Lakeland Reports Sales for the Three Months Ended January 31, 2004 Increased by 8.6%.Business Editors RONKONKOMA, N.Y.--(BUSINESS WIRE)--Feb. 10, 2004 Lakeland Industries, Inc. (the "Company") (Nasdaq:LAKE) believes that it is a leading manufacturer of a comprehensive line of safety garments and accessories for the industrial safety and protective clothing industries in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company's disposable protective garments are used primarily for: (i) safety and hazard protection, to protect the wearer from contaminants or irritants, such as, chemicals, pesticides, fertilizers, paint, grease, and dust and from limited exposure to hazardous waste Hazardous waste Any solid, liquid, or gaseous waste materials that, if improperly managed or disposed of, may pose substantial hazards to human health and the environment. Every industrial country in the world has had problems with managing hazardous wastes. and toxic chemicals including acids, asbestos, lead, dangerous hydro-carbon's, (PCB's), Dioxin dioxin Aromatic compound, any of a group of contaminants produced in making herbicides (e.g., Agent Orange), disinfectants, and other agents. Their basic chemical structure consists of two benzene rings connected by a pair of oxygen atoms; when substituents on the rings are and other mid to lower level toxic chemicals, (ii) protection from highly concentrated and powerful chemical and biological toxins, for use by and to protect hazmat fire and police clean up brigades from terrorist incidents The following is a timeline of acts and failed attempts that can be considered non-state terrorism. Massacres more generally are listed chronologically at List of massacres; assassinations are listed by location at List of assassinated people. , accidental toxic chemical spills and/or biological discharges, to protect civilian and military personnel in the cleaning and maintenance of chemical, petrochemical and nuclear facilities and military disposal of chemical and biological warfare biological warfare, employment in war of microorganisms to injure or destroy people, animals, or crops; also called germ or bacteriological warfare. Limited attempts have been made in the past to spread disease among the enemy; e.g. agents, (iii) heat and fire protection, to protect municipal fire fighters, military, airport and industrial fire fighting fire fighting, the use of strategy, personnel, and apparatus to extinguish, to confine, or to escape from fire. Fire-Fighting Strategy Fire fighting strategy involves the following basic procedures: arriving at the scene of the fire as rapidly as teams and for maintenance of "hot" equipment, such as, coke ovens, kilns, glass furnaces, refinery installations, and smelting plants, (iv) hand and arm protection, to protect the wearer's hand and arms from lacerations, heat and chemical irritants without sacrificing manual dexterity or comfort, and (v) protection from viral and bacterial micro biologicals, to protect the wearer from contagious diseases contagious diseases: see communicable diseases. , such as SARS, AIDS and hepatitis, at hospitals, clinics and emergency medical rescue sites. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the three months ended January 31, 2004 on a consolidated basis increased approximately 8.6% as compared to consolidated sales for the three months ending January 31, 2003 while ((ii) above) high end chemical protection suit sales increased at an annual rate of 55%, and ((iii) above) fire turn out gear and woven accessorial items at 21%. Lakeland provided the majority of the chemical protective suits for the recent Senate Capitol building clean-up of "Ricin ricin /ri·cin/ (ri´sin) a phytotoxin in the seeds of the castor oil plant (Ricinus communis), used in the synthesis of immunotoxins. ri·cin n. " and the clean up of "Anthrax anthrax (ăn`thrăks), acute infectious disease of animals that can be secondarily transmitted to humans. It is caused by a bacterium (Bacillus anthracis " in the Capitol building areas and Washington post offices in 2001. Homeland Security/U.S. Fire Administration announced on January 30, 2004 that Round 31 of the Assistance to Firefighters Grants to aid American Fire Departments has dispersed $651 million of the $750 million appropriated in 2003 to support their role as "First Responders" to terrorist and other incidents. The Bush administration has proposed in its 2004 budget and additional $500 million for this Grant Program. These funds are used directly to purchase the Company's Chemical Protective Suits and Fire Turnout Gear. The Assistance to Firefighters Grant Program (AFGP AFGP Antifreeze Glycoproteins ) is administered by the U. S. Fire Administration (USFA USFA United States Fire Administration USFA United States Fencing Association USFA United Supplement Freedom Association, Inc. USFA United States Fastpitch Association USFA United States Fire Arms USFA US Flight Academy USFA US Financial Advisors ), part of the Federal Emergency Management Agency The Federal Emergency Management Agency (FEMA) is the federal agency responsible for coordinating emergency planning, preparedness, risk reduction, response, and recovery. The agency works closely with state and local governments by funding emergency programs and providing technical (FEMA FEMA, n.pr See Federal Emergency Management Agency. ), and assists rural, urban and suburban fire departments throughout the United States. These funds are used by the nation's firefighters