ICPW LIQUIDATION CORP 
By LOS ANGELES, Nov. 13, 2013 /PRNewswire/ -- Ironclad Performance Wear Corporation (ICPW.OB), the recognized leader in high-performance task-specific gloves, announced financial results for the third quarter ended September 30, 2013.
(Logo: http://photos.prnewswire.com/prnh/20060511/LATH052LOGO)
Third quarter 2013 Results
The company reported Net Sales for the third quarter of $4.63 million, a decrease from $5.55 million in the third quarter of 2012.
Gross Profit decreased to $1.46 million, or 31.6% of Net Sales, compared to $2.22 million, or 40.0% of Net Sales in the third quarter of 2012. The decrease in Gross Profit was due primarily to an increase in lower margin private label and retail business, increases in direct selling expenses, as well as lower sales of higher margin gloves during the quarter.
Operating Expenses decreased by $57 thousand to $1.85 million from $1.91 million during the same period last year. As a percent of Net Sales, Operating Expenses increased to 39.9%, compared to 34.4% compared to last year. This increase in the Operating Expense percentage is the result of increased marketing and direct selling expenditures, research & development costs and operating services, such as distribution and quality control expenses, to support the Company's planned growth and strategic investing for the long-term, and the decline in Net Sales.
As a result of the above, Income (Loss) from Operations was ($385,423), compared to an Income from Operations of $314,133 during the same period in 2012.
Net Income (Loss) for the quarter was ($411,894) compared to a profit of $256,044 in the same period last year.
"Thus far, 2013 has proven to be a challenge," said Lee Turlington, President of Ironclad. "Overall Net Sales are down when compared to the same period in 2012, however, there was a bright spot in our retail automotive segment. The current period shortfall is primarily in our industrial and international segments."
Mr. Turlington added: "In addition, we are adding four new task-specific KONG gloves styles by the end of this year, which we believe will increase the sales and distribution of KONG worldwide."
Guidance for 2013
The continuing uncertainties within our business channels prevent us from providing any further guidance for the remainder of 2013. That being said, we do believe that there will be opportunities in 2014 for new sales with our new line of KONG and the Company's continuing international expansion efforts.
"As a result of continued increased competition and worldwide demand, we are working closely with our strategic partners to make fundamental changes in the marketing, sales and distribution of our gloves across many of our channels," said Mr. Turlington.
Conference Call
Ironclad Performance Wear will hold a conference call to discuss third quarter 2013 financial results today, Wednesday, November 13, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To participate in the conference call, dial 1-888-846-5003 ten minutes prior to the call. International callers should dial 1+480-629-9856.
If you are unable to participate in the live call, a replay will be available through November 27, 2013. To access the replay, dial 1-877-870-5176 (passcode: 4648142). International callers should dial 1+858-384-5517 and use the same passcode.
In addition, the conference call will also be broadcast live over the Internet and can be accessed at www.ironclad.com. The Webcast will be archived on Ironclad's Website through November 27, 2013.
The company's financial results and other investor information are posted online at www.ironclad.com/investor-relations.
About Ironclad Performance Wear Corporation
Ironclad Performance Wear is a leader in high-performance task-specific work gloves. It created the performance work glove category in 1998, and continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for industries such as oil & gas extraction; automotive; and police, fire, first-responder and military. Ironclad engineers and manufactures its products with a focus on innovation, design, advanced material science and durability. Ironclad's gloves and apparel are available through industrial suppliers, hardware stores, home centers, lumber yards, and sporting goods retailers nationwide; and through authorized distributors in North America, Europe, Australia and Asia.
Built Tough for the Industrial Athlete(TM)
For more information on Ironclad, please visit the Company's Website at www.ironclad.com.
