[GRAPHIC OMITTED]
CONTACT: Susan Lorenzo
Director of Communications
(631) 667-1200, ext. 124
Joseph P. Ciavarella
Vice President and
Chief Financial Officer
(631) 667-1200, ext. 233
FOR IMMEDIATE RELEASE
LANGER, INC. REPORTS RECORD REVENUE FOR THE YEAR ENDED
DECEMBER 31, 2003;
CONFERENCE CALL SCHEDULED FOR MARCH 31, 2004
Deer Park, New York - March 30, 2004 - Langer, Inc. (NASDAQ:GAIT) today
reported a net loss for the year ended December 31, 2003 of $(5,471) or $(.00)
per share as compared to $(1,105,657) or $(.26) per share in 2002.
Net sales for the year ended December 31, 2003 were $24,720,515 or 32%
above net sales of $18,676,503 for the year ended December 31, 2002.
Net sales of custom orthotic products for the year ended December 31, 2003
were $19,115,633 or 30% above the net sales of custom orthotic products of
$14,668,572 for the year ended December 31, 2002. Net sales of custom orthotic
products for the 2003 year included approximately $1,624,000 of net sales
resulting from the acquisition of Bi-Op Laboratories, Inc. (Bi-Op) in January
2003. Net sales of custom orthotic products for the year ended December 31,
2003, exclusive of net sales attributable to the Bi-Op acquisition, increased
approximately $2,823,000 or 19% as compared to the year ended December 31, 2002.
Approximately $2 million of the increase is attributable to organic year over
year growth with the balance attributable to the full year effect of Benefoot
which was acquired in May 2002.
Net sales of distributed products for the year ended December 31, 2003 were
$5,604,882 as compared to $4,007,931 for the year ended December 31, 2002. The
primary reason for the increase is the full year effect of the Benefoot
acquisition.
Andrew H. Meyers, Langer's President and Chief Executive Officer, said "We
are pleased with the continued improvements in net sales across both product
lines. This growth reinforces Langer's commitment to seeking to become a
comprehensive resource for practitioners providing lower extremity care."
Overall cost of sales were generally consistent with the increase in sales
with gross profit decreasing slightly from 35.9% to 35.1% for the year ended
December 31, 2003.
Selling expenses as a percentage of sales for the year ended December 31,
2003 decreased to 12.6% as compared to 16.9% for the year ended December 31,
2002.
General and administrative costs as a percentage of sales for the year
ended December 31, 2003 improved to 19.3% as compared to 20.7% for the year
ended December 31, 2002.
Working capital at December 31, 2003 was approximately $7,434,000 as
compared to approximately $10,569,000 at December 31, 2002. Cash and cash
equivalents at December 31, 2003 approximated $5,534,000 as compared to
approximately $9,412,000 at December 31, 2002. The decrease in cash is primarily
attributable to payments made in connection with the acquisitions of Benefoot
and Bi-Op, as well as investment in infrastructure, primarily the installation
and implementation of a new information technology system.
Mr. Meyers further stated "I am pleased by the decrease, as a percentage of
net sales, in selling, general and administrative costs in 2003 from 2002 as we
more effectively leveraged our management team over a larger organization. We
are grateful that our efforts to grow revenue and operating income have yielded
positive results."
In reviewing acquisitions completed in 2002 and 2003, Mr. Meyers stated
"The acquisitions of Benefoot and Bi-Op helped create synergies, introduce new
products, and expand our customer base for lower extremity products. Through the
Benefoot acquisition, Langer became the exclusive domestic provider of custom
Birkenstock(R) sandals and clogs as well as one of the largest providers of
therapeutic footwear to podiatrists. The Bi-Op acquisition will allow us to
better service our Canadian customers which make up approximately 15% of the
Company's overall revenue."
Langer will be hosting a conference call on March 31, 2004, at 10:00 am
(EST) to discuss the year end results. There are two ways to participate in the
conference call--via conference call or webcast. Domestic callers may dial in at
1-800-478-6251. Callers should dial in five to ten minutes before the scheduled
start time and reference the confirmation code of 411042. Access the webcast by
visiting Langer, Inc.'s website (http://www.langerinc.com). You may listen by
clicking on the microphone.
An archived copy of the call will be available to replay beginning at 2pm
on March 31 by accessing the Langer homepage or typing the following information
into your web browser:
http://www.firstcallevents.com/service/ajwz402854338gf12.html .
