CAPE TOWN, SOUTH AFRICA: Leatt Corporation, a Nevada corporation (OTC MARKETS: LEAT.PK) (Company), and the distributor of the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck), as well as other products, today announced unaudited financial results for the second fiscal quarter ended June 30, 2011, (“Q2 FY2011”). The Company posted gross revenues of $4,983,452 and a net quarterly profit before taxes of $640,366. These results compare to gross revenue of $2,859,940 and a net quarterly loss before taxes of $ (293,793) in the year-ago quarter. A summary of financial results is set forth below.
"Leatt Corporation is making an aggressive effort to return to, and hopefully sustain, profitability as well as pursuing a concurrent growth strategy. The results of Q2 FY2011 indicate some positive results from our efforts, although we continue to face a negative worldwide economic environment in the U.S. and EU, which are our primary markets. Further, we are examining specific measures to improve the liquidity of the public market of our Common Stock,” said Chief Executive Officer Sean Macdonald. “The Company intends to call a shareholder meeting this year which will include a full presentation on a revised Company strategic plan,” added Mr. Macdonald.
As part of its business development and investor relations efforts and to fine tune its strategic plan, the senior officers of the Company met with an investor relations firm, a major U.S. law firm, and U.S. shareholders during a visit to the U.S. from August 3rd to August 6th 2011. During these meetings, which were designed to seek advice on and discuss enhancing shareholder value and evaluating potential professional services, the senior officers expressed a general sense of optimism over the progress to date of the Company without disclosing any business or financial results or projections.
Since 2006, the Company has sold a line of products based on the Neck Brace System for adults and children that are designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck) among motorcycle, ATV, bicycle and other motor vehicles worldwide. The Company’s product line is set forth at our sales/product URL: http://www.leatt.com.
A financial summary of the Q2 FY2011 results appear below, which summary is qualified in its entirety by reference to the Q2 FY2011 financial results and footnotes thereto posted on https://www.leatt-corp.com. One should not rely on the following summary as a complete presentation of financial results and condition for Q2 FY2011, especially in any investment decision.
|Three Months Ended
|Six Months Ended
|Cost of Revenues||1,973,499||1,072,021||3,018,663||2,223,484|
|Income/Loss from Operations||621,212||(277,290)||398,109||(462,880)|
|Other Income (Expense)||19,154||(16,503)||24,623||(14,845)|
|Income/Loss Before Income Taxes||640,366||(293,793)||422,732||(477,725)|
|Net Income/Loss Available to Common Shareholders||$389,566||$(293,793)||$171,132||$(480,125)|
NOTICE: This press release may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and the Company’s reaction to those factors; on consumer and business buying decisions with respect to the Company’s products; the ability of the Company to deliver to the marketplace and stimulate customer demand for products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need from time to time to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; product quality control issues; the absence of a strong e-commerce website for products; the continued service and availability of key executives and employees; unfavorable results of legal proceedings, especially personal injury or product liability lawsuits or intellectual property rights lawsuits; and the Company’s dependency on the sales performance of distributors and other resellers of the Company’s products. Increased financial performance in one or more quarters is not necessarily indicative of future financial performance and general optimism of management does not mean that the Company is or will continue to perform at any specific level. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public disclosures at http: www.leatt-corp.com . The Company’s common stock quotes on The OTC Markets Group, Inc. and said stock is a "penny stock" under SEC rules – all of which limits the liquidity of our common stock. The Company is not an SEC reporting company and its common stock is not extensively or actively traded. As such, any investment in the common stock is highly risky and has limited liquidity. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, unless applicable laws require otherwise. Neither any URLs referenced above nor their contents are incorporated herein or made a part of this press release and should not be relied upon by any investor.
Investor Relations Contacts:
3901 Dominion Townes Circle,
Richmond, Virginia 23223, USA
Tel: (804) 644-2182/ Fax: (804) 644-2181
Alternate Tel: (703) 725-7299