Leatt Corp. Reports Results for 2011
CAPE TOWN, South Africa, March 30, 2012 /PRNewswire via COMTEX/ -- Leatt Corporation (OTC: LEAT) ("Leatt" or the "Company"), a global designer, marketer and distributor of personal protective equipment for sports and lifestyle activities, based on the Leatt-Brace? patented neck protection system, reported its financial results for the year ended December 31, 2011.
Performance Highlights:
2011 Gross Revenues increased by 25% to $17.9 million, from $14.3 million in 2010
2011 Net Profit increased to $0.76 million, from Net Loss of $0.2 million in 2010
2011 Results and Financial Condition
Gross revenue for 2011 was $17.9 million, up 25% from $14.3 million in 2010, primarily due to a broadening of the Leatt product range and increased marketing in the US and in Europe.
In spite of significantly increased marketing and advertising costs and product development expenses, net profit was $764,499, or $0.0059 per share, versus a previous-year loss of $208,562, or $0.00 loss per share. The increase was attributable to our increase in sales revenue.
Leatt had cash and cash equivalents of $1.4 million as of December 31, 2011, even after increasing inventory by $922,207 in 2011. The Company believes that it has sufficient cash on hand to support its wider product range and revenue growth.
Leatt Chief Executive Officer, Sean Macdonald commented, "We believe that the increased demand for our neck braces and body protection products is evidence of our growing reputation for quality and innovation in the global extreme sports industry. We plan to continue building on that foundation and expand our market share through the introduction of new safety products for sporting activities beyond our core of extreme motorcycle sports."
Other Developments:
In October 2011 the Company commenced legal action against Atlas Brace Technologies US, LLC for infringement on two of Leatt's neck brace patents.
Leatt-Brace GPX Pro was named 2011 Product of the Year by Transworld Motocross Magazine
In August 2011, Zafiris M. Zafiropoulos was appointed as an independent member of the Company's Board of Directors.
In December 2011, Leatt shareholders authorized the Board of Directors to implement at its discretion a reverse stock split with the ratio to be determined by the Board within the range of 1:5 to 1:25. Leatt has 130 million shares issued and outstanding to date. The Board has until December 22, 2012 to decide on whether to implement the reverse split.
Leatt has announced its intention to register its shares under the U.S. Securities Exchange Act of 1934, as amended, this year and thereby become an SEC reporting company in the U.S.
2011 Financial Summary:
A financial summary of the FY2011 results appears below, which summary is qualified in its entirety by reference to the FY2011 financial results posted on leatt-corp.com. |