Langer, Inc., based in Deer Park, Long Island, New York, with additional
fabricating facilities in Brea, California, Montreal, Canada and Stoke-On-Trent,
UK, and a sales office in Toronto, Canada, is a leading provider of high quality
orthotics and gait-related products sold to practitioners treating
musculo-skeletal disorders.
Statements in this press release may be "forward-looking statements." These
statements can be identified by the use of forward-looking terminology such as
"believes," "expects," "plans," "intends," "estimates," "projects," "could,"
"may," "will," "should", or "anticipates" or the negative thereof, other
variations thereon or comparable terminology, or by discussions of strategy. No
assurance can be given that future results covered by the forward-looking
statements will be achieved. Such forward-looking statements include, but are
not limited to, those relating to the Company's financial and operating
prospects, future opportunities, the Company's acquisition strategy and ability
to integrate acquired companies and assets, outlook of customers, and reception
of new products, technologies, and pricing. In addition, such forward looking
statements involve known and unknown risks, uncertainties, and other factors
including those described from time to time in the Company's Registration
Statement on Form S-3, most recent Form 10-K and 10-Q's and other Company
filings with the Securities and Exchange Commission which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results expressed or implied by such forward-looking statements.
Also, the Company's business could be materially adversely affected and the
trading price of the Company's common stock could decline if any such risks and
uncertainties develop into actual events. The Company undertakes no obligation
to make any revisions to the forward-looking statements contained in this
release or to update them to reflect events or circumstances occurring after the
date of this release.
###
LANGER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
TEN MONTHS
YEAR ENDED YEAR ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2002 2001
------------ ------------ ------------
Net sales $ 24,720,515 $ 18,676,503 $ 10,936,112
Cost of sales 16,049,790 11,962,104 6,934,402
------------ ------------ ------------
Gross profit 8,670,725 6,714,399 4,001,710
General and administrative expenses 4,775,142 3,867,882 2,425,177
Selling expenses 3,131,197 3,151,205 1,294,991
Research and development expenses -- 164,872 142,192
------------ ------------ ------------
Operating income (loss) 764,386 (469,560) 139,350
------------ ------------ ------------
Other income (expense):
Interest income 157,522 214,481 86,635
Interest expense (836,273) (829,498) (138,846)
Other 75,798 86,214 (13,742)
------------ ------------ ------------
Other expense, net (602,953) (528,803) (65,953)
------------ ------------ ------------
Income (loss) before income taxes 161,433 (998,363) 73,397
Provision for income taxes 166,904 107,294 3,118
------------ ------------ ------------
Net (loss) income $ (5,471) $ (1,105,657) $ 70,279
============ ============ ============
Weighted average number of common shares used in computation of net (loss)
income per share:
Basic 4,374,396 4,245,711 3,860,167
============ ============ ============
Diluted 4,374,396 4,245,711 4,306,536
============ ============ ============
Net (loss) income per common share:
Basic $ (.00) $ (.26) $ .02
============ ============ ============
Diluted $ (.00) $ (.26) $ .02
============ ============ ============
LANGER, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
2003 2002 2001
------------ ------------ ------------
(unaudited)
(pro forma)
Net sales $ 24,720,515 $ 18,676,503 $ 12,782,366
Cost of sales 16,049,790 11,962,104 8,503,020
------------ ------------ ------------
Gross profit 8,670,725 6,714,399 4,279,346
General and administrative expenses 4,775,142 3,867,882 2,768,134
Selling expenses 3,131,197 3,151,205 1,623,259
Research and development expenses -- 164,872 182,497
Change in control and restructuring expenses -- -- 795,667
------------ ------------ ------------
Income (loss) from operations 764,386 (469,560) (1,090,211)
------------ ------------ ------------
Other income (expense):
Interest income 157,522 214,481 86,614
Interest expense (836,273) (829,498) (143,394)
Other 75,798 86,214 (11,669)
------------ ------------ ------------
Other expense, net (602,953) (528,803) (68,449)
------------ ------------ ------------
Income (loss) before income taxes 161,433 (998,363) (1,158,660)
Provision for income taxes 166,904 107,294 3,118
------------ ------------ ------------
Net loss $ (5,471) $ (1,105,657) $ (1,161,778)
============ ============ ============
Weighted average number of common shares used in Computation of net loss per
share:
Basic 4,374,396 4,245,711 3,668,924
============ ============ ============
Diluted 4,374,396 4,245,711 3,668,924
============ ============ ============
Net loss per common share:
Basic $ (.00) $ (.26) $ (.32)
============ ============ ============
Diluted $ (.00) $ (.26) $ (.32)
============ ============ ============