Exhibit 99.1
Lakeland Reports Positive Sales Comparisons for the 3 Months Ended
April 30, 2004
RONKONKOMA, NY--(BUSINESS WIRE)--June 14, 2004--Lakeland
Industries, Inc. (National NASDAQ Symbol: LAKE)
-- 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.
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
----------- -----------
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
----------- -----------
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 3,273,925 shares 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
----------- -----------
Total stockholders' equity 26,452,305 25,026,970
----------- -----------
$51,347,545 $47,303,827
=========== ===========
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
----------- -----------
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)
----------- -----------
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
=========== ===========
Net income per common share*
Basic $0.44 $0.26
=========== ===========
Diluted $0.43 $0.26
=========== ===========
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
----------- -----------
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
=========== ===========
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
CONTACT: Lakeland Industries Inc.
Christopher J. Ryan, 631-981-9700
Fax: 631-981-9751
E-mail: chrisr@lakeland-ind.com