Leatt Corp Announces Results for Fourth Quarter and Full Year 2023
Full Year and Fourth Quarter 2023 and Recent Highlights
- Revenues for 2023 were
$47.24 million , down 38%, compared to 2022. - Net income for 2023 was
$803,159 , down 92%, compared to 2022. - Fourth quarter 2023 revenues were
$9.80 million , down 10% compared to 2022. - Cash and cash equivalents for 2023 increased 60% to
$11.35 million , compared to$7.10 million in 2022. - Cash flow from operations increased 116% to
$6.66 million , compared to$3.09 million in 2022. - Winner of 2024 Design & Innovation Award for
MTB All Mountain 5.0 Jersey andMTB All Mountain 4.0 Pants - Launched new line of Adventure Gear (ADV) for motorcycle riders at EICMA,
Milan
Chief Executive Officer,
"Global revenues for 2023 were
"Revenues for the fourth quarter of 2023 were
"This year we efficiently managed industry headwinds and the impact of sustained inflationary pressure. We kept spending under control, increased our margins and re-enforced our sales and marketing team. We also launched an entirely new line of Adventure (ADV) gear designed for all-weather and all-terrain conditions, representing a new milestone for Leatt and moving us into a significant crossover market that includes a wide community of riders globally.
Founder and Chairman, Dr.
Financial Summary
Total revenues for the fourth quarter of 2023 were
Net loss for the fourth quarter of 2023 was
Total revenues for the full year 2023 were
Net Income for the full year 2023 was
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At
Business Outlook
We believe that the fourth quarter of 2023 marks the beginning of a potential recovery period. Although revenues decreased by 10% during the quarter, we saw revenue growth in emerging market areas in
"We are also excited about ADV, our new Adventure line of motorcycle products, which represents a solid growth opportunity with a large total addressable market (TAM). It is our first ever entrance into the much wider global crossover motorcycle market, with products designed for a diverse community of riders around the world. We have developed core competencies that create significant opportunities to build new, innovative 'head-to-toe' offerings.
"Although we do still expect some headwinds in certain areas as industry consolidation continues in the short term, we are incredibly enthusiastic about the future of Leatt. We have a strong portfolio of innovative products in the market and in our development pipeline, a multi-channel sales organization that is growing and developing, and a robust balance sheet position to fuel brand and revenue growth."
Conference Call
The Company will host a conference call at
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-877-407-9716 (
Audio Webcast
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.
Replay
An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (
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
Driven by the science of thrill,
For more information, visit www.leatt.com.
Follow Leatt® on Facebook, Twitter, and Instagram.
Forward-looking Statements
This press release may contain forward-looking statements regarding
[FINANCIAL TABLES TO FOLLOW]
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CONSOLIDATED BALANCE SHEETS |
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ASSETS |
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Audited |
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Audited |
Current Assets |
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Cash and cash equivalents |
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$ 11,347,420 |
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$ 7,102,945 |
Accounts receivable, net |
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6,970,322 |
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12,839,597 |
Inventory, net |
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20,391,873 |
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22,805,462 |
Payments in advance |
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664,754 |
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1,047,137 |
Deferred asset, net |
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9,601 |
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1,016,815 |
Income tax refunds receivable |
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623,081 |
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- |
Prepaid expenses and other current assets |
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2,297,934 |
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2,878,112 |
Total current assets |
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42,304,985 |
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47,690,068 |
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Property and equipment, net |
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4,026,821 |
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3,104,336 |
Operating lease right-of-use assets, net |
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845,209 |
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1,092,170 |
Accounts receivable, net |
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309,947 |
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- |
Deferred tax asset, net |
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84,200 |
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- |
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Other Assets |
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Deposits |
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36,210 |
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40,796 |
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Total Assets |
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$ 47,607,372 |
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$ 51,927,370 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities |
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Accounts payable and accrued expenses |
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$ 5,202,368 |
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$ 6,011,390 |
Notes payable, current |
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112,858 |
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108,398 |
Operating lease liabilities, current |
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299,432 |
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280,743 |
Deferred compensation, current |
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- |
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400,000 |
Income taxes payable |
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- |
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3,382,700 |
Short term loan, net of finance charges |
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1,135,761 |
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1,030,196 |
Total current liabilities |
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6,750,419 |
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11,213,427 |
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Notes payable, net of current portion |
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30,652 |
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141,967 |
Operating lease liabilities, net of current portion |
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545,777 |
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811,427 |
Deferred tax liability, net |
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- |
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66,200 |
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Commitments and contingencies |
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Preferred stock, |
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authorized, 120,000 shares issued and outstanding |
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3,000 |
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3,000 |
Common stock, |
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authorized, 6,215,440 and 5,971,340 shares issued |
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and outstanding |
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130,553 |
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130,309 |
Additional paid - in capital |
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10,745,384 |
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10,645,497 |
Accumulated other comprehensive loss |
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(1,398,258) |
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(1,081,143) |
Retained earnings |
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30,799,845 |
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29,996,686 |
Total stockholders' equity |
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40,280,524 |
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39,694,349 |
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Total Liabilities and Stockholders' Equity |
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$ 47,607,372 |
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$ 51,927,370 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
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FOR THE YEARS ENDED |
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2023 |
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2022 |
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Revenues |
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$ 47,241,187 |
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$ 76,335,539 |
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Cost of Revenues |
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27,435,115 |
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45,202,712 |
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Gross Profit |
