Ironclad Performance Wear Reports First Quarter 2015 Results
Rebuilding Efforts Deliver Improved Operating Results
FARMERS BRANCH, Texas, May 7, 2015 /PRNewswire/ -- Ironclad Performance Wear Corporation (OTCQB: ICPW), the recognized leader in high-performance task-specific work gloves, reported financial results for the first quarter ended March 31, 2015.
First Quarter 2015 Results
The Company reported Net Sales for the first quarter of 2015 of $4.6 million, a decrease of 10.0% from the first quarter total of $5.1 million for 2014. The sales decline was attributable to year-over-year order timing differences of a single private label customer. We expect these year-over-year shipment changes to reverse themselves in later quarters.
The Company recorded increases in both the industrial and international segments. These increases were partially offset by a decline at one retailer that did not repeat their prior year quarter totals due to the ending of the Snap On license program, discussed in previous quarters.
Gross Profit was $1.8 million, or 38.7% of Net Sales in the first quarter of 2015, compared to $1.5 million, or 28.9% of Net Sales in the first quarter of 2014. The increase in Gross Profit is primarily attributable to a better mix of business, less promotional sales and the result of our supply chain efforts.
Operating Expenses in the first quarter were $1.9 million or 40.5% of Net Sales, as compared to $2.0 million or 38.5% of Net Sales during the same period last year.
Loss from Operations in the first quarter of 2015 was $84,000, or 1.8%, as compared to a loss of $484,000, or 9.5%, during the same period in 2014.
Net Loss for the first quarter of 2015 was $99,000, or $0.00 per share, as compared to a loss of $491,000, or $0.01 per share, in the same period last year.
Ironclad's Chief Executive Officer, Jeffrey Cordes, commented: "We are pleased to see the efforts of the past twelve months showing up on our bottom line. We still face the impacts of customer concentration quarter to quarter. However, the improvements in gross margin and the operating line are very encouraging.
There were a number of important firsts and highlights this quarter. We recorded first time shipments to several new and important global partners and see this trend continuing. We are excited about the positive reception at retail of our Ironclad EXO® line of products. This product group will commence shipments in the later part of the 2nd quarter 2015. Our efforts in cost reduction and speed to market through our supply chain continue to show progress.
We continue to be positive about the company's growth and profitability prospects for the year ahead."
Conference Call
Ironclad Performance Wear will hold a conference call to discuss first quarter 2015 financial results on Thursday, May 7th, at 3:30 p.m. Central Time (4:30 p.m. Eastern Time). To participate in the conference call, interested parties should dial:
Date: Thursday, May 7, 2015
Time: 4:30 p.m. Eastern Time (3:30 p.m. Central Time)
Domestic Dial-In Number: (888) 572-7033
International Dial-In Number: (719) 325-2469
Conference ID Number: 2696761
The conference call will be broadcast simultaneously and available for replay at: http://public.viavid.com/index.php?id=114263 and via the landing page of the Company's Website at www.ironclad.com.
Replay Dial-In Numbers:
TOLL-FREE 1-877-870-5176
TOLL/INTERNATIONAL 1-858-384-5517
From: 05/07/15 at 7:30 pm Eastern Time
To: 06/07/15 at 11:59 pm Eastern Time
Replay Pin Number: 2696761
In addition, the conference call will also be broadcast live over the Internet and can be accessed at www.ironclad.com. For those unable to participate during the live broadcast, the Webcast will be archived on this site through June 7, 2015.
The Company's financial results will be posted online at www.ironclad.com once they are publicly released.
About Ironclad Performance Wear Corporation
Ironclad Performance Wear is a leader in high-performance task-specific work gloves. It created the performance work glove category in 1998, and continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for industries such as oil & gas extraction; automotive; and police, fire, first-responder and military. Ironclad engineers and manufactures its products with a focus on innovation, design, advanced material science and durability. Ironclad's gloves and apparel are available through industrial suppliers, hardware stores, home centers, lumber yards, and sporting goods retailers nationwide; and through authorized distributors in North America, Europe, Australia and Asia.
Built Tough for the Industrial Athlete™
For more information on Ironclad, please visit the Company's Website at www.ironclad.com.
