Leatt Corp Financial Results for the Second Quarter and First Half 2017:
CAPE TOWN, South Africa, Aug. 11, 2017 /PRNewswire/ -- Leatt Corporation (LEAT) today announced its financial results for the second quarter and six months ended June 30, 2017. Leatt Corporation develops and markets protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports. All financial numbers are in U.S. dollars.
For the three months ended June 30, 2017, revenues were $3.5 million, with a net loss of $221,063, or $0.04 per share, as compared to revenues of $3.7 million, with a net loss of $11,456, or $0.00 per share, for the 2016 second quarter. For the six months ended June 30, 2017, revenues were $9.3 million, with net income of $50,897, or $0.01 per share, as compared to revenues of $8.5 million, with net income of $101,524, or $0.02 per share, for the 2016 first half.
"The second quarter is traditionally a challenging quarter for Leatt as our customers receive their primary stocking orders in Q1 and Q3, respectively, in line with industry seasonality. Furthermore, although U.S. sales continued to grow during the period, 2017 second quarter international sales were also depressed by higher recorded revenues during the 2017 first quarter, as our international customers replenished their inventory to meet increased market demand resulting from easing currency fluctuations.
"However, we received orders during the 2017 second quarter that we expect to ship during the second half of the year," said CEO Sean Macdonald. "So, our outlook for the third quarter and the remaining year continues to be very positive."
Mr. Macdonald went on to say that, on a year-to-date basis, revenues increased by 9% and the Company continues to see increases in neck brace, body armor and apparel revenues with helmet revenues continuing to gain some traction. He added, "The Pro version of our C Frame Knee Brace continues to gain global market acceptance, especially among amateur athletes, with refinements in both fit and function that we believe makes it the most advanced brace of its kind.
"Our helmet line continues to garner enthusiastic reviews both in the United States and abroad. Although we will ship our 3.0 Enduro bicycle helmet with a fully removable chin bar in the third quarter of 2017 in order to refine the offering, sales of both the 3.0 All Mountain helmet and the refined ECE version of our 5.5 Composite helmet for off road moto use were encouraging. Helmet sales were lower year-on-year, as prior year numbers made a comparison difficult with the continued shipment of initial stocking orders of our helmet line in the second quarter of 2016."
Macdonald continued, "We expect to ship the 2018 product line to customers globally during the second half of 2017. Our new line includes multiple new and refined Bike and Off-road Motorcycle products that continue to enable riders at all levels to push themselves further with the confidence provided by exceptional innovative protective gear. We look forward to presenting the new Bike range at the upcoming Eurobike exhibition in Germany from August 30– September 2.
"I would also like to congratulate our rider, Marvin Musquin, who had six podium finishes with two second place and three overall wins in the Lucas Oil Pro Motocross Championships. We are very proud of him, and we are thrilled that he represents the Leatt brand."
Founder and Chairman, Dr. Christopher Leatt, added, "We are very pleased with the progress of our widening product offering and the great industry reviews and positive feedback we receive from our customers. We continue to fine tune all our product offerings and expect increased growth during the second half of the year with the introduction of our new 2018 product line."
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At June 30, 2017, the Company had cash and cash equivalents of $1.4 million, a current ratio of 3.4:1, and there was no long-term debt.
"Our customers in the United States and abroad continue to support the Leatt strategic goal of expanding our pipeline of extraordinary precision engineered protective gear, as evidenced by exceptional feedback and encouraging ordering patterns," Mr. Macdonald said. "As we move forward to the second half of the year and beyond, our revenues may continue to fluctuate as we develop new product categories and fine tune our sales timelines. However, we are very enthusiastic about the reception that our new 2018 products have received at Motorcycle and Bike conferences during the first half of the year.
"We continue to invest in talented sales, product development and marketing staff around the world as well as the production and implementation of marketing campaigns designed to globally promote our growing product categories and brand awareness. We are very encouraged about our prospects for the third quarter of 2017 and beyond.
"Conference Call:The Company will host a conference call at 10:00 am ET on Friday, August 11, 2017, to discuss the 2017 second quarter results.Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-888-348-8777 (U.S.A) or +1-412-902-4245 (international) to access the call.
Audio Webcast: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.
Replay:An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (U.S.A) or +1-412-317-6671 (international) and using passcode 10111387.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.