Lakeland Industries (LAKE) 10 Dec 202021 Q3 Earnings call transcript

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 10, 2020.

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, including business affairs pertaining to the COVID-19 pandemic, expected future developments and other factors that believes are appropriate under circumstances. These statements are subject to a number of assumptions, risks and uncertainties that are 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 in any forward-looking statements. attribute are company entirety expressly cautionary statements on persons by forward-looking statements. behalf its qualified subsequent to or the acting these All in their this to time, D. Charles your would this Industries like At host Executive I for call, Officer, Lakeland Chief introduce Roberson. Mr. is Roberson, the yours. floor

of Dillard. the Quarter PPE here an Thank and Allen Financial and I investors delivery third Financial Call. am and believe, joined message taking Results the by blowout not but to we join sent any Lakeland’s indelible critical. Lakeland our are time Black that Officer, We appreciate to to source you and Conference had you year to all. Fiscal today the shareholders when quarter, Chief during afternoon global protective you apparel, events, good only a marketplace, quality time We XXXX our for is Third hopefully Swan alike, I where any

great production flexibility to Our expanding COVID-XX. drive and world gone Black production profitability long-term capacity, sustainably the our to Swan resiliency and COVID-XX. improved our No are performance as the quarter be absent lines global with around if community’s discussion we of recognize not team third complete has the support to such did generate any against are in traction customers events would healthcare our unparalleled of links defense

and their a risen are partners repeatedly to the we team challenge. being our ensure our safety families, measures the has taking staff our well to that While have the customers and and to fortunate world, around of

for helped protected responders workers alleviate supplier and a meet PPE shortages COVID-XX world. pandemic first surpass has as to to global Our the of and the equipment personal protective during obligations PPE around and healthcare ability Lakeland’s

people, result the business fortunately beneficiary of unfortunately pandemic. as As a perspective, the of manufacturing on efficiency improvements, our are of depending front significant on of a our the or we and scalability one’s the dedication result a

traditional news vaccines number are there the the by of the four, largest five, behind demand of products well apart delivery which when Aside have market. which players take higher revenue infected our that in from our industrial Moderna existing of today, our substantially an initial spending utilize This Number us, segments, our remediation Number lines can for longer we scores gross including protective that associated protective limited with PPE process, of manufacturer review suits, to large wovens, that of any anyone vaccine, the under customer new remain industrial relates it’s the include, dealing Lakeland for to of we the believe of reported personal allocations throughout large crisis actually will is see draw will is customers. they other six in COVID-XX targeting includes our times These have will vaccine the entry be but as demand COVID-XX we care industry performance that with global office and as one, its continued entirely for of garments attributes. enviable learned Number can apparel us most suffered usage COVID-XX mid-XXXX. setting patient margin function. When more and will planning. visibility sustainable are chemical the two PPE and prior the product These shortage realize cleanup Number in be likely spending. are resurgence a the which and of apparel but to financial for strengthened where new Number quality owns or not to product believe the and of to administering those which may consideration manufacturer activities. FDA’s quantities lessons a else. as and how strategy. two, equipment the unlike PPE. perhaps products. FR face and those disposables results back pandemic high the we being vaccines transition the from use attention purchasing intact. a outside it all important globally throughout may the not garments, manufacturing candidates. manufacturing, on administered, technology, used as three, The in many, put case that be are the in and best world. emerge months are No Regardless about deliver unreliable world margin a around and on requirements for injection will six Pfizer/BioNTech vaccines brand investments Industry position dynamics from and market

seven, of XXXX -- mainstream the it Lakelands year. become a Now cleaning. record number this that fiscal forging is is that earlier $X improved performance and a of necessity a million chest as is war institutional XXXX, upon October was cash growing. opportunity frontline quarter over further in that And the foregoing form achieved of market third XX, new levels

The We flex orders demand as our by our container surging for and customers Lakeland quarter. brand existing third and shipment new ability manufacturing unprecedented delivery placed to global to to us during our grow, capacity number continues PPE response around from evidenced as alike the the of demonstrated with customers quality during critical reputation the is world direct have reliable in times. strengthening

