Leatt Corp Announces Results for the Third Quarter 2024
Leatt (LEAT) reported Q3 2024 financial results with global revenues returning to growth at $12.14 million, up 1% year-over-year. Body armor, helmet, and neck brace sales increased, while footwear sales declined. Gross profit was $5.17 million, with margins improving 4% sequentially. Net income decreased 75% to $115,837 ($0.02 per share). Direct-to-consumer sales grew 12%, and cash position strengthened to $12.47 million, up 10% from December 2023. The company reported positive cash flow from operations of $2.98 million for the first nine months of 2024.
Leatt (LEAT) ha riportato i risultati finanziari del terzo trimestre 2024, con i ricavi globali che tornano a crescere a $12,14 milioni, in aumento dell'1% rispetto all'anno precedente. Le vendite di armature, caschi e collari cervicali sono aumentate, mentre le vendite di calzature sono diminuite. Il profitto lordo è stato di $5,17 milioni, con un margine in miglioramento del 4% rispetto al trimestre precedente. Il reddito netto è diminuito del 75% a $115.837 ($0,02 per azione). Le vendite dirette ai consumatori sono cresciute del 12% e la posizione di cassa si è rafforzata a $12,47 milioni, in aumento del 10% rispetto a dicembre 2023. L'azienda ha riportato un flusso di cassa positivo dalle operazioni di $2,98 milioni per i primi nove mesi del 2024.
Leatt (LEAT) reportó los resultados financieros del tercer trimestre de 2024, con ingresos globales que vuelven a crecer a $12.14 millones, un aumento del 1% interanual. Las ventas de armaduras corporales, cascos y collares cervicales aumentaron, mientras que las ventas de calzado disminuyeron. El beneficio bruto fue de $5.17 millones, con márgenes que mejoraron un 4% secuencialmente. El ingreso neto disminuyó un 75% a $115,837 ($0.02 por acción). Las ventas directas al consumidor crecieron un 12% y la posición de efectivo se fortaleció a $12.47 millones, un aumento del 10% desde diciembre de 2023. La compañía reportó un flujo de caja positivo de operaciones de $2.98 millones para los primeros nueve meses de 2024.
Leatt (LEAT)는 2024년 3분기 재무 결과를 보고하며, 전 세계 수익이 $12.14백만으로 1% 증가하며 성장세를 되찾았습니다. 바디 아머, 헬멧 및 넥 브레이스 판매는 증가했지만, 신발 판매는 감소했습니다. 총 이익은 $5.17백만으로, 마진이 전분기 대비 4% 개선되었습니다. 순익은 75% 감소하여 $115,837 ($0.02 주당)로 집계되었습니다. 소비자 직접 판매는 12% 성장했으며, 현금 보유량은 $12.47백만으로 2023년 12월 대비 10% 증가했습니다. 이 회사는 2024년 첫 9개월 동안 운영으로부터 $2.98백만의 긍정적인 현금 흐름을 보고했습니다.
Leatt (LEAT) a rapporté les résultats financiers du troisième trimestre 2024, avec des revenus mondiaux qui reviennent à la hausse à 12,14 millions de dollars, en hausse de 1 % par rapport à l'année précédente. Les ventes d'armures corporelles, de casques et de colliers de maintien du cou ont augmenté, tandis que les ventes de chaussures ont diminué. Le bénéfice brut s'est élevé à 5,17 millions de dollars, avec une amélioration des marges de 4 % par rapport au trimestre précédent. Le revenu net a diminué de 75 % pour atteindre 115 837 $ (0,02 $ par action). Les ventes directes aux consommateurs ont augmenté de 12 % et la position de trésorerie s’est consolidée à 12,47 millions de dollars, en hausse de 10 % par rapport à décembre 2023. L'entreprise a déclaré un flux de trésorerie positif provenant des opérations de 2,98 millions de dollars pour les neuf premiers mois de 2024.
