CAPE TOWN, South Africa, August 13, 2015 – Leatt Corporation (LEAT)
today announced its financial results for the second quarter and six months ended June 30, 2015. Leatt Corporation develops and markets protective equipment and ancillary products for all forms of sports, especially extreme high-velocity sports. All financial numbers are in US dollars.
Second Quarter 2015 Financial Performance
Revenue for the second quarter of 2015 was $5.2 million, up 25 percent year-to-year, with net income of $423,937 or $0.08 per share, compared to revenue of $4.2 million with a net loss of $29,834 or $0.01 loss per share for the second quarter of 2014.
CEO Sean Macdonald commented, “The second quarter was very strong for Leatt Corp., partly due to our shipment of additional new products and the continued growth of our body armor sales. We saw a rewarding uptake on our new Airflex protective glove range, which we began shipping during the second quarter. Although neck brace sales were slightly down during the period, this decrease was more than offset by the continued growth of our body armor sales, which grew by 75 percent year-to-year. The body armor category includes the C-Frame knee brace that was first shipped in 2014, and which continues to find larger audiences and market share. C-Frame knee brace sales also had a positive impact on our gross profit margins, which remained steady at 55 percent, year-to-year, despite the increase in body armor sales which have historically generated lower margins. Despite this increase in revenue, operating expenditures decreased by $134,035 year-to-year. Research and development and G&A expense were both down, as were professional fees.”
Chairman, Dr. Christopher James Leatt added, “We are very happy with initial sales of our new Airflex protective glove range that is constructed of ultrathin nanofibers for maximum flexibility and strength, with the addition of injected protective materials to protect knuckles, thumbs and fingers. We believe that our gloves are the first in the downhill bicycle and motocross market that incorporates engineered protection. Meanwhile, we are still evaluating the C-Frame knee brace as an adjunct to medical procedures and diagnoses.”
Six Months 2015 Financial Performance
Revenue for the six months ended June 30, 2015 was $9.2 million, an increase of 20 percent compared to the first six months of 2014. Net income was $478,042 or $0.09 per share, compared to a net loss of $370,720 or $0.07 loss per share for the first half of 2014.
The Company’s cash balance was $1.2 million at June 30, 2015, up rewardingly from the $724,000 reported for December 31, 2014. The current ratio at June 30, 2015 was just below 5:1, stronger than the 3:1 at the end of 2014. The Company has no long-term debt.
Mr. Macdonald said, “The strategy to broaden our product lines, add new categories, and appeal to new sports seems to be working as we hoped it would. The next step for us will be shipping of the first Leatt helmets, which we expect will happen during the second half of 2015. We are looking forward to this first shipment as the helmet market is the largest segment of the worldwide market for protective sporting gear, and extends from high-velocity sports through a variety of team sports, amateur and professional. Worldwide concern for the long term implications of concussions and blows to the head have made the helmet market even more prominent for parents, educators and athletes. We believe that our reputation for excellence and the broad recognition of our brand as the protective gear technological leader should stand us in good stead with helmets. Our first helmet shipments will be our full face motocross and bicycling helmets.”
The Company will host a conference call at 11:00 am Eastern Time on August 13, 2015, to discuss the second quarter 2015 results.
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-888-348-8777 (USA) or +1-412-902-4245 (international) to access the call.
There will also be a simultaneous live webcast through the Company’s website, www.leatt-corp.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.
An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-877-870-5176 (USA) or +1-858-384-5517 (international) and using passcode 10070717.
For those unable to attend the call, a recording of the live webcast will be archived shortly following the event for 30 days on the Company’s website.