturers, as well as hospitals and laboratories. In addition,
Lakeland supplies federal, state, and local government agencies, fire and
police departments, airport crash rescue units, the Department of Defense, the
Centers for Disease Control and Prevention, and many other federal and state
agencies. For more information concerning Lakeland, please visit the Company
online at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Forward-looking statements involve risks, uncertainties and assumptions
as described from time to time in Press Releases and 8-K(s), registration
statements, annual reports and other periodic reports and filings filed with
the Securities and Exchange Commission or made by management. All statements,
other than statements of historical facts, which address Lakeland's
expectations of sources or uses for capital or which express the Company's
expectation for the future with respect to financial performance or operating
strategies can be identified as forward-looking statements. As a result,
there can be no assurance that Lakeland's future results will not be
materially different from those described herein as "believed," "projected,"
"planned," "intended," "anticipated," "estimated" or "expected," or other
words which reflect the current view of the Company with respect to future
events. We caution readers that these forward-looking statements speak only
as of the date hereof. The Company hereby expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any such
statements to reflect any change in the Company's expectations or any change
in events conditions or circumstances on which such statement is based.
SOURCE Lakeland Industries, Inc.
Contact: Lakeland Industries, 631-981-9700, Christopher Ryan,
CJRyan@lakeland.com, or Gary Pokrassa, GAPokrassa@lakeland.com
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