CAPE TOWN, SOUTH AFRICA--(Marketwire - November 13, 2009) -
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Leatt Corp. |
"The troubled world economy continues to dampen sales, but we are adjusting by increasing our marketing and sales efforts, as well as seeking new geographic markets," said Chief Executive Officer Dr. Chris Leatt. "We are also seeking to increase market awareness and penetration in the U.S. recreational rider segment through an aggressive public relations campaign and marketing effort. This effort includes a campaign for enhanced media coverage of our product as well as traditional targeted marketing efforts," added Dr. Leatt.
The Company sold 18,635 braces in the third quarter of 2009 with the U.S. accounting for 34% of sales revenues and International sales accounting for 66% of sales revenues. This represents a 41% decline in U.S. sales and a 0.4% increase in International sales when compared to the year-ago-quarter.
A financial summary of the Q3 FY2009 results appears below, which summary is qualified in its entirety by reference to the Q3 FY2009 financial results posted on http://www.leatt-corp.com.
Leatt Corporation: The Company produces and sells the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck).
The Summarized Consolidated Statements of Operations (unaudited) for the period ending September 30, 2009 are:
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
September 30, 2009 September 30, 2009
2009 2008 2009 2008
Unaudited Unaudited Unaudited Unaudited
Revenues $ 3,044,940 $ 3,760,856 $ 10,496,463 $ 15,000,008
Cost of Revenues 1,083,357 1,590,842 3,782,925 5,187,371
------------ ------------ ------------ ------------
Gross Profit 1,961,583 2,170,014 6,713,538 9,812,637
Operating expenses 2,647,457 1,799,168 7,010,105 6,435,186
------------ ------------ ------------ ------------
Income / (Loss)
from Operations (685,874) 370,846 (296,567) 3,377,451
Other Income
(Expense) 7,656 2,091 35,576 (211,610)
------------ ------------ ------------ ------------
Income / (Loss)
Before Income
Taxes (678,218) 372,937 (260,991) 3,165,841
Income Taxes 308,504 (11,598) - (721,098)
------------ ------------ ------------ ------------
Net Income / (Loss)
Available to
Common
Shareholders $ (369,714) $ 361,339 $ (260,991) $ 2,444,743
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NOTICE: This press release may contain forward-looking statements. These
statements involve risks and uncertainties, and actual results may differ.
Risks and uncertainties include without limitation the effect of
competitive and economic factors, and the Company's reaction to those
factors, on consumer and business buying decisions with respect to the
Company's products; the ability of the Company to deliver to the
marketplace and stimulate customer demand for products, and technological
innovations on a timely basis; the effect that product introductions and
transitions, changes in product pricing or mix, and/or increases in
component costs could have on the Company's gross margin; the inventory
risk associated with the Company's need from time to time to order or
commit to order product components in advance of customer orders; the
continued availability on acceptable terms, or at all, of certain
components and services essential to the Company's business currently
obtained by the Company from sole or limited sources; the effect that the
Company's dependency on manufacturing and logistics services provided by
third parties may have on the quality, quantity or cost of products
manufactured; the potential impact of a finding that the Company has
infringed on the intellectual property rights of others; product quality
control issues; the absence of a strong e-commerce website for products;
the continued service and availability of key executives and employees;
unfavorable results of legal proceedings, especially personal injury or
product liability lawsuits or intellectual property rights lawsuits; and
the Company's dependency on the performance of distributors and other
resellers of the Company's products. More information on potential factors
that could affect the Company's financial results is included from time to
time in the Company's public disclosures at http://www.leatt-corp.com. The
Company's common stock quotes on The Pink Sheets, LLC and said stock is a
"penny stock" under SEC rules. As such, any investment in the common stock
is highly risky. The Company assumes no obligation to update any
forward-looking statements or information, which speak as of their
respective dates. URL's referenced herein are not incorporated herein or
made a part of this press release.
