Ironclad Performance Wear Reports Second Quarter 2014 Financial Results

PR Newswire

LOS ANGELES, Aug. 6, 2014 /PRNewswire/ -- Ironclad Performance Wear Corporation (OB), the recognized leader in high-performance task-specific work gloves, reported financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Results
The company reported increased Net Sales for the quarter of $4.8 million, a 6.6% increase from $4.5 million in the second quarter of 2013, on stronger sales from international and industrial accounts. 

Gross Profit dollars increased 6.3% to $1.7 million, or 34.4% of Net Sales, compared to $1.6 million, or 34.5% of Net Sales, in the second quarter of 2013. 

Operating Expenses were flat to the prior year totals at $1.9 million. As a percentage of Net Sales, Operating Expenses decreased to 40.2%, as compared to 42.6%, during the same period last year.

As a result of the above, Loss from Operations decreased by $87,173, to a loss of $281,948, from a loss of $369,121 in the second quarter of 2013.

Interest Expense decreased $21,905 to $-0- in the second quarter of 2014 from $21,905 in the same period of 2013.  This decrease is due to no borrowings under our bank line of credit agreement, the outstanding balance under which was reduced to $-0- during the first quarter of 2014.

Net Loss Before Provision for Income Taxes for the second quarter of 2014 was $281,705, or $0.00 per share, as compared to a loss of $390,984, or $0.00 per share, in the same period last year. 

Net Loss for the second quarter of 2014 was $281,705, or $0.00 per share, as compared to a loss of $214,788 (net of a tax benefit of $176,196), or $0.00 per share, in the same period last year. 

Ironclad's Chief Executive Officer, Jeffrey Cordes, commented: "The 2nd quarter's results were in line with our expectations and what was communicated to our shareholders earlier in the year. 

The industrial segment of our business, including our largest partner ORR Safety, saw increased activity after a slower 1st quarter. This increase in revenue helped to offset year-over-year lower results in our retail segment, the result of declining AutoZone business for a single licensed product.  Our international industrial segment continued to record strong increases. Our private label segment, after doubling prior year revenues in the 1st quarter, was off this quarter, but still up in the first half more than 35% over the prior year.

One of the highlights of this quarter was the awarding of the Trans-Ocean glove business to Ironclad and our partner, ORR Safety. Trans-Ocean consolidated its supplier base from six to two, of which Ironclad/ORR was one of the two winners. Trans-Ocean selected Ironclad, in part, due to our superior technology solution that met their workers' performance and safety requirements. 

While it is always good to see improving numbers, we have not deviated from our focus communicated at the start of this year. We continue to see 2014 as a rebuilding year at Ironclad. There are many changes underway within the Company, each of which is being made to better position Ironclad as we enter 2015.  We are pleased with the progress our teams are making and the response of customers, vendors, our team and shareholders."

Conference Call
Ironclad Performance Wear will hold a conference call to discuss second quarter 2014 financial results on Wednesday, August 6th, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).  To participate in the conference call, interested parties should dial:

Date: Wednesday, August 6, 2014
Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
Domestic Dial-In Number: (888) 455-2263
International Dial-In Number: (719) 325-2323
Conference ID Number: 6831789

The conference call will be broadcast simultaneously and available for replay at: http://public.viavid.com/index.php?id=110388 and via the landing page of the Company's Website at www.ironclad.com.

Replay Dial-In Numbers:
TOLL-FREE   1-877-870-5176
TOLL/INTERNATIONAL   1-858-384-5517
From:  08/06/14 at 7:30 pm Eastern Time
To:    09/06/14 at 11:59 pm Eastern Time
Replay Pin Number:  6831789

In addition, the conference call will also be broadcast live over the Internet and can be accessed at www.ironclad.com. For those unable to participate during the live broadcast, the Webcast will be archived on this site through September 6, 2014.

The Company's financial results will be posted online at www.ironclad.com once they are publicly released.

About Ironclad Performance Wear Corporation
Ironclad Performance Wear is a leader in high-performance task-specific work gloves.  It created the performance work glove category in 1998, and continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for industries such as oil & gas extraction; automotive; and police, fire, first-responder and military. Ironclad engineers and manufactures its products with a focus on innovation, design, advanced material science and durability. Ironclad's gloves and apparel are available through industrial suppliers, hardware stores, home centers, lumber yards, and sporting goods retailers nationwide; and through authorized distributors in North America, Europe, Australia and Asia.

Built Tough for the Industrial Athlete™

For more information on Ironclad, please visit the Company's Website at www.ironclad.com.

