Ironclad Performance Wear Reports Third Quarter 2013 Financial Results Continued Mixed Performance Results in Lower Net Sales

LOS ANGELES, Nov. 13, 2013 /PRNewswire/ -- Ironclad Performance Wear Corporation (ICPW.OB), the recognized leader in high-performance task-specific gloves, announced financial results for the third quarter ended September 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20060511/LATH052LOGO)

Third quarter 2013 Results
The company reported Net Sales for the third quarter of $4.63 million, a decrease from $5.55 million in the third quarter of 2012.

Gross Profit decreased to $1.46 million, or 31.6% of Net Sales, compared to $2.22 million, or 40.0% of Net Sales in the third quarter of 2012.  The decrease in Gross Profit was due primarily to an increase in lower margin private label and retail business, increases in direct selling expenses, as well as lower sales of higher margin gloves during the quarter.

Operating Expenses decreased by $57 thousand to $1.85 million from $1.91 million during the same period last year.  As a percent of Net Sales, Operating Expenses increased to 39.9%, compared to 34.4% compared to last year.  This increase in the Operating Expense percentage is the result of increased marketing and direct selling expenditures, research & development costs and operating services, such as distribution and quality control expenses, to support the Company's planned growth and strategic investing for the long-term, and the decline in Net Sales.

As a result of the above, Income (Loss) from Operations was ($385,423), compared to an Income from Operations of $314,133 during the same period in 2012.

Net Income (Loss) for the quarter was ($411,894) compared to a profit of $256,044 in the same period last year.

"Thus far, 2013 has proven to be a challenge," said Lee Turlington, President of Ironclad.  "Overall Net Sales are down when compared to the same period in 2012, however, there was a bright spot in our retail automotive segment.  The current period shortfall is primarily in our industrial and international segments."

Mr. Turlington added: "In addition, we are adding four new task-specific KONG gloves styles by the end of this year, which we believe will increase the sales and distribution of KONG worldwide."

Guidance for 2013
The continuing uncertainties within our business channels prevent us from providing any further guidance for the remainder of 2013.  That being said, we do believe that there will be opportunities in 2014 for new sales with our new line of KONG and the Company's continuing international expansion efforts. 

"As a result of continued increased competition and worldwide demand, we are working closely with our strategic partners to make fundamental changes in the marketing, sales and distribution of our gloves across many of our channels," said Mr. Turlington.  

Conference Call
Ironclad Performance Wear will hold a conference call to discuss third quarter 2013 financial results today, Wednesday, November 13, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To participate in the conference call, dial 1-888-846-5003 ten minutes prior to the call. International callers should dial 1+480-629-9856.

If you are unable to participate in the live call, a replay will be available through November 27, 2013. To access the replay, dial 1-877-870-5176 (passcode: 4648142). International callers should dial 1+858-384-5517 and use the same passcode.

In addition, the conference call will also be broadcast live over the Internet and can be accessed at www.ironclad.com. The Webcast will be archived on Ironclad's Website through November 27, 2013.

The company's financial results and other investor information are posted online at www.ironclad.com/investor-relations.

About Ironclad Performance Wear Corporation
Ironclad Performance Wear is a leader in high-performance task-specific work gloves.  It created the performance work glove category in 1998, and continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for industries such as oil & gas extraction; automotive; and police, fire, first-responder and military. Ironclad engineers and manufactures its products with a focus on innovation, design, advanced material science and durability. Ironclad's gloves and apparel are available through industrial suppliers, hardware stores, home centers, lumber yards, and sporting goods retailers nationwide; and through authorized distributors in North America, Europe, Australia and Asia.

Built Tough for the Industrial Athlete™

For more information on Ironclad, please visit the Company's Website at www.ironclad.com.

