Leatt Corporation Announces Audited Financial Results for FY 2009
CAPE TOWN, SOUTH AFRICA--(Marketwire - March 31, 2010) -
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Leatt Corp. |
The Company sold 79,157 braces in the fiscal year 2009 with the U.S. accounting for 46% of sales revenues and International sales accounting for 54% of sales revenues. This represents a 42% decline in unit sales in the U.S. and a 15% decline in unit sales in the International market when compared to the 2008 fiscal year.
"The declining world economy continues to dampen our sales. Our motorsport industry has in general experienced a sustained downturn in consumer demand in the past year. In light of industry trends and the depth of the current worldwide recession, our net loss for FY2009 was, in our opinion, modest. Nonetheless, our goal in 2010 is to grow our business by increasing our targeted marketing and sales effort. With this in mind, we have added experienced sales managers in Europe and the USA in an effort to return to annual profitability. Our new sales managers are currently expanding our distribution network into new geographic markets. Our direct sales efforts should give us more distributor and dealer visibility," said Chief Executive Officer Dr. Chris Leatt. "Adding to our protective-product line and introducing a new line for bicycle riders in 2010 should hopefully give our dealers more revenue potential," added Dr. Leatt.
The Report of Independent Registered Public Accounting Firm, Fitzgerald & Co. CPAs, P.C., and the Leatt Corporation Consolidated Financial Statements for the Years Ended December 31, 2009 and 2008 are posted on http://www.leatt-corp.com.
Leatt Corporation: The Company produces and sells the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the cervical spine (neck).
The Summarized Consolidated Statements of Operations (audited) for the years ended December 31, 2009 and 2008 are:
Years Ended
December 31
2009 2008
Audited Audited
Revenues $ 13,743,107 $ 18,778,412
Cost of Revenues 4,622,532 6,782,762
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Gross Profit 9,120,575 11,995,650
Operating expenses 9,225,222 8,975,516
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Income (Loss) from Operations (104,647) 3,020,134
Other Income (Expense) 47,074 (211,312)
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Income (Loss) Before Income Taxes (57,573) 2,808,822
Income Taxes 71,996 781,919
Foreign Currency Remeasurement - (59,417)
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Net Income (Loss) Available to Common
Shareholders $ (129,569) $ 1,967,486
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NOTICE: Investors should read the entire financial report with footnotes and current risk factor section - all as posted on our website at http://www.leatt-corp.com. The above summary should not be relied upon in making any investment decisions and it is qualified in its entirety by reference to the complete financial report and footnotes for the fiscal year ended December 31, 2009, on said website. Nothing contained herein constitutes investment advice with respect to any securities.
FORWARD LOOKING STATEMENTS: This press release may contain forward-looking
statements, as defined in the Private Securities Litigation Reform Act of
1995, as amended. Such statements include words like "expect," "should,"
"anticipate," "may," "hope," "seek," "project," and variants thereof. These
statements involve risks and uncertainties, and actual results may differ
significantly from those indicated by any forward looking statement. Risks
and uncertainties include without limitation the effect of competitive and
economic factors, and the Company's reaction to those factors, on consumer
and business buying decisions with respect to the Company's products; the
ability of the Company to deliver to the marketplace and stimulate customer
demand for products, and technological innovations on a timely basis; the
effect that product introductions and transitions, changes in product
pricing or mix, and/or increases in component costs could have on the
Company's gross margin; the inventory risk associated with the Company's
need from time to time to order or commit to order product components in
advance of customer orders; the continued availability on acceptable terms,
or at all, of certain components and services essential to the Company's
business currently obtained by the Company from sole or limited sources;
the effect that the Company's dependency on manufacturing and logistics
services provided by third parties may have on the quality, quantity or
cost of products manufactured; the potential impact of a finding that the
Company has infringed on the intellectual property rights of others;
product quality control issues; the absence of a strong e-commerce website
for products; the continued service and availability of key executives and
employees; unfavorable results of legal proceedings, especially personal
injury or product liability lawsuits or intellectual property rights
lawsuits; and the Company's dependency on the performance of distributors
and other resellers of the Company's products. The fact that the Company
may commence new marketing or sales campaigns or launch new product lines
does not necessarily result in improved financial results. More
information on potential factors that could affect the Company's financial
results is included from time to time in the Company's public disclosures
at http:www.leatt-corp.com. The Company's common stock quotes on the Pink
OTC Market and said stock is a "penny stock" under SEC rules. We are not
an SEC reporting company. As such, any investment in the common stock is
highly risky. The Company assumes no obligation to update any
forward-looking statements or information, which speak as of their
respective dates. URL's referenced herein are not incorporated herein or
made a part of this press release.