Ironclad Performance Wear Reports Third Quarter 4% Sales Increase and 49% Reduction in Net Loss From Prior Year

12 Nov, 2015, 16:01 ET from Ironclad Performance Wear Corporation

FARMERS BRANCH, Texas, Nov. 12, 2015 /PRNewswire/ -- Ironclad Performance Wear Corporation (OTCQB: ICPW), the recognized leader in high-performance task-specific work gloves, reported financial results for the third quarter and year-to-date ended September 30, 2015.

The Company reported increased Net Sales for the quarter of $5.4 million, a 4% increase from $5.2 million in the third quarter of 2014, on stronger sales from industrial and international accounts. 

Gross Profit increased 4% to $1.92 million, or 35.4% of Net Sales, compared to $1.85 million, or 35.4% of Net Sales, in the third quarter of 2014 due primarily to higher revenues.  Gross Profit percentage for the year-to-date period improved by 3.1% from the same period in the prior year.

Operating Expenses decreased by $161,489 to $2.09 million, or 38.6% of net sales, compared to $2.25 million, or 43.1% of net sales, in the third quarter of 2014.

As a result of the above, Loss from Operations decreased by $226,750, to a loss of $175,095, from a loss of $401,845 in the third quarter of 2014.

Interest Expense increased $27,990 to $30,693 in the third quarter of 2015 from $2,703 in the same period of 2014.  This increase is due to increased borrowings under our bank line of credit agreement.

Net Loss for the third quarter of 2015 was $205,781, or $0.00 per share, as compared to a loss of $402,844, or $0.01 per share, in the same period last year.  Net loss decreased for the year-to-date period by $701,261 from the same period in the prior year.

Ironclad's Chief Executive Officer, Jeffrey Cordes, commented: "With regards to the 3rd Quarter, we are pleased with the continued growth of our industrial and international segments, that on a combined basis this quarter, increased year-over-year more than 26%.  However, we were disappointed that the warmer than usual September weather greatly slowed retail shipments, which historically are more weighted towards insulated winter product.  We will continue to execute on this path for 2015 and we anticipate Q4 2015 net sales to exceed Q4 2014 levels by 20%."

Cordes added:  "We are pleased with the announcement earlier this week of Grainger's award to Ironclad of a major category of their glove business.  We are also excited with the market's response and order levels for our new Ironclad Industrial Impact glove collection.  After nearly eighteen months of diligent efforts by our team, these 3rd quarter wins provide added validation of the future we have been working to build for Ironclad." 

Conference Call
Ironclad Performance Wear will hold a conference call to discuss third quarter 2015 financial results on Thursday, November 12th, at 3:30 p.m. Central Time (4:30 p.m. Eastern Time).  To participate in the conference call, interested parties should dial:

Date: Nov. 12th, 2015
Time: 4:30 p.m. Eastern Time (3:30 p.m. Central Time)
Domestic Dial-In Number: 1-888-329-8877
International Dial-In Number: 1-719-325-2491
Conference ID Number: 8447748

The conference call will be broadcast simultaneously and available for replay at: http://public.viavid.com/index.php?id=116870 and also via the landing page of the Company's Website at www.ironcladinvestor.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.

Replay Dial-In Numbers:
TOLL-FREE   1-877-870-5176
TOLL/INTERNATIONAL   1-858-384-5517
From:  11/12/15 at 7:30 pm Eastern Time
To:    12/12/15 at 11:59 pm Eastern Time
Replay Pin Number:  8447748

The Company's financial results will be posted online at www.ironcladinvestor.com once they are publicly released.

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 executing on growth initiatives and guidance regarding anticipated sales growth.  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.

