Business
Lakeland Industries, Inc. Reports Fiscal 2020 Third Quarter Financial Results
Quarterly Net Sales Increase 14% as Net Income Inclusive of Non-cash Income Tax Expense Jumps 129% RONKONKOMA, NY / ACCESSWIRE / December 9, 2019 / Lakeland
About this update from Lakeland Industries, Inc.
[{"type":"text","content":"Quarterly Net Sales Increase 14% as Net Income Inclusive of Non-cash Income Tax Expense Jumps 129% RONKONKOMA, NY / ACCESSWIRE / December 9, 2019 / 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 announced financial results for its fiscal 2020 third quarter ended October 31, 2019.Fiscal 2020 Third Quarter Financial Results Highlights and Recent DevelopmentsNet sales for Q3FY20 of $27.5 million, compared with Q3FY19 of $24.0 millionGross profit for Q3FY20 of $9.3 million, compared with Q3FY19 of $8.3 millionGross margin as a percentage of net sales in Q3FY20 was 33.9%, compared to 34.6% in Q3FY19Operating expenses of $7.5 million in Q3FY20, compared with $7.3 million in Q3FY19Operating profit of $1.8 million in Q3FY20, compared with $1.0 million in Q3FY19Net income of $1.1 million in Q3FY20, compared with net income of $0.5 million in Q3FY19Q3FY20 net income includes non-cash income tax expense of approximately $0.3 million due to the re-measurement and reassessment of the GILTI tax; this amount was approximately $0.6 million for the 9 months ended October 31, 2019Earnings before interest, taxes, depreciation and amortization (EBITDA)* of $1.9 million, compared with $1.4 million in Q3FY19Capital expenditures for fiscal 2020 third quarter were approximately $0.1 million as compared with approximately $1.0 million in the fiscal 2019 periodCash of $9.5 million at end of Q3FY20, up 4% from $9.1 million at end of Q2FY20Total debt was $1.2 million at end of Q3FY20, down 24% from $1.6 million at end of Q2FY20* EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release.** Lakeland's fiscal 2020 third quarter financial results as reported on a U.S. GAAP basis was subject to non-cash income tax expense pertaining to Global Intangible Low-Taxed Income (\"GILTI\") accounting policies. GILTI relates to income earned by foreign affiliates of U.S. companies in excess of allowable returns from intangible assets associated with such operations, which went into effect in 2018 following the passage of the 2017 Tax Cuts and Jobs Act. The 2017 Act, among other things, lowered the U.S. federal corporate income tax rate from 35% to 21%...