Company Press Release
Source Lakeland Industries, Inc.
Lakeland Reports Positive Sales Comparisons for the 3 Months Ended April 30,
2004
Q1'05 Net Sales of $26.8 Million - Up 12.6% Over Q1'04 of $23.8 Million
Q1'05 Basic and Diluted Earnings Per Share of $0.44 and $0.43, respectively - Up
69% Over Q1'04 of $0.26 per share.
RONKONKOMA, NY, June 14, 2004 - Lakeland Industries, Inc. (National NASDAQ
Symbol: LAKE), a leading manufacturer of industrial protective clothing for
Homeland Security and other industrial applications, today reported record sales
and earnings for its first quarter ended April 30, 2004.
Lakeland's net income for the three months ended April 30, 2004 increased to
$1.4 million from $0.9 million for the three months ended April 30, 2003, an
increase of 65%. Net income per basic and diluted share was $0.44 and $0.43 per
share respectively, for the three months ended April 30, 2004 versus $0.26 per
share for the three months ended April 30, 2003.
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS April 30, January 31,
2004 2004
(Unaudited)
Current assets:
Cash and cash equivalents .................................................. $ 2,773,608 $ 2,445,271
Accounts receivable, net of allowance for
doubtful accounts of $323,000 at April 30, 2004 and
at January 31, 2004 ...................................................... 14,026,362 12,570,320
Inventories ................................................................ 27,488,454 26,265,807
Deferred income taxes ...................................................... 790,272 790,272
Other current assets ....................................................... 1,094,870 1,213,104
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Total current assets .............................................. 46,173,566 43,284,774
Property and equipment, net of accumulated
depreciation of $4,636,000 at April 30, 2004
and $4,511,000 January 31, 2003 .......................................... 5,038,296 3,921,308
Other assets ............................................................... 135,683 97,745
----------- -----------
$51,347,545 $47,303,827
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ........................................................... $ 3,979,830 $ 3,461,353
Current portion of long-term liabilities ................................... -- 16,784,781
Accrued expenses and other current liabilities ............................. 1,958,213 1,263,044
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Total current liabilities ............................................. 5,938,043 21,509,178
Borrowing under revolving credit facility .................................. 16,910,211 0
Other long-term liabilities ................................................ 529,647 517,147
Deferred income taxes ...................................................... 250,532 250,532
Minority interest in Variable Interest Entities ............................ 1,266,807 --
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par; authorized
1,500,000 shares (none issued)
Common stock, $.01 par; authorized 10,000,000 shares; issued and outstanding
3,273,925shares at April 30, 2004
and at January 31, 2004 ............................................... 32,739 32,739
Additional paid-in capital ................................................. 11,862,461 11,862,461
Retained earnings .......................................................... 14,557,105 13,131,770
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Total stockholders' equity ............................................ 26,452,305 25,026,970
----------- -----------
$51,347,545 $47,303,827
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LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED
April 30,
2004 2003
---- ----
Net sales ................................................... $ 26,838,023 $ 23,824,886
Cost of goods sold .......................................... 20,858,591 19,729,070
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Gross profit ................................................ 5,979,432 4,095,816
Operating expenses .......................................... 3,586,720 2,623,162
------------ ------------
Operating profit ............................................ 2,392,712 1,472,654
Other income, net ........................................... 9,460 15,442
Interest expense ............................................ (137,141) (137,796)
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Income before income taxes .................................. 2,265,031 1,350,300
Provision for income taxes .................................. 721,000 486,000
------------ ------------
Income before minority interest ............................. 1,544,031 864,300
Minority interest in Net income of Variable Interest Entities 118,696 --
------------ ------------
Net Income .................................................. $ 1,425,335 $ 864,300
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Net income per common share*
Basic .............................................. $ 0.44 $ 0.26
============ ============
Diluted ............................................ $ 0.43 $ 0.26
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Weighted average common shares outstanding*
Basic .............................................. 3,273,925 3,266,997
============ ============
Diluted ............................................ 3,278,803 3,274,757
============ ============
*Adjusted for the 10% stock dividend to shareholders of record on July 31, 2003.
LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
April 30,
2004 2003
---- ----
Cash Flows from Operating Activities:
Net income ............................................. $ 1,425,335 $ 864,300
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Provision for bad debts ............................. -- (74,000)
Depreciation and amortization ....................... 231,455 207,777
Minority interest in Net income of
Variable Interest Entities .......................... 118,696
Decrease in accounts receivable ........................ (1,456,042) (2,855,924)
(Increase) decrease in inventories ..................... (1,222,647) 3,097,595
(Increase) decrease in other current assets ............ 176,552 (204,717)
(Increase) in other assets ............................. (37,798) (88,105)
Increase (decrease) in accounts payable, accrued
expenses and other liabilities ....................... 1,139,514 961,258
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Net cash provided by operating
activities ........................................... 375,065 1,908,184
----------- -----------
Cash Flows from Investing Activities:
Purchases of property and equipment .................... (153,417) (585,446)
----------- -----------
Net cash used in investing activities .................. (153,417) (585,446)
----------- -----------
Cash Flows from Financing Activities:
Proceeds from exercise of stock options ................ -- 9,750
Net borrowings (payments) under loan agreements ........ 106,689 (1,422,413)
----------- -----------
Net cash provided by (used in) financing activities .... 106,689 (1,412,663)
----------- -----------
Net increase (decrease) in cash ........................ 328,337 (89,925)
Cash and cash equivalents at beginning of period ....... 2,445,271 1,474,135
----------- -----------
Cash and cash equivalents at end of period ............. .$2,773,608 $ 1,384,210
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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 "estimates" "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 - See our
products in Green or Financial Info in Black or contact:
Christopher J. Ryan
Lakeland Industries Inc.
Tel. # 631-981-9700 Fax # 631-981-9751
E-mail: chrisr@lakeland-ind.com