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8-K - CURRENT REPORT - LAKELAND INDUSTRIES INC | lake_8k.htm |
Exhibit
99.1
3555 Veterans Memorial Hwy, Suite C
Ronkonkoma, NY 11779
(631) 981-9700 - www.lakeland.com
Lakeland Industries
Announces Filing for Extension of Time to Report Fiscal 2019 Third
Quarter Financial Results
Provides Select Preliminary Fiscal 2019 Third Quarter Financial
Results; Announces Upcoming Investor Events
RONKONKOMA, NY
– December 6, 2018 -- Lakeland Industries, Inc. (NASDAQ:
LAKE), a leading global manufacturer of protective clothing for
industry, healthcare and to first responders on the federal, state
and local levels, announced today that it has filed with the
Securities and Exchange Commission (the “SEC”) a Form
12b-25 Notification of Late Filing relating to its fiscal 2019
third quarter financial results for the period ended October 31,
2018. Pursuant to SEC regulations, the Company will have an
additional 5 calendar days to file its Form 10-Q for the fiscal
third quarter, which falls on a Saturday and results in a reporting
date of the next business day of Monday, December 17.
According to the
12b-25 notification, the Company requires additional time to ensure
accuracy of its financial reporting amid delays primarily caused by
its enterprise resource planning (“ERP”) system
implementation for financial reporting purposes which commenced on
August 1, 2018, the first day of the fiscal 2019 third quarter. The
significant effort and expense required as well as the operational
issues that often arise in such a massive undertaking for ERP
implementations has temporarily slowed down the financial reporting
process.
Fiscal 2019 Third Quarter Select Preliminary Financial
Results
Subject to
completion of the closing of the Company’s financial results
for the quarter ended October 31, 2018, including review by
internal financial officers, the Audit Committee of the Board of
Directors and external auditors, Lakeland expects to
report:
●
Total revenues
between $23 million and $25 million, compared to $24 million for
the prior year period;
●
Gross profit
between $7.5 million and $8.5 million, compared to $9.1 million
last year;
●
Net income between
$0.3 million and $0.7 million, compared to $1.8 million for the
fiscal 2018 third quarter; and
●
Cash and cash
equivalents of approximately $11.7 million as of October 31, 2018,
as compared to $15.8 million at the beginning of the fiscal year.
Cash used since the beginning of the fiscal year include planned
investments in manufacturing operations in Vietnam and the
Company’s upgraded information technology system
deployment.
The Company
previously reported that its fiscal 2019 second quarter results
were negatively impacted by expenses and delayed and/or lost
revenues associated with inventory management for the North
American operations during the inventory transition phase of the
ERP implementation. Continued elevated expenses and challenges to
revenues associated with the ERP implementation and spanning most
processes throughout the North American operations and financial
reporting are negatively impacting the financial results for the
fiscal 2019 third quarter and to a lesser degree the fiscal 2019
fourth quarter results as management continues to resolve any
remaining issues.
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Upcoming Investor Events
Roth
Capital 6th Annual New
Industrials Corporate Access Day, December 11, 2018
Lakeland will be
participating in Roth Capital’s 6th Annual New Industrials
Corporate Access Day on December 11, 2018 in New York City.
One-on-one meetings with institutional investment firms will be
scheduled throughout the event.
The investor
presentation used at the conference will be posted in the investor
relations section of the Company’s website on the day of the
event.
Fiscal
2019 Third Quarter Financial Results and Conference Call, December
17, 2018
The Company will
release its financial results for the fiscal 2019 third quarter
ended October 31, 2018 on Monday, December 17, 2018, after the
closing of the stock market and will conduct a conference call
thereafter on the same day at 4:30 p.m. eastern.
The call will be
hosted by Christopher J. Ryan, Lakeland’s President and CEO,
and Teri W. Hunt, Lakeland’s Chief Financial Officer.
Investors can listen to the call by dialing
877-407-8033 (Domestic)
or 201-689-8033 (International). For a replay of this call through
December 24, 2018, dial 877-481-4010 or 919-882-2331, Pass Code
40639.
About
Lakeland Industries, Inc.:
Lakeland
Industries, Inc. (NASDAQ: LAKE) manufactures and sells a
comprehensive line of safety garments and accessories for the
industrial protective clothing market. The Company’s products
are sold by a direct sales force and through independent sales
representatives to a network of over 1,000 safety and mill supply
distributors. These distributors in turn supply end user industrial
customers such as chemical/petrochemical, automobile, steel, glass,
construction, smelting, janitorial, pharmaceutical and high
technology electronics manufacturers, as well as hospitals and
laboratories. In addition, Lakeland supplies federal, state, and
local government agencies, fire and police departments, airport
crash rescue units, the Department of Defense, the Centers for
Disease Control and Prevention, and many other federal and state
agencies.
For more
information concerning Lakeland, please visit the Company online at
www.lakeland.com.
Contacts:
Lakeland
Industries
|
Darrow
Associates
|
631-981-9700
|
512-551-9296
|
Christopher Ryan, CJRyan@lakeland.com
|
Jordan Darrow, jdarrow@darrowir.com
|
Teri W. Hunt, TWHunt@lakeland.com
|
|
“Safe
Harbor” Statement under the Private Securities Litigation
Reform Act of 1995: Forward-looking statements involve risks,
uncertainties and assumptions as described from time to time in
Press Releases and Forms 8-K, registration statements, quarterly
and annual reports and other reports and filings filed with the
Securities and Exchange Commission or made by management. All
statements, other than statements of historical facts, which
address Lakeland’s expectations of sources or uses for
capital or which express the Company’s expectation for the
future with respect to financial performance or operating
strategies can be identified as forward-looking statements. As a
result, there can be no assurance that Lakeland’s future
results will not be materially different from those described
herein as “believed,” “projected,”
“planned,” “intended,”
“anticipated,” “estimated” or
“expected,” or other words which reflect the current
view of the Company with respect to future events. We caution
readers that these forward-looking statements speak only as of the
date hereof. The Company hereby expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any
such statements to reflect any change in the Company’s
expectations or any change in events conditions or circumstances on
which such statement is based.
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