ex10-25.htm


    Exhibit
10.25

     

    
      	
              PROFORMA
      UNAUDITED CONDENSED COMBINED  STATEMENTS  OF
      INCOME

            	 	
              Combined

            	 
	 
      	 	
              Historical

            	 	 	 	 	 	 	 	
              Pro
      forma

            	 
	
               ($000
      USD)

            	 	 	 	 	
              QUALYTEXTIL

            	 	 	 	 	 	 	 	 	 	 
	
              Fiscal
      Year ended January 31, 2008

            	 	
              AS
      REPORTED

            	 	 	
              US
      GAAP /USD

            	 	 	
              Adjustment

            	 	 	
              Adjustment

            	 	 	 	 
	
              Income
      Statement Data:

            	 	
              1/31/08

            	 	 	
              12/31/07

            	 	 	
               (1)

            	 	 	
               (2)

            	 	 	
              1/31/08

            	 
	
              Net
      sales

            	 	$	95,740	 	 	$	8,518	 	 	$	-	 	 	$	-	 	 	$	104,258	 
	
              Cost
      of goods sold

            	 	 	73,383	 	 	 	4,324	 	 	 	-	 	 	 	-	 	 	 	77,707	 
	
              Gross
      profit

            	 	 	22,357	 	 	 	4,194	 	 	 	-	 	 	 	-	 	 	 	26,551	 
	
              Operating
      expenses

            	 	 	17,374	 	 	 	2,847	 	 	 	-	 	 	 	-	 	 	 	20,221	 
	
              Operating
      profit

            	 	 	4,983	 	 	 	1,347	 	 	 	-	 	 	 	-	 	 	 	6,330	 
	
              Other
      income

            	 	 	145	 	 	 	14	 	 	 	-	 	 	 	-	 	 	 	159	 
	
              Interest
      expense

            	 	 	(330	)	 	 	(680	)	 	 	(789	)	 	 	680	 	 	 	(1,119	)
	
              Interest
      income

            	 	 	67	 	 	 	2	 	 	 	-	 	 	 	-	 	 	 	69	 
	
              Income
      before income taxes

            	 	 	4,865	 	 	 	683	 	 	 	(789	)	 	 	680	 	 	 	5,439	 
	
              Income
      tax expense

            	 	 	1,574	 	 	 	104	 	 	 	(284	)	 	 	104	 	 	 	1,498	 
	
              Net
      Income

            	 	$	3,291	 	 	$	579	 	 	$	(505	)	 	$	576	 	 	$	3,942	 
	
              Net
      income per share

            	 	$	0.60	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.71	 
	
                
       # shares used for basic EPS

            	 	 	5,522,751	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,522,751	 
	
              ACCRETIVE
      TO EPS:

            	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.11	 


    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      Exhibit
10.25

      


      


      NOTES TO:
PROFORMA UNAUDITED CONDENSED COMBINED STATEMENTS OF INCOME

      Fiscal
year ended January 31, 2008

       

      
        	 
      	 	
                Adjustment

                Needed

              	 
	
                (1)
      Adjustment to reflect interest- Expense that would have been incurred on
      loan to finance purchase of Qualytextil

              	 	$	13,344	 
	 	 	 	 	 
	
                Interest
      rate assumed on proforma loan.  Used Lakeland’s actual weighted
      average interest rate for the period + 40 BPS which is the pricing
      adjustment created by the higher leverage resulting from the purchase
      price borrowing

              	 	 	5.91	%
	 	 	 	 	 
	
                Additional
      interest expense on purchase loan pro forma

              	 	$	789	 
	 	 	 	 	 
	
                Tax
      rate - The Company considers the rate of 36% to be appropriate as it
      represents the applicable tax effect on interest expense incurred on the
      loan assumed in USD. The Company did not use the effective tax rate which
      is 32.3%, since the rate is affected by various factors not relevant to
      the current transaction including income from various foreign
      subsidiaries, deductions etc.

              	 	 	36	%
	 	 	 	 	 
	
                Tax
      benefit on additional interest expense

              	 	$	284	 
	 	 	 	 	 
	
                 (2)
      Adjustment to add back interest expense on Qualytextil books as the debt
      has been repaid as a result of this transaction