CAPE TOWN, South Africa, May 12, 2017 /PRNewswire/ -- Leatt Corporation (LEAT) today announced its financial results for the first quarter ended March 31, 2017. All financial numbers are in U.S. dollars. Best First Revenue Quarter Since Inception; Strong Start to 2017
For the three months ended March 31, 2017, revenues were $5.82 million, with a net income of $272,000, or $0.05 per share, as compared to revenues of $4.83 million, with a net income of $113,000, or $0.02 per share, for the 2016 first quarter.
"We had an excellent first quarter, our best since the Company's inception in terms of revenue, which made for a very strong and promising start to 2017," said CEO Sean Macdonald. "Our global revenues were up 21 percent and our EBIDTA increased by 82 percent. Our entire team was delighted to see apparel sales a relatively new category for us--gaining traction, and increases in sales of neck braces, body armor and knee braces during the quarter. While our revenues may fluctuate from quarter to quarter at this stage of our development, we are all energized by the promise and potential for the rest of the year. We continue to build on our strategic goal of expanding our pipeline of unique, precision engineered, extraordinary protective gear designed to enable riders at all levels to push themselves to more physical heights."
First Quarter Highlights
Macdonald continued, "We have invested in the global bicycle industry, a potentially expansive revenue stream for us. We are aggressively building out our bicycle line of products and our global bicycle distribution network. "Another key highlight of the 2017 first quarter was the shipping of our highly-anticipated 3.0 All Mountain bicycle helmets to our customers worldwide. Shortly after the quarter ended, we launched our entire 2017 bicycle line, including the new bicycle helmets, to consumers, dealers and media at the Sea Otter Classic in California."
Founder and Chairman, Dr. Christopher Leatt, added, "We continue to lead in product engineering and innovation, as demonstrated by our latest generation knee brace, the C-Frame Pro, which shipped in the 2017 first quarter. Designed by our biomedical engineering team, this medically certified knee brace is our lightest, slimmest, most durable knee brace, featuring great comfort while eliminating excessive forces to the femur and tibia, reducing potential ACL, MCL and meniscus injuries by reducing rotational forces and lateral loading as well as a better, longer lasting hinge mechanism that replicates the natural motions of the knee joint."
Macdonald said, "Based on our strong start and our growing catalogue of innovative products, we believe that 2017 will be an important year in terms of revenue growth and increased shareholder value. While periodic fluctuations may occur in the coming quarters, we are pleased to see the purchasing patterns and inventory stock holdings of some of our largest international customers begin to stabilize after the negative impact of currency fluctuations in prior periods.
"Our entire team is also very pleased with the favorable reception that our 2018 bicycle line received from some of our bicycle customers who tried out our latest gear on the slopes at our recent bicycle customer conference and praised the unique nature of our innovative features. We continue to push marketing of our new product categories and build brand equity through attendance at such grass roots events."
"I would also like to congratulate our rider, Marvin Musquin, who continues to pile up wins and is appearing on the podium more and more. We are very proud of him, and we are thrilled that he represents the Leatt brand."
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At March 31, 2017, the Company had cash and cash equivalents of $1.1 million, a current ratio of 3:1, and there was no long-term debt.
The Company will host a conference call at 10:00 am ET on May 12, 2017, to discuss the 2017 first quarter results. Participants should dial in ten minutes before the scheduled call time, using 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.