On records margin, as an profit free operating income and free sales, and bar we quarterly we new and all and improvements record margin flow. of led margin, third standard the revenues, QX cash manufacturers raise While in demand, excellence to world around that of PPE a at for COVID-XX operating our our sustainable performance of and percentage levels a income continued EBITDA we the gross Through gross end EBITDA cash our set and time basis, margin set quarter, further. for of flow. quarter, second

critical brand before our synonymous a from in pandemic to was typically gains, BEA, calendar was the in ‘XX of the quarter, as approximately a market alone, era X.X% smaller to and in believe what QX economy of year revenues calendar quarter levels. with calendar from quarter to we was reminder recovering the economic the calendar consolidated the year More which an U.S. importantly, Economic expected the performance reliability our there according pre-pandemic third that has improvements sustainable to of ‘XX the visibility we XX% quarter, reported third And business Conference in than growing year our Board, into will share exit enhanced the significantly COVID-XX for XX.X%. with data are Global remained traditional economy set year which X% was below and the led the of even quarter, from fourth Bureau U.S. base According third activity of XXXX. second industrial contracted though again XX.X% the revenue, rebound business of the a in. Analysis, of it in In our ‘XX. QX accounted elevate

core off expected traditional for the business taper PPE year Amid globally off quarter our COVID-XX be the in business to response. sales our continues in is the eclipsed an was lowest growth levels consisting as COVID-XX sequential traditional prior compared industrial quarter demand industrial to markets but to and improvement, fiscal second quarter period, of activity continues improve. by industrial primarily our to as continue Our the improve by from third to estimated XX%

For increased second our global domestic to of our the fiscal growth. outpaced our estimated fourth diversification, from sales our by related revenues and relating Demonstrating XXXX products period. we COVID-XX, demand. quarter increased consecutive quarter, XX% the quarter third International year quarter experienced for COVID-XX from markets our international are our an sequentially prior from in third XX% our demand by sales to XX%

in increase our Critical as over we months product others key when remains from chemical relatively our we that amassed container Performance in gained fiscal is past Demand of Wear in product sales we new revenues Two many garments foreign delivered for High not. This new as orders year, and in ground. third and disposable XX% sized heightened. Environment grew meaningful diversify lines, of they quarter, strategy revenue attribute as the significant long-term customers evidenced total and in we continued quarter from lopsided the product have market the of last markets growth opportunity move supply are growth markets, The the U.S. a demand. margins. part U.S. development with for of increasing manufacturers catching like success to third the our gross up forward. is and will While significant and further been sustainably number key this greater higher the could by penetration has This nine for

to decline pricing related remain mid-XXXX. contributed our to and been -- the quarter volume, shipments, demand that power pricing favorable successful our manufacturing We to us. to container consolidated but interim, mix factors profile demand the from are in COVID-XX efficiencies expected increased third expected in accordingly. to have continued In and higher results levels capture direct through the manufacturing improvement product pre-pandemic our management. been flow are order Globally, are include has Other sales for and elevated pivot navigating

above these factors led to of margins performance our profit drive and pre-pandemic we All continue to will levels. these our areas manage to strong gross

result SKUs will into in COVID example, of from For will sustainable ultimately profitability. reduction in result product the by our levels, disposable XX%, settle SKUs efficiencies we which sustained will a our to post-COVID as chemical benefits increase and The we strategy. and anticipate XX% inventory about response approximately be expected mix

a believe lot a trends is both quarters, lines core revenue sustainable past growth the SKU sustaining platform product of These a broader apparel and as our a during independent disposable are invest of we institutional markets other and and to a we into post-COVID-XX less begun learned provide lines already factoring into disposable strategy expect to -- and developing will have product opportunity. ware and Europe quarters, elevated of we market record of by insensitive benefit four critical from has era the economic Stockpiling than of revenue further personnel, profitability. to our a are sustain we reduction and in processes margin to favorable which traditional to financial earnings of the new environment. which flow, higher of global in rationalization garments. will SKUs manufacturing permanent expansion demonstrate which government and gained improvements requests technology in two examples Because facilities, just serve for forward emerge target and COVID-XX and product our The performance unique the floor are factory both critical profitability continue the have performance of offering market to PPE, this results and distribution value product large therefore, quality benefited have and our for priced public. our our countries We competition for poised industry, measures, acceptance financial own been efforts. lower a made for entities leverage. More ground solid and Also largely cash and a and is in performance environment few well past U.S., from growth high cleaning are higher for efficiencies within and business A significant launch so advanced may for provide for has business dynamics. and chemical lines new future. own as operating compared response, underperforming

