Leatt Corp., the maker of protective equipment and ancillary products for extreme motorsports, reported third-quarter revenues of $22.1 million, up 94 percent, compared to the 2020 third quarter.
Income from operations reached $5.8 million, up 170 percent, compared to the 2020 third quarter. Record third-quarter net income was $4.3 million, up 166 percent compared to the 2020 third quarter
CEO, Sean Macdonald, commented: “By nearly every measure this was a ground-breaking quarter for Leatt, the best in our company’s history. For the third quarter of 2021, revenues increased by 94 percent, gross profit increased by 93 percent, and net income increased by 166 percent when compared to the 2020 third quarter, led by an exceptionally strong increase in international revenues from global orders of our highly anticipated 2022 line of products.
“We have achieved record-breaking quarterly revenue for 5 consecutive quarters, and year-over-year revenue growth for the last 14 quarters, as we continue to build the Leatt brand and increase global recognition for the design and engineering of exceptional products for the sporting industry. Despite the dynamic and challenging environment, we expect the year-over-year growth trend to continue in the fourth quarter, as our global supply chain team and manufacturing partners have kept pace with our inventory requirements to provide timely shipments of Leatt products to meet growing customer demand levels.
“Broken down by product category, third-quarter growth was impressive across our entire “head-to-toe” line with a $6.6 million increase in body armor sales, a $1.5 million increase in neck brace sales, a $1.5 million increase in the sales of other products, parts and accessories and a $1.1 million increase in helmet sales.
“Although revenues in the U.S. grew marginally during the third quarter due to temporary domestic port congestions, dealer and consumer demand for our products remain strong in this market, and we expect to fulfill significant orders in the current quarter in time for the holiday season. Our new warehouse in Reno, Nevada has the capacity for high volume order fulfillment which will be a key driver of our continued development in the U.S.
“This extraordinary 2021 third quarter has again demonstrated our ability to grow year-to-date revenues, remain operationally efficient and generate significant shareholder value. Revenues for the first nine months of 2021 were up 91 percent, to $49.3 million. Net income year to date grew by 231 percent, to $8.8 million, a return on revenue of 18 percent and earnings of $1.61 per basic share.”
Founder and Chairman, Dr. Christopher Leatt, remarked: “As we continue to design and build an innovative product pipeline, our team is adopting new technologies that change the way our products are sourced, produced and delivered.
Financial Summary
Total revenues for the third quarter of 2021 increased to $22.1 million, up 94 percent, compared to $11.4 million for the third quarter of 2020.
Gross profit for the third quarter of 2021 increased to $9.5 million, up 93 percent, compared to $4.9 million for the third quarter of 2020.
Income from operations for the third quarter of 2021 increased to $5.8 million, up 170 percent, compared to $2.1 million for the third quarter of 2020.
Net income for the third quarter of 2021 was $4.3 million, or $0.79 per basic and $0.69 per diluted share, up 166 percent, compared to $1.6 million, or $0.30 per basic and $0.27 per diluted share for the third quarter of 2020.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At September 30, 2021, the Company had cash and cash equivalents of $2.6 million, a current ratio of 2:1, and there was no long-term debt.
Business Outlook
Macdonald added: “We continue to evolve the company and the brand through our consistent focus on developing a diverse line of products, our growing sales and marketing efforts, and the nimble resilience of our global supply chain team during these dynamic times.
“Demand for our exceptional “head-to-toe” protective gear for off-road motorcycle and MTB riders continues to surge around the world. This sustained consumer demand, along with recognition by the media, athletes and our business partners, energizes our entire team to continue our efforts to increase our global market share and refine our already strong pipeline of attractive innovative products. We believe that we are well-positioned to deliver incredible financial performance in 2021 and beyond.”
Photo courtesy Leatt Corp