Information about Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for Ironclad's products, the introduction of new products, Ironclad's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of Ironclad's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in Ironclad's filings with the United States Securities and Exchange Commission. Examples of such forward looking statements in this release include statements regarding guidance about and achievement of financial goals and performance for 2013, increasing interest and sales of Ironclad's products, market opportunities presented by new products and/or customers, material changes to the ways in which Ironclad's products are marketed, sold and distributed and Ironclad's profitability in 2013. For a more detailed description of the risk factors and uncertainties affecting Ironclad, please refer to the Company's recent Securities and Exchange Commission filings, which are available at www.sec.gov. Ironclad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Lee Turlington, President
leet@ironclad.com
(310) 643-7800 x120
Ironclad Performance Wear Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
September 30, 2013 December 31, 2012
------------------ -----------------
ASSETS
Current Assets
Cash and cash
equivalents $289,307 $721,589
Accounts receivable net
of allowance for
doubtful accounts of
$48,000 3,029,158 6,423,670
Due from factor without
recourse - 915,492
Inventory net of reserve
of $619,000 7,758,348 5,281,445
Deposits on inventory 1,221,751 716,273
Prepaid and other 599,566 308,814
Deferred tax assets -
current 857,500 857,500
------- -------
Total current assets 13,755,630 15,224,783
Property and Equipment
Computer equipment and
software 522,569 515,058
Vehicles 39,631 43,680
Office equipment and
furniture 220,178 179,835
Leasehold improvements 95,455 47,381
Less: accumulated
depreciation (647,837) (529,917)
-------- --------
Total property and
equipment, net 229,996 256,037
Other Assets
Trademarks and patents,
net of accumulated
amortization of $46,941
and $40,318 137,664 132,168
Deposits 10,204 10,204
------ ------
Total other assets 147,868 142,372
------- -------
Total Assets $14,133,494 $15,623,192
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and
accrued expenses $2,311,418 $4,932,648
Line of credit 3,131,910 1,483,883
--------- ---------
Total current
liabilities 5,443,328 6,416,531
Total Liabilities 5,443,328 6,416,531
--------- ---------
Stockholders' Equity
Common stock, $.001 par value; 172,744,750 shares authorized; 76,704,275
and 76,447,587 shares issued and outstanding at September 30, 2013 and
December 31, 2012,
respectively 76,704 76,448
Additional paid-in
capital 19,152,388 18,920,811
Accumulated deficit (10,538,926) (9,790,598)
----------- ----------
Total Stockholders'
Equity 8,690,166 9,206,661
--------- ---------
Total Liabilities &
Stockholders' Equity $14,133,494 $15,623,192
=========== ===========
Ironclad Performance Wear Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, 2013 September 30, 2012 September 30, 2013 September 30, 2012
------------------ ------------------ ------------------ ------------------
REVENUES
Net sales $4,630,200 $5,546,484 $14,465,067 $15,440,944
COST OF SALES
Cost of
sales 3,166,746 3,326,592 9,463,514 9,483,024
GROSS PROFIT 1,463,454 2,219,892 5,001,553 5,957,920
OPERATING EXPENSES
General and
administrative 506,707 807,899 1,925,176 2,164,812
Sales and
marketing 812,216 632,108 2,384,090 1,918,417
Research
and
development 202,284 126,656 567,638 382,817
Purchasing,
warehousing
and
distribution 283,294 300,049 861,775 804,587
Depreciation
and
amortization 44,376 39,047 129,692 117,836
Total
operating
expenses 1,848,877 1,905,759 5,868,371 5,388,469
INCOME (LOSS) FROM OPERATIONS (385,423) 314,133 (866,818) 569,451
OTHER INCOME (EXPENSE)
Interest
expense (26,996) (13,746) (58,355) (27,711)
Interest
income 25 925 99 21,386
Other
income,
net - (6,268) 1 75,887
Gain on
disposition
of
equipment 500 - 550 -
Total other
income
(expense),
net (26,471) (19,089) (57,705) 69,562
NET INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES
(411,894) 295,044 (924,523) 639,013
PROVISION FOR (BENEFIT FROM) INCOME
TAXES - 39,000 (176,196) 117,000
--- ------ -------- -------
NET INCOME (LOSS) $(411,894) $256,044 $(748,327) $522,013
========= ======== ========= ========
NET INCOME (LOSS) PER COMMON SHARE
Basic ($0.01) $0.00 ($0.01) $0.01
Diluted ($0.00) $0.00 ($0.01) $0.01
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
Basic 76,704,275 76,361,506 76,673,821 75,902,295
Diluted 84,407,488 86,173,107 84,377,032 85,713,896
SOURCE Ironclad Performance Wear Corporation