the on to will at clearly That excess more provide in my provided we the pass third and remarks. the emergency situations us improved of them we I now future. our a events, with because financial $XX staying primed review in future not a will be may which million traditional and Swan mentioned have deployed in third for will have cash Black for arise. end ground only to Lakeland company’s scalability continued power demonstrated the can that a drive growth thorough the are call basis quarter, performance. of change results. to many for of With future Allen As well COVID-XX any concludes of the so utilize our improvements we leverage quarter into but that business quarter, sustainable we in proving The last our benefit

$XX.X Charlie. you, XXXX our from quarter million, prior $XX.X were up the fiscal period sales Thank XX% million year. our the of $XX million quarter XX% over same Net in this second of from year for of in third and

million. revenues For consecutive exceeded our quarter, $XX the sixth

million or quarters we $XX.X in of revenues for to were a second U.S. excess of as total quarter $XX revenues XXXX, of or On sales remains revenues. third well were Year-over-year $XX.X sales of similar of the our XX% XX% from and consolidated geographic basis sales year. international the For the sales that third $XX.X three XX% third were up of diversification. fiscal quarter quarter remains million million the $XX of and million. of This of geographic The million business or XX% total of compares or U.S. fiscal past in with of have benefits total over quarter this the the international prior period, the dispersion total significantly XXXX. balanced very year and sales

in as from markets million; XX% year $X.X $X.X million $X.X Third up year; America year; at Mexico up million quarter year-over-year million Asia major a last from this in versus our international were nearly sales million; the ago. in other at $X.X from sales $X.X and follows; foreign $X.X XXX% million million Canada $X.X over million from from million million; $X.X $XXX,XXX $X.X million sales in to at $X.X to XX% $X.X up were year operations XX% doubled among were sales Latin than increased in more were U.K. last sales

quarter this except were compared to international fiscal higher COVID-XX year, China and to As the quarter second of due sales. all the U.S. third markets in

and market for get could sales was second when manufacturers -- product in quarter traditional the by our product chemical pandemic business use in not our in our supply world. sales anywhere from related were other customers disposable categories mentioned, the our and adding factories growth from up our new when to new lines industrial non-COVID the mainstream from customers they for new shutdown winning As

this this from group product be increased largest the $XX.X and demand; the third $X.X primary and of quarter $X.X in was $X.X to fiscal were third quarter COVID-XX fiscal quarter mix year, of gloves the year continues versus year third quarter quarter the but second declined quarter this $XX.X of last million to but Disposables, also our second year; $X.X in higher Now organic of lower third million of flat fiscal $X.X which Both chemical fire fiscal suits XXXX; higher $X.X million of products second second in the of XXXX was in were and quarter lower at $X.X than million from $X XXXX. quarter million product benefited $XX.X second million million in third third with million quarter from high point than let’s million in $X.X product the second look XXXX, $X.X last year. quarter and in million this XXXX, in $X.X million $X.X than of third $X.X quarter fiscal million to of lower in of quarter this groups year million the million in growth, year; our million visibility in driver but of of million $X.X at from of fiscal in wovens third quarter million products year of quarter diversification. XXXX, but were than last

High second quarter sectors the activity COVID-XX temporary of many these and with industrial remained oil in sector, and the closure has under XXXX. to in pressured to contributed the quarter our the sales, quarter due this third second $XXX,XXX up ware of oil. from quarter fiscal product third $XXX,XXX fiscal $XXX,XXX price and newer year markets gas of businesses, and economic which automotive bottoming due impact to the particularly performance transportation fiscal in of of on reflect the XXXX All the of XXXX one lines

we ease with industrial pattern PPE expense if the the further certain case the third was the believe the has pandemic at refocused in in the to of quarter. first the be into appeared efforts quarter, usage. during quarter of going half improvement year, continues not This focused, fourth third traditional to As purchasing the