Leatt (LEAT) berichtete über die Finanzzahlen des dritten Quartals 2024, wobei die globalen Einnahmen wieder auf $12,14 Millionen gestiegen sind, was einem Anstieg von 1 % im Vergleich zum Vorjahr entspricht. Der Umsatz mit Schutzkleidung, Helmen und Nackenstützen nahm zu, während die Verkäufe von Schuhen zurückgingen. Der Bruttogewinn betrug $5,17 Millionen, mit einer Verbesserung der Marge um 4 % im Quartalsvergleich. Der Nettogewinn fiel um 75 % auf $115.837 ($0,02 pro Aktie). Die Direktverkäufe an Verbraucher wuchsen um 12 % und die Liquidität der Firma stärkte sich auf $12,47 Millionen, ein Anstieg um 10 % im Vergleich zu Dezember 2023. Das Unternehmen berichtete über einen positiven Cashflow aus operativer Tätigkeit von $2,98 Millionen für die ersten neun Monate 2024.
- Global revenues increased 1% YoY to $12.14 million
- Gross profit margins improved 4% sequentially
- Direct-to-consumer sales grew 12%
- Cash position increased 10% to $12.47 million
- Generated $2.98 million in operating cash flow
- Strong current ratio of 6.5:1
- Net income declined 75% YoY to $115,837
- Income from operations decreased 96% to $25,898
- Footwear sales contracted globally
- US brick-and-mortar MOTO dealer sales remained constrained
Third Quarter and First Nine Months 2024 Snapshot
- Global revenues returned to growth as revenues for the third quarter of 2024 were
, up$12.14 million 1% , compared to the third quarter of 2023. - Gross profit margins increased
4% sequentially, compared to the second quarter of 2024. - Cash flow generated from operations for the first nine months of 2024 was
.$2.98 million - Net Income was
, down$115,837 75% , compared to the third quarter of 2023. - Direct-to-consumer sales increased
12% for the third quarter of 2024. - Cash and cash equivalents at September 30, 2024 was
, up$12.47 million 10% , compared to cash on hand at December 31, 2023.
Chief Executive Officer Sean Macdonald commented, "We are all very encouraged by the results of the third quarter of 2024, which we see as a pivotal quarter as global revenues returned to growth, albeit still marginal at this stage. Total global revenues for the quarter were
"Our margins also continued to improve on a quarterly basis, increasing by
"During the quarter we continued to ship orders for our new ADV (Adventure) apparel product line, designed for motorcycle enthusiasts seeking comfort and safety while riding in all weather conditions and terrains. We remain confident that we have the initial distribution, track record, core competencies and talent to deliver a pipeline of other innovative ADV product categories to reach this substantial segment.
"Footwear, comprising MTB shoe and MOTO boot revenues, contracted on a global basis during the quarter. Footwear has been particularly constrained in the current environment with aggressive competitive pricing and high inventory levels causing very cautious buying at the dealer level. We do expect this area to improve as inventory is digested, and ordering continues to pick up.
"We continue to see very encouraging trends at the direct-to-consumer level as consumer direct sales increased by
"Despite current industry-wide conditions, re-investments in working capital and our push to invest in long-term growth, cash increased by
"Overall, despite some constrained brick-and-mortar MOTO dealer sales in the US, our team remains enthusiastic about the pivotal moment in our recovery that is currently in play. We strongly believe that our strategy of investing in talent, innovative product development and the brand, and our distribution capabilities will fuel growth moving forward."
Financial Summary
Total revenues for the third quarter of 2024 were
This increase in worldwide revenues is primarily attributable to a
Income from operations for the third quarter of 2024 was
Net income for the third quarter of 2024 was
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At September 30, 2024, the Company had cash and cash equivalents of
Founder and Research and Development Lead, Dr. Christopher Leatt remarked: "As evidenced by our new ADV apparel line, and our new range of bicycle components, which will commence initial shipment in the coming months, our pipeline of innovative head-to-toe products continues to be very strong."