Contact
William Aisenberg, CFO
Bill.Aisenberg@ironclad.com
(972) 996-5664

 

IRONCLAD PERFORMANCE WEAR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS






September 30, 2015
(Unaudited)


December 31, 2014

ASSETS




  Current Assets




     Cash and cash equivalents

$      276,968


$      340,903

     Accounts receivable, net of allowance for doubtful accounts of $30,000 and $30,000

6,175,904


6,283,032

     Inventory, net of reserve of $547,800 and $547,800

7,555,430


7,123,654

     Deposits on inventory 

151,664


661,744

     Prepaid and other

759,583


566,022

     Deferred tax asset - current

183,000


183,000

  Total Current Assets

15,102,549


15,158,355





  Property and Equipment




     Computer equipment and software

598,744


507,640

     Office equipment and furniture

295,586


255,085

     Leasehold improvements

174,298


169,904

     Less: accumulated depreciation

(734,669)


(641,953)

  Total Property and Equipment, Net

333,959


290,676









     Trademarks and patents, net of accumulated amortization of $65,711 and $60,945

128,279


135,064

     Deposits

21,306


21,306

     Deferred tax asset - long term

1,649,000


1,649,000

  Total Other Assets

1,798,585


1,805,370





Total Assets

$ 17,235,093


$ 17,254,401





LIABILITIES & STOCKHOLDERS' EQUITY




  Current Liabilities




     Accounts payable and accrued expenses

$   2,006,977


$   2,589,623

     Line of credit

3,229,303


2,586,034

  Total Current Liabilities

5,236,280


5,175,657





  Total Liabilities

5,236,280


5,175,657





  Stockholders' Equity




     Common stock, $0.001 par value, 172,744,750 shares authorized; 82,937,309 and 80,808,629 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively

82,937


80,808

     Additional paid-in capital

20,686,013


20,293,486

     Accumulated deficit

(8,770,137)


(8,295,550)

  Total Stockholders' Equity

11,998,813


12,078,744





Total Liabilities & Stockholders' Equity

$ 17,235,093


$ 17,254,401

 

IRONCLAD PERFORMANCE WEAR CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)
















Three Months Ended


Nine Months Ended





September 30, 2015


September 30, 2014


September 30, 2015


September 30, 2014























REVENUES










Net sales


$ 5,420,511


$ 5,230,800


$ 15,160,159


$ 15,126,387












COST OF SALES










Cost of sales


3,504,078


3,379,628


9,700,524


10,148,412












GROSS PROFIT


1,916,433


1,851,172


5,459,635


4,977,975












OPERATING EXPENSES










General and administrative


804,143


1,057,775


2,243,963


2,592,865


Sales and marketing


807,168


690,613


2,239,471


2,053,095


Research and development


166,368


138,174


479,967


391,156


Purchasing, warehousing and distribution


280,810


336,191


805,340


1,020,287


Depreciation and amortization


33,039


30,264


99,867


88,759













Total Operating Expenses


2,091,528


2,253,017


5,868,608


6,146,162












INCOME FROM OPERATIONS


(175,095)


(401,845)


(408,973)


(1,168,187)












OTHER INCOME (EXPENSE)










Interest expense


(30,693)


(2,703)


(65,635)


(9,615)


Interest income


7


7


21


21


Other income, net


-


-


-


131


Gain on disposition of equipment


-


1,697


-


1,802













Total Other Income (Expense)


(30,686)


(999)


(65,614)


(7,661)












NET LOSS BEFORE PROVISION FOR INCOME TAXES


(205,781)


(402,844)


(474,587)


(1,175,848)












Benefit from income taxes


-


-


-


-












NET LOSS



$  (205,781)


$  (402,844)


$     (474,587)


$ (1,175,848)












NET LOSS PER COMMON SHARE










Basic



($0.00)


($0.01)


($0.01)


($0.02)


Diluted



($0.00)


($0.01)


($0.01)


($0.02)












WEIGHTED AVERAGE COMMON SHARES

OUTSTANDING










Basic



82,292,247


79,072,089


81,443,216


77,639,852


Diluted



82,292,247


79,072,089


81,443,216


77,639,852

 

SOURCE Ironclad Performance Wear Corporation



RELATED LINKS

http://www.ironclad.com