Securities and Exchange Commission
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 28, 2003
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Lakeland Industries, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-15535 13-3115216
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(State or other jurisdiction (Commission (IRS Employer of
incorporation) File Number) Identification No.)
711-2 Koehler Avenue, Ronkonkoma, NY 11779-7410
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(Address of principal executive offices)
Registrant's telephone number, including area code (631) 981-9700
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(Former name or former address, if changed since last report.)
Item 12. Regulation FD disclosure
The following information is being provided under item 12 of
Regulation 8-K, "Results of Operations and Financial Condition."
Attached as an exhibit is an earnings release for the Company's 2003
fiscal year.
(c) Exhibits:
(0)Number Description
1.99.1 Press and Earnings Release dated April 28, 2003.
Company Press Release
Source Lakeland Industries, Inc.
Lakeland Reports Positive Earnings Comparisons for the 12 and 3 Months Ended
January 31, 2003
Q4 Net Sales of $19.7 Million - Down 1% Over Q4'02 of $19.9 Million
Q4 Net Income of $653,000 - Up 78% Over Q4'02 of $367,000
Q4 Basic Earnings Per Share of $.22 - Up 83% Over Q4'02 of $.12 a share adjusted
for the 10% stock dividend issued 7/31/02
Twelve Month Net Sales of $77.8 Million - Up 1.8% Over '02 of $76.4 Million
Twelve Month Net Income of $2.6 Million - Up $634,500 Over '02 of $1.97 Million
Twelve Month Basic Earnings Per Share of $.88 - Up 31% Over '02 of $.67 a share
adjusted for the 10% stock dividend issued 7/31/02
RONKONKOMA, NY, April 28, 2003 - Lakeland Industries, Inc. (National NASDAQ
Symbol: LAKE), a leading manufacturer of industrial protective apparel, today
reported record earnings for its year ended January 31, 2003.
Lakeland's net income for the three months ended January 31, 2003, increased to
$653,000 from $367,000 for the three months of fiscal 2002 - up 83%. As for the
net income per diluted share, Lakeland reported $.22 versus $.12 for the same
period last ear - or an increase of 83%.
Lakeland's net income for the twelve months ended January 31, 2003, increased to
$2,604,058 from $1,969,536 for the twelve months of 2002 - up 32.2%. As for net
income per diluted share, Lakeland reported $.88 for the twelve months ended
January 31, 2003 - up 31.3% from $.67 for the twelve months of 2002.
Year-to-date net sales have increased 1.82% from $76.43 million in 2002 to
$77.83 million in 2003 despite severe recessionary conditions in the Company's
industrial client base.
At January 31, 2003, Lakeland's balance sheet included total assets of $42.8
million, working capital of $17.9 million, total current liabilities of $20.9
million and stockholders' equity of $21.4 million or $7.19 per share of book
value. Thus, based upon 1/31/03 year end earnings and a stock price of $7.92 the
Company's stock trades at a trailing P/E ratio of 9, a PSR ratio of 0.30, and
price to book ratio of 1.18.
Both an increase in prices starting April 2002, the lowering of interest rates
and a decrease in labor and overhead costs have positively impacted earnings for
the year ended January 31, 2003 as compared to the preceding twelve months ended
January 31, 2002.
Lakeland also announces that it plans to issue a 10% dividend in stock to
holders of record as at July 31 2003, and may continue such dividends on an
annual basis, subject to approval by the Company's Board of Directors. The
Company believes that these common stock dividends will increase the share float
and trading activity in the Company's common stock.
Sales of non-woven medical garments into the Chinese domestic markets have
increased dramatically due to the SARS epidemic there. Lakeland continues to
expand its manufacturing and sales facilities in China to respond to China's
entry into the World Trade Organization (WTO). The Company effectively completed
its 90,000 square foot expansion in Jiazhou City, PRC in April 2003. China's
membership in WTO requires it over the next 4 years to open up its domestic
markets to American made products, and additionally to the products made by
Lakeland's domestic Chinese subsidiaries, which have been operating in China
since 1996. The expansion should also facilitate sales into neighboring Asian
countries such as Japan, Korea, and Taiwan.
