Leatt Corporation Achieves Profit in Second Quarter FY2011
CAPE TOWN, SOUTH AFRICA, Aug 15, 2011 (MARKETWIRE via COMTEX) -- Leatt Corporation, a Nevada corporation (PINKSHEETS: LEAT) (Company), and the distributor of the Leatt-Brace(R), a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck), as well as other products, today announced unaudited financial results for the second fiscal quarter ended June 30, 2011, ("Q2 FY2011"). The Company posted gross revenues of $4,983,452 and a net quarterly profit before taxes of $640,366. These results compare to gross revenue of $2,859,940 and a net quarterly loss before taxes of $ (293,793) in the year-ago quarter. A summary of financial results is set forth below.
"Leatt Corporation is making an aggressive effort to return to, and hopefully sustain, profitability as well as pursuing a concurrent growth strategy. The results of Q2 FY2011 indicate some positive results from our efforts, although we continue to face a negative worldwide economic environment in the U.S. and EU, which are our primary markets. Further, we are examining specific measures to improve the liquidity of the public market of our Common Stock," said Chief Executive Officer Sean Macdonald. "The Company intends to call a shareholder meeting this year which will include a full presentation on a revised Company strategic plan," added Mr. Macdonald.
As part of its business development and investor relations efforts and to fine tune its strategic plan, the senior officers of the Company met with an investor relations firm, a major U.S. law firm, and U.S. shareholders during a visit to the U.S. from August 3rd to August 6th 2011. During these meetings, which were designed to seek advice on and discuss enhancing shareholder value and evaluating potential professional services, the senior officers expressed a general sense of optimism over the progress to date of the Company without disclosing any business or financial results or projections.
Since 2006, the Company has sold a line of products based on the Neck Brace System for adults and children that are designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck) among motorcycle, ATV, bicycle and other motor vehicles worldwide. The Company's product line is set forth at our sales/product URL: leatt.com.
A financial summary of the Q2 FY2011 results appear below, which summary is qualified in its entirety by reference to the Q2 FY2011 financial results and footnotes thereto posted on leatt-corp.com. One should not rely on the following summary as a complete presentation of financial results and condition for Q2 FY2011, especially in any investment decision.
Three Months Ended Six Months Ended
June 30 June 30
2011 2010 2011 2010
Unaudited Unaudited Unaudited Unaudited
Revenues $4,983,452 $2,859,940 $7,908,150 $5,813,320
Cost of Revenues 1,973,499 1,072,021 3,018,663 2,223,484
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Gross Profit 3,009,953 1,787,919 4,889,487 3,589,836
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Operating Expenses 2,388,741 2,065,209 4,491,378 4,052,716
Income / Loss from Operations 621,212 (277,290) 398,109 (462,880)
Other Income (Expense) 19,154 (16,503) 24,623 (14,845)
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Income / Loss Before Income
Taxes 640,366 (293,793) 422,732 (477,725)
Income Taxes 250,800 - 251,600 2,400
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Net Income / Loss Available to
Common Shareholders $ 389,566 $ (293,793) $ 171,132 $ (480,125)
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