Business Outlook
Mr. Macdonald added, "Although there are still some challenging economic headwinds globally that may impact demand to some extent, inventory continues to be digested, participation remains strong and ordering patterns continue to improve and have started to filter through to our international distribution revenues and ultimately our revenue position. This is a trend that we expect to continue over the next few periods and beyond.
"We will continue to optimize our selling capabilities by building a team of sales and marketing professionals around the world as industry-wide turbulence presents an opportunity to continue growing the Leatt family by adding talent.
"We are all enthusiastic about the future at Leatt with our strong portfolio of innovative products in the market and in the pipeline, a multi-channel sales organization that is growing and developing, and a robust balance sheet to fuel brand and revenue growth. We remain confident that we are well positioned for future growth and shareholder value."
Conference Call
The Company will host a conference call at 10:00 am ET on Tuesday, October 29, 2024 to discuss the third quarter 2024 results.
Participants should dial in to the call ten minutes before the scheduled time, using the following numbers: 1-877-407-9716 (
Audio Webcast
There will also be a simultaneous live webcast through the Company's website, www.leatt-corp.com. Participants should register on the website approximately ten minutes prior to the start of the webcast.
Replay
An audio replay of the conference call will be available for seven days and can be accessed by dialing 1-844-512-2921 (
For those unable to attend the call, a recording of the live webcast will be archived shortly following the event for 30 days on the Company's website.
About Leatt Corp
Driven by the science of thrill, Leatt Corporation develops head-to-toe personal protective gear for various sports, with a focus on mountain biking and extreme motorsports. This includes the award-winning Leatt-Brace®, a neck brace system considered the gold standard for neck protection when worn in conjunction with a helmet. Leatt products are designed for participants in extreme sports that use motorcycles, bicycles, mountain bikes, all-terrain vehicles, snowmobiles, and other open-air vehicles. For more information, visit www.leatt.com.
Follow Leatt® on Facebook, Twitter, and Instagram.
Forward-looking Statements
This press release may contain forward-looking statements regarding Leatt Corporation (the "Company") within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the continued impact of the ADV range of products and direct-to-consumer sales on the Company's results of operations; the Company's ability to continue developing a pipeline of innovative products and attracting global industry talent to fuel future growth; the ability of the Company to ship and successfully gain market acceptance of its new bicycle components category; the general ability of the Company to achieve its commercial objectives, including development and growth of a multi-channel sales organization; the business strategy, plans and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "seeks," "should," "could," "intends," or "projects" or similar expressions, and involve known and unknown risks and uncertainties. These statements are based upon the Company's current expectations and speak only as of the date hereof. Any indication of the merits of a claim does not necessarily mean the claim will prevail at trial or otherwise. Financial performance in one period does not necessarily mean continued or better performance in the future. The Company's actual results in any endeavor may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, which factors or uncertainties may be beyond our ability to foresee or control. Other risk factors include the status of the Company's common stock as a "penny stock" and those listed in other reports posted on The OTC Markets Group, Inc.
