Leatt Corporation, a maker of protective equipment for action sports, reported net income doubled in the first quarter ended March 31 as sales surged 88 percent. The company is known for its Leatt-Brace, a “helmet for the neck” brace system.
First Quarter 2022 Highlights
- Global revenues of $24.2 million, up 88 percent, compared to the first quarter of 2021;
- Net income of $4.2 million, up 105 percent, compared to the first quarter of 2021;
- Earnings per basic share of $0.73, up 92 percent, compared to the first quarter of 2021;
- Income from operations of $5.6 million, up 104 percent, compared to the first quarter of 2021; and
- Reno, NV warehouse is fully online, positioned to deliver more inventory faster in the U.S.
CEO, Sean Macdonald, commented: “The first quarter was another tremendous quarter for us—the seventh quarter in a row of record-breaking revenues and the sixteenth straight quarter of year-over-year revenue growth. We grew by double-digits in virtually all of our expanding categories, and many of our products are still in their infancy with a huge runway of potential to expand in the global market.
“Helmet sales, an increasingly important product for us, were up 269 percent, compared to the 2021 first quarter. Helmets accounted for 23 percent of our first-quarter revenues and remain an area where we are investing heavily. We have fully re-designed our Moto off-road motorcycle helmet range, and demand remains strong for our award-winning MTB line. Sales of our expanded line-up of Moto off-road motorcycle boots and MTB mountain biking shoes exceeded our expectations. We have created a full line of boots and shoes at key price points and performance levels. Apparel sales were very encouraging, displaying our ability to not only engineer high-performance products but to create designs that appeal to a wide range of riders.
“These consistent results demonstrate that our strategy for growth and profitability remains solid. We plan to continue engineering and developing innovative products that serve a much wider global audience of riders at all levels, from professional racers to weekend riders, and to build out our multi-channel sales organization that can deliver these outstanding products to our team of distributors and dealers around the world.”
Founder and Chairman Dr. Christopher Leatt remarked: “Our design and engineering teams are highly motivated by the successful launch of our new products including helmets, boots and shoes, neck and knee braces. Working closely with our marketing team, we are continuing to build a pipeline of innovative ‘head-to-toe’ products.'”
Total revenues for the first quarter of 2022 increased to $24.2 million, up 88 percent, compared to $12.9 million for the first quarter of 2022. The increase was driven by a 69 percent increase in body armor sales, a 269 percent increase in helmet sales, and a 122 percent increase in other products, parts and accessories, which were partially offset by a 21 percent decrease in neck brace sales during the 2022 period.
Income from operations for the first quarter of 2022 increased to $5.6 million, up 104 percent, compared to $2.8 million for the first quarter of 2021.
Net income for the first quarter of 2022 increased to $ 4.2 million, or $0.73 per basic and $0.68 per diluted share, up 105 percent, compared to $2.1 million, or $0.38 per basic and $0.34 per diluted share, for the first quarter of 2021.
Leatt continued to meet its working capital needs from cash on hand and internally generated cash flow from operations. At March 31, 2021, the company had cash and cash equivalents of $4.2 million and a current ratio of 2.9:1.
Macdonald added: “We started the year strong and continued building on the solid sales traction that we have created over the past 16 quarters. We have plenty of room to grow, with key product categories like helmets, shoes and boots, apparel and armor showing vast potential for continued expansion as we build the sales and marketing structure to bring them to market.
“We are continuing to build and invest heavily in our sales and distribution facilities in the U.S., an area that offers enormous potential for growth. Our new Reno, Nevada warehouse is now well-positioned to house and quickly deliver more stock around the U.S. We are also actively growing our team of in-house sales reps to reach a wider dealer base of both MOTO and MTB dealers.
“At the same time, we are continuing to monitor and adjust for potential economic headwinds. We are closely watching consumer buying patterns, worldwide geopolitical risks, the macroeconomic inflationary environment and the impact of the COVID-19 pandemic on our supply chain.
“Our entire team is excited and encouraged by our success to date, but we have plenty of work to do to realize the enormous potential of the Leatt brand.”
Photo courtesy Leatt Corp.