Safety gear maker Leatt Corp. reported a 5 % drop in third-quarter revenue on September 30 regardless of gross sales progress of 5 %.
Highlights of the third quarter 2022
- World income for the third quarter was $23.3 million, a rise of 5 %, in comparison with the third quarter of 2021;
- Income to this point was $65.4 million, a rise of 33 %, in comparison with the identical interval in 2021;
- Web earnings to this point was 11.0 million, a rise of 26 %, in comparison with the identical interval in 2021; And the
- YTD earnings per share have risen to $1.90.
CEO Sean MacDonald commented: “The third quarter of 2022 was the eighteenth consecutive quarter of year-over-year income progress. World income for the third quarter of 2022 was $23.3 million, a rise of 5 % over the third quarter of 2021. Gross revenue for the quarter was $10.1 million, a rise of 6 % over 2021. Our complete staff, plus purchasers MTB and MOTO, stays excited by the robust momentum and market penetration of the Leatt model and our “head to toe” providing of outstanding protecting gear over the previous a number of years.
World income for the primary 9 months of 2022 was $65.4 million, up 33 % from the identical interval final yr. Web earnings for the primary 9 months grew to $11.0 million, a rise of 26 % over the identical interval final yr. That is a large achievement, in comparison with the very robust first 9 months of 2021 when income grew 91 %. We maintained a 17% return on income and earnings of $1.90 per base share, which as soon as once more demonstrated our potential to drive income, put money into progress, and stay operationally environment friendly in these difficult occasions of macroeconomic headwinds and a few stock congestion. globally.
“The rise in income for the third quarter was primarily attributable to a rise in helmet gross sales and in gross sales within the different merchandise, elements and equipment class, which was offset by a slight lower in gross sales within the physique armor and neck brace classes. We had been notably happy with our leads to the US the place income elevated by 1.1 $1 million or 26 % in the course of the third quarter of 2021 as we executed pre-booked orders to return inventory to dealerships throughout the nation.We proceed to speculate closely in our U.S. gross sales and distribution capability is nicely stocked in our new U.S. warehouse to satisfy sellers’ demand for steady foundation.
“Yo-y, we noticed double-digit income progress throughout all of our expanded product classes, apart from neck braces, our most established product, with gross sales down 2022, in comparison with a unprecedented 74 % enhance within the prior yr comparability interval because of pre-agent stocking to satisfy demand. Development in gross sales of attire, MOTO and MTB helmets and off-road motorbike boots was additionally encouraging in the course of the nine-month interval of 2021.”
Founder and Chairman Dr. Christopher Litt stated: “As at all times, our engineers and designers are devoted to creating merchandise that shield the riders who use them, and save lives. Security is on the core of our enterprise.”
Complete income for the third quarter of 2022 elevated to $23.3 million, up 5 %, in comparison with $22.1 million for the third quarter of 2021. The rise was pushed by an 88 % enhance in helmet gross sales, and a 38 % enhance in different merchandise. elements and equipment, which was partially offset by a 15 % lower in physique armor and a 30 % lower in neck brace gross sales.
Revenue from operations for the third quarter of 2022 decreased to $5.5 million, down 5 %, in comparison with $5.8 million for the third quarter of 2021. Web earnings for the third quarter of 2022 decreased to $4.1 million, or $0.70 per base and $0.65 per diluted merchandise. , down 5 %, in comparison with $4.3 million, or $0.79 per primary share and $0.69 per diluted share, for the third quarter of 2021.
Leatt continued to satisfy its working capital wants from money available and money stream generated internally from operations. On September 30, 2022, the corporate had money and money equivalents of $4.8 million and a present ratio of three.1:1.
MacDonald added: “We proceed to develop regardless of the macroeconomic and geopolitical headwinds which have brought on forex fluctuations and impacted buyer and client sentiment world wide. We’re seeing some moderation within the extraordinary ranges of client demand that the worldwide MOTO and MTB industries have loved over the previous a number of quarters, however these headwinds don’t alter the general technique and the robust fundamentals which have contributed to our success. Customers proceed to trip and take part closely in out of doors actions, and retailers proceed to digest stock and reorder. These are traits we count on to proceed.
“Within the US, our warehouse in Reno, Nevada is absolutely operational and well-equipped to effectively ship merchandise to prospects and shoppers. The US gross sales staff continues to develop exponentially as we entry and serve a bigger choice of MOTO and MTB sellers nationwide. .
Internationally, our staff of worldwide gross sales and advertising and marketing administrators in a few of our most necessary areas continues to be an necessary focus as we goal to construct on the momentum the Leatt model has gained over the previous a number of years and develop our omnichannel gross sales strategy.
“We stay pleased with our operational efficiencies, flexibility and skill to manage prices, regardless of the robust international inflationary atmosphere. We imagine that the gross sales attraction, market penetration and model improvement we’ve achieved over the previous a number of years are testaments to our staff’s potential to develop, market and promote revolutionary merchandise to broader teams. from shoppers world wide.A lot of our revolutionary merchandise are nonetheless of their infancy, when it comes to market share, with nice alternative for additional beneficial properties, and we imagine we’re nicely positioned to ship long-term progress and shareholder worth.
#Leatt #Corp #gross sales #broaden #% #quarter