LEATT CORPORATION | |||
CONSOLIDATED BALANCE SHEETS | |||
ASSETS | |||
September 30, 2024 | December 31, 2023 | ||
Unaudited | Audited | ||
Current Assets | |||
Cash and cash equivalents | $ 12,470,005 | $ 11,347,420 | |
Accounts receivable, net | 7,862,982 | 6,970,322 | |
Inventory, net | 15,772,146 | 20,391,873 | |
Payments in advance | 977,703 | 664,754 | |
Deferred asset, net | - | 9,601 | |
Income tax refunds receivable | 523,888 | 623,081 | |
Prepaid expenses and other current assets | 2,846,213 | 2,297,934 | |
Total current assets | 40,452,937 | 42,304,985 | |
Property and equipment, net | 4,055,879 | 4,026,821 | |
Operating lease right-of-use assets, net | 626,949 | 845,209 | |
Accounts receivable, net | 146,477 | 309,947 | |
Deferred tax asset, net | 84,200 | 84,200 | |
Other Assets | |||
Deposits | 37,960 | 36,210 | |
Total Assets | $ 45,404,402 | $ 47,607,372 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities | |||
Accounts payable and accrued expenses | $ 5,889,080 | $ 5,202,368 | |
Notes payable, current | 52,078 | 112,858 | |
Operating lease liabilities, current | 276,062 | 299,432 | |
Short term loans, net of finance charges | 5,795 | 1,135,761 | |
Total current liabilities | 6,223,015 | 6,750,419 | |
Notes payable, net of current portion | 7,147 | 30,652 | |
Operating lease liabilities, net of current portion | 350,887 | 545,777 | |
Commitments and contingencies | |||
Preferred stock, | |||
authorized, 120,000 shares issued and outstanding | 3,000 | 3,000 | |
Common stock, | |||
authorized, 6,215,440 and 6,215,440 shares issued | |||
and outstanding | 130,553 | 130,553 | |
Additional paid - in capital | 10,749,136 | 10,745,384 | |
Accumulated other comprehensive loss | (1,100,976) | (1,398,258) | |
Retained earnings | 29,041,640 | 30,799,845 | |
Total stockholders' equity | 38,823,353 | 40,280,524 | |
Total Liabilities and Stockholders' Equity | $ 45,404,402 | $ 47,607,372 | |
The accompanying notes are an integral part of these consolidated financial statements. |
LEATT CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 30 | September 30 | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Unaudited | Unaudited | Unaudited | Unaudited | |||||
Revenues | $ 12,138,123 | $ 12,008,847 | $ 32,831,288 | $ 37,438,414 | ||||
Cost of Revenues | 6,968,051 | 6,890,845 | 19,731,470 | 21,204,860 | ||||
Gross Profit | 5,170,072 | 5,118,002 | 13,099,818 | 16,233,554 | ||||
Product Royalty Income | 123,706 | 1,767 | 255,789 | 25,151 | ||||
Operating Expenses | ||||||||
Salaries and wages | 1,676,828 | 1,267,455 | 4,853,471 | 3,737,382 | ||||
Commissions and consulting expenses | 138,124 | 168,299 | 427,941 | 375,548 | ||||
Professional fees | 108,627 | 156,868 | 528,215 | 605,896 | ||||
Advertising and marketing | 1,304,215 | 974,488 | 3,379,914 | 2,678,960 | ||||
Office lease and expenses | 141,420 | 145,863 | 456,164 | 457,675 | ||||
Research and development costs | 620,019 | 610,589 | 1,804,590 | 1,828,548 | ||||
Bad debt expense (recovery) | (30,788) | 46,113 | (20,510) | (135,108) | ||||
General and administrative expenses | 993,031 | 830,145 | 2,913,079 | 2,516,919 | ||||
Depreciation | 316,404 | 299,554 | 907,788 | 871,738 | ||||
Total operating expenses | 5,267,880 | 4,499,374 | 15,250,652 | 12,937,558 | ||||
Income (Loss) from Operations | 25,898 | 620,395 | (1,895,045) | 3,321,147 | ||||
Other Income (Expenses) | ||||||||
Interest and other expenses, net | 105,430 | (1,150) | 178,963 | (38,948) | ||||
Total other Income (expenses) | 105,430 | (1,150) | 178,963 | (38,948) | ||||
Income (Loss) Before Income Taxes | 131,328 | 619,245 | (1,716,082) | 3,282,199 | ||||
