Lakeland(US:LAKE)2025-09-09 21:30Financial Performance - Net sales for the three months ended July 31, 2025, were $52.5 million, an increase of $14.0 million or 36.4% compared to $38.5 million for the same period in 2024[124] - Gross profit for the three months ended July 31, 2025, was $18.8 million, an increase of $3.6 million or 23.7% compared to $15.2 million for the same period in 2024[125] - Net income for the three months ended July 31, 2025, was $0.8 million, compared to a net loss of $(1.4) million for the same period in 2024[131] - Net sales for the six months ended July 31, 2025, were $99.2 million, an increase of 32.6% compared to $74.8 million for the same period in 2024[132] - Gross profit for the six months ended July 31, 2025, was $34.5 million, an increase of $3.1 million, or 9.9%, from $31.4 million for the same period in 2024[133] - Net loss was $(3.1) million for the six months ended July 31, 2025, compared to net income of $0.3 million for the same period in 2024[138] Operating Expenses - Operating expenses increased by $2.5 million or 14.6% from $16.8 million for the three months ended July 31, 2024, to $19.3 million for the same period in 2025[127] - Operating expenses increased by $8.8 million, or 28.6%, to $39.6 million for the six months ended July 31, 2025, primarily due to acquisitions and increased selling expenses[134] - The company recorded a $3.6 million lease impairment related to the Monterrey, Mexico facility, with no lease impairment charges recorded for the same period in 2024[135] - Operating loss was $(8.7) million for the six months ended July 31, 2025, compared to an operating income of $0.6 million for the same period in 2024, resulting in operating margins of (8.8%)[136] Acquisitions - The company acquired Veridian Limited for approximately $26.1 million, which had an annual revenue of approximately $21.0 million[116] - The company acquired LHD Group for $14.8 million, which is a leading provider of firefighter turnout gear and has 111 employees[119] - The company acquired Jolly Scarpe for $9.0 million, a leading designer and manufacturer of professional footwear for firefighting and rescue markets[120] - Sales of the Fire Service product line increased by $24.1 million for the six months ended July 31, 2025, due to acquisitions and organic growth[132] Tax and Cash Position - The effective tax rate for the second quarter of FY26 was 117.2%, significantly higher than the U.S. federal statutory rate of 21%[130] - Income tax benefit was $6.4 million for the six months ended July 31, 2025, compared to a benefit of less than $0.1 million for the same period in 2024[137] - Cash and cash equivalents were approximately $17.7 million as of July 31, 2025, with working capital increasing by $5.3 million from January 31, 2025[139] Capital Expenditures and Stock Repurchase - Capital expenditures were $2.1 million for the six months ended July 31, 2025, with anticipated FY26 capital expenditures of approximately $4.0 million[150] - The company has a stock repurchase program authorized for up to $5.0 million, with no shares repurchased in the six months ended July 31, 2025[149] - The company expects to meet its projected operating and investing requirements for at least the next twelve months with current cash and borrowing capacity[142]