Ironclad Performance Wear Reports Second Quarter 7% Sales Increase and 40% Improvement in Net Loss From Prior Year
By PRN NewsWire
FARMERS BRANCH, Texas, Aug. 10, 2015 /PRNewswire/ — Ironclad Performance Wear Corporation (OTCQB: ICPW), the recognized leader in high-performance task-specific work gloves, reported financial results for the second quarter and year to date ended June 30, 2015.
The Company reported increased Net Sales for the quarter of $5.2 million, a 7% increase from $4.8 million in the second quarter of 2014, on stronger sales from international, private label and retail accounts.
Gross Profit dollars increased 7% to $1.8 million, or 34.4% of Net Sales, compared to $1.7 million, or 34.4% of Net Sales, in the second quarter of 2014 due primarily to higher revenues. Gross margin for the year-to-date period is improved by 4.8% from the same period in the prior year.
Operating Expenses were consistent year-over-year at $1.9 million for the quarters. Q2 2015 operating expenses represented 37.2% of Net Sales as compared to 40.2% of Net Sales in the second quarter of 2014.
As a result of the above, Loss from Operations decreased by $132,220, to a loss of $149,728, from a loss of $281,948 in the second quarter of 2014.
Interest Expense increased $20,193 to $20,193 in the second quarter of 2015 from $-0- in the same period of 2014. This increase is due to increased borrowings under our bank line of credit agreement.
Net Loss for the second quarter of 2015 was $169,914, or $0.00 per share, as compared to a loss of $281,705, or $0.00 per share, in the same period last year. Profitability for the year-to-date period has improved by $504,190 from the same period in the prior year.
Ironclad’s Chief Executive Officer, Jeffrey Cordes, commented: “The results of the 2(nd) quarter mark an important turn for Ironclad. Despite difficult markets in oil, gas and mining, Ironclad recorded solid increases in revenue and earnings this quarter. These increases came from multiple segments and customers. The growth in the Company’s revenues, the results of our team’s planning and execution, are coming from new customers, new product placements, and simply better execution with our partners. We will continue to execute on this path the balance of 2015 and continue to believe in the 10% to 15% full year growth in sales as previously communicated through our guidance.”
Ironclad Performance Wear will hold a conference call to discuss second quarter 2015 financial results on Monday, August 10th, at 3:30 p.m. Central Time (4:30 p.m. Eastern Time). To participate in the conference call, interested parties should dial:
Date: Aug 10th, 2015Time: 4:30 p.m. Eastern Time (3:30 p.m. Central Time)Domestic Dial-In Number: 1-888-510-1786International Dial-In Number: 1-719-457-2727Conference ID Number: 9000188
The conference call will be broadcast simultaneously and available for replay at: http://public.viavid.com/index.php?id=115678 and also via the landing page of the Company’s Website at www.ironclad.com.
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
Replay Dial-In Numbers:TOLL-FREE 1-877-870-5176TOLL/INTERNATIONAL 1-858-384-5517From: 08/10/15 at 7:30 pm Eastern TimeTo: 09/10/15 at 11:59 pm Eastern TimeReplay Pin Number: 9000188
The Company’s financial results will be posted online at www.ironcladinvestor.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 executing on growth initiatives and guidance regarding anticipated sales growth. 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 CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2015 (Unaudited) December 31, 2014 ———————— —————– ASSETS Current Assets Cash and cash equivalents $291,606 $340,903 Accounts receivable net of allowance for doubtful accounts of $30,000 and $30,000 5,326,692 6,283,032 Inventory net of reserve of $547,800 and $547,800 8,878,889 7,123,654 Deposits on inventory 278,973 661,744 Prepaid and other 809,131 566,022 Deferred tax asset -current 183,000 183,000 ——- ——- Total Current Assets 15,768,291 15,158,355 Property and Equipment Computer equipment and software 573,693 507,640 Furniture and equipment 264,030 255,085 Leasehold improvements 172,048 169,904 Less: accumulated depreciation (704,013) (641,953) ——– ——– Total Property and Equipment, Net 305,758 290,676 Other Assets Trademarks and patents net of accumulated amortization of $63,328 and $60,945 130,661 135,064 Deposits 23,104 21,306 Deferred tax asset -long term 1,649,000 1,649,000 ——— ——— Total Other Assets 1,802,765 1,805,370 Total Assets $17,876,814 $17,254,401 =========== =========== LIABILITIES & STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable and accrued expenses $2,621,606 $2,589,623 Line of credit 3,260,382 2,586,034 ——— ——— Total Current Liabilities 5,881,988 5,175,657 Total Liabilities 5,881,988 5,175,657 ——— ——— Stockholders’ Equity Common stock, $0.001 par value, 172,744,750 shares authorized, 81,648,562 and 80,808,629 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively 81,649 80,808 Additional paid-in capital 20,477,544 20,293,486 Accumulated deficit (8,564,367) (8,295,550) ———- ———- Total Stockholders’ Equity 11,994,826 12,078,744 ———- ———- Total Liabilities & Stockholders’ Equity $17,876,814 $17,254,401 =========== ===========
IRONCLAD PERFORMANCE WEAR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Six Months Ended —————— —————- June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 ————- ————- ————- ————- REVENUES Net sales $5,171,966 $4,819,252 $9,739,649 $9,895,587 COST OF SALES Cost of sales 3,395,362 3,161,595 6,196,449 6,768,784 ——— GROSS PROFIT 1,776,604 1,657,657 3,543,200 3,126,803 OPERATING EXPENSES General and administrative 761,411 763,033 1,439,823 1,535,090 Sales and marketing 733,424 659,265 1,432,304 1,362,484 Research and development 158,132 132,335 313,602 252,983 Purchasing, warehousing and distribution 241,534 356,297 524,531 684,094 Depreciation and amortization 31,831 28,675 66,828 58,495 —— Total Operating Expenses 1,926,332 1,939,605 3,777,088 3,893,146 INCOME FROM OPERATIONS (149,728) (281,948) (233,888) (766,343) OTHER INCOME (EXPENSE) Interest expense (20,193) – (34,942) (6,913) Interest income 7 7 14 14 Other income, net – 131 – 131 Gain on disposition of equipment – 105 – 105 — Total Other Income (Expense), Net (20,186) 243 (34,928) (6,663) ——– NET LOSS BEFORE PROVISION FOR INCOME TAXES (169,914) (281,705) (268,816) (773,006) Benefit from income taxes – current – – – – NET LOSS $(169,914) $(281,705) $(268,816) $(773,006) ========= ========= ========= ========= NET LOSS PER COMMON SHARE Basic ($0.00) ($0.00) ($0.00) ($0.01) ===== Diluted ($0.00) ($0.00) ($0.00) ($0.01) ======= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 81,132,811 77,117,171 81,011,664 76,911,863 ===== Diluted 81,132,811 77,117,171 81,011,664 76,911,863 =======
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Ironclad Performance Wear Corporation
Web site: http://www.ironclad.com/