Ironclad Performance Wear Reports Fourth Quarter and Fiscal Year 2014 Results
By PRN NewsWire
By PRN NewsWire
FARMERS BRANCH, Texas, March 5, 2015 /PRNewswire/ — Ironclad Performance Wear Corporation (OTCQB: ICPW), the recognized leader in high-performance task-specific work gloves, reported financial results for the fourth quarter and fiscal year ended December 31, 2014.
Fourth Quarter 2014 ResultsThe Company reported Net Sales for the fourth quarter of 2014 of $9.2 million, a decrease of 9.0% from the fourth quarter total of $10.1 million for 2013. The revenue decrease was primarily attributable to shipments made to several of our private label customers in the 3(rd) quarter of 2014 versus the same shipments being made in the 4(th) quarter of 2013.
Gross Profit was $3.2 million, or 34.8% of Net Sales in the fourth quarter of 2014, compared to $3.1 million, or 30.9% of Net Sales in the fourth quarter of 2013. 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 fourth quarter were $1.9 million or 20.9% of Net Sales, as compared to $2.0 million or 19.9% of Net Sales, during the same period last year.
Income from Operations in the fourth quarter was $1.3 million or 13.9% as compared to $1.1 million or 11.0% during the same period in 2013.
Net Income for the fourth quarter was $2.1 million, or $0.03 per share, as compared to $1.3 million, or $0.02 per share, in the same period last year.
The Company recorded a deferred tax benefit of $760,000 in 2014 and $214,500 in 2013.
Fiscal 2014 Year-End ResultsFull-year Net Sales for 2014 were $24.3 million, representing a 1.0% decrease from 2013 Net Sales of $24.5 million.
Gross Profit was $8.2 million or 33.6% of Net Sales in 2014, as compared to $8.1 million, or 33.1% of Net Sales for full-year 2013. 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 were $8.1 million or 33.2%, of Net Sales, as compared to $7.9 million or 32.1% of Net Sales, for the full-year 2013. The increase in operating expense for the year was primarily driven by one-time costs associated with the Company’s move from California to Texas, including severance, re-staffing and move related costs, the total of which is estimated at more than $600,000.
Income from Operations was $109,000 for 2014 as compared to an Income from Operations of $243,000 for fiscal year 2013. If adjusted for the one-time expenses outlined above, income from operations would approximate $709,000 for 2014.
Net Income for 2014 was $934,000, or $0.01 per share, as compared to a Net Income of $561,000 or $0.01 per share, in the prior year. If adjusted for the one-time charges mentioned above, net income would approximate $1,325,000 (net of estimated taxes) for 2014.
The Company reduced its deferred tax valuation allowance by 28% and 7% thereby recognizing $760,000 and $214,500 in tax benefits in 2014 and 2013, respectively.
Jeff Cordes, Chief Executive Officer of Ironclad commented; “There is no doubt that 2014 has been a rebuilding year at Ironclad. Our focus has been to build better relationships with our largest partners, return to our technology heritage, and improve our supply chain, merchandising and sales capabilities, all to position the Company to be more competitive in 2015. We have executed a significant series of changes this year. Our sales team has pursued and booked more than $2.6 million in new business that replaced prior year lost licensed business, which was at a lower gross margin. Adjusting for one-time expenses to restructure and move the Company, we made significant progress at the operating line as well.
More importantly, as we enter 2015, our strengthening relationships with ORR, 5.11 and Performance on Hand, and our new relationships with Dickies and Vibram, will open more markets on which to build our business. We have a solid start but there is much work still to do. We look forward to growing our business in 2015, but remind our investors that timing of orders from Ironclad’s customers may cause variability in quarterly results.”
Conference CallIronclad Performance Wear will hold a conference call to discuss 2014 financial results on Thursday, March 5th, 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, March 5, 2015Time: 4:30 p.m. Eastern Time (3:30 p.m. Central Time)Domestic Dial-In Number: (888) 395-3227International Dial-In Number: (719) 325-2435Conference ID Number: 8550600
The conference call will be broadcast simultaneously and available for replay at: http://public.viavid.com/index.php?id=113253 and via the landing page of the Company’s Website at www.ironclad.com.
Replay Dial-In Numbers:TOLL-FREE 1-888-587-5176TOLL/INTERNATIONAL 1-858-384-5517From: 03/05/15 at 7:30 pm Eastern TimeTo: 04/05/15 at 11:59 pm Eastern TimeReplay Pin Number: 8550600
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 March 15, 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(TM)
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 strengthening partner relationships, additional markets for Ironclad’s products and Ironclad’s growth in 2015. 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.
