Leatt Corp Announces Results for the First Quarter 2024
First Quarter 2024 and Recent Highlights
- Revenues for the first quarter were
$10.61 million , down 19%, compared to the first quarter of 2023. - Cash flows provided by operations for the first quarter were
$2.83 million . - Income (loss) from operations for the first quarter was
$(790,557) , down 157%, compared to the first quarter of 2023. - Cash and cash equivalents increased 19% to
$13.53 million , compared to$11.34 million atDecember 31, 2023 . - Winner of the 2024 Design & Innovation Award for
Jersey MTB All Mountain 5.0 andPants MTB All Mountain 4.0.
Chief Executive Officer,
"Total global revenues for the first quarter were
"We remain focused on our margins, which decreased in the first quarter, largely due to short-term promotional opportunities at the dealer direct level, particularly in
"Despite current industry-wide conditions, cash increased by
"Looking forward, we continue to build a multi-channel sales organization and look forward to some new distributor partnerships in the
Founder and Chairman Dr.
Financial Summary
Total revenues for the first quarter of 2024 were
The decrease in worldwide revenues is primarily attributable to a
Income (loss) from operations for the first quarter of 2024 was
Net income (loss) for the first quarter of 2024 was
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. Liquidity continued to improve as cash for the first quarter increased by
Business Outlook
"Domestic sales on our consumer-facing Leatt.com continue to be a highlight as we continue to refine the platform and sales surge. We successfully launched our direct-to-consumer store in
"We continue to build out a high-performing team of sales and other professionals around the world to improve our penetration and reach across sales channels. Industry-wide consolidation and turmoil has also presented opportunities for us to add new team members to the Leatt family.
"Our ADV line represents a solid revenue opportunity globally and demonstrates our ability to develop products that will reach a much wider consumer group around the world. While we have only shipped ADV apparel to date, we have developed the core competencies to create a strong pipeline of innovative 'head-to-toe' offerings in this segment that are very promising.
"In short, we remain very enthusiastic about the future of Leatt as a Company and a brand, and we remain confident that we will return to sustained growth and profitability."
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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Unaudited |
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Audited |
Current Assets |
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Cash and cash equivalents |
$ 13,531,642 |
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$ 11,347,420 |
Accounts receivable, net |
4,768,328 |
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6,970,322 |
Inventory, net |
17,069,387 |
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20,391,873 |
Payments in advance |
1,000,512 |
|
664,754 |
Deferred asset, net |
9,601 |
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9,601 |
Income tax refunds receivable |
526,441 |
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623,081 |
Prepaid expenses and other current assets |
2,236,990 |
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2,297,934 |
Total current assets |
39,142,901 |
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42,304,985 |
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Property and equipment, net |
3,743,534 |
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4,026,821 |
Operating lease right-of-use assets, net |
771,387 |
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845,209 |
Accounts receivable, net |
229,474 |
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309,947 |
Deferred tax asset, net |
84,200 |
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84,200 |
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Other Assets |
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Deposits |
37,284 |
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36,210 |
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Total Assets |
$ 44,008,780 |
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$ 47,607,372 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities |
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Accounts payable and accrued expenses |
$ 3,123,838 |
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$ 5,202,368 |
Notes payable, current |
98,190 |
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112,858 |
Operating lease liabilities, current |
288,917 |
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299,432 |
Short term loan, net of finance charges |
667,797 |
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1,135,761 |
Total current liabilities |
4,178,742 |
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6,750,419 |
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Notes payable, net of current portion |
17,523 |
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30,652 |
Operating lease liabilities, net of current portion |
482,470 |
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545,777 |
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Commitments and contingencies |
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Stockholders' Equity |
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Preferred stock, |
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authorized, 120,000 shares issued and outstanding |
3,000 |
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3,000 |
Common stock, |
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authorized, 6,215,440 and 6,215,440 shares issued |
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and outstanding |
130,553 |
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130,553 |
Additional paid - in capital |
10,749,136 |
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10,745,384 |
Accumulated other comprehensive loss |
(1,535,810) |
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(1,398,258) |
Retained earnings |
29,983,166 |
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30,799,845 |
Total stockholders' equity |
39,330,045 |
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40,280,524 |
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Total Liabilities and Stockholders' Equity |
$ 44,008,780 |
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$ 47,607,372 |
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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 (LOSS) |
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Three Months Ended |
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2024 |
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2023 |
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Unaudited |
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Unaudited |
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Revenues |
$ 10,614,470 |
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$ 13,079,343 |
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Cost of Revenues |
6,606,137 |
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7,306,573 |
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Gross Profit |
4,008,333 |
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5,772,770 |
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Product Royalty Income |
39,303 |
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13,136 |
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Operating Expenses |
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Salaries and wages |
1,568,271 |
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1,241,436 |
Commissions and consulting expenses |
124,216 |
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96,324 |
Professional fees |
298,971 |
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337,243 |
Advertising and marketing |
892,417 |
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841,094 |
Office lease and expenses |
151,554 |
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150,240 |
Research and development costs |
555,778 |
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584,991 |
Bad debt expense |
9,964 |
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49,395 |
General and administrative expenses |
942,888 |
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818,179 |
Depreciation |
294,134 |
|
279,810 |
Total operating expenses |
4,838,193 |
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4,398,712 |
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Income (Loss) from Operations |
(790,557) |
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1,387,194 |
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Other Expenses |
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Interest and other expenses, net |
(24,483) |
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(20,924) |
Total other expenses |
(24,483) |
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(20,924) |
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Income (Loss) Before Income Taxes |
(815,040) |
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1,366,270 |
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Income Taxes |
1,639 |
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343,049 |
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Net Income (Loss) Available to Common Shareholders |
$ (816,679) |
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$ 1,023,221 |
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Net Income (Loss) per Common Share |
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Basic |
$ (0.13) |
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$ 0.17 |
Diluted |
$ (0.13) |
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$ 0.16 |
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Weighted Average Number of Common Shares Outstanding |
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Basic |
6,215,440 |
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5,971,340 |
Diluted |
6,504,189 |
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6,279,677 |
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Comprehensive Income (Loss) |
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Net Income (Loss) |
$ (816,679) |
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$ 1,023,221 |
Other comprehensive income (loss), net of |
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income taxes in 2024 and 2023 |
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Foreign currency translation |
(137,552) |
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(273,749) |
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Total Comprehensive Income (Loss) |
$ (954,231) |
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$ 749,472 |
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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 THREE MONTHS ENDED |
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2024 |
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2023 |
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Cash flows from operating activities |
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Net income (loss) |
$ (816,679) |
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$ 1,023,221 |
Adjustments to reconcile net income (loss) to net cash provided by |
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operating activities: |
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Depreciation |
294,134 |
|
279,810 |
Stock-based compensation |
3,752 |
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- |
Bad debts reserve |
10,032 |
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41,284 |
Inventory reserve |
(34,730) |
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182,529 |
Deferred asset allowance |
- |
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(26,827) |
(Gain) loss on sale of property and equipment |
- |
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13 |
(Increase) decrease in: |
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Accounts receivable |
2,191,962 |
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3,269,306 |
Deferred asset |
- |
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802,763 |
Inventory |
3,357,216 |
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2,796,271 |
Payments in advance |
(335,758) |
|
32,012 |
Prepaid expenses and other current assets |
60,944 |
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(416,386) |
Income tax refunds receivable |
96,640 |
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- |
Long-term accounts receivable |
80,473 |
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- |
Deposits |
(1,074) |
|
492 |
Increase (decrease) in: |
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Accounts payable and accrued expenses |
(2,078,530) |
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(2,409,602) |
Income taxes payable |
- |
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104,867 |
Deferred compensation |
- |
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(400,000) |
Net cash provided by operating activities |
2,828,382 |
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5,279,753 |
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Cash flows from investing activities |
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Capital expenditures |
(49,216) |
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(368,497) |
Net cash used in investing activities |
(49,216) |
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(368,497) |
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Cash flows from financing activities |
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Repayment of notes payable to bank |
(27,797) |
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(25,216) |
Repayment of short-term loan, net |
(467,964) |
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(384,438) |
Net cash used in financing activities |
(495,761) |
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(409,654) |
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Effect of exchange rates on cash and cash equivalents |
(99,183) |
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(231,772) |
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Net increase in cash and cash equivalents |
2,184,222 |
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4,269,830 |
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Cash and cash equivalents - beginning of period |
11,347,420 |
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7,102,945 |
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Cash and cash equivalents - end of period |
$ 13,531,642 |
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$ 11,372,775 |
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
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Cash paid for interest |
$ 27,573 |
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$ 21,135 |
Cash paid for income taxes |
$ 3,349 |
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$ 237,086 |
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Other noncash investing and financing activities |
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Common stock issued for services |
$ 3,752 |
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$ - |
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The accompanying notes are an integral part of these consolidated financial statements. |
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