Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

Ironclad Performance Wear Reports Third Quarter 2012 Financial Results

Third Quarter Revenue up 22% Sequentially to $5.55 Million, Maintaining Momentum for a Strong Second Half 2012

LOS ANGELES, Nov. 7, 2012 /PRNewswire/ -- Ironclad Performance Wear Corporation (ICPW.OB), the recognized leader in high-performance task-specific gloves, reported financial results for the third quarter ended September 30, 2012.

(Logo: http://photos.prnewswire.com/prnh/20060511/LATH052LOGO)

Third Quarter 2012 Financial Results

Net sales for the third quarter totaled $5.55 million, increasing 22.0% from $4.55 million in the previous quarter and lower by 2.8% compared to $5.71 million in the third quarter of 2011.  The marginal decline from the year-ago quarter was primarily due to the company's decision not to participate in a "Big Box" retailer promotion this year that involved unacceptably low margins. Net sales was also affected by the timing of certain sales orders which were originally expected to ship in the third quarter, but were pushed into the current fourth quarter of this year.

Gross profit increased 3% to $2.22 million, or 40.0% of net sales, compared to $2.16 million, or 37.8% of net sales in the third quarter of 2011.

Operating expenses as a percent of net sales increased to 34.4%, or $1.91 million, compared to 27.4% of net sales, or $1.56 million, during the same period last year.  This increase was primarily caused by higher personnel costs; legal fees – primarily to defend against minority shareholder actions; outside third-party services for warehousing, logistics and quality control; and research & development certification testing expenses.

Income from operations was $314,133, compared to $592,313 during the same period in 2011. Net income was $256,044 in the third quarter 2012, compared to $543,918 during the same period last year.

"Third quarter performance was significantly impacted by our decision not to participate in a 'Big Box' retailer promotion and the timing of certain orders," said Scott Jarus, Chairman and CEO of Ironclad. "It's also important to note that Ironclad's focus on margin during the quarter is demonstrated by the nearly 3% increase in gross profit.  For the first nine months of 2012, our net sales were up 12.6% and gross profit was up by 12.4% versus the same year-ago period."

Guidance for 2012

"We have good visibility going into the fourth quarter, our historically strongest quarter.  The pipeline of orders expected or already received for delivery in the fourth quarter and our current production capacity, coupled with our year-to-date performance, gives us confidence that we will see solid year-over-year and sequential quarterly revenue growth that enables us to meet our established guidance range for the full year," said Mr. Jarus.

Management reiterates its previous financial guidance for the full-year of 2012.  Therefore, the company expects 2012 net sales to increase 15%-20% to $24.6 million to $25.7 million.  EBITDA +ASC718 (a non-GAAP term the company defines as earnings before interest, taxes, depreciation, amortization and ASC 718 non-cash stock option expense), is expected to be between $2.0 million to $2.4 million, representing an increase of 19%-42% from 2011. Earnings per share are expected to increase marginally.

This expectation is based solely upon the outlook for organic growth, and does not contemplate acquisition opportunities which, if identified and concluded, would be expected to be accretive to net sales and net income.

Mr. Jarus concluded: "Our financial results to-date demonstrate the company's ability to leverage the Ironclad brand and apply our expertise to produce innovative products for growth and profitability. Such innovation includes our new Mechanic glove designed specifically for auto mechanics and technicians, and our new TouchScreen performance work glove designed to keep hard working men and women protected and connected. Also during the third quarter, we introduced the newest member to the KONG glove family, the Cut Resistant KONG designed for the particular hazardous conditions found on an oil and gas platform.  Given the increasing strength of our business and product line, we are very optimistic about our performance in the fourth quarter and how it will set the stage for a successful 2013."

Conference Call

Ironclad will hold a conference call to discuss third quarter 2012 financial results today, Wednesday, November 7, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).

Ironclad's Chairman and CEO, Scott Jarus, and Senior Vice President of Finance, Thomas Kreig, will host the presentation, followed by a question and answer period. They will be joined by the Company's founder & head of Business Development, Ed Jaeger; Vice President of Sales & Marketing, Fred Castro; and Director of Marketing, Shawn Norfolk.

Date: Wednesday, November 7, 2012
Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
Domestic Dial-In Number: (877) 941-2321
International Dial-In Number: (480) 629-9666
Conference ID Number: 4574135

The conference call will be broadcast simultaneously and available for replay here and via the investor section of the Company's Website at www.ironclad.com.

A telephone replay of the call will be available after 7:30 p.m. Eastern Time on the same day and until midnight on November 21, 2012.

Domestic Replay Number: (877) 870-5176
International Replay Number: (858) 384-5517
Replay ID Number: 4574135

About Ironclad Performance Wear Corporation

Ironclad Performance Wear is an aspirational brand leader in technical, task-specific, performance work gloves, having created the performance work glove category in 1998. The company 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 numerous industries, including oil & gas exploration, automotive and construction, as well as 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 are available through industrial suppliers, hardware stores, home centers, lumber yards, auto parts stores 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 www.ironclad.com.

