Leatt Corporation reported earnings more than doubled in 2021 as sales surged 82 percent.

2021 Highlights Include:

  • Record fourth-quarter revenues of $23.2 million, up 82 percent, compared to 2020;
  • Fourth-quarter net income of $3.8 million, up 115 percent, compared to 2020;
  • Record full-year revenues of $72.5 million, up 88 percent, compared to 2020;
  • Record full-year net income of $12.6 million, up 184 percent, compared to 2020;
  • Record increase in earnings per share to $2.29 per basic share, up 179 percent, compared to 2020;
  • Income from operations of $16.6 million, up 185 percent, compared to 2020;
  • Cash and cash equivalents increased to $5.02 million, compared to $2.97 million in 2020;
  • Recipient of Powersports Nifty 50 Award for 8.5 Moto Helmet kit; and
  • Launched a line of performance, eco-friendly MTB apparel.

CEO Sean Macdonald commented: “2021 was an absolutely exceptional year for Leatt, led by strong financial performance and global brand development in the context of surging demand for our innovative award-winning products. We closed out the year with a strong fourth quarter, the strongest quarter in our history in terms of revenue. Revenues for the fourth quarter of 2021 increased to $23.2 million, up 82 percent, compared to $12.7 million for the fourth quarter of 2020. We have now achieved record-breaking revenues for six consecutive quarters.

“Total global revenues for 2021 were $72.5 million, up 88 percent, compared to $38.6 million for 2020. We achieved very strong, double-digit revenue growth in all of our product categories in 2021 and in every major geographical region in which we sell our products. Net income for 2021 was $12.6 million, an increase of 184 percent, with earnings per share up to $2.29, compared to the prior year- a testament to our focus on driving revenues through category refinement and our ability to operate efficiently. Gross profit for 2021 increased to $31.4 million, up 81 percent, compared to $17.4 million for 2020. Total operating expenses increased 29 percent as we continue to invest in key drivers of future growth.

“Although we do continue to experience some challenging supply chain conditions globally due to port congestion, particularly in the U.S., as a result of the COVID-19 pandemic, our business has shown remarkable resilience and strength. We continue to develop and refine exceptional “head-to-toe” protective gear to enable rider freedom and to reach a wider rider audience, and consumers continue to enthusiastically participate in outdoor activities.

Founder and Chairman Dr. Christopher Leatt remarked: “Our development and engineering teams continue to strive for product excellence through innovation and cutting edge materials and manufacturing techniques, combined with professional and amateur rider engagement. Our team remains committed to striving for sustainable material usage and we are proud to be using eco-friendly bio-degradable packaging throughout our product lineup. Our growing pipeline of products continues to be an important source of revenue for our customers globally and we are motivated by our most recent awards including the Powersports recognition of our 8.5 Moto helmet kit, which is an important part of our fully re-engineered off-road motorcycle helmet range.”

Financial Summary
Total revenues for the fourth quarter of 2021 increased to $23.2 million, up 82 percent, compared to $12.7 million for the fourth quarter of 2020.

Fourth-quarter income from operations increased to $5.0 million, up 115 percent, compared to $2.3 million for the fourth quarter of 2020.

Net income for the fourth quarter of 2021 increased to $3.8 million, or $0.68 per basic and $0.62 per diluted share, up 115 percent, compared to $1.8 million, or $0.33 per basic and $0.30 per diluted share, for the fourth quarter of 2020.

Revenues for 2021 increased to $72.5 million, up 88 percent, or $33.9 million, compared to $38.6 million for 2020, driven by a 73 percent increase in neck brace sales, an 85 percent increase in body armor sales, a 134 percent increase in helmet sales, and an 82 percent increase in other products, parts and accessories sales.

Gross Profit for 2021 increased to $31.4 million, up 81 percent, compared to $17.4 million for 2020.

Income from operations for 2021 increased to $16.6 million, up 185 percent, compared to $5.8 million for 2020.

Net income for 2021 increased to $12.6 million or $2.29 per basic share and $2.07 per diluted share, up 184 percent, compared to $4.4 million, or $0.82 per basic share and $0.74 per diluted share, for 2020.

Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At December 31, 2021, the Company had cash and cash equivalents of $5.02 million and a current ratio of 2.4:1.

Business Outlook
Macdonald added: “While we will continue to monitor consumer buying patterns, macro-economic and geopolitical risks and the Covid-19 pandemic cautiously, our entire team is extremely optimistic about the future and our ongoing brand momentum. Consumer demand for our products continues to surge, and people around the world continue to participate in outdoor activities. We expect that our new partnership with the Pivot Factory Racing MTB Team, where their riders will race with our full range of protective gear and apparel, will be a tremendous boost in exposure for the Leatt brand.

“Our goals are to continue to refine our product categories to deliver exceptional products to a wider community of riders and to gain market share through product innovation and brand engagement. Many of our categories that have launched well are still in their infancy and show great potential to contribute to exponential growth.

“We still have a lot of work to do to remain at the forefront of product innovation and invest in building a global consumer brand in a competitive environment, but we are enthused by our team’s resilience and our ability to gain market share, which we expect will continue in 2022 and beyond.”

Leatt, best known for its Leatt-Brace neck brace,  develops personal protective equipment and ancillary products for all forms of sports, especially extreme motorsports.

Photo courtesy Leatt Corp.