Lakeland Industries, Inc. (LAKE) Earnings Call Transcript & Summary

Greetings. Welcome to Lakeland Industries Annual Shareholder Meeting Conference Call. [Operator Instructions] Voting will be open to all shareholders throughout the duration of the meeting. Please use the link, vote my shares, and follow the prompt. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Christopher Ryan, Executive Chairman. Chris, please go ahead.

Thank you. This meeting is called to order. Ladies and gentlemen, welcome to the 2020 Annual Meeting of Stockholders of Lakeland Industries. We are excited to host today's meeting through this virtual online platform, which allows access to and participation in the annual meeting to all stockholders. While this meeting is virtual only, we welcome questions from our stockholders. You can submit questions in writing to the virtual meeting website during the annual meeting in the Q&A tab on the virtual platform. Please note that no questions will be taken in any other manner. We intend to answer as many questions that pertain to company matters as time allows during the meeting. Questions that are substantially similar may be grouped and/or not answered to ensure we are able to answer questions in this virtual format. Please remember that you may vote online at any time during this meeting prior to the closing of the polls. My name is Chris Ryan, and I'm the Executive Chairman of Lakeland Industries, Inc. I will act as chairman of the meeting; and Charles Roberson, our Chief Executive Officer, President and Secretary, will act as secretary of the meeting. At this meeting, we will consider the election of 2 directors, the ratification of the selection of Friedman LLP to serve as our independent registered public accounting firm for the fiscal year ending January 31, 2021. And lastly