ContactWilliam Aisenberg, CFOBill.Aisenberg@ironclad.com(972) 996-5664
Ironclad Performance Wear Corp. CONSOLIDATED BALANCE SHEETS December 31, 2014 December 31, 2013 —————– —————– ASSETS Current Assets Cash and cash equivalents $340,903 $313,750 Accounts receivable net of allowance for doubtful accounts of $30,000 and $48,000 6,283,032 6,782,191 Inventory net of reserve of $547,800 and $619,000 7,123,654 4,570,402 Deposits on inventory 661,744 868,662 Prepaid and other 566,022 407,619 Deferred tax asset – current 183,000 274,000 ——- ——- Total Current Assets 15,158,355 13,216,624 Property and Equipment Computer equipment and software 507,640 442,262 Vehicle – 39,630 ‘Furniture and equipment 255,085 196,744 Leasehold improvements 169,904 90,441 Less: accumulated depreciation (641,953) (577,759) ——– ——– Total Property and Equipment, Net 290,676 191,318 Other Assets Trademarks and patents net of accumulated amortization of $58,560 and $49,064 135,064 138,260 Deposits 21,306 10,204 Deferred tax asset – long term 1,649,000 798,000 ——— ——- Total Other Assets 1,805,370 946,464 Total Assets $17,254,401 $14,354,406 =========== =========== LIABILITIES & STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable and accrued expenses $2,589,623 $2,129,905 Line of credit 2,586,034 2,169,411 ——— ——— Total Current Liabilities 5,175,657 4,299,316 Total Liabilities 5,175,657 4,299,316 ——— ——— Stockholder’s Equity Common stock, $0.001 par value, 172,744,750 shares authorized, 80,808,629 and 76,704,275 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively 80,808 76,704 Capital in excess of par value 20,293,486 19,208,255 Accumulated deficit (8,295,550) (9,229,869) ———- ———- Total Stockholders’ Equity 12,078,744 10,055,090 ———- ———- Total Liabilities & Stockholders’ Equity $17,254,401 $14,354,406 =========== ===========
Ironclad Performance Wear Corp. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Twelve Months Ended —————— ——————- December 31, 2014 December 31, 2013 December 31, 2014 December 31, 2013 —————– —————– —————– —————– REVENUES Net sales $9,157,164 $10,065,786 $24,283,552 $24,530,853 COST OF SALES Cost of sales 5,965,923 6,951,973 16,114,336 16,415,487 ——— GROSS PROFIT 3,191,241 3,113,813 8,169,216 8,115,366 EXPENSES General and administrative 779,370 682,141 3,372,235 2,607,317 Sales and marketing 664,396 764,386 2,717,491 3,148,476 Research and development 152,219 208,032 543,375 775,670 Purchasing, warehousing and distribution 283,531 311,789 1,303,818 1,173,564 Depreciation and amortization 34,837 37,176 123,596 166,868 —— Total Operating Expenses 1,914,353 2,003,524 8,060,515 7,871,895 INCOME FROM OPERATIONS 1,276,888 1,110,289 108,701 243,471 OTHER INCOME (EXPENSE) Interest expense (15,673) (15,740) (25,288) (74,095) Interest income 7 7 28 106 Other income (expense), net – – 131 1 Gain on disposition of equipment – – 1,802 550 — Total Other Income (Expense), Net (15,666) (15,733) (23,327) (73,438) ——– NET INCOME BEFORE PROVISION FOR INCOME TAXES 1,261,222 1,094,556 85,374 170,033 Benefit from (Provision for) income taxes -current 88,945 – 88,945 176,196 Deferred income tax benefit – reversal of valuation allowance 760,000 214,500 760,000 214,500 ——- ——- ——- ——- NET INCOME $2,110,167 $1,309,056 $934,319 $560,729 ========== ========== ======== ======== NET INCOME PER COMMON SHARE Basic $0.03 $0.02 $0.01 $0.01 ===== Diluted $0.02 $0.02 $0.01 $0.01 ===== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 80,808,629 76,704,275 78,438,557 76,681,498 ===== Diluted 91,657,474 83,770,415 89,287,402 83,747,638 =======
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Ironclad Performance Wear Corporation
Web site: http://www.ironclad.com/