As stated in previous news releases (copies of which can be obtained from the
Company) the Federal Government has, under the Fire Act, passed and allocated
$360 Million in grants primarily to local municipal fire departments to purchase
equipment to respond to acts of terrorism. These monies were appropriated and
funded in November 2001, however, checks were not released by FEMA to the fire
departments until late 2002 and early 2003. Lakeland's high end protective
suits, and its complete line of fire protective clothing, are among the personal
protective equipment (PPE) earmarked by this legislation as permitted purchases
by fire departments under this $360 million dollar grant program. Funding for
this FEMA program will double this year to $750 Million for calendar 2003 and
the monies should be disbursed by September 2003.
See www.lakeland.com for pictures of Lakeland's High End Protective Body Suits
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and Fire Protective Apparel. See also USFAGRANTS@FEMA.GOV for more details
describing this year's grant program or http://cms.firehouse.com/ for more
information. -------------------------
Lakeland also anticipates that by mid 2004 monies to purchase Personal
Protective Equipment (PPE) will become available from the Biological Terrorism
Bill which was signed into law July 11, 2002. Present funding includes @ $337
Million for Bio-Defense Equipment and $770 Million to support "First Responders"
such as firefighters, police and medical personnel.
Lakeland is one of only two leading manufacturers in North America of personal
protective body suits for chemical and biological protection used by emergency
response teams, and demand for these products are presently quite brisk.
Governmental purchases (the timing of which is uncertain at present) will also
increase sales in the coming fiscal year, which also could increase earnings, as
higher end protective body suits made of DuPont's TyChem fabrics, in general
carry higher margins than its basic Tyvek line of protective suits. It is these
high-end suits that can provide protection from such toxic chemicals as cyanide,
saran, and mustard gas, anthrax and other biological toxins. Articles on
Lakeland's Protective Body Suits appeared in Time Magazine's October 8, 2001
issue, Forbes.com October 30, 2001 Magazine Article the Wall Street Journal's
October 15 2001 article on the "High Cost of Public Safety", and Long Island
Newsday's October 9, 2001 Article entitled, "Protective Gear Maker's Stock in
High Demand".
Lakeland also introduced this year its new line of Despro Gloves, which are
automatically weaved in such a way as to put more knit fabric where the heavy
wear on a glove is and less fabric where there is little wear. This can extend
the life of the glove and reduce its manufacturing costs measurably. Lakeland
received one patent on this process and has a second in application. Response to
this new innovation has been very strong.
Statements contained in this press release that are not historical facts are
forward-looking statements that are made pursuant to the safe harbor provisions
of the Private Securities and Litigation Reform Act of 1995. In addition, words
such as "could," "should," "may," "feels," "believes," "anticipates," "expects"
and similar expressions are intended to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties, including but not
limited to the timely development and acceptance of new products, the impact of
competitive products and pricing, changing market conditions, the successful
integration of acquisitions, continued availability and favorable pricing of raw
materials, and the other risks. Actual results may differ materially from those
projected. The company disclaims, however, any intent or obligation to update
these forward-looking statements
For further information on the Company see http/www.Lakeland.com - products in
Green or Financial Info in Black or contact:
Christopher J. Ryan or Raymond J. Smith
Lakeland Industries Inc.
Tel. # 631-981-9700 Fax # 631-981-9751
E-mail: annz@lakeland-ind.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LAKELAND INDUSTRIES, INC.
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(Registrant)
Date: April 28, 2003 By:/s/Raymond J. Smith
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Raymond J. Smith
President and
Chairman of the Board
Date: April 28, 2003 By:/s/Christopher J. Ryan
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Christopher J. Ryan
Executive Vice President -
General Counsel and
Secretary