Leatt Corp Earnings for the First Quarter ended March 31, 2015
Revenue Up by 14.1%, Buoyed by New Products
CAPE TOWN, South Africa, May 13, 2015 – Leatt Corporation (OTCQB: LEAT) today announced its financial results for the first quarter ended March 31, 2015. Leatt Corporation develops and markets protective equipment and ancillary products for all forms of sports, especially extreme high-velocity sports. All financial numbers are in US dollars.
First Quarter Highlights
• Revenues were $4.0 million compared to $3.5 million in 2014 first quarter, representing a 14% increase in revenues year-to-year.
• Sales of the Leatt C Frame Knee Brace boosted sales of the body armor category by 45% year-to-year.
• Earnings of $54,105 or $0.01 per share for the quarter, versus a loss of $340,886 or $0.07 loss per share in the year-earlier period.
“The first-quarter growth and profit continues the upward growth trend reported over the past few quarters,” said Leatt CEO, Sean Macdonald. “And while the first quarter has historically been our weakest quarter, we were able to achieve a modest profit in the first quarter for the first time in 6 years. We are pleased with the enthusiastic acceptance of our new C Frame Knee Brace, and by the successful registration with the United States Food and Drug Administration (FDA) of our knee and shoulder brace as Class 1 Medical Devices in the USA. Not only is revenue increasing overall, but growth is continuing to build for our higher margin products.”
In spite of higher revenues and a modest increase in R&D expense, the Company kept a careful watch on expenses resulting in a 5.3% decline in overall operating expenses during the quarter, aided by a decline in litigation expenses year-to-year.
Cash and equivalents grew to $893,165 at March 31, 2015, compared to $724,707 at December 31, 2014. Current liabilities dropped steeply, resulting in a current ratio of 4.3:1. There were no long-term liabilities as of March 31, 2015, and stockholders’ equity was $7.2 million.
“We are proud of these first fruits of our product expansion strategy, which we believe are significant improvements on existing products in the market,” added Dr. Christopher James Leatt, Leatt’s Head of Research and Development. “We are particularly proud of our innovative, lightweight and maximally-ventilated DBX and GPX helmets which we expect will be game-changers for the Company and its customers as they launch us, for the first time, into the arena of helmeted sports. We believe that our helmet design will help protect against concussion more effectively than other designs currently available on the market. We intend our helmets to follow in the footsteps of our neck braces to become the gold standard for sport safety worldwide.”
The Company will host a conference call at 11:00 am Eastern Time on May 13, 2015, to discuss the first quarter 2015 results.
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-888-348-8777 (USA) or +1-412-902-4245 (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 1-877-870-5176 or +1-858-384-5517 (international) and using passcode 10065530.
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 Corporation
Leatt Corporation develops 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
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 significance of United States approval of the Company’s knee and shoulder braces, and the likelihood that the Company will see increased revenue in connection with sales of these products as medical devices; the financial outlook of the Company and the likelihood that demand for the Company’s innovative new products will continue to increase through 2015 and that these products will achieve the gold standard set by the Leatt Brace; the general ability of the Company to achieve its commercial objectives, including its plan to develop additional brace and protection lines that will protect more people in more sports; 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.
Chief Executive Officer
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Allen & Caron, Inc.
Michael Mason (Investors)
Len Hall (Media)