$LEAT Pr this morning.
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ultra low float 2.26 M
WSJournal
Leatt Corp Announces Record Breaking Year; Reports Results for Fourth Quarter and Full Year 2018
21% Increase in Revenues to $24.4 million; 404% Increase in Net Income to $1.2 million
PR Newswire
CAPE TOWN, South Africa, March 27, 2019
CAPE TOWN, South Africa, March 27, 2019 /PRNewswire/ -- Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, today announced record financial results for the fourth quarter and full year ending December 31, 2018. All financial numbers are in U.S. dollars.
Full-Year 2018 Highlights
Record revenues of $24.4 million, up $4.25 million or 21%, compared to 2017
Net Income increased 404% to $1.2 million, or $0.22 per diluted share, compared to $237,000, or $0.04 per diluted share, in 2017
Total operating expenses increased 8%, while revenues increased by 21%
Income from Operations of $1.5 million, compared to $226,000 in 2017
Cash and cash equivalents increased to $1.7 million, compared to $1.5 million in 2017
Leatt DBX 2.0 Helmet and 3.5 Neck Brace recognized in a 2018 Design & Innovation Award
Leatt DBX 4.0 Helmet wins Interbike Innovation Award in 2018
Fourth Quarter 2018 Highlights
Revenues of $5.5 million, up 3% compared to 2017
Total operating expenses increased 2%, while revenues increased 3%
Net Loss of $864 which narrowed by $107,000 or 99%, compared to 2017
Leatt CEO, Sean Macdonald, said, "We are pleased to report that 2018 was another record year for Leatt. Global revenues grew by $4.25 million to $24.4 million, an increase of 21%, compared to 2017, and included double digit revenue growth worldwide. We saw revenue growth in every single major product category, but we are particularly encouraged by the increase in sales volumes of our flagship neck braces, our innovative knee braces, our apparel line and our upper body armor and helmets. Our range of award-winning products has increased substantially over the year, and we remain committed to offering our premium revolutionary technology to more riders globally at attractive price points.
"Our growth in 2018 was the result of the continued expansion of our entire global footprint. We have an evolving international distribution network that continues to add new top tier partners. We also now have a more potent in-house sales force, led by strong regional sales managers, as well as wider consumer brand reach and engagement. Our team is bolstered by our stable of exceptional protective products, as well as our new focus on the global bicycle market. We are developing an emerging bicycle distribution network and have added strong regional sales managers and bicycle sales reps to our team.
"Although operating costs have increased this year when compared to 2017, this increase was primarily attributable to increased marketing, advertising, selling and related staff costs targeted directly at building a global consumer brand and launching our exceptional products – areas that we believe will fuel our growth moving forward. We continue to focus on our favorable operating leverage.
"During the first quarter of 2019 we also added another highly anticipated product category that bodes well for future growth: our revolutionary bullet-proof line of protective eye goggles."
Founder and Chairman, Dr. Christopher Leatt, added, "Leatt continues to pioneer the design and development of innovative products that mesh science and performance to provide bio-medically proven safety for athletes in extreme sports, as well as amateur riders. A prime example is our new award winning 3.5 neck brace, which utilizes advanced manufacturing techniques that combine an in-molded EPS and a polyamide core, to bring yet another revolutionary product to riders at an attractive price point."
Financial Summary
Total revenues for the three-month period ended December 31, 2018 increased to $5.5 million, up 3%, compared to $5.4 million for the 2017 fourth quarter.
For the year ended December 31, 2018, revenues increased by $4.3 million, or 21%, to $24.4 million, up from $20.1 million for the twelve months ended December 31, 2017. The increase for 2018 was driven by an 18% increase in Body armor sales, a 58% increase in helmet sales, an 18% increase in other product and accessories sales, and a 12% increase in Neck brace sales. Price fluctuations did not impact revenues as selling prices have not fluctuated by any significant level.