Information about Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Ironclad's products, the introduction of new products, Ironclad's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Ironclad's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in Ironclad's filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include statements regarding guidance about and achievement of financial goals and performance for 2013, increasing interest and sales of Ironclad's products, market opportunities presented by new products and/or customers, material changes to the ways in which Ironclad's products are marketed, sold and distributed and Ironclad's profitability in 2013.  For a more detailed description of the risk factors and uncertainties affecting Ironclad, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. Ironclad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts
Lee Turlington, President
leet@ironclad.com
(310) 643-7800 x120

 

Ironclad Performance Wear Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)



September 30, 2013


December 31, 2012

ASSETS




  Current Assets




     Cash and cash equivalents

$                  289,307


$                  721,589

     Accounts receivable net of allowance for doubtful accounts of $48,000

3,029,158


6,423,670

     Due from factor without recourse

-


915,492

     Inventory net of reserve of $619,000

7,758,348


5,281,445

     Deposits on inventory 

1,221,751


716,273

     Prepaid and other

599,566


308,814

     Deferred tax assets - current

857,500


857,500

  Total current assets

13,755,630


15,224,783





  Property and Equipment




     Computer equipment and software

522,569


515,058

     Vehicles

39,631


43,680

     Office equipment and furniture

220,178


179,835

     Leasehold improvements

95,455


47,381

     Less: accumulated depreciation

(647,837)


(529,917)

  Total property and equipment, net

229,996


256,037





  Other Assets




     Trademarks and patents, net of accumulated amortization of $46,941 and $40,318

137,664


132,168

     Deposits

10,204


10,204

  Total other assets

147,868


142,372





Total Assets

$            14,133,494


$            15,623,192





LIABILITIES & STOCKHOLDERS' EQUITY




  Current Liabilities




     Accounts payable and accrued expenses

$               2,311,418


$               4,932,648

     Line of credit

3,131,910


1,483,883

  Total current liabilities

5,443,328


6,416,531





  Total Liabilities

5,443,328


6,416,531





  Stockholders' Equity




     Common stock, $.001 par value; 172,744,750 shares authorized; 76,704,275 and 76,447,587 shares issued and outstanding at September 30, 2013 and







     December 31, 2012, respectively

76,704


76,448

     Additional paid-in capital

19,152,388


18,920,811

     Accumulated deficit

(10,538,926)


(9,790,598)

  Total Stockholders' Equity

8,690,166


9,206,661





Total Liabilities & Stockholders' Equity

$            14,133,494


$            15,623,192

 

 

Ironclad Performance Wear Corporation

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

















Three Months Ended


Nine Months Ended



September 30, 2013


September 30, 2012


September 30, 2013


September 30, 2012













REVENUES










Net sales


$               4,630,200


$       5,546,484


$  14,465,067


$   15,440,944











COST OF SALES










Cost of sales


3,166,746


3,326,592


9,463,514


9,483,024











GROSS PROFIT


1,463,454


2,219,892


5,001,553


5,957,920











OPERATING EXPENSES










General and administrative


506,707


807,899


1,925,176


2,164,812


Sales and marketing


812,216


632,108


2,384,090


1,918,417


Research and development


202,284


126,656


567,638


382,817


Purchasing, warehousing and distribution


283,294


300,049


861,775


804,587


Depreciation and amortization


44,376


39,047


129,692


117,836












Total operating expenses


1,848,877


1,905,759


5,868,371


5,388,469











INCOME (LOSS) FROM OPERATIONS


(385,423)


314,133


(866,818)


569,451











OTHER INCOME (EXPENSE)










Interest expense


(26,996)


(13,746)


(58,355)


(27,711)


Interest income


25


925


99


21,386


Other income, net


-


(6,268)


1


75,887


Gain on disposition of equipment


500


-


550


-












Total other income (expense), net


(26,471)


(19,089)


(57,705)


69,562











NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES









(411,894)


295,044


(924,523)


639,013











PROVISION FOR (BENEFIT FROM) INCOME TAXES


-


39,000


(176,196)


117,000











NET INCOME (LOSS)


$                 (411,894)


$           256,044


$      (748,327)


$         522,013











NET INCOME (LOSS) PER COMMON SHARE










Basic


($0.01)


$0.00


($0.01)


$0.01


Diluted


($0.00)


$0.00


($0.01)


$0.01











WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

















Basic


76,704,275


76,361,506


76,673,821


75,902,295


Diluted


84,407,488


86,173,107


84,377,032


85,713,896

SOURCE Ironclad Performance Wear Corporation



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