Revenues increased to $6.100 M; strong international sales quarter on quarter
Leatt Corporation (OTCQB: LEAT), a leading developer and marketer of protective equipment and ancillary products for many forms of sports, especially extreme high-velocity sports, today announced financial results for the 1Q ending March 31, 2k19. All financial numbers are in U.S. dollars.
1Q 2k19 Highlights
- Revenues increased by 11. 00percent, to $6.100 M
- Knee brace sales volume increased by 49. 00percent
- Helmet revenues increased by 9. 00percent; strong demand continues
- Other Products, Parts, and Accessories category increases by 99. 00spercent on strong demand for a new line of goggles
- Successful global launch of Leatt Velocity 6.5 line of goggles; awarded product of the month in April 2k19 by Descend Mountain Bike
Total revenues for the three-month period ended March 31, 2k19 increased to $6.100 M, up 11. 00percent, compared to $5.5 M for the 2k18 first quarter.
The increase in revenues for the 1Q was driven by a 99. 00percent increase in sales of other products, parts, and accessories, a 9percent increase in helmet sales, a 6. 00percent increase in body armor sales, that were partially offset by an 18percent decrease in neck brace sales. Although neck brace sales were down slightly, they continue to generate a higher gross profit margin than our other product categories.
For the 2k19 first quarter, gross profit was $2.9 00M, or 47. 00percent of revenues, compared to $2.800 M, or 50. 00percent of revenues, for the 2k18 first quarter.
1Q income from operations was $15,338. 00 compared to $191,210. 00 for the 1Q of 2k18. The decrease is primarily due to costs associated with global marketing campaigns to support brand awareness.
Net income for the three months ended March 31, 2k19 was $9,238. 00, or $-0- per basic and diluted share, compared to $140,819. 00, or $0.0300 per basic and diluted share, for the same 2k18 period. The decrease in net income for the 1Q of 2k19 was due to increases in operating costs associated with marketing and advertising.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At March 31, 2k19, the Company had cash and cash equivalents of $1.600 M, a current ratio of 2.5:1, and there was no long-term debt.