For the 2018 fourth quarter, gross profit was $2.5 million, or 45% of revenues, compared to $2.2 million, or 42% of revenues, for the 2017 fourth quarter. For the twelve months ended December 31, 2018, gross profit was $11.6 million, or 47% of revenues, up 22%, compared to $9.5 million, or 47% gross margin, for 2017.
Fourth quarter loss from operations was $(128,000), down from $(283,000) for 2017. For the twelve months ended December 31, 2018, income from operations was $1.5 million, compared to $226,000 for 2017.
Net loss for the three months ended December 31, 2018 was $(864), or $(0.00) per basic and diluted share, compared to $(107,000) or $(0.02) per basic and diluted share, during the three months ended December 31, 2017. Net income for the twelve months ended December 31, 2018 increased 404% to $1.2 million, or $0.22 per basic and diluted share, compared to $237,000, or $0.04 per basic and per diluted share, for 2017. The increase in net income for the twelve months ended December 31, 2018 was driven by a 21% increase in revenues.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At December 31, 2018, the Company had cash and cash equivalents of $1.7 million, a current ratio of 3.02:1, and there was no long-term debt.
Business Outlook
Mr. Macdonald said, "We believe that the momentum that we are now building will continue throughout 2019 and beyond. Most importantly, our customers around the world continue to enthusiastically support our existing and new 2019 product lines through their ongoing orders. In addition, our stable of exceptional award-winning products has increased substantially in the last year, as we continue to strive to make our premium revolutionary technology, which represent value at attractive price points, available to more riders globally. We plan to build on our strategy of targeted and focused product launches, building our global consumer brand and expanding our presence in new markets domestically and abroad.
"We are also very optimistic about our launch into our revolutionary goggle range. Our development of this new line not only represents the opportunity to protect another key area of a rider's anatomy —the eyes—but is also a core branding tool with the prominent positioning of our branded goggle straps on the helmet. We are incredibly excited to be bringing a cutting edge, optically optimized goggle to the global market, and our initial orders indicates that our business partners share our enthusiasm."
< >
ultra low float 2.26 M
WSJournal
Leatt Corp Announces Record Breaking Year; Reports Results for Fourth Quarter and Full Year 2018
21% Increase in Revenues to $24.4 million; 404% Increase in Net Income to $1.2 million
PR Newswire
CAPE TOWN, South Africa, March 27, 2019
CAPE TOWN, South Africa, March 27, 2019 /PRNewswire/ -- Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, today announced record financial results for the fourth quarter and full year ending December 31, 2018. All financial numbers are in U.S. dollars.
Full-Year 2018 Highlights
Record revenues of $24.4 million, up $4.25 million or 21%, compared to 2017
Net Income increased 404% to $1.2 million, or $0.22 per diluted share, compared to $237,000, or $0.04 per diluted share, in 2017
Total operating expenses increased 8%, while revenues increased by 21%
Income from Operations of $1.5 million, compared to $226,000 in 2017
Cash and cash equivalents increased to $1.7 million, compared to $1.5 million in 2017
Leatt DBX 2.0 Helmet and 3.5 Neck Brace recognized in a 2018 Design & Innovation Award
Leatt DBX 4.0 Helmet wins Interbike Innovation Award in 2018
Fourth Quarter 2018 Highlights
Revenues of $5.5 million, up 3% compared to 2017
Total operating expenses increased 2%, while revenues increased 3%
Net Loss of $864 which narrowed by $107,000 or 99%, compared to 2017
Leatt CEO, Sean Macdonald, said, "We are pleased to report that 2018 was another record year for Leatt. Global revenues grew by $4.25 million to $24.4 million, an increase of 21%, compared to 2017, and included double digit revenue growth worldwide. We saw revenue growth in every single major product category, but we are particularly encouraged by the increase in sales volumes of our flagship neck braces, our innovative knee braces, our apparel line and our upper body armor and helmets. Our range of award-winning products has increased substantially over the year, and we remain committed to offering our premium revolutionary technology to more riders globally at attractive price points.
