Leatt Corp Announces Record Breaking Results for First Quarter 2021
CAPE TOWN, South Africa, May 12, 2021 /PRNewswire/ -- 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 record financial results for the first quarter of 2021. All financial numbers are in U.S. dollars.
First Quarter 2021 and Recent Highlights:
- Record first quarter revenues of
$12.9 million , up71% , compared to the 2020 first quarter - Record first quarter net income of
$2.1 million , up469% , compared to the 2020 first quarter - Total operating expenses increased
10% , while revenues increased by71% - Income from operations of
$2.8 million , up460% , compared to the 2020 first quarter - Cash and cash equivalents increased to
$3.8 million , compared to$1.4 million in 2020 - Earnings per share increased to
$0.38 , up443% , compared to$0.07 in the 2020 first quarter
CEO Sean Macdonald commented, "We are pleased that our strong 2020 performance trend has continued into the 2021 first quarter, with record-breaking results. Traditionally a slower quarter of the year, the 2021 first quarter saw a
"The numbers for the first quarter were remarkable: Global first quarter revenues were
"Leatt's strong performance is the result of more than a decade of innovative and consumer focused work, with a dedication to excellence that is returning dividends. We are extremely encouraged with the momentum that our brand and products have achieved in the marketplace and our increasing value to our partner dealers and distributors around the world."
Founder and Chairman Dr. Christopher Leatt remarked, "Our team of product developers and engineers, as well as our team riders, continue to strive for excellence. As we build out our categories, we continue to refine our 'head-to-toe' offering with products that offer the riding community sustained value add and the confidence to push themselves further with gear they can rely on."
Financial Summary
Total revenues for the first quarter of 2021 increased to
The increase in the first quarter of 2021 was driven by a
First quarter income from operations increased to
Net income for the first quarter of 2021 was
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At March 31, 2021, the Company had cash and cash equivalents of
Business Outlook
Mr. Macdonald added: "This was a brilliant quarter for Leatt, especially coming at what has been a traditionally slower time and after a record breaking fourth quarter of 2020. The continued demand for our exceptional protective gear clearly demonstrates the tremendous traction as a "head-toe" off-road motorcycle and mountain biking brand that Leatt has continued to achieve with consumers participating extensively in outdoor activities despite the COVID-19 pandemic. This surge towards outdoor activities is a trend that we expect to continue.
"Our strategy of building a global consumer brand and a pipeline of award-winning, cutting-edge and innovative protective gear that appeals to a wide range of riders is working exceptionally well. We will continue on this path, investing in a superior professional sales and marketing staff that we believe will fuel additional growth now and in the future. Furthermore, we are growing sustainably. We are managing our working capital, re-investing our cash in operations, and strengthening our balance sheet.
"We look forward to presenting our 2022 product lineup to consumers during the second half of 2021 and are already very encouraged by the initial ordering sentiment from our distributors and dealers worldwide."
Conference Call
The Company will host a conference call at 10:00 am ET on Wednesday, May 12, 2021, to discuss the 2021 first quarter 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.
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 (U.S.A) or +1-412-317-6671 (international) and using passcode 13719613
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 motor sports. 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.
Follow Leatt® on Facebook, Twitter, and Instagram.
Forward-looking Statements:
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 will continue to deliver, and financially benefit from global market acceptance of, its pipeline of new revolutionary branded products; 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, including its ability to mitigate the future impact of COVID-19 on the Company's business operations; 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.
[FINANCIAL TABLES TO FOLLOW]
LEATT CORPORATION | ||||
CONSOLIDATED BALANCE SHEETS | ||||
ASSETS | ||||
March 31, 2021 | December 31, 2020 | |||
Unaudited | Audited | |||
Current Assets | ||||
Cash and cash equivalents | $ 3,785,924 | $ 2,967,042 | ||
Short-term investments | 58,258 | 58,257 | ||
Accounts receivable, net | 4,160,676 | 7,173,829 | ||
Inventory, net | 9,929,554 | 9,670,036 | ||
Payments in advance | 722,930 | 805,098 | ||
Income tax refunds receivable | - | 2,964 | ||
Prepaid expenses and other current assets | 4,047,264 | 2,109,190 | ||
Total current assets | 22,704,606 | 22,786,416 | ||
Property and equipment, net | 2,839,429 | 3,052,276 | ||
Operating lease right-of-use assets, net | 245,185 | 285,932 | ||
Deferred tax asset, net | 78,700 | 78,700 | ||
