SOURCE: Ironclad Performance Wear Corporation

May 15, 2008 16:05 ET

Ironclad Performance Wear Reports First Quarter 2008 Financial Results

Company Sustains Sales Growth; Reiterates Profitability Guidance for 2008

EL SEGUNDO, CA--(Marketwire - May 15, 2008) - Ironclad Performance Wear Corporation (OTCBB: ICPW), a leader in high-performance gloves and apparel, today reported financial results for the first quarter ended March 31, 2008.

Net sales for the first quarter of 2008 were $1,851,103, essentially flat when compared to $1,849,932 from the corresponding period in 2007.

Gross profit for the first quarter of 2008 was $793,997, a decrease of approximately 14% versus $924,552 from the corresponding period in 2007. The decrease in gross profit for the quarter was due in large part to an increase in accruals for product returns of 4.5% (primarily from one customer), and a change in the product and customer sales mix that resulted in lower average selling prices of approximately 2.4%. However, these were offset by a 0.9% benefit from relocating apparel production to overseas factories. In the first quarter of 2007 the Company benefited from a one time special purchase of inventory that increased gross profit by 1%.

"Despite a challenging economic environment and rising raw material costs, primarily from petroleum, we're pleased that we continued to achieve sales growth for the tenth consecutive quarter," said Ed Jaeger, President and CEO of Ironclad.

Operating expenses for the first quarter of 2008 were $1,919,189, a decrease of 8.8% versus $2,105,297 from the first quarter of 2007. The improvement in operating expenses was primarily related to increased operating efficiencies within SG&A, as well as lower legal and accounting costs.

Interest expense decreased slightly in 2008 versus the same period of 2007, due to slightly reduced borrowings on our credit line, while interest income decreased by 85.5% in the first quarter of 2008 as a result of seasonally lower cash balances on the Company's Balance Sheet as compared to the first quarter of 2007.

The Company's net loss decreased by 2.0% to $1,151,860 in the first quarter of 2008 compared with $1,175,585 during the same period of 2007, primarily due to a reduction in operating expenses.

"We continue to focus our efforts at managing our operating expenses, particularly as they track to our sales," said Tom Kreig, Ironclad's Interim Chief Financial Officer. "We remain committed to achieving profitability in 2008."

In April of 2008, the Company completed a $1.4 million private placement to facilitate an expansion in its product production and marketing efforts.

In addition, the Company is looking to expand its working-capital facility, which it believes will provide added production and manufacturer pricing flexibility.

Ironclad Performance Wear Corporation will hold a conference call to discuss its first quarter 2008 financial results on Thursday, May 15, 2008 at 1:15 p.m. Pacific Time (4:15 p.m. Eastern Time). To participate in the conference call, interested parties should dial (866) 452-2901 ten minutes prior to the call, then enter PIN 47925485. International callers should dial (1+) (706) 679-4930 and enter the same PIN. If you are unable to participate in the live call, a replay will be available through May 17, 2008. To access the replay, dial 1 (800) 642-1687, followed by passcode 47925485. International callers should dial (1+) (706) 645-9291 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. For those unable to participate during the live broadcast, the Webcast will be archived for two weeks.

About Ironclad Performance Wear Corporation

Ironclad, which created the performance work glove category in 1998, engineers, manufactures and sells a comprehensive line of task-specific gloves and performance-fabric apparel. With its focus on innovation, design, advanced material science and durability, the company is leveraging its leadership position in the construction and industrial markets through an expansion into the cross-over action sports and outdoor enthusiast markets. Ironclad. Ironclad's products are available at hardware stores, home centers, industrial suppliers, lumber yards, and sporting goods retailers nationwide, and in Australia, Canada, Japan, Hungary, and the United Kingdom.

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. For a more detailed description of the risk factors and uncertainties affecting Ironclad, please refer to the Company's recent Securities and Exchange 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.

Contact Information

  • Contacts:

    Ironclad:
    Ed Jaeger
    CEO
    (310) 643-7800 X106

    Silver Public Relations:
    David Silver
    (213) 488-6161