Leatt Corporation Announces Audited Financial Results for FY 2009
CAPE TOWN, SOUTH AFRICA, Mar 31, 2010 (MARKETWIRE via COMTEX) -- Leatt Corporation, a Nevada corporation and the exclusive distributor of the Leatt-Brace(R), a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck), (PINKSHEETS: LEAT) (Company), today announced audited financial results for its fiscal year ended December 31, 2009. The Company posted revenues of $13,743,107 and a net loss of $129,569 for fiscal 2009. These results compare to revenues of $18,778,412 and net profit of $1,967,486 in fiscal 2008. Gross margin was increased to 66% in 2009, compared to gross margin of 64% in 2008.
The Company sold 79,157 braces in the fiscal year 2009 with the U.S. accounting for 46% of sales revenues and International sales accounting for 54% of sales revenues. This represents a 42% decline in unit sales in the U.S. and a 15% decline in unit sales in the International market when compared to the 2008 fiscal year.
"The declining world economy continues to dampen our sales. Our motorsport industry has in general experienced a sustained downturn in consumer demand in the past year. In light of industry trends and the depth of the current worldwide recession, our net loss for FY2009 was, in our opinion, modest. Nonetheless, our goal in 2010 is to grow our business by increasing our targeted marketing and sales effort. With this in mind, we have added experienced sales managers in Europe and the USA in an effort to return to annual profitability. Our new sales managers are currently expanding our distribution network into new geographic markets. Our direct sales efforts should give us more distributor and dealer visibility," said Chief Executive Officer Dr. Chris Leatt. "Adding to our protective-product line and introducing a new line for bicycle riders in 2010 should hopefully give our dealers more revenue potential," added Dr. Leatt.
The Report of Independent Registered Public Accounting Firm, Fitzgerald & Co. CPAs, P.C., and the Leatt Corporation Consolidated Financial Statements for the Years Ended December 31, 2009 and 2008 are posted on leatt-corp.com.
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