[LANGER LOGO 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
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LANGER, INC. REPORTS RESULTS FOR
THREE-MONTHS ENDED MARCH 31, 2004;
conference call scheduled for May 18, 2004
Deer Park, New York - May 17, 2004- Langer, Inc. (NASDAQ:GAIT) today
reported a net loss for the three-month period ended March 31, 2004 of
($219,092) or ($.05) per fully diluted share, as compared to a net loss for the
three-month period ended March 31, 2003 of ($258,081) or ($.06) per fully
diluted share.
Net sales for the three months ended March 31, 2004 of $5,764,000 were
approximately 3% above net sales of $5,585,000 for the comparable period in
2003.
Net sales of custom orthotics approximated $4,635,000 for the three
months ended March 31, 2004 as compared to $4,201,000 for the comparable prior
year period, an increase of approximately 10%. The primary reasons for the
increase in revenue during the 2004 quarter was a price increase put into effect
during the first quarter for orthotic products, and the strong performance of
the Bi-Op Laboratories clinic.
Net sales of distributed products for the quarter ended March 31, 2004
were approximately $1,129,000 as compared to approximately $1,384,000 for the
quarter ended March 31, 2003, a decrease of approximately 18%. The primary
reasons for the decrease in sales revenue were a 10% price reduction within the
therapeutic shoe program that was designed to enable the Company to become more
competitive in the marketplace and the elimination of a direct-to-consumer
therapeutic shoe product line.
Gross profit as a percentage of net sales for the three months ended
March 31, 2004 was 34.2%, as compared to 32.1% for the three months ended March
31, 2003. Gross profit as a
percentage of net sales increased due primarily to the price increase in
orthotic products, partially offset by the sales price reduction in the
therapeutic shoe program discussed above.
Selling expenses for the three months ended March 31, 2004, were
approximately $808,000 or 14% of net sales as compared to approximately $712,000
or 13% of net sales for the three months ended March 31, 2003. Selling expenses
as a percentage of net sales increased primarily as a result of marketing
initiatives in the first quarter of the 2004 year, which included the
introduction of new scanner technology at several industry shows during the
March 2004 quarter and the final consolidation of Benefoot products into the
Langer line.
General and administrative expenses for the three months ended March
31, 2004 were approximately $1,174,000 or 20% of net sales for the three months
ended March 31, 2004 as compared to approximately $1,069,000 or 19% of net sales
for the three months ended March 31, 2003. General and administrative expenses
increased primarily as a result of costs associated with the continued
strengthening of the Company's infrastructure and increases in professional fees
and insurance costs.
Andrew H. Meyers, Langer's President and Chief Executive Officer, said,
"We are satisfied with the sales growth and corresponding gross profit
enhancement given the two pricing initiatives put into place during the first
quarter, which is typically our slowest quarter of the year."
Regarding the strategies and 2004 business plan, Mr. Meyers added, "We
feel that we have put sales initiatives and pricing programs in place and are
focusing on improving profitability within the organization."
Langer will be hosting a conference call on May 18, 2004, at 10 AM
(EDT) to discuss the results for the three-month period ended March 31, 2004.
The conference call will be in a 'listen only' mode. There are two ways to
participate in the conference call--via conference call or webcast. Callers in
the United States and Canada may dial in at 1-800-500-3792. Callers should dial
in five to ten minutes before the scheduled start time and reference the pass
code of 743925. You may also 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 2
pm on May 18 by accessing the Langer homepage or typing the following
information into your web browser:
http://www.firstcallevents.com/service/ajwz406858232gf12.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
(UNAUDITED)
THREE MONTHS ENDED MARCH 31,
2004 2003
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Net sales $ 5,763,936 $ 5,585,178
Cost of sales 3,790,586 3,789,821
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Gross profit 1,973,350 1,795,357
Selling expenses 807,689
General and administrative expenses 1,174,134 1,069,253
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Operating (loss) income (8,473) 13,971
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Other income (expense):
Interest income 44,347 46,295
Interest expense (204,966) (214,489)
Other -- (59,258)
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Other expense, net (160,619) (227,452)
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Loss before income taxes (169,092) (213,481)
Provision for income taxes 50,000 44,600
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Net loss $ (219,092) $ (258,081)
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Weighted average number of common shares used
in computation of net income loss per share:
Basic 4,380,422 4,362,907
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Diluted 4,380,422 4,362,907
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Net loss per common share:
Basic $ (.05) $ (.06)
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Diluted $ (.05) $ (.06)
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