Leatt : Announces Results for Second Quarter 2022 - Form 8-K
08/11/2022 | 08:07am EDT
Leatt Corp Announces Results for Second Quarter 2022
Year-to-date revenues increase 55%;
Year-to-date net income increases 55%;
Year-to-date EPS increases to $1.20
CAPE TOWN, South Africa, (August 11, 2022) - Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, today announced financial results for the second quarter ending June 30, 2022. All financial numbers are in U.S. dollars.
Second Quarter 2022 Highlights
•Global revenues of $17.9 million, up 25%, compared to second quarter 2021
•Income from operations of $3.7 million, up 18%, compared to second quarter 2021
•Net income of $2.7 million, up 13%, compared to second quarter 2021
•Earnings per basic share of $0.47 up 7%, compared to second quarter 2021
•Solid investment in sales and distribution capacity globally to fuel growth
Chief Executive Officer, Sean Macdonald commented: "The 2022 second quarter was our 17th consecutive quarter of year-over-year revenue growth with results that continue to demonstrate our ability to grow revenue, gain sales traction in important product categories and build Leatt as a global consumer brand recognized for innovation and exhilaration.
"Global revenues for the first six months of 2022 were $42.2 million, up 55%, compared to $27.2 million for the same period last year. Net income for the first six months was $6.9 million, up 55%, compared to $4.5 million for the comparative period and earnings per basic share increased to $1.20 as compared to $0.82 for the first six months of 2021.
"We continue to achieve double-digit revenue growth in all of our expanding product categories, with the exception of neck braces, our most established category, where sales decreased compared to a very strong second quarter of 2021. Apparel, helmet and off-road motorcycle boot sales have been particularly strong, energizing our entire team and our international distribution network. We continue to build out a global team of sales and brand managers who are focused on specific regional market dynamics and support for our distribution partners and dealer networks.
"Although port congestion created some restocking issues for our dealers that ulitmately resulted in a contraction in domestic sales during the second quarter and first six months of 2022, international revenues for the second quarter of 2022 were $13.9 million, up 45% over the same period last year. We have experienced an easing in these delays as we continue to drive consumer demand to stores with coordinated marketing campaigns and remain committed to investing heavily in our U.S. sales and distribution capacity to reach a wider group of MOTO and MTB dealers around the country."
Founder and Chairman Dr. Christopher Leatt remarked: "We continue to develop an exciting pipeline of innovative and consumer-centric products that are well-differentiated and rigorously tested by our team of dedicated product developers, engineers and passionate family of professional riders and athletes."
Total revenues for the second quarter of 2022 increased to $17.9 million, up 25%, compared to $14.3 million for the second quarter of 2021.
The increase was driven by a 11% increase in body armor sales, a 132% increase in helmet sales, and a 51% increase in other products, parts and accessories, that were partially offset by a 17% decrease in neck brace sales
Income from operations for the second quarter of 2022 increased to $3.7 million, up 18%, compared to $3.1 million for the second quarter of 2021.
Net income for the second quarter of 2022 increased to $ 2.7 million, or $0.47 per basic and $0.44 per diluted share, up 13%, compared to $2.4 million, or $0.44 per basic and $0.39 per diluted share, for the second quarter of 2021.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At June 30, 2022, the Company had cash and cash equivalents of $4.95 million and a current ratio of 3.8:1.
Mr. Macdonald added: "We are making strong progress and are very aware of the potential economic headwinds that the current environment may reveal, but we remain enthusiastic about our ability to gain traction. Many of our new categories that have launched extremely well are still in their infancy in terms of market share and their potential to meet the needs of all levels of riders worldwide.
"Our MTB and MOTO customers around the world have remained enthusiastic about the Leatt brand and our 'head-to-toe' offerings of exceptional protective gear over the last several quarters, and we expect that the global trend of consumer participation in outdoor riding activities will continue.
"Our team remains focused on our strong ability to invest in areas that fuel growth, control costs and operate efficiently in the midst of a widespread, global inflationary environment. We continue to monitor customer stocking, consumer buying patterns and worldwide economic and geo-political risks closely and are committed to building Leatt on a sustainable basis that creates lasting, on-going shareholder value."
The Company will host a conference call at 10:00 am ET on Thursday, August 11, 2022, to discuss the second quarter 2022 results.
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-877-407-9716 (U.S.A) or +1-201-493-6779 (international) to access the call.
There will also be a simultaneous live webcast through the Company's website, www.leatt-corp.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.
An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (U.S.A) or +1-412-317-6671 (international) and using passcode 13731945.
For those unable to attend the call, a recording of the live webcast will be archived shortly following the event for 30 days on the Company's website.
About Leatt Corp
Leatt Corporation develops personal protective equipment and ancillary products for all forms of sports, especially extreme motorsports. The Leatt-Brace® is an award-winning neck brace system considered the gold standard for neck protection for anyone wearing a crash helmet as a form of protection. It was designed for participants in extreme sports or riding motorcycles, bicycles, mountain bicycles, all-terrain vehicles, snowmobiles and other vehicles. For more information, visit www.leatt.com.
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This press release may contain forward-looking statements regarding Leatt Corporation (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the likelihood that the Company's momentum of record-breaking revenue growth will continue; the ability of the Company to continue to maintain its innovative and cutting edge pipeline of branded products or to financially benefit from its sales and marketing efforts; the ability of the Company's global supply chain to withstand any adverse impact on global supply chains and to meet customer demand; the financial outlook of the Company; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.
Leatt Corporation published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 12:06:08 UTC.