Information about Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Ironclad's products, the introduction of new products, Ironclad's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Ironclad's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in Ironclad's filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include statements regarding expanding our base of retailers and distributors, anticipated sales to customers, development of product lines, our sales team and our supply chain, and anticipated growth and profitability. For a more detailed description of the risk factors and uncertainties affecting Ironclad, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. Ironclad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact
William Aisenberg, CFO
[email protected]
(972) 996-5664
| IRONCLAD PERFORMANCE WEAR CORPORATION |
|||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
| March 31, 2015 |
December 31, 2014 |
||
| ASSETS |
|||
| Current Assets |
|||
| Cash and cash equivalents |
$ 370,522 |
$ 340,903 |
|
| Accounts receivable, net of allowance for doubtful accounts of $30,000 and $30,000 |
4,734,946 |
6,283,032 |
|
| Inventory, net of reserve of $547,800 and $547,800 |
8,436,142 |
7,123,654 |
|
| Deposits on inventory |
241,154 |
661,744 |
|
| Prepaid and other |
598,365 |
566,022 |
|
| Deferred tax asset - current |
183,000 |
183,000 |
|
| Total Current Assets |
14,564,129 |
15,158,355 |
|
| Property and Equipment |
|||
| Computer equipment and software |
551,501 |
507,640 |
|
| Office equipment and furniture |
260,325 |
255,085 |
|
| Leasehold improvements |
169,904 |
169,904 |
|
| Less: accumulated depreciation |
(674,565) |
(641,953) |
|
| Total Property and Equipment, Net |
307,165 |
290,676 |
|
| Other Assets |
|||
| Trademarks and patents, net of accumulated amortization of $60,945 and $58,560 |
133,044 |
135,064 |
|
| Deposits |
22,924 |
21,306 |
|
| Deferred tax asset - long term |
1,649,000 |
1,649,000 |
|
| Total Other Assets |
1,804,968 |
1,805,370 |
|
| Total Assets |
$ 16,676,262 |
$ 17,254,401 |
|
| LIABILITIES & STOCKHOLDERS' EQUITY |
|||
| Current Liabilities |
|||
| Accounts payable and accrued expenses |
$ 2,275,693 |
$ 2,589,623 |
|
| Line of credit |
2,321,189 |
2,586,034 |
|
| Total Current Liabilities |
4,596,882 |
5,175,657 |
|
| Total Liabilities |
4,596,882 |
5,175,657 |
|
| Stockholder's Equity |
|||
| Common stock, $0.001 par value, 172,744,750 shares authorized, 80,915,229 and 80,808,629 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively |
80,915 |
80,808 |
|
| Additional paid-in capital |
20,392,921 |
20,293,486 |
|
| Accumulated deficit |
(8,394,456) |
(8,295,550) |
|
| Total Stockholders' Equity |
12,079,380 |
12,078,744 |
|
| Total Liabilities & Stockholders' Equity |
$ 16,676,262 |
$ 17,254,401 |
|
| IRONCLAD PERFORMANCE WEAR CORPORATION |
||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||
| (unaudited) |
||||||||||
| Three Months |
% of Net |
Three Months |
% of Net |
|||||||
| REVENUES |
||||||||||
| Net sales |
$ 4,567,682 |
100.0% |
$ 5,076,335 |
100.0% |
||||||
| COST OF SALES |
||||||||||
| Cost of sales |
2,801,086 |
61.3% |
3,607,189 |
71.1% |
||||||
| GROSS PROFIT |
1,766,596 |
38.7% |
1,469,146 |
28.9% |
||||||
| OPERATING EXPENSES |
||||||||||
| General and administrative |
678,412 |
14.9% |
772,057 |
15.2% |
||||||
| Sales and marketing |
698,882 |
15.3% |
703,219 |
13.9% |
||||||
| Research and development |
155,471 |
3.4% |
120,648 |
2.4% |
||||||
| Purchasing, warehousing and distribution |
282,998 |
6.2% |
327,797 |
6.5% |
||||||
| Depreciation and amortization |
34,997 |
0.8% |
29,820 |
0.6% |
||||||
| Total Operating Expenses |
1,850,760 |
40.5% |
1,953,541 |
38.5% |
||||||
| LOSS FROM OPERATIONS |
(84,164) |
-1.8% |
(484,395) |
-9.5% |
||||||
| OTHER INCOME (EXPENSE) |
||||||||||
| Interest expense |
(14,750) |
-0.3% |
(6,913) |
-0.1% |
||||||
| Interest income |
7 |
0.0% |
7 |
0.0% |
||||||
| Total Other Expense |
(14,743) |
-0.3% |
(6,906) |
-0.1% |
||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES |
(98,907) |
-2.2% |
(491,301) |
-9.7% |
||||||
| Provision for income taxes |
- |
0.0% |
- |
0.0% |
||||||
| NET LOSS |
$ (98,907) |
-2.2% |
$ (491,301) |
-9.7% |
||||||
| NET LOSS PER COMMON SHARE |
||||||||||
| Basic |
($0.00) |
($0.01) |
||||||||
| Diluted |
($0.00) |
($0.01) |
||||||||
| WEIGHTED AVERAGE COMMON SHARES |
||||||||||
| OUTSTANDING |
||||||||||
| Basic |
80,889,171 |
76,704,275 |
||||||||
| Diluted |
80,889,171 |
76,704,275 |
||||||||
SOURCE Ironclad Performance Wear Corporation
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