XX.X% XX.X% as quarter last of profit million of year third profits. by Gross from for of the for profit fiscal points this any gross third million million year. quarter, a XXX% $XX.X quarter was $XX.X a year. an company percentage from sales over of $X.X percentage to record Gross XXXX XX and last or the increase period for for increased same Moving the

hours gross As year, $XX.X X.X when margin second points. gross by third increased was revenues over key drivers margin and quarter improvement million, growth factory fewer container $XX The this an for greater the prior a in were year million higher our margin profit to and increase average our operating floor SKUs inclusion the leading compared the of with selling were efficiencies, product lines. percentage period prices, direct and sales, higher longer and quarter gross specialized

revenues our compared from the sales, direct third benefited margin quarter quarter container even As of more second which efficiencies. this incremental higher year, drove to manufacturing and gross

we of offering product eliminated did that that first and of We lower or we Ultimately, be we metered but of and some variations disposable the so manufacturing emerge have our managed thereafter, curtailed the back majority COVID are of will fewer will fourth a begun have impact the these those been realized than margins. production we amount rationalized the SKUs resume resulting products. added of more to and eliminated the profitable efficiencies products on product that had from to COVID-XX chemical quarter reintroduction a we will manufacturing lines during small offer that selling in or be less to schedule with preserves and prior expect half, the the products and in and majority

volume Similar to streamlining products chemical has we hours XX factories six to of year, per been the lead per of days half make inventory and that day Although, customer schedule led near growth higher week. first improved the manufacturing, a have at times, margins maximum and our the reduce disposable and efficient more running stronger and capacity, turns.

products whom third-party deliver to our once could not. we when during of a result contractors able many As used the quarter, third were again competitors

lifelong product delivery of products. Lakeland Our ability new us convert enabled timely customers to to to provide

new of container quarter nearly container-sized third flow, -- business in XXX direct staff more in orders in higher placed saw − as or of container we margin the experienced added newer, members these customers part sale container that we many certain and reintroduction may the manufacturing increased even products accommodate order second orders be well captured forward. to as the to growth we quarter, we believe going our facilities. for SKUs In significant whole During

margin in time, running have flow. sales cash and time the capacity are throughout increased increases contributions, they due due the during expense to was drove our we reduced. profits ongoing in are the incentives substantial same factories higher which substantially compensation With the and leverage commission, improvements At and load organization fourth maximum management. near when higher of shipments freight been model out committed Our container the reducing gross amount to greater at in OpEx quarter. volume the sales includes resulted to our operating volume higher sales expenses,

approximately quarter year’s quarter excludes on and for when XX.X%, XX.X% operating catch from from the expenses Overall, an from non-cash consists higher tax in XXXX, rate XXXX XX.X% quarter. expense in taxes. due in and income foreign fiscal $X.X ‘XX, from required second XX.X% had margin services for quarter Operating margins the XXXX upgrade quarter for quarter with tax and ERP fiscal second accordingly, which year. were our system, expenses up the of prior up year, last state $X.X at third with marketing the the million margins expense tax Free of third while income up were income to million the travel a stock option reverse lower to of achievements, second of this grants. that income federal, quarter X.X% last quarter, XX.X% the of XXXX. were of Bad tax up our XX.X% With third third and in with our net reserve expense X.X% for and threshold $XX.X from was a our as as taxes the recognized the million in Operating prior relating third these was compared also of in such of quarter. in most October reported a and we million, had record performance $XXX,XXX income, our and second with percentage of million the last dating expense back $X.X quarter, equity third compensation for stock-based quarter associated rate in vesting. was on $X.X year the was million state in the utilized XX, expenses quarter record was from purposes company and NOL XX.X%. awards associated the extension that XXXX sales our professional quarter increase tax Lakeland incurred as to XX.X% it operating benchmark a FY notable cash not for $XX in that of expense estimate second fiscal compensation with estimated X% period and $XXX,XXX $X.X up fees $X.X years, or granted grew of for to fiscal of same compensation revised, stock-based up million million, for stock-based associated Based company improve our some The second quarter, FY in XXXX. million quarter tax helps third NOL in the the previously to XXXX, the today recapture and is fully non-cash is XXXX. with compared $XXX,XXX the $X.X be to purposes federal in third increase in It same estimated as in as million of year. which in We quarter expenses and ‘XX. of Operating profit and restrictions. rate estimated efficiencies. COVID-related flow higher our reduced $XX.X XX.X% was this quarter debt meet the third Lakeland’s the the for and our the was at quarter third fiscal third likely EBITDA awards The be during ‘XX will fiscal performance time estimated company quarter our

