Stalemate should be put aside: Lakeland Industries, Inc. (NASDAQ: LAKE)

On Friday, Lakeland Industries, Inc. (NASDAQ: LAKE) stock observed trading -14.37% off 52-week high price. On the other end, the stock has been noted 43.71% away from low price over the last 52-weeks. The stock disclosed a move of 25.66% away from 50 day moving average and 23.21% away from 200 day moving average. Moving closer, we can see that shares have been trading 16.31% off 20-day moving average. It has market cap of $110.68M and dividend yield of # ref.

Lakeland Industries, Inc. (LAKE) (recently reported financial results for its fiscal 2020 third quarter ended October 31, 2019.

Fiscal 2020 Third Quarter Financial Results Highlights and Recent Developments

Net sales for Q3FY20 of $27.5M, contrast with Q3FY19 of $24.0M

Gross profit for Q3FY20 of $9.3M, contrast with Q3FY19 of $8.3M

Gross margin as a percentage of net sales in Q3FY20 was 33.9%, contrast to 34.6% in Q3FY19

Operating expenses of $7.5M in Q3FY20, contrast with $7.3M in Q3FY19

Operating profit of $1.8M in Q3FY20, contrast with $1.0M in Q3FY19

Net income of $1.1M in Q3FY20, contrast with net income of $0.5M in Q3FY19

Q3FY20 net income includes non-cash income tax expense of about $0.3MBecause of the re-measurement and reassessment of the GILTI tax; this amount was about $0.6M for the 9 months ended October 31, 2019

Earnings before interest, taxes, depreciation and amortization (EBITDA)* of $1.9M, contrast with $1.4M in Q3FY19

Capital expenditures for fiscal 2020 third quarter were about $0.1M as contrast with about $1.0M in the fiscal 2019 period

Cash of $9.5M at end of Q3FY20, up 4% from $9.1M at end of Q2FY20

Total debt was $1.2M at end of Q3FY20, down 24% from $1.6M at end of Q2FY20

“In our fiscal 2020 third quarter, the effect of non-cash GILTI taxes on earnings resulted in a reduction of about $300,000 or nearly 25% of stated net income of $1.1M. While our third quarter net income as stated increased by 129% from last year, our net income before the non-cash GILTI income tax expense and cash flow from operations were even stronger. The incremental tax provision relating to GILTI, which was applied starting FY19 resulted Because of having historical U.S. NOL amounts to offset the GILTI taxable income inclusion. Lakeland’s NOL was $18.0M at October 31, 2019, down from $20.6M at the starting of the fiscal year. The GILTI provision does not impact Lakeland’s cash taxes given the company’s accessible U.S. NOLs, so we do not view the GILTI tax at this time as a meaningful component of our core operations and financial performance.

“At the core of our businesses, in the U.S. where we derived 52% of consolidated revenues, we had a strong quarter. Sales were up 14% over the previous year period driven by strength in chemical suits and fire/flame resistant product lines. Many of the garments sold into the US are now made in our relatively new Vietnam manufacturing facility. We had built up a backlog of orders and elevated inventories to address any issues in manufacturing and deliveries which were delayed Because of our newly implemented enterprise resource planning (“ERP”) system. In the second quarter, we reduced the backlog and that helped to increase sales in that period.

The USA based company Lakeland Industries, Inc. moved with change of 0.87% to $13.94 with the total traded volume of 841390 shares in recent session versus to an average volume of 181.18K. LAKE’s shares are at 27.07% for the quarter and driving a 25.36% return over the course of the past year and is now at 29.07% since this point in 2018. The average volatility for the week and month was at 11.06% and 6.72% respectively. There are 7.94M shares outstanding and 7.47M shares are floated in market.

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