Information about Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Ironclad's products, the introduction of new products, Ironclad's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Ironclad's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in Ironclad's filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include statements regarding improving financial metrics and anticipated improvements in our operations.  For a more detailed description of the risk factors and uncertainties affecting Ironclad, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. Ironclad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact
Jeffrey Cordes, CEO
jeffc@ironclad.com
(310) 643-7800

 

IRONCLAD PERFORMANCE WEAR CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

AS OF JUNE 30, 2014 AND DECEMBER 31, 2013




June 30,

2014


December 31,

2013






ASSETS  





CURRENT ASSETS  





Cash and cash equivalents


$

762,287


$

313,750

Accounts receivable net of allowance for doubtful accounts of $30,000 and $48,000



3,369,592



6,782,191

Inventory, net of reserve of $547,800 and $621,000



5,501,227



4,570,402

Deposits on inventory



1,024,612



868,662

Prepaid and other



697,590



407,619

Deferred tax assets – current



274,000



274,000

Total current assets  



11,629,308



13,216,624








PROPERTY AND EQUIPMENT  







Computer equipment and software    



476,206



442,262

Vehicles    



39,630



39,630

Office equipment and furniture    



201,016



196,744

Leasehold improvements    



90,441



90,441

Less: accumulated depreciation  



(630,632)



(577,759)

Total property and equipment, net  



176,661



191,318








Trademarks and patents, net of accumulated amortization of $53,782 and $49,064



139,842



138,260

Deposits



21,306



10,204

Deferred tax assets – long term



798,000



798,000

Total other assets   



959,148



946,464








Total Assets   


$

12,765,117


$

14,354,406








LIABILITIES AND STOCKHOLDERS' EQUITY  







CURRENT LIABILITIES  







Accounts payable and accrued expenses  


$

3,309,897


$

2,129,905

Line of credit    



-



2,169,411

Total current liabilities  



3,309,897



4,299,316








Total Liabilities  



3,309,897



4,299,316








STOCKHOLDERS' EQUITY  







Common stock, $.001 par value; 172,744,750 shares authorized; 77,607,346 shares  issued and outstanding at June 30, 2014 and 76,704,275 shares issued and outstanding at December 31, 2013, respectively



77,607



76,704

Additional paid-in capital    



19,380,489



19,208,255

Accumulated deficit    



(10,002,876)



(9,229,869)

Total Stockholders' Equity  



9,455,220



10,055,090

Total Liabilities and Stockholders' Equity  


$

12,765,117


$

14,354,406




IRONCLAD PERFORMANCE WEAR CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)




Three  Months
Ended
June 30,


Three  Months
Ended
June 30,


Six  Months
Ended
June 30,


Six Months
Ended
June 30,



2014


2013


2014


2013

REVENUES












Net sales

$

4,819,252


$

4,519,211


$

9,895,587


$

9,834,867













COST OF SALES












Cost of sales 


3,161,595



2,960,998



6,768,784



6,296,768













GROSS PROFIT


1,657,657



1,558,213



3,126,803



3,538,099













OPERATING EXPENSES












General and administrative  


763,033



611,897



1,535,090



1,418,469

Sales and marketing  


659,265



799,235



1,362,484



1,571,873

Research and development  


132,335



181,610



252,983



365,354

Purchasing, warehousing and distribution


356,297



289,832



684,094



578,481

Depreciation and amortization  


28,675



44,760



58,495



85,316













  Total operating expenses


1,939,605



1,927,334



3,893,146



4,019,493













LOSS FROM OPERATIONS  


(281,948)



(369,121)



(766,343)



(481,394)













OTHER INCOME (EXPENSE)
























Interest expense


-



(21,905)



(6,913)



(31,359)

Interest income  


7



41



14



74

Other income , net  


131



1



131



1

Gain on disposition of equipment


105



-



105



50

  Total other income (expense)


243



(21,863)



(6,663)



(31,234)













NET LOSS BEFORE PROVISION FOR INCOME TAXES  


(281,705)



(390,984)



(773,006)



(512,628)













BENEFIT FROM INCOME TAXES


-



(176,196)



-



(176,196)













NET LOSS

$

(281,705)


$

(214,788)


$

(773,006)


$

(336,432)













NET LOSS PER COMMON SHARE  












                Basic

$

(0.00)


$

(0.00)


$

(0.01)


$

(0.00)

                Diluted

$

(0.00)


$

(0.00)


$

(0.01)


$

(0.00)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING  












                Basic


77,117,171



76,704,277



76,911,863



76,658,341

                Diluted


88,258,596



85,735,188



88,053,288



85,689,252

 

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