Leatt Corporation (LEAT) swung to a net loss for the year ended Dec. 31, 2016. The company has made a net loss of $0.46 million, or $ 0.08 a share in the year, against a net profit of $0.57 million, or $0.10 a share in the last year.
Revenue during the year dropped 10.50 percent to $16.42 million from $18.34 million in the previous year. Gross margin for the year contracted 216 basis points over the previous year to 50.18 percent. Operating margin for the year stood at negative 4.46 percent as compared to a positive 5.06 percent for the previous year.
Operating loss for the year was $0.73 million, compared with an operating income of $0.93 million in the previous year.
"As we signaled in previous quarters, we expected that our 2016 revenues would be less robust than prior period revenues due to worldwide currency fluctuations, especially the increase in the value of the U.S. dollar against the Euro, the currency of our primary international customers," said chief executive officer Sean Macdonald. "While we expect these conditions to stabilize over time, we are continuously evaluating pricing and marketing strategies globally in order to remain competitive in international markets. Our strategic goal remains to create a comprehensive catalogue of uniquely engineered and designed protective gear that builds on the reputation of our life-saving and award-winning Leatt neck braces."
Working capital decreases marginallyLeatt has witnessed a decline in the working capital over the last year. It stood at $5.89 million as at Dec. 31, 2016, down 2.51 percent or $0.15 million from $6.04 million on Dec. 31, 2015. Current ratio was at 2.65 as on Dec. 31, 2016, down from 2.68 on Dec. 31, 2015. Days sales outstanding were almost stable at 66 days for the year, when compared with the last year period.
Days inventory outstanding has decreased to 102 days for the year compared with 165 days for the previous year period.
Debt comes downLeatt has recorded a decline in total debt over the last one year. It stood at $0.54 million as on Dec. 31, 2016, down 17.63 percent or $0.12 million from $0.66 million on Dec. 31, 2015. Total debt was 5 percent of total assets as on Dec. 31, 2016, compared with 5.92 percent on Dec. 31, 2015. Debt to equity ratio was at 0.08 as on Dec. 31, 2016, down from 0.09 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
