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UNITED STATES: Ironclad Reports Fourth Quarter and Fiscal Year 2009 Results
LOS ANGELES, -- Ironclad Performance Wear Corporation, a leader in high-performance work gloves and apparel for industrial workers, professional craftsmen and consumers, announced today financial results for fourth quarter and fiscal year ended December 31, 2009.
Fourth Quarter 2009 Results
The Company reported net sales for the fourth quarter of 2009 of $4.4 million, an increase of 9.3% percent from the fourth quarter 2008 of $4.05 million.
Gross profit increased 18.8% to $1.7 million, or 38.5% of sales, compared to $1.44 million, or 35.4% of sales in the fourth quarter of 2008.
Operating expenses as a percent of sales decreased to 36.6%, or $1.62 million, compared to 39.7% of sales, or $1.61 million during the same period last year.
The net income from operations increased to $84,970 compared to a loss of $170,775 during the same period in 2008. This was the second straight quarter of positive net income from operations in 2009.
"In addition to increasing demand for Ironclad products, the Company continues to successfully execute on the financial plan it developed in early-2009, as evidenced by our achievement of a second profitable quarter for the year," said Scott Jarus, Chairman and CEO of Ironclad. "Despite the lingering global economic downturn, Ironclad has been successful in expanding into new markets and increasing penetration within its existing accounts."
Fiscal 2009 Year-End Results
Full-year net sales for 2009 were $13.6 million, representing a 14.1% increase from the 2008 net sales of $11.9 million.
Gross profit increased 13.8% to $5.2 million, or 38.1% of sales, compared to $4.6 million, or 38.2% of sales for full-year 2008.
Operating expenses as a percent of sales decreased to 42.6%, or $5.8 million, compared to 56.7% of sales, or $6.8 million for full-year 2008.
For the year, Ironclad had a net loss from operations of $609,037 compared to a net loss from operations of $2.2 million for fiscal year 2008. When FAS123r (stock options) of $505,112 and the 2009 employee profit-sharing expenses of $171,757 are removed from this year's number, the Company experienced a positive annual result of $67,832.
Net loss for 2009 declined to $709,742, representing a 71.6% improvement when compared to a net loss of $2.5 million in the prior year. As stated above, all of the losses for 2009 occurred in the first and second quarters, with the third and fourth quarters reporting positive net incomes.
Mr. Jarus added, "2009 represented an inflection point for Ironclad, and its ability to build a successful and sustainable business. Business with existing customers grew in 2009, despite current economic conditions, and we acquired several significant new customers. The Company's cost structure is now in line with its revenues, and we have the ability to leverage our vastly improved financial condition to take advantage of new opportunities."
Guidance for 2010
Ironclad expects that its Net Sales for 2010 will increase by 5% to 10%, and EBITDA-FAS (Earnings Before Interest, Taxes, Depreciation, Amortization and FAS123r) will be positive. The Company is exploring acquisition opportunities which, if successful, are expected to be accretive to this 2010 guidance on both a Net Sales and Net Income basis.
Mr. Jarus concluded, "Our financial results for 2009 demonstrated that the Company is now on the right path, and that there are very significant market opportunities ahead. In addition to the new partnerships the Company established in 2009 which will take hold in 2010, such as with 5.11 Tactical, Ironclad sees additional opportunities to participate in new markets, such as technical task-specific gloves for outdoor sports and new industrial applications."
About Ironclad Performance Wear Corporation
Ironclad, which created the performance work glove category in 1998, continues to leverage its leadership position in the industrial, professional craftsman and consumer markets through the development and introduction of specialized task-specific work gloves. With its focus on innovation, design, functionality, advanced material science and durability, Ironclad engineers, manufactures, and sells a comprehensive line of task-specific gloves and performance-fabric apparel. Ironclad's products are available through industrial suppliers, hardware stores, home centers, lumberyards, and sporting goods retailers nationwide; and through authorized distributors worldwide.
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Source: PR • News Courtesy: BharatTextile.com
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