Business
Lakeland Industries Adds Capacity to Meet Organic Growth Plans from Traditional Industrial PPE Market and Global Coronavirus Requirements
DECATUR, AL / ACCESSWIRE / March 13, 2020 / Lakeland Industries, Inc. (NASDAQ:LAKE) (the "Company" or "Lakeland"), a leading global manufacturer of protective
About this update from Lakeland Industries, Inc.
[{"type":"text","content":"DECATUR, AL / ACCESSWIRE / March 13, 2020 / Lakeland Industries, Inc. (NASDAQ:LAKE) (the \"Company\" or \"Lakeland\"), a leading global manufacturer of protective clothing for industry, healthcare and to first responders on the federal, state and local levels, today addressed the impact on its operations from organic growth and demand relating to the CoVID-19 (or \"coronavirus\") pandemic. Lakeland's manufacturing facilities in China, Vietnam and India produce disposable personal protective equipment (PPE) apparel that are the most commonly requested type of garments for use amid viral outbreaks such as coronavirus and the Company is experiencing heightened demand for these products.Charles D. Roberson, President and Chief Executive Officer of Lakeland Industries, said, \"As a substantial and diversified manufacturer of PPE apparel, we are pleased to announce that Lakeland is accelerating previously planned expansion of our sealed seam manufacturing capacity by 30%. In the last two years, Lakeland has invested $6 million to expand its global manufacturing footprint into Vietnam and India, update and add IT systems, improve efficiencies, and increase margins. In our most recent quarterly financial results (Q3 FY20), we reported an increase in cash and a reduction of debt, with a net cash position of approximately $8 million, $77 million of working capital, and access to available borrowings under our $20 million of untapped credit facilities. We have ample liquidity to advance our ongoing organic business initiatives while aiding in the exigent circumstances relating the coronavirus outbreak by moving up our previously planned expansion by approximately 9 months to mid-April and May FY20.\"The increase in our seam sealing production capacity announced today will allow us to meet our immediate coronavirus related demand and have the increased capacity required to continue organic revenue growth when coronavirus demand subsides. Our manufacturing approach has always been to place a priority on satisfying the needs of our traditional customers. On this basis, Lakeland has been experiencing solid organic growth as evidenced by the 14% year-over-year improvement in sales which we reported in our most recent quarterly results. It is our mission to continue to grow organically in excess of the overall market which is estimated at approx...