Contacts
Scott Jarus, CEO
[email protected]
(310) 643-7800 x120

Justin Vaicek
Liolios Group, Inc.
[email protected]
(949) 574-3860

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 which, 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 guidance about and achievement of financial goals and exceptional performance for 2012, increasing interest and sales of Ironclad's products, market opportunities presented by new products and/or customers and Ironclad's profitability in 2012. 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.

About the Use of Non-GAAP Financial Measures

This release contains disclosure and forward-looking statements regarding the non-GAAP financial measure "EBITDA", which the company defines as Earnings Before Interest, Taxes, Depreciation, Amortization and ASC 718 stock option expense. The company believes that use of EBITDA+ASC718 as a supplemental measure of performance improves the transparency of the company's disclosures and forward-looking statements.  This non-GAAP financial measure is not a substitute for GAAP financial results, and should only be considered in conjunction with the company's financial information that is presented in accordance with GAAP.

 

Ironclad Performance Wear Corp.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)



September 30, 2012


December 31, 2011

ASSETS




  Current Assets




     Cash and cash equivalents

$                1,116,879


$               1,060,125

     Accounts receivable (net of allowance for doubtful accounts of $44,000 and $37,000)

2,526,253


798,004

     Due from factor

876,777


2,462,973

     Inventory net of reserve of $430,000 and $460,000

5,430,946


4,449,315

     Deposits on Inventory 

1,363,624


467,063

     Prepaid and other

443,098


265,652

  Total Current Assets

11,757,577


9,503,132





  Property and Equipment




     Computer equipment and software

536,784


486,066

     Vehicles

43,680


43,680

     Office equipment and furniture

187,893


162,871

     Leasehold improvements

43,589


43,589

     Less: accumulated depreciation

(528,258)


(416,672)

  Total Property and Equipment, net

283,688


319,534





  Other Assets




     Trademarks and patents (net of accumulated amortization of $38,166 and $31,915)

132,501


131,412

     Deposits

11,354


11,354

  Total Other Assets

143,855


142,766





Total Assets

$              12,185,120


$               9,965,432





LIABILITIES & STOCKHOLDERS' EQUITY




  Current Liabilities




     Accounts payable and accrued expenses

$                4,142,838


$               2,560,504

     Line of credit

1,481,104


1,661,220

  Total current liabilities

5,623,942


4,221,724





  Total Liabilities

5,623,942


4,221,724





  Stockholder's Equity




     Common stock, $.001 par value; 172,744,750 shares authorized; 76,397,149 and 74,550,754 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively

76,397


74,551

     Additional paid in capital

18,832,174


18,538,563

     Accumulated deficit

(12,347,393)


(12,869,406)

  Total Stockholders' Equity

6,561,178


5,743,708





Total Liabilities & Stockholders' Equity

$              12,185,120


$               9,965,432





 

 

Ironclad Performance Wear Corp.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS










Three Months Ended


Nine Months Ended





September 30, 2012


September 30, 2011


September 30, 2012


September 30, 2011























REVENUES











Net sales



$                5,546,484


$                5,705,619


$              15,440,944


$              13,718,607












COST OF SALES











Cost of sales



3,326,592


3,549,753


9,483,024


8,416,290












GROSS PROFIT



2,219,892


2,155,866


5,957,920


5,302,317












OPERATING EXPENSES










General and administrative


807,899


588,555


2,164,812


1,770,816


Sales and marketing


632,108


614,677


1,918,417


1,862,102


Research and development


126,656


96,963


382,817


248,955


Purchasing, warehousing and distribution

300,049


228,008


804,587


618,850


Depreciation and amortization


39,047


35,350


117,836


98,818













Total Operating Expenses


1,905,759


1,563,553


5,388,469


4,599,541












INCOME FROM OPERATIONS


314,133


592,313


569,451


702,776












OTHER INCOME (EXPENSE)










Interest expense



(13,746)


(17,110)


(27,711)


(62,116)


Interest income



925


15


21,386


39


Other income (expense), net


(6,268)


700


75,887


700


Loss on disposition of equipment

-


-


-


(1,138)













Total Other Income (Expense)


(19,089)


(16,395)


69,562


(62,515)












NET INCOME BEFORE INCOME TAXES

295,044


575,918


639,013


640,261












PROVISION FOR INCOME TAXES

39,000


32,000


117,000


123,950












NET INCOME 



$                   256,044


$                   543,918


$                   522,013


$                   516,311












NET INCOME PER COMMON SHARE









Basic



$0.00


$0.01


$0.01


$0.01


Diluted



$0.00


$0.01


$0.01


$0.01












WEIGHTED AVERAGE COMMON SHARES









OUTSTANDING











Basic



76,361,506


73,505,890


75,902,295


73,321,543


Diluted



86,173,107


84,183,290


85,713,896


83,998,941












 

SOURCE Ironclad Performance Wear Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profession...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2016' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited t...
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.