"Our growth in 2018 was the result of the continued expansion of our entire global footprint. We have an evolving international distribution network that continues to add new top tier partners. We also now have a more potent in-house sales force, led by strong regional sales managers, as well as wider consumer brand reach and engagement. Our team is bolstered by our stable of exceptional protective products, as well as our new focus on the global bicycle market. We are developing an emerging bicycle distribution network and have added strong regional sales managers and bicycle sales reps to our team.
"Although operating costs have increased this year when compared to 2017, this increase was primarily attributable to increased marketing, advertising, selling and related staff costs targeted directly at building a global consumer brand and launching our exceptional products – areas that we believe will fuel our growth moving forward. We continue to focus on our favorable operating leverage.
"During the first quarter of 2019 we also added another highly anticipated product category that bodes well for future growth: our revolutionary bullet-proof line of protective eye goggles."
Founder and Chairman, Dr. Christopher Leatt, added, "Leatt continues to pioneer the design and development of innovative products that mesh science and performance to provide bio-medically proven safety for athletes in extreme sports, as well as amateur riders. A prime example is our new award winning 3.5 neck brace, which utilizes advanced manufacturing techniques that combine an in-molded EPS and a polyamide core, to bring yet another revolutionary product to riders at an attractive price point."
Financial Summary
Total revenues for the three-month period ended December 31, 2018 increased to $5.5 million, up 3%, compared to $5.4 million for the 2017 fourth quarter.
For the year ended December 31, 2018, revenues increased by $4.3 million, or 21%, to $24.4 million, up from $20.1 million for the twelve months ended December 31, 2017. The increase for 2018 was driven by an 18% increase in Body armor sales, a 58% increase in helmet sales, an 18% increase in other product and accessories sales, and a 12% increase in Neck brace sales. Price fluctuations did not impact revenues as selling prices have not fluctuated by any significant level.
For the 2018 fourth quarter, gross profit was $2.5 million, or 45% of revenues, compared to $2.2 million, or 42% of revenues, for the 2017 fourth quarter. For the twelve months ended December 31, 2018, gross profit was $11.6 million, or 47% of revenues, up 22%, compared to $9.5 million, or 47% gross margin, for 2017.
Fourth quarter loss from operations was $(128,000), down from $(283,000) for 2017. For the twelve months ended December 31, 2018, income from operations was $1.5 million, compared to $226,000 for 2017.
Net loss for the three months ended December 31, 2018 was $(864), or $(0.00) per basic and diluted share, compared to $(107,000) or $(0.02) per basic and diluted share, during the three months ended December 31, 2017. Net income for the twelve months ended December 31, 2018 increased 404% to $1.2 million, or $0.22 per basic and diluted share, compared to $237,000, or $0.04 per basic and per diluted share, for 2017. The increase in net income for the twelve months ended December 31, 2018 was driven by a 21% increase in revenues.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At December 31, 2018, the Company had cash and cash equivalents of $1.7 million, a current ratio of 3.02:1, and there was no long-term debt.
Business Outlook
Mr. Macdonald said, "We believe that the momentum that we are now building will continue throughout 2019 and beyond. Most importantly, our customers around the world continue to enthusiastically support our existing and new 2019 product lines through their ongoing orders. In addition, our stable of exceptional award-winning products has increased substantially in the last year, as we continue to strive to make our premium revolutionary technology, which represent value at attractive price points, available to more riders globally. We plan to build on our strategy of targeted and focused product launches, building our global consumer brand and expanding our presence in new markets domestically and abroad.
"We are also very optimistic about our launch into our revolutionary goggle range. Our development of this new line not only represents the opportunity to protect another key area of a rider's anatomy —the eyes—but is also a core branding tool with the prominent positioning of our branded goggle straps on the helmet. We are incredibly excited to be bringing a cutting edge, optically optimized goggle to the global market, and our initial orders indicates that our business partners share our enthusiasm."
