CAPE TOWN, South Africa, March 30, 2012 /PRNewswire/ -- Leatt Corporation (OTC: LEAT) ("Leatt" or the "Company"), a global designer, marketer and distributor of personal protective equipment for sports and lifestyle activities, based on the Leatt-Brace® patented neck protection system, reported its financial results for the year ended December 31, 2011.
Performance Highlights:
- 2011 Gross Revenues increased by 25% to $17.9 million, from $14.3 million in 2010
- 2011 Net Profit increased to $0.76 million, from Net Loss of $0.2 million in 2010
2011 Results and Financial Condition
Gross revenue for 2011 was $17.9 million, up 25% from $14.3 million in 2010, primarily due to a broadening of the Leatt product range and increased marketing in the US and in Europe.
In spite of significantly increased marketing and advertising costs and product development expenses, net profit was $764,499, or $0.0059 per share, versus a previous-year loss of $208,562, or $0.00 loss per share. The increase was attributable to our increase in sales revenue.
Leatt had cash and cash equivalents of $1.4 million as of December 31, 2011, even after increasing inventory by $922,207 in 2011. The Company believes that it has sufficient cash on hand to support its wider product range and revenue growth.
Leatt Chief Executive Officer, Sean Macdonald commented, "We believe that the increased demand for our neck braces and body protection products is evidence of our growing reputation for quality and innovation in the global extreme sports industry. We plan to continue building on that foundation and expand our market share through the introduction of new safety products for sporting activities beyond our core of extreme motorcycle sports."
Other Developments:
- In October 2011 the Company commenced legal action against Atlas Brace Technologies US, LLC for infringement on two of Leatt's neck brace patents.
- Leatt-Brace GPX Pro was named 2011 Product of the Year by Transworld Motocross Magazine
- In August 2011, Zafiris M. Zafiropoulos was appointed as an independent member of the Company's Board of Directors.
- In December 2011, Leatt shareholders authorized the Board of Directors to implement at its discretion a reverse stock split with the ratio to be determined by the Board within the range of 1:5 to 1:25. Leatt has 130 million shares issued and outstanding to date. The Board has until December 22, 2012 to decide on whether to implement the reverse split.
- Leatt has announced its intention to register its shares under the U.S. Securities Exchange Act of 1934, as amended, this year and thereby become an SEC reporting company in the U.S.
2011 Financial Summary:
A financial summary of the FY2011 results appears below, which summary is qualified in its entirety by reference to the FY2011 financial results posted on http://www.leatt-corp.com. One should not rely on the following summary as a complete presentation of financial results and condition.
Summarized Consolidated Statements of Operations for the periods ending December 31, 2011:
2011 | 2010 | |||
Revenues | $17,878,727 | $14,330,072 | ||
Cost of revenues | 7,469,581 | 5,606,502 | ||
Gross profit | 10,409,146 | 8,723,570 | ||
Operating expenses | 9649884 | 8901691 | ||
Income (loss) from operations | 759,262 | (178121) | ||
Other income | 122410 | 25674 | ||
Income (loss) before income taxes | 881,672 | (152,447) | ||
Income taxes | 117,173 | 56,115 | ||
Net Income (loss) available to common shareholders | $764,499 | $(208,562) | ||
Net Income (loss) per common share | $0.0059 | $0.00 | ||
Summarized Consolidated Balance Sheet for the periods ending December 31, 2011:
2011 | 2010 | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | $ 1,395,135 | $ 1,544,342 | ||
Accounts receivable | 2,993,681 | 2,847,813 | ||
Inventory | 3,679,223 | 2,757,196 | ||
Deferred tax assets | 47,000 | 54,300 | ||
Other current assets | 1,005,470 | 972253 | ||
Total current assets | 9,120,509 | 8,175,904 | ||
Property and Equipment, net | 1,372,521 | 1,496,308 | ||
Other Assets | 149739 | 132238 | ||
Total Assets | $ 10,642,769 | $ 9,804,450 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Liabilities | ||||
Accounts payable and accrued expenses | $ 2,171,456 | $ 1,741,013 | ||
Short term loan, net of finance charges | 617,010 | 631,430 | ||
Other current liabilities | 148,265 | 69,988 | ||
Total current liabilities | 2,936,731 | 2,442,431 | ||
Deferred Tax Liabilities | 100,000 | 112,400 | ||
Stockholders' Equity | 7606038 | 7249619 | ||
Total Liabilities and Stockholders' Equity | $ 10,642,769 | $ 9,804,450 | ||
About Leatt Corporation
Leatt Corporation develops, distributes and markets 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-corp.com | www.leatt.com
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. 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, 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 fiscal 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.
Contacts:
Leatt Corporation
Sean Macdonald
Chief Executive Officer
[email protected]
+ (27) 21 557 7257
Allen & Caron, Inc.
Rudy Barrio (Investors)
[email protected]
(212) 691-8087
SOURCE Leatt Corporation
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