to increase the effectives of fire fighters' response to terrorist incidents, firefighting operations, firefighter health and safety programs, new fire apparatus, emergency medical service programs, and fire prevention and safety programs. The fire operations/fire fighter safety program provides funds to fire districts to purchase Lakeland's products which primarily include chemical protective suits used for protection against chemical and biological warfare weapons or other toxins and secondarily the Company's fire turn out gear and other personal protective apparel sold by Lakeland. Under the AFGP initiative, federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve for equipment and protective gear have represented the largest percentage of grant monies in 2002 and 2003. The $750 million in funding for 2003 began in mid-summer and will continue in 2004. Proposed 2004 funding of 500 million will begin in summer of 2004 and go throughout 2005 if history is any indicator. AFGP funds may continue to be appropriated in 2005, 2006 and beyond. In addition fire districts also tap additional funds from Federal Community Development Block Grants and other state grants and incentives. Further government funding in our product line area will emanate from the Bioterrorism Act of 2002. Funds from that bill should start flowing primarily to State Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States Agencies in 2006 and beyond. The Company believes that this AFGP funding is partially responsible for the 55% increases in sales it has seen on an annual basis in chemical protective suits and the 21% sales increases in fire turnout gear and related items this year. Looking ahead into calendar 2004 Lakeland believes sales growth will not only come from its North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. markets but from international sales as Sales offices have been opened this year in the United Kingdom to cover the European markets and in China to cover the Asian markets both geographic areas the Company has rarely sold to. The Company added to its sales force this quarter new sales executives in Canada, the U.S., and China. The Company's Chinese subsidiaries recently completed a new 90,000 square foot manufacturing facility in Jiazhou City, China and a 17,000 square foot expansion of its existing facility in An Qui City. The Company owns these buildings out right and these facilities are staffed by some 850 of its OWN employees. The Company has NO Chinese partners in any of its three Chinese operating facilities. In anticipation of the opening of the Chinese domestic markets for Lakeland's products under the USA's WTO See World Trade Organization. Treaty with China, one of the Company's Chinese facilities recently commenced negotiations for the sale of woven anti-static garments to the burgeoning electrical, clean room, and industrial manufacturing operations being built in China by American, European, and Asian hi-tech companies. The Chinese operations are also completing the certification process to manufacture and sell disposable and woven medical garments not only for the Chinese domestic market, but also the U.S.A. and Canadian markets. Concomitant to this certification process, the Company has been in discussions with a major American medical distributor located in China to distribute these products in China, and is presently manufacturing for sale a specially designed and certified SARS protective suit for Chinese Hospitals. Negotiations are also ongoing in China with regard to potentially supplying Walmart with a line of Polypropylene protective garments for its consumer markets. In order to increase historical profit margins Lakeland is also shifting on an ongoing basis more of its U.S.A. domestic production to these Chinese manufacturing subsidiaries and secondarily to its Mexican manufacturing subsidiary. Lastly, Lakeland recently concluded with its primary lender a $3 million increase in its line of credit. With the expansion of its China manufacturing facilities, the hiring of additional sales executives, and an increase in the Company's credit lines management now believes, the Company is ideally positioned to take advantage of the expanding Homeland Security markets, a rapidly improving domestic economy and the introduction of new product lines into the Asian and European markets while simultaneously increasing historical profit margins. Lakeland also expects that as demand for its products grows, various of its markets will be receptive to price increases by next year. Lakeland's product line and other information can be viewed at www.lakeland.com. Statements contained in this press release that are not historical facts are forward-looking statements that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities and Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. In addition, words such as "could," "should," "may," "feels," "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties, including but not limited to the timely development and acceptance of new products, the impact of competitive products and pricing, changing market conditions, the successful integration of acquisitions, continued availability and favorable pricing of raw materials, and the other risks. Actual results may differ materially from those projected. The company disclaims, however, any intent or obligation to update these forward-looking statements. |
|
||||||||||||||

Printer friendly
Cite/link
Email
Feedback
Reader Opinion