Leatt Corporation, the maker of protective equipment, reported first-quarter revenues of $12.9 million, up 71 percent, compared to the 2020 first quarter
The increase in its first quarter of 2021 was driven by a 48 percent increase in neck brace sales, a 79 percent increase in body armor sales, a 109 percent increase in helmet sales, and a 47 percent increase in sales of other products, parts, and accessories.
First-quarter income from operations increased to $2.8 million, up 460 percent, compared to $491,893 for the first quarter of 2020.
Net income for the first quarter of 2021 was $2.1 million, or $0.38 per basic and $0.34 per diluted share, compared to $362,448, or $0.07 per basic and $0.07 per diluted share, for the three months ended March 31, 2020.
Leatt said it 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 $3.8 million, a current ratio of 2.8:1, and there was no long-term deb
CEO Sean Macdonald commented, “We are pleased that our strong 2020 performance trend has continued into the 2021 first quarter, with record-breaking results. Traditionally a slower quarter of the year, the 2021 first quarter saw a 71 percent increase in revenue, compared to a year ago, with revenue growth across our full ‘head-to-toe’ range of products for MTB and off-road MOTO in North America and abroad. We saw surging growth in most of our products, particularly body armor, MTB and MOTO helmets and footwear, including boots and shoes, with encouraging growth in neck brace revenues. This was the best quarter in our Company’s history, which we believe is a strong testament to our evolving and robust business model and the fantastic work done by our entire team.
“The numbers for the first quarter were remarkable: Global first-quarter revenues were $12.9 million, first-quarter net income was $2.1 million, an increase of 469 percent compared to a year ago. Margins remained consistent with last year at 47 percent, which has been a challenge as we continue to actively manage manufacturing and logistics costs amid rising raw materials and shipping costs in Asia.
“Leatt’s strong performance is the result of more than a decade of innovative and consumer-focused work, with a dedication to excellence that is returning dividends. We are extremely encouraged with the momentum that our brand and products have achieved in the marketplace and our increasing value to our partner dealers and distributors around the world.”
Founder and Chairman Dr. Christopher Leatt remarked, “Our team of product developers and engineers, as well as our team riders, continue to strive for excellence. As we build out our categories, we continue to refine our ‘head-to-toe’ offering with products that offer the riding community sustained value add and the confidence to push themselves further with gear they can rely on.”
Macdonald added: “This was a brilliant quarter for Leatt, especially coming at what has been a traditionally slower time and after a record-breaking fourth quarter of 2020. The continued demand for our exceptional protective gear clearly demonstrates the tremendous traction as a “head-toe” off-road motorcycle and mountain biking brand that Leatt has continued to achieve with consumers participating extensively in outdoor activities despite the COVID-19 pandemic. This surge towards outdoor activities is a trend that we expect to continue.
“Our strategy of building a global consumer brand and a pipeline of award-winning, cutting-edge and innovative protective gear that appeals to a wide range of riders is working exceptionally well. We will continue on this path, investing in a superior professional sales and marketing staff that we believe will fuel additional growth now and in the future. Furthermore, we are growing sustainably. We are managing our working capital, re-investing our cash in operations, and strengthening our balance sheet.
“We look forward to presenting our 2022 product lineup to consumers during the second half of 2021 and are already very encouraged by the initial ordering sentiment from our distributors and dealers worldwide.”
Photo courtesy Leatt Corp.