Lakeland Industries Provides Update on Business Activity Relating to Ebola Crisis
RONKONKOMA, New York, Oct. 29, 2014 /PRNewswire/ -- Lakeland Industries, Inc. (NASDAQ: LAKE), a leading global manufacturer of industrial protective clothing for industry, municipalities, healthcare and to first responders on the federal, state and local levels, today provided the following update on recent business activities and corporate developments.
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In anticipation of the worsening of the Ebola crisis, on September 12 the Company announced its intent to increase manufacturing capacity for specialty protective suits to be worn by healthcare workers and others being exposed to Ebola. The Company has been experiencing significant interest globally for its ChemMAX® and MicroMAX® protective suit lines. Manufacturing of select lines of these garments involves proprietary processes for specialized seam sealing, a far superior technology for protecting against viral hazards including infected body fluids than non-sealed products. Lakeland accelerated its capital investment program for new machinery to accommodate higher levels of output and increased its spending for raw materials and the hiring and training of manufacturing personnel to address the increase in product demand.
"Recent developments have enabled us to strengthen our balance sheet, increase forward cash flow from the elimination of interest service on expensive debt, and increase production capacity to contribute to the fight against the spread of Ebola which has led to a material improvement in our business," said Christopher J. Ryan, CEO of Lakeland Industries, Inc. "At the same time, we have also been experiencing an improvement in operating conditions for the balance of our business globally. I am very proud of the way the worldwide team of Lakeland Industries has responded to the Ebola crisis while continuing to provide the highest level of service and quality garments to our traditional customers."
Monthly production capacity for sealed seam ChemMAX and MicroMAX protective suit lines has increased by nearly 50% from August 2014, prior to Ebola-related product demand, to October 2014, and is on track for a 100% increase from that level by January 2015, with the ability for additional increases as needed. Substantially all of the available production capacity in August 2014 had been allocated to purchases by the Company's industrial customers (for non-Ebola related purposes). The Company will continue to service its industrial customers who are dependent upon Lakeland to conduct their work safely. The expanded capacity is necessary in order to meet obligations for both traditional customers as well as for protection against the spread of Ebola.
Through its direct sales force and numerous distribution partners throughout the world, Lakeland has secured new orders relating to the fight against the spread of Ebola. Orders have been received from government agencies around the world as well as other public and private sector customers. Certain of these contracts require weekly delivery guarantees or shipments through the first calendar quarter of 2015. The aggregate of orders won by Lakeland that are believed to have resulted from the Ebola crisis amount to approximately 1 million suits with additional orders for other products, such as hoods, foot coverings and gloves. Lakeland started shipping such orders only in October, which is the end of its fiscal 2015 third quarter reporting period. The main impact from Ebola-related orders received to date will not be realized until the Company's fiscal 2015 fourth quarter ended January 31, 2015.
Furthermore, the Company is presently participating in bidding on numerous customer requests for additional quantities. This additional amount may not reflect any of the global requirements for preparedness strategies to be implemented by governments and healthcare organizations resulting from the crisis in anticipation of future contagion scenarios. It is important to note that product demand in crisis and emergency situations is very difficult to predict, and the Company makes no assurances of its ability to win additional business.
Lakeland remains committed to participating in the fight against the spread of Ebola. The Company's global workforce and management team have been vigilant in responding to an unprecedented level of inquiries and in ramping production to meet delivery requirements. For additional product information or to place an order, please visit www.lakeland.com or contact customer service:
United States at +1-256-350-3873
Argentina at +54-11-4897-5760
Brazil at +55-11-3613-3700
Canada at 800-489-9131
Chile at +562-551-8562
China at +010-6437-9226
India at +91-8447556757
Mexico at 800-837-9236
Russia at +7-495-775-72-64
UK at +44-14304-78140
About Lakeland Industries, Inc.:
Lakeland Industries, Inc. (NASDAQ: LAKE) manufactures and sells a comprehensive line of safety garments and accessories for the industrial protective clothing market. The Company's products are sold by a direct sales force and through independent sales representatives to a network of over 1,200 safety and mill supply distributors. These distributors in turn supply end user industrial customers such as chemical/petrochemical, automobile, steel, glass, construction, smelting, janitorial, pharmaceutical and high technology electronics manufacturers, as well as hospitals and laboratories. In addition, Lakeland supplies federal, state, and local government agencies, fire and police departments, airport crash rescue units, the Department of Defense, the Centers for Disease Control and Prevention, and many other federal and state agencies. For more information concerning Lakeland, please visit the Company online at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in Press Releases and Forms 8-K, registration statements, quarterly and annual reports and other reports and filings filed with the Securities and Exchange Commission or made by management. All statements, other than statements of historical facts, which address Lakeland's expectations of sources or uses for capital or which express the Company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. As a result, there can be no assurance that Lakeland's future results will not be materially different from those described herein as "believed," "projected," "planned," "intended," "anticipated," "estimated" or "expected," or other words which reflect the current view of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events conditions or circumstances on which such statement is based.
Any customers referenced or implied through reference in this press releases does not represent an endorsement of Lakeland Industries or its products.
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