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19,806,072 |
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31,132,827 |
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Product Royalty Income |
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93,696 |
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240,044 |
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Operating Expenses |
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Salaries and wages |
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5,443,685 |
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6,148,179 |
Commissions and consulting expenses |
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434,657 |
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563,689 |
Professional fees |
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748,608 |
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586,474 |
Advertising and marketing |
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4,127,798 |
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3,342,791 |
Office lease and expenses |
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596,862 |
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689,068 |
Research and development costs |
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2,526,550 |
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2,179,996 |
Bad debt expense (recovery) |
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(10,288) |
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474,019 |
General and administrative expenses |
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3,438,746 |
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3,273,346 |
Depreciation |
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1,174,664 |
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1,098,433 |
Total operating expenses |
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18,481,282 |
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18,355,995 |
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Income from Operations |
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1,418,486 |
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13,016,876 |
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Other Expenses |
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Interest and other expenses, net |
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(39,138) |
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(13,550) |
Total other expenses |
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(39,138) |
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(13,550) |
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Income Before Income Taxes |
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1,379,348 |
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13,003,326 |
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Income Taxes |
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576,189 |
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3,042,873 |
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Net Income Available to Common Shareholders |
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$ 803,159 |
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$ 9,960,453 |
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Net Income per Common Share |
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Basic |
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$ 0.13 |
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$ 1.71 |
Diluted |
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$ 0.13 |
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$ 1.62 |
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Weighted Average Number of Common Shares Outstanding |
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Basic |
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5,992,072 |
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5,821,119 |
Diluted |
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6,287,849 |
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6,136,781 |
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Comprehensive Income |
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Net Income |
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$ 803,159 |
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$ 9,960,453 |
Other comprehensive income, net of ( |
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deferred income taxes in 2023 and 2022 |
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Foreign currency translation |
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(317,115) |
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(301,875) |
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Total Comprehensive Income |
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$ 486,044 |
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$ 9,658,578 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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FOR THE YEARS ENDED |
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2023 |
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2022 |
Cash flows from operating activities |
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Net income |
$ 803,159 |
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Adjustments to reconcile net income to net cash provided by |
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operating activities: |
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Depreciation |
1,174,664 |
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1,098,433 |
Deferred income taxes |
(150,400) |
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(162,400) |
Stock-based compensation |
100,131 |
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1,158,997 |
Bad debts reserve |
(54,080) |
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452,037 |
Inventory reserve |
122,456 |
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(11,111) |
Deferred asset allowance |
(98,671) |
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105,071 |
Gain on sale of property and equipment |
(2,817) |
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(23,006) |
(Increase) decrease in: |
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Accounts receivable |
5,923,355 |
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(630,698) |
Deferred asset |
1,105,885 |
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(1,121,886) |
Inventory |
2,291,133 |
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(1,712,870) |
Payments in advance |
382,383 |
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563,503 |
Prepaid expenses and other current assets |
580,178 |
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1,300,315 |
Income tax refunds receivable |
(623,081) |
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- |
Long-term accounts receivable |
(309,947) |
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- |
Deposits |
4,586 |
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(7,457) |
Increase (decrease) in: |
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Accounts payable and accrued expenses |
(809,022) |
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(8,606,281) |
Income taxes payable |
(3,382,700) |
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643,882 |
Deferred compensation |
(400,000) |
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80,000 |
Net cash provided by operating activities |
6,657,212 |
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3,086,982 |
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Cash flows from investing activities |
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Capital expenditures |
(1,999,500) |
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(1,144,173) |
Proceeds from sale of property and equipment |
3,248 |
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43,469 |
(Increase) decrease in short-term investments, net |
- |
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58,262 |
Net cash used in investing activities |
(1,996,252) |
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(1,042,442) |
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Cash flows from financing activities |
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Issuance of common stock |
- |
|
255,800 |
Proceeds from note payable |
- |
|
58,075 |
Repayment of notes payable to bank |
(106,855) |
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(80,229) |
Proceeds from short-term loan, net |
105,565 |
|
55,171 |
Net cash provided by (used in) financing activities |
(1,290) |
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288,817 |
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Effect of exchange rates on cash and cash equivalents |
(415,195) |
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(252,848) |
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Net increase in cash and cash equivalents |
4,244,475 |
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2,080,509 |
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Cash and cash equivalents - beginning of period |
7,102,945 |
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5,022,436 |
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Cash and cash equivalents - end of period |
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
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Cash paid for interest |
$ 71,354 |
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$ 58,825 |
Cash paid for income taxes |
$ 4,534,605 |
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Other noncash investing and financing activities |
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Common stock issued for services |
$ 100,131 |
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