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Lakeland Industries, Inc. Issues Updates on Fiscal 2013
Date:5/1/2013

arLakeland consolidated sales

20,165

23,981

23,499

24,239

23,399

3,234

16.0%Brazil sales

3,036

5,191

4,699

4,285

2,683

(353)

(11.6%)Lakeland worldwide sales excluding Brazil

17,129

18,790

18,800

19,954

20,716

3,587

20.9%Sequential growth byquarter (excluding Brazil)9.7%

0.1%

6.1%

3.8%

  • The Company has paid a total of $1.6 million against the Brazil settlement liability since September 2012 through March 2013. All of which came from operating cash flow in the US with no borrowing needed.
  • External sales growth in China, UK and Chile remain very strong.
  • Commenting on the recent developments, Lakeland Industries President and Chief Executive Officer Christopher J. Ryan said, "We have had a difficult time in Brazil starting with a judgment against the Company in the amount of approximately US$12 million, followed by a precipitous drop in sales as an indirect result of the judgment. We are working diligently on right sizing the Brazil operations. We are looking into potentially selling this operation while at the same time working on restructuring the operation. Readers should consider that most of the problems we encountered over the past 11 months result directly or indirectly from the Brazilian operations. Thus, we plan to either resolve or extricate ourselves from this situation as quickly as possible. Besides being a tremendous distraction to management, Brazil has caused the US parent to incur a tremendous amount of additional legal, travel, investment banking and banking expenses among other expenses to deal with all the falling domino problems ca
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    SOURCE Lakeland Industries, Inc.
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