Income Taxes | 15,491 | 158,771 | 42,123 | 1,022,365 | ||||
Net Income (Loss) Available to Common Shareholders | $ 115,837 | $ 460,474 | $ (1,758,205) | $ 2,259,834 | ||||
Net Income (Loss) per Common Share | ||||||||
Basic | $ 0.02 | $ 0.08 | $ (0.28) | $ 0.38 | ||||
Diluted | $ 0.02 | $ 0.07 | $ (0.27) | $ 0.36 | ||||
Weighted Average Number of Common Shares Outstanding | ||||||||
Basic | 6,215,440 | 5,971,340 | 6,215,440 | 5,971,340 | ||||
Diluted | 6,485,890 | 6,270,691 | 6,485,890 | 6,270,691 | ||||
Comprehensive Income (Loss) | ||||||||
Net Income (Loss) | $ 115,837 | $ 460,474 | $ (1,758,205) | $ 2,259,834 | ||||
Other comprehensive income (loss) , net of | ||||||||
taxes in 2024 and 2023 | ||||||||
Foreign currency translation | 274,270 | (27,708) | 297,282 | (464,777) | ||||
Total Comprehensive Income (Loss) | $ 390,107 | $ 432,766 | $ (1,460,923) | $ 1,795,057 | ||||
The accompanying notes are an integral part of these consolidated financial statements. |
LEATT CORPORATION | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 | |||
2024 | 2023 | ||
Cash flows from operating activities | |||
Net income (loss) | $ (1,758,205) | $ 2,259,834 | |
Adjustments to reconcile net income (loss) to net cash provided by | |||
operating activities: | |||
Depreciation | 907,788 | 871,738 | |
Stock-based compensation | 3,752 | - | |
Bad debts reserve | (31,247) | (175,448) | |
Inventory reserve | 128,096 | 299,942 | |
Deferred asset allowance | (6,400) | (75,971) | |
Gain on sale of property and equipment | - | (2,375) | |
(Increase) decrease in: | |||
Accounts receivable | (861,413) | 2,342,233 | |
Deferred asset | 16,001 | 992,389 | |
Inventory | 4,491,631 | 3,802,173 | |
Payments in advance | (312,949) | 413,276 | |
Prepaid expenses and other current assets | (548,279) | 548,208 | |
Income tax refunds receivable | 99,193 | (340,492) | |
Long-term accounts receivable | 163,470 | - | |
Deposits | (1,750) | 792 | |
Increase (decrease) in: | |||
Accounts payable and accrued expenses | 686,712 | (567,611) | |
Income taxes payable | - | (3,382,700) | |
Deferred compensation | - | (400,000) | |
Net cash provided by operating activities | 2,976,400 | 6,585,988 | |
Cash flows from investing activities | |||
Capital expenditures | (861,567) | (1,412,558) | |
Proceeds from sale of property and equipment | - | 2,793 | |
Net cash used in investing activities | (861,567) | (1,409,765) | |
Cash flows from financing activities | |||
Repayment of notes payable to bank | (84,285) | (79,353) | |
Repayment of short-term loans, net | (1,129,966) | (1,024,949) | |
Net cash used in financing activities | (1,214,251) | (1,104,302) | |
Effect of exchange rates on cash and cash equivalents | 222,003 | (391,114) | |
Net increase in cash and cash equivalents | 1,122,585 | 3,680,807 | |
Cash and cash equivalents - beginning of period | 11,347,420 | 7,102,945 | |
Cash and cash equivalents - end of period | $ 12,470,005 | $ 10,783,752 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for interest | $ 69,515 | $ 56,602 | |
Cash paid for income taxes | $ 55,906 | $ 4,529,602 | |
Other noncash investing and financing activities | |||
Common stock issued for services | $ 3,752 | $ - | |
The accompanying notes are an integral part of these consolidated financial statements. |
View original content:https://www.prnewswire.com/news-releases/leatt-corp-announces-results-for-the-third-quarter-2024-302289625.html
SOURCE Leatt Corporation
FAQ
What was Leatt 's (LEAT) revenue in Q3 2024?
How much did Leatt's (LEAT) net income decrease in Q3 2024?
What was Leatt's (LEAT) cash position as of September 30, 2024?