Lakeland Industries Inc. (NASDAQ:LAKE) Q3 2019 Earnings Conference Call - Preliminary Transcript

Dec 09, 2019 • 04:30 pm ET


Lakeland Industries Inc. (NASDAQ:LAKE) Q3 2019 Earnings Conference Call - Preliminary Transcript


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Good Ladies and gentlemen, before we begin, parties are reminded that statements made during this call contain forward looking information within the meaning of the Securities Act of 1933. And the Securities Exchange Act of 1934. Forward looking statements are all statements other than statements of historical facts which reflect management's expectations regarding future events, and operating performance and speak only as of today, December 9 2019.

Forward looking statements are based on current assumptions and analysis made by the company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors that believe that are appropriate under circumstances. These statements are subject to a number of assumptions, risks and uncertainties and factored in the company's filings with the Securities and Exchange Commission, general economic and business conditions, the business opportunities that may be presented to you and pursued by the company changes in law or regulations. And other factors many of which are beyond the control of the company. listeners are cautioned that these statements are not guarantees of future performance and the actual results or developments may differ materially from those projected and any forward looking statements.

All subsequent forward looking statements attributed to the company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. At this time, I would like to introduce you to your host for this call Lakeland Industries Chief Executive Officer Christopher J. Ryan. Mr. Ryan, you may begin.

Christopher J. Ryan

Thank you. And good afternoon to you all, and thank you for joining the fiscal 2020 Third Quarter Fiscal Results Conference Call. I am joined here today with Lakeland's Chief Operating Officer, Charles Robertson, and our Chief Financial Officer, Allen Dillard. For today's call, we are first going to discuss the status of operations and our financial results. Then the call will be opened up, so that we may respond to your questions. Now onto the formal remarks. For the second consecutive quarter, our revenues exceeded $27 million, which puts us on a high trajectory to the highest annual top-line results in the company's history.

Third quarter revenue came in just under the second quarter level, which was the highest in the company history excluding emergency demand. The strength of our third quarter top-line performance was even more pronounced than second quarter revenues benefited from catch-up orders associated with shipping delays stemming from our ERP implementation. Approximately, $500,000 in revenues were recorded in the second quarter of the fiscal 2020 for orders that had been ERP delayed. Excluding this approximated amount, second quarter revenues would have been $27 million. So we would have been seen sequential growth of about 2% for the third quarter. We are now two quarters into using the ERP

system at nearly full speed in our US operations only. This represents a little more than half of our global business. We are delivering orders on time, managing our inventories better and generating other sustainable improvements. Our COO,