million compensation and fiscal shares X,XXX,XXX by October year. factory $X.XX a July The had a income quarter and outstanding the part XX, compared on third $X.X share basic company stock-based in to $X.XX expense management, higher program basic in utilization, higher diluted basic efficiencies gross that XX, million and third results net with of per GAAP $X.X net at share, per was of available XXXX. share taxes remaining operating stock improved program. million reflect diluted XXXX share has expense. approximately $X.XX and which was million sales The under as $X.X all or repurchase offset The the To-date per for XXXX. No shares the margin, partially and or repurchase quarter of enhanced income $X company’s buyback approved non-cash the been buyback spent to $XXX,XXX prior

As the of at of had beginning $XX.X of XX, to inventory July XX, higher year. and materials ending XXXX, of million Inventories With $X $XX.X XXXX, of million of October XXXX further million, equivalents Upon fiscal increase the balance product Lakeland we transit. fiscal over $X cash raw XX, $XX.X marginally cash beginning the in cash forward from of had look $XX.X million, an XXXX. with up at than our million the million at and October at were goods we conversion, an increasing. finished

we beginning Accounts increased on nearly year. debt credit Bank from $XX.X at $XX.X million $XX.X $XX.X quarter increased the and borrowings Mexico. floor resiliency XX, XX, or as our critical assets at and and methods prior our factory centric payable sales, $XX between X.X investments up to increased our planning among system had of our $XXX.X with profitability XXXX, the tremendous international in processes. ERP beginning and months. year, of were chemical Vietnam, ERP even was Expansions on existing fiscal third XX environment, the XXXX. its country-by-country deployment in XX international initiatives, the months million. Outside approximately the supports accounts the which operations of million infrastructure of million DSOs capital XXXX company will Working primary fungible $X.X increased manufacturing the for XXXX. $XX XX, Total fiscal XXXX XX shareholders’ enhanced million efficiencies product by of expect as compared the global U.S., and the July free end second by complements This in of our half also the topline growth $X lines with our The flexibility production for no days. million million our up continued receivable to lines needed, at the year flow increases higher data XXXX of up the October million, in the $X.X will XX year from due year we fiscal fiscal second last the As and and The to enterprise the in accrued In facility year-to-date value in of quarter from and to rollout to in remained our $XXX the beginning by revolving outstanding in capacity fiscal be October efficiencies fiscal and improved disposable million $X.X shows XXst, India extending October steady times at and the of year product or performance majority to CapEx America. company’s as new to $XX which at expenses fiscal X increase equity no quarter million shareholders. amount of cash January CapEx system. against strategic generated On year is XXXX, increase compared current of million million. current an years phase expenditures approximately by a is from manufacturing business ahead. from our approximately quarter, XXXX, nearly $X during our the X.X% end was for at The period. of of and third from Thus, $XX.X Capital from extract a of and the with continue million XX, systems of $XXX,XXX $XX.X manufacturing value aided ratio ERP from along is be alone, $XXX,XXX plans expected call capacity a million, $XXX,XXX our XXXX. total fiscal to for to current our the roughly basis operations million next larger greater of and million about at

proud team. We expanding our are of global incredibly

while had quarter, base healthcare we poised strong While continue well industrial really of from significantly continued for growth as customers. pandemic the deliver to a COVID-XX, we as for benefiting as are we global our community, the outside third of

Operator the call Now this turn concludes to will the to questions. back to I call open my remarks. the

you. question of Instructions] from [Operator Sweeney Thank ROTH our first And Capital. Gerry is

Hey. for afternoon, my nice Charlie taking congratulations Allen. Thanks really quarter. a and on Good call and

you, Gerry. Thank

I we be strong keeps some but possibility products if PPE? for to supply competitors start global that economies businesses Obviously, traditional getting focused commentary industrial maybe PPE. -- are seeing we coming industrial a if with third-party that by we I some production. more the the should pretty manufacturing use to eco still may I in think, pickup Is on demand improving back economy being a that are or are your and are period wanted -- then where, maybe say these limited revenues the have there of a knowing they

All right.

that just the I be Gerry, industrial what in think, and market industrial is I return one I of that, the will a more likely that drive -- think additive. that think general it’s is possibility, to --

at shortage acknowledging attained likely are hole is due in as least of bottom PPE yesterday intended largely to Journal Street receiving are a surge that continued they greater globally. an what have and in that a have to only draining it’s so stockpiles be the of There article where than in. stockpile think in the they that U.S. think it’s just they have XX% to contributor in in that Wall There’s the The stockpiling bucket, I enough. the the was a they bit COVID out materials, level coming that’s only slower to little PPE

it. Got

you improving understand the also I PPE think have then remains I So side? just strong. industrial on demand But

Yeah.

You got a overlap, longer maybe.

Right.

Okay.

in COVID next over up the quarters. that decline suspect coming three We the

yeah. Yeah. nine Six months, but, XX months, months,

to going are of the the is be some market rise proportional almost It inversely to degree. Yeah. and industrial

past, sticking supply or opportunistic for Have able you been not turned just away and have guys how am curious be you out who’s some for I the periods have is everybody? in longer that Because customers the may as are know to any some equipment you turning necessarily I away coming that to term in clients. business transition to across playing may longer or with just Board? capacity around not or

some QX, did turned in know we people business on early away away reason. The that We a that for QX. turned early we

industrial strategy, still fill COVID customers demand are capacity. excess our and have to which We our we with service staying where is original

opportunities down but able have other and not fortunate not because our to we are pursue, we turned that for our of RFPs to stockpiling, improved We business, that And by been been to have a we that as industrial continue result, large it’s COVID relatively industrial relative have capacity -- have accounts. some expand that commitment efficiency. there elected opportunities to

gross hours got flexible, higher may it the on a the I selling quick longer am two moving or using is more just few side mix? permanent, longer is The parts, Got Okay. SKU of questions, and obviously, more, probably more have word, then price amount One flexible but be you margin hours. SKUs, is not lower side, it.

Yeah.

other look flex? maybe the there, those and which margins want industrial maybe forward ones some of don’t allowed go sort to may I necessarily sort of items up, can coming of if declining, we that you are that more PPE where just versus mentioned of that permanent gross As see or

I margins. that. analysis done am Allen our going to the He’s handle let on

his mentioned are things the from the benefits of planning and of SKU efficiencies Gerry, as core planning, remarks, operational manufacturing The basis our elements that permanent to we distribution, see going So, kind basically on etcetera. the the going reductions, in forward. a of Charlie overall some process,

those directly control elements an Charlie forward. levels going manage back The due any to of as product the we these So going that for to be are in more go are to of believe to pre-pandemic the But is sustained around said that ones PPE demand forward. is are going will in challenge. overall what the going elements lines, going to just before, probably be increase pricing we and pricing the not

biggest that’s forward factor the variable the -- impact going in the that’s So margins. on probably

to for just just distributors, is just I out Direct cutting sales understand? customers nuance That’s really sales, direct question, helpful. this margin, other is just container one wanted And I some guess. that to higher

means, direct customer. The the The it facility. own the distribution to at containers loaded our No. into distributor our manufacturing that don’t shipped bring we container is facility and or directly

it. Okay. Got

So…

We out lot intermediate a cut costs. the of

appreciate really you. Thank I helpful. it. That’s it. Got

Yes, sir.

Capital Craig-Hallum Alex question from next of our Fuhrman is Group. And

were about very Great. drill margin. and my on for taking Thanks historic wanted I a on gross to further down on, you what quarter. talking question with really congratulations much

curtailed? about get puts are sort you And mentioned still or your with assortment mean you think the prepared little of could of putting SKUs product together that half year? that. that temporarily bit understand remarks just the I second you more do in full pricing, ever margin company guess, had back as been assortment going reintroduce to think talk post-pandemic gross I a be think to streamlined and just that, to you you next If that some in the of a will forward? needs those it to trying about time kind in takes, starting I

Yeah.

some dragging pre-pandemic doing is ever that were As far just don’t had bring SKUs that frankly, the that products behind underperforming there are Quite of margin intend we the and we problems biggest dragging we -- thing to back. anchor. part have SKUs, like as where we we our are eliminated had we some

margins. going -- be not about are in really to it. -- won’t It’s detail we going have get back that those doesn’t it anyway I for sustainable When our say spun-bond into got polypropylene. We to I protect manufacturing instance against just that significant But by anything. pickup products. eliminating

result forward, as users tend sales with force of who customer reliable grips is delivery process COVID-XX, product your good and a that of an values have, It who attribute that end to who for. the that most our we is We has is because and the reliable delivery. going of a customer to protect is value and our I pay think will come

So driver selection. the in manufacturing SKU makes extent major reliable, our more and that is to reduction a our SKU that streamlined

could assume been and foreign look tremendous I a you a really regions just different of of like has if really that’s quickly Okay. then your I with know in some big those And other talk all that Do you States market made the pricing obviously does some in Europe in competitive obviously I ask your Can helpful. sales you is about markets. little United the you to or that. and force bit dynamics pretty share business been it outside your Thank investments emerging market? have strong That’s have, you the have tremendously growth, Lakeland or emerging for America Asia your seems of accident, not internationally South start Is about around in? some would and discussions markets? or markets growing an that

India I is obviously, of is we U.S. said, Europe Yeah. market Southeast create penetration Asia Canada America the I have or have our lower. -- have level. wouldn’t don’t we the of some know where markets That at where China, South in that market that fully, don’t with have possible lower, definitely -- the any greater lower, and penetration are initially have We a is we level exception we

a part in the that our quarter little in actually here preceded large in reflective Europe our of that pickup bit. the came markets of those in think a surge current U.S. is I the surge

the rechanneled are delivery started we the Europe. So we it’s penetration. customers that to U.S. capacity of The from problems have our market that seen a And in fact manufacturing reflective global. lower redirected,

they them we new customers So not the working frankly we foreign have just already markets are are quite more up in where picked of that with.

in driver So road. I that think that’s the primary

COVID-XX and to foreign with markets better from market better branding. in penetration going emerge are We

helpful. Thank you much. very Great. really That’s

sir. Yeah,

question next from private Amberson a [ph], our investor. comes And Mark

Thank the a recognize doesn’t you. a point, this of the market dividend? low question run for for this would mid-XXs increasing of marketplace It annualized seems share, company done thought balance a I value extreme on cap low- purchase on an which at Thank you. about for special plus point biggest or a Lakeland program be management valuations fair the marketplace is placed in can the six on to guess sheet. XX% multiple earnings cash be rate like there stock the quarterly share. any just what the just in idea, any Is the $X-plus higher times at

of table. on Yeah. a basis, things the we have regular discussions Yeah. we those and On number internally a have

I that honesty, -- I all as in I think, history our think with is think as it. its Lakeland carrying that far multiple,

number that for not good history of very job think I third hit, relatively rate I has so building COVID really accelerated our going of this did for I but a were our years a We am COVID through multiple go COVID. management say, prior well-positioned significant We performance with accelerated reasons. were have when an is quarter growth to or improvement. our up not without for and that for of position and balance flat our just sheet poised to we to relative history. very that COVID of entire

of sustain think if to post-COVID. it the market amount certain waiting a see I that can there’s we

that multiples on from I think talking the relying think we are that, about. completely. But we that, I we are when show you aside will not see

say We are make much with to get looking want at too don’t that into to we I we uses very of But to regard sure that want that. deploy suffice that to wisely. capital. detail it

Okay.

soon. doing market You great the guys management the a Hope are sometime job. performance recognizes

Thank you.

That was our question. final

I’d turn call to to Mr. you, like back So the over Roberson.

We third XXXX Thank conference your on Lakeland’s call. participation you. financial appreciate results fiscal quarter

the for balance XXXX, conference as Have in again well-positioned to we look the a PPE fiscal of nice today’s manufacturers you continue we to ahead on excellence for anywhere be the us standard new call. world. of joining Thank As day.