CAPE TOWN, SOUTH AFRICA (August 15, 2012) Leatt Corporation (OTCQB: LEAT) (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 second quarter and six months ended June 30, 2012. All figures are in US dollars.
For the six months ended June 30, 2012, revenues were $7.8 million, with net income of $203,380, or $0.002 per share, as compared to $7.9 million, with net income of $171,132, or $0.001 per share, for the first six months of 2011. For the three months ended June 30, 2012, revenues were $4.5 million, with net income of $377,432, or $0.003 per share, compared to revenues of $5.0 million, with net income of $389,566, or $0.003 per share, for the second quarter of 2011. Although the Company’s flagship Leatt Braces declined in revenue for the first two quarters of 2012, protective gear made a larger revenue contribution and operating expenses decreased for the period. The Company’s cash and cash equivalents increased to $1.7 million as of June 30, 2012, and its current ratio was strong at 5.48:1. The Company has no long term debt.
CEO Sean Macdonald commented, “We believe that the Leatt Brace continues to be the gold standard for riders in both professional and amateur categories worldwide, and we are pleased that our newer
personal protective gear products are finding acceptance through our dealers and distributors. Given the volatile and unpredictable macro – economic environment, and the recent fluctuations in currency exchange rates, we are exercising prudence with regard to expenses, but we plan to continue aggressively marketing the classic Leatt Brace and our new protective products globally
and to expand the range of sports in which our safety and protective products are used. Although we believe the 2012 third quarter will continue to be difficult, we plan to introduce new products later this year which we expect will generate better fourth quarter results for the Company.”
Macdonald went on to say that some competitors in both men’s and women’s BMX events in the London Summer Games wore custom Leatt Braces, including, 4 of the 8 finalists in the women’s event.
The Company expects to post additional information and photos of these Olympic riders on its website in the coming weeks. Gross margins for the quarter were 57%, as compared to 60% in the prior year period, primarily due to higher freight costs, and because the Company’s personal protective gear products have lower margin rates than its flagship neck protection products. The Company continues to evaluate mechanisms to reduce its product and freight related costs.
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: https://www.leatt-corp.com. | http://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. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the general ability of the Company to achieve its commercial objectives, including the Company’s hope to increase stockholder value and liquidity; 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, 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 the Company’s filings with the SEC available at www.sec.gov.
Contacts
Leatt Corporation
Sean Macdonald
Chief Executive Officer
Sean.Macdonald@leatt-brace.com
+ (27) 21 557 8257
Allen & Caron Inc
Rudy Barrio (Investors)
r.barrio@allencaron.com
(212) 691-8087