Other Assets | ||||
Deposits | 33,574 | 33,699 | ||
Total Assets | $ 25,901,494 | $ 26,237,023 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Liabilities | ||||
Accounts payable and accrued expenses | $ 5,707,207 | $ 8,008,925 | ||
Operating lease liabilities, current | 212,869 | 207,824 | ||
Income taxes payable | 1,791,397 | 1,654,200 | ||
Short term loan, net of finance charges | 439,834 | 677,601 | ||
Total current liabilities | 8,151,307 | 10,548,550 | ||
Deferred compensation | 260,000 | 240,000 | ||
Operating lease liabilities, net of current portion | 32,316 | 78,108 | ||
Commitments and contingencies | ||||
Stockholders' Equity | ||||
Preferred stock, $.001 par value, 1,120,000 shares | ||||
authorized, 120,000 shares issued and outstanding | 3,000 | 3,000 | ||
Common stock, $.001 par value, 28,000,000 shares | ||||
authorized, 5,430,374 shares issued | ||||
and outstanding | 130,111 | 130,111 | ||
Additional paid - in capital | 8,393,178 | 8,338,158 | ||
Accumulated other comprehensive loss | (591,052) | (562,700) | ||
Retained earnings | 9,522,634 | 7,461,796 | ||
Total stockholders' equity | 17,457,871 | 15,370,365 | ||
Total Liabilities and Stockholders' Equity | $ 25,901,494 | $ 26,237,023 | ||
LEATT CORPORATION | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||
Three Months Ended | ||||
March 31 | ||||
2021 | 2020 | |||
Unaudited | Unaudited | |||
Revenues | $ 12,896,475 | $ 7,541,874 | ||
Cost of Revenues | 6,844,521 | 4,018,421 | ||
Gross Profit | 6,051,954 | 3,523,453 | ||
Product Royalty Income | 24,810 | 1,477 | ||
Operating Expenses | ||||
Salaries and wages | 924,537 | 844,606 | ||
Commissions and consulting expenses | 220,662 | 83,436 | ||
Professional fees | 337,755 | 321,587 | ||
Advertising and marketing | 517,580 | 624,203 | ||
Office lease and expenses | 87,373 | 73,814 | ||
Research and development costs | 405,105 | 388,204 | ||
Bad debt expense (recovery) | 65,825 | (14,980) | ||
General and administrative expenses | 528,599 | 520,115 | ||
Depreciation | 236,535 | 192,052 | ||
Total operating expenses | 3,323,971 | 3,033,037 | ||
Income from Operations | 2,752,793 | 491,893 | ||
Other Expenses | ||||
Interest and other income (expenses), net | (4,007) | (8,629) | ||
Total other expenses | (4,007) | (8,629) | ||
Income Before Income Taxes | 2,748,786 | 483,264 | ||
Income Taxes | 687,948 | 120,816 | ||
Net Income Available to Common Shareholders | $ 2,060,838 | $ 362,448 | ||
Net Income per Common Share | ||||
Basic | $ 0.38 | $ 0.07 | ||
Diluted | $ 0.34 | $ 0.07 | ||
Weighted Average Number of Common Shares Outstanding | ||||
Basic | 5,430,374 | 5,386,723 | ||
Diluted | 6,118,129 | 5,534,890 | ||
Comprehensive Income | ||||
Net Income | $ 2,060,838 | $ 362,448 | ||
Other comprehensive income, net of | ||||
Foreign currency translation | (28,352) | (312,287) | ||
Total Comprehensive Income | $ 2,032,486 | $ 50,161 | ||
LEATT CORPORATION | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 | ||||
2021 | 2020 | |||
Cash flows from operating activities | ||||
Net income | $ 2,060,838 | $ 362,448 | ||
Adjustments to reconcile net income to net cash provided by (used in) | ||||
operating activities: | ||||
Depreciation | 236,535 | 192,052 | ||
Stock-based compensation | 55,020 | 65,942 | ||
Bad debts reserve | 63,111 | (17,572) | ||
Inventory reserve | (23,044) | (49,610) | ||
(Gain) Loss on sale of property and equipment | 457 | (351) | ||
(Increase) decrease in: | ||||
Accounts receivable | 2,950,042 | (540,004) | ||
Inventory | (236,474) | 1,567,803 | ||
Payments in advance | 82,168 | (237,787) | ||
Prepaid expenses and other current assets | (1,938,074) | (404,733) | ||
Income tax refunds receivable | 2,964 | - | ||
Deposits | 125 | 1,412 | ||
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | (2,301,718) | (1,394,321) | ||
Income taxes payable | 137,197 | 50,816 | ||
Deferred compensation | 20,000 | 20,000 | ||
Net cash provided by (used in) operating activities | 1,109,147 | (383,905) | ||
Cash flows from investing activities | ||||
Capital expenditures | (34,272) | (89,899) | ||
Proceeds from sale of property and equipment | - | 351 | ||
Increase in short-term investments, net | (1) | (6) | ||
Net cash used in investing activities | (34,273) | (89,554) | ||
Cash flows from financing activities | ||||
Proceeds from note payable to bank, net | - | 200,000 | ||
Proceeds from (repayments of ) short-term loan, net | (237,767) | (130,643) | ||
Net cash provided by (used in) financing activities | (237,767) | 69,357 | ||
Effect of exchange rates on cash and cash equivalents | (18,225) | (223,872) | ||
Net increase (decrease) in cash and cash equivalents | 818,882 | (627,974) | ||
Cash and cash equivalents - beginning of period | 2,967,042 | 2,072,864 | ||
Cash and cash equivalents - end of period | $ 3,785,924 | $ 1,444,890 | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for interest | $ 9,323 | $ 9,255 | ||
Cash paid for income taxes | $ 550,000 | $ 70,000 | ||
Other noncash investing and financing activities | ||||
Common stock issued for services | $ 55,020 | $ 65,942 | ||
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SOURCE Leatt Corporation
