Strongest revenue performance to date;
Record breaking revenue for seven quarters in a row;
Net Income up 105% and strong brand development
CAPE TOWN, South Africa, (May 12, 2022) – 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 financial results for the first quarter ending March 31, 2022. All financial numbers are in U.S. dollars.
First Quarter 2022 Highlights
- Global revenues of $24.2 million, up 88%, compared to first quarter 2021.
- Net income of $4.2 million, up 105%, compared to first quarter 2021.
- Earnings per basic share of $0.73, up 92%, compared to first quarter 2021.
- Income from operations of $5.6 million, up 104%, compared to first quarter 2021.
- Reno, NV warehouse fully online; positioned to deliver more inventory faster in the U.S.
Chief Executive Officer, Sean Macdonald, commented: “The first quarter was another tremendous quarter for us; the 7th quarter in a row of record-breaking revenues and the 16th straight quarter of year-over-year revenue growth. We grew by double-digits in virtually all of our expanding categories and many of our products are still in their infancy, with a huge runway of potential to expand in the global market.
“Helmet sales, an increasingly important product for us, were up 269%, compared to the 2021 first quarter. Helmets accounted for 23% of our first quarter revenues and remain an area where we are investing heavily. We have fully re-designed our MOTO off-road motorcycle helmet range, and demand remains strong for our award-winning MTB line. Sales of our expanded line-up of MOTO off-road motorcycle boots and MTB mountain biking shoes exceeded our expectations. We have created a full line of boots and shoes at key price points and performance levels. Apparel sales were very encouraging, displaying our ability to not only engineer high performance products, but to create designs that appeal to a wide range of riders.
“These consistent results demonstrate that our strategy for growth and profitability remains solid. We plan to continue engineering and developing innovative products that serve a much wider global audience of riders at all levels, from professional racers to weekend riders, and to build out our multi-channel sales organization that can deliver these outstanding products to our team of distributors and dealers around the world.”
Founder and Chairman Dr. Christopher Leatt remarked: “Our design and engineering teams are highly motivated by the successful launch of our new products including helmets, boots and shoes, neck and knee braces. Working closely with our marketing team, we are continuing to build a pipeline of innovative ‘head-to-toe’ products.’”
Total revenues for the first quarter of 2022 increased to $24.2 million, up 88%, compared to $12.9 million for the first quarter of 2022. The increase was driven by a 69% increase in body armor sales, a 269% increase in helmet sales, and a 122% increase in other products, parts and accessories, that were partially offset by a 21% decrease in neck brace sales during the 2022 period.
Income from operations for the first quarter of 2022 increased to $5.6 million, up 104%, compared to $2.8 million for the first quarter of 2021.
Net income for the first quarter of 2022 increased to $ 4.2 million, or $0.73 per basic and $0.68 per diluted share, up 105%, compared to $2.1 million, or $0.38 per basic and $0.34 per diluted share, for the first quarter of 2021.
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 $4.2 million and a current ratio of 2.9:1.
Mr. Macdonald added: “We started the year strong and continued building on the solid sales traction that we have created over the past 16 quarters. We have plenty of room to grow, with key product categories like helmets, shoes and boots, apparel and armor showing vast potential for continued expansion as we build the sales and marketing structure to bring them to market.
“We are continuing to build and invest heavily in our sales and distribution facilities in the U.S., an area that offers enormous potential for growth. Our new Reno, Nevada warehouse is now well positioned to house and quickly deliver more stock around the U.S. We are also actively growing our team of in-house sales reps to reach a wider dealer base of both MOTO and MTB dealers.
“At the same time, we are continuing to monitor and adjust for potential economic headwinds. We are closely watching consumer buying patterns, worldwide geo-political risks, the macroeconomic inflationary environment and the impact of the Covid-19 pandemic on our supply chain.
“Our entire team is excited and encouraged by our success to date, but we have plenty of work to do to realize the enormous potential of the Leatt brand.”
The Company will host a conference call at 10:00 am ET on Thursday, May 12, 2022, to discuss the first quarter 2022 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.
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.
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 13729638.
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 motorsports. 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.
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’s momentum of record-breaking revenue growth will continue; the ability of the Company to continue to maintain its innovative and cutting edge pipeline of branded products or to financially benefit from its sales and marketing efforts; the ability of the Company’s global supply chain to withstand any adverse impact on global supply chains and remain sufficiently stable to fulfill the Company’s customer demand; 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; 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.