-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ol9mAoqLszUgb0K3lYOq033SE8TdHvhfCvuu0I+jk+vCWb6NCtqJZb/zJcGbwS5b opu0WtCAF0lg1b82rxkW7w== 0000914317-04-000804.txt : 20040217 0000914317-04-000804.hdr.sgml : 20040216 20040217142004 ACCESSION NUMBER: 0000914317-04-000804 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031215 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LAKELAND INDUSTRIES INC CENTRAL INDEX KEY: 0000798081 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 133115216 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15535 FILM NUMBER: 04607175 BUSINESS ADDRESS: STREET 1: 711-2 KOEHLER AVENUE CITY: RONKONKOMA STATE: NY ZIP: 11779 BUSINESS PHONE: 5169819700 MAIL ADDRESS: STREET 1: 711- 2 KOEHLER AVENUE CITY: RONKONKOMA STATE: NY ZIP: 11779 8-K 1 form8k-57393_lakeland.txt United States Securities and Exchange Commission Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) December 15,2003 ---------------- Lakeland Industries, Inc. - ------------------------- (Exact name of registrant as specified in its charter) Delaware 0-15535 13-3115216 - ------------------------------------------------------------------------ (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 711-2 Koehler Avenue, Ronkonkoma, NY 11779-7410 - --------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (631) 981-9700 -------------- - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report.) Table of Contents - ----------------- Item 7. Financial Statements and Exhibits (c) Exhibits: The following exhibit is filed herewith pursuant to the disclosure included under Item 12 of this Form 8-K. Exhibit Number Description ================================================================================ 99.1 Text of press release issued by Lakeland Industries, Inc. dated December 15, 2003, titled, "Lakeland's Company Press Release for the 9 and 3 Months Ended October 31, 2003," together with related Condensed Consolidated Statements of Income. Item 12.Regulation FD Disclosure On December 15, 2003, the Registrant announced its consolidated financial results for the quarter ended October 31, 2003. A copy of the Registrant's news release is furnished as Exhibit 99.1 to this report on Form 8-K. The information contained in Item 12 of this report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, or incorporated by reference in any registration statement filed by the Registrant under the Securities Act of 1933, as amended. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LAKELAND INDUSTRIES, INC. Date: December 15, 2003 By: /s/ Christopher J. Ryan ----------------------- Christopher J. Ryan President EX-99.I 3 exhibit99-1.txt Company Press Release 99.1 Source Lakeland Industries, Inc. LAKELAND INDUSTRIES ANNOUNCES EARNINGS UP 75% - --------------------------------------------- FOR THIRD QUARTER - ----------------- Lakeland Reports Sales and Earnings for the 9 Months and 3 Months Ended October 31, 2003 Nine Month Net Sales of $68.45 Million - Up 17.7% Over '02 of $58.14 Million Nine Month Net Income of $2.72 Million - Up 40.0% Over '02 of $1.95 Million Nine Month Basic and Diluted Earnings Per Share of $0.83 - Up 38% Over '02 of $0.60 Q3 Net Sales of $21.33 Million - Up 15.1% Over Q3'02 of $18.53 Million Q3 Net Income of $870,000 Up 75% Over Q3`02 of $496,000 Q3 Earnings Per Share of $0.27 Up 80% Over Q3'02 of $0.15 Nine months ended October 31, 2003 compared to the nine months ended October 31, 2002. Net Sales. Net sales for the nine months ended October 31, 2003 increased $10,305,000, (or 17.7%), to $68,447,000 from $58,142,000 reported for the nine months ended October 31, 2002. The increase in sales was principally attributable to improving economic conditions, and partially to SARS related garment sales at our Toronto, Canada and Chinese subsidiaries and to product price increases that took effect May 12, 2003. Gross Profit. Gross profit for the nine months ended October 31, 2003, increased by $2,022,000, (or 17.9%) to $13,290,000 from $11,268,000 for the nine months ended October 31, 2002. Gross profit as a percentage of net sales remained at 19.4% for the nine months ended October 31, 2003 the same as the prior year's period. The principal factor affecting the current year's gross profit margins was that on March 1, 2003 the Company incurred an increase on the price of raw materials from DuPont, but could not impose a price increase on its products that utilized these DuPont raw materials until May 12, 2003 due to market conditions. Operating Expenses. Operating expenses for the nine months ended October 31, 2003 increased by $988,000 (or 12.5%) to $8,868,000, (or 13% of net sales) from $7,880,000, (or 13.6% of net sales) for the nine months ended October 31, 2002. Operating expenses increased principally due to an increase in payrolls, freight, commissions, medical expenses, partially offset by a decrease in allowance for bad debts, R&D expense and VAT refunds. Interest Expense. Interest expense for the nine months ended October 31, 2003 decreased by $91,000 or (18.5%) to $400,000 from $491,000 for the nine months ended October 31, 2002. This decrease was primarily due to a decrease in average borrowings under the Company's credit facility and to decreasing interest rates. Income Tax Expense. The effective tax rate for the nine months ended October 31, 2003 and 2002 of 33.3% and 33.7%, respectively, deviates from the Federal statutory rate of 34.0%, which is primarily attributable to differing foreign tax rates, tax refunds, and state income taxes. Net Income. As a result of the foregoing, net income increased to $2,725,000 (or 39.7%) for the nine months ended October 31, 2003, from net income of $1,950,000 for the nine months ended October 31, 2002. Three months ended October 31, 2003 compared to the three months ended October 31, 2002. Net Sales. Net sales for the three months ended October 31, 2003 increased $2,797,000, (or 15.1%) to $21,332,000 from $18,535,000 reported for the three months ended October 31, 2002. The increase in sales was principally attributable to rapidly improving economic conditions and to the sales price increase effective May 12, 2003. Gross Profit. Gross profit for the three months ended October 31, 2003, increased by $1,050,000 (or 30.4%) to $4,501,000 from $3,451,000 for the three months ended October 31, 2002. Gross profit as a percentage of net sales increased to 21.1% for the three months ended October 31, 2003 from 18.6% reported for the prior year's period. The principal factor affecting gross profit margins was that the Company imposed a sales price increase on its products on May 12, 2003 and increasing manufacturing efficiencies. Operating Expenses. Operating expenses for the three months ended October 31, 2003 increased by $590,000 (or 24.1%) to $3,035,000, (or 14.2% of net sales) from $2,445,000, (or 13.2% of net sales) for the three months ended October 31, 2002. Operating expenses increased principally as a result of an increase in freight, commissions, payrolls, professional fees and insurance expenses, offset partially by VAT refunds. Interest Expense. Interest expense for the three months ended October 31, 2003 decreased by $27,000 (or 18.5%) to $119,000 from $146,000 for the three months ended October 31, 2002. This decrease was primarily due to a decrease in average borrowings under the Company's credit facility and to decreasing interest rates. Income Tax Expense. The effective tax rate for the three months ended October 31 2003 and 2002 of 36.1% and 42.6% respectively deviates from the Federal statutory rate of 34.0%, which is primarily attributable to differing foreign tax rates, tax refunds, and state income taxes. Net Income. As a result of the foregoing net income increased to $870,000 (or 75%) for the three months ended October 31, 2003, from net income of $496,000 for the three months ended October 31, 2002. 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 "believes," "anticipates," "expects," "could," "might," 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. (Financial tables follow.) LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
October 31, January 31, ASSETS 2003 2003 (Unaudited) ----------- ----------- Current Assets: Cash and cash equivalents................................................ $2,467,178 $ 1,474,135 Accounts receivable, net of allowance for doubtful accounts of $323,000 and $343,000 at October 31, 2003 and January 31, 2003, respectively ................... 12,134,926 10,364,188 Inventories ............................................................. 24,170,266 25,470,044 Deferred income taxes ................................................... 1,001,133 1,001,133 Other current assets .................................................... 644,558 549,564 ----------- ----------- Total current assets............................................ 40,418,061 38,859,064 Property and equipment, net of accumulated depreciation of $4,311,000 at October 31, 2003 and $3,708,000 at January 31, 2003..................................... 3,635,164 3,356,835 Other assets ............................................................ 846,922 606,835 ----------- ----------- Total Assets ................................................... $44,900,147 $42,822,734 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable......................................................... $3,212,507 $ 3,014,038
Current portion of long-term liabilities................................. 15,809,810 16,657,882 Accrued expenses and other current liabilities .......................... 1,227,798 1,262,175 ----------- ----------- Total current liabilities........................................... 20,250,115 20,934,095 Long-term liabilities ................................................... 531,239 514,572 Deferred income taxes ................................................... 14,643 14,643 ----------- ----------- Total Liabilities ......................................... 20,795,997 21,463,310 ----------- ----------- Commitments and Contingencies Stockholders' Equity Preferred stock, $.01 par; 1,500,000 shares authorized; none issued Common stock, $.01 par; 10,000,000 shares authorized; 3,268,991 and 2,969,107 shares issued and outstanding at October 31, 2003 and January 31, 2003, respectively................. 32,690 29,691 Additional paid-in capital............................................... 11,853,043 8,762,673 Retained earnings........................................................ 12,218,417 12,567,060 ----------- ----------- Total stockholders' equity.......................................... 24,104,150 21,359,424 ----------- ----------- Total Liabilities and Stockholders' Equity ......................... $44,900,147 $42,822,734 =========== ===========
See notes to condensed consolidated financial statements in the Company's 10-Q filed with the SEC and available at http://www.sec.gov/edgar.shtml or under ------------------------------ the Company Web page at http://www.lakeland.com-Press "Finance Info" then "SEC All Filings". ----------------------------- LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES ------------------------------------------ CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED October31, October 31, 2003 2002 2003 2002 ---- ---- ---- ---- Net sales..........................................$21,332,430 $18,534,900 $68,447,260 $58,142,368 Cost of goods sold................................. 16,831,208 15,083,441 55,156,892 46,873,895 ----------- ----------- ---------- ---------- Gross profit....................................... 4,501,222 3,451,459 13,290,368 11,268,473 Operating expenses................................. 3,034,538 2,445,343 8,867,638 7,880,146 ----------- ----------- ---------- ----------- Operating profit................................... 1,466,684 1,006,116 4,422,730 3,388,327 Other income, net ................................. 14,417 4,090 59,643 44,593 Interest expense................................... (118,650) (146,325) (399,647) (491,153) ----------- ----------- ----------- ----------- Income before income taxes ...................... 1,362,451 863,881 4,082,726 2,941,767 Provision for income taxes......................... 492,171 368,274 1,358,000 991,483 ----------- ----------- ----------- ----------- Net income ........................................ $870,280 $495,607 $2,724,726 $ 1,950,284 =========== =========== =========== =========== Net income per common share*: Basic......................................... $.27 $.15 $.83 $.60 ==== ===== ==== ==== Diluted....................................... $.27 $.15 $.83 $.60 ==== ===== ==== ====
Weighted average common shares outstanding*: Basic......................................... 3,268,991 3,262,993 3,268,351 3,259,957 =========== =========== =========== =========== Diluted....................................... 3,274,429 3,272,833 3,274,480 3,272,454 =========== =========== =========== ===========
*Adjusted for the 10% stock dividend to shareholders of record on July 31, 2003 and 2002. See notes to condensed consolidated financial statements in the Company's 10-Q filed with the SEC and available at http://www.sec.gov/edgar.shtml or under the Company Web page at http://www.lakeland.com-Press "Finance Info" then "SEC All Filings". In the past two years, the federal government has provided fire districts around the country additional funding through programs that are part of the President's Homeland Security initiative. The United States Fire Administration's Assistance to Firefighters Grant Program (AFGP), administered by the Homeland Security's FEMA division, provides these funds to local fire districts. Originated in 2001, the AFGP will have provided more than $1.3 billion by the end of this year to help fire districts improve their readiness and capabilities to respond to terrorist attacks. The program granted $100 million in 2001 and more than $334 million in 2002. $750 Million has been appropriated for 2003, and another $500 million is proposed in the Bush Administration's 2004 budget. Funds are allocated in four areas: fire operations/firefighter safety; fire prevention; emergency medical services; and firefighting vehicles acquisition. The fire operations/fire fighter safety program provides funds to fire districts to purchase Lakeland's products which include chemical protective suits used for protection against chemical and biological warfare weapons or toxins and the Company's fire turn out gear and other personal protective apparel sold by Lakeland. Under AFGP initiative, federal funds for equipment and protective gear have represented the largest percentage of grant monies in 2002 and 2003. The $750 Million in funding for 2003 began in mid-summer and will continue in 2004. 2004 funding of 500 million will begin in summer of 2004 and go throughout 2005 if history is any indicator. In addition fire districts also tap additional funds from Federal Community Development Block Grants and other state grants and incentives. Further government funding in our product line area will emanate from the Bioterrorism Act of 2002. Funds from that bill should start flowing in 2006 and beyond. The Company believes that this funding is partially responsible for the 50% increases in sales it has seen on a consistent annual basis in chemical protective suits and the 35% sales increases in fire turnout gear. Looking ahead into calendar 2004 Lakeland believes sales growth will not only come from its North American markets but from international sales as Sales offices have been opened this year in the United Kingdom to cover the European markets and in China to cover the Asian markets, both geographic areas the Company has rarely sold to. Gross margins should also increase in 2004 as the Company further rationalizes its production facilities both abroad and domestically. -----END PRIVACY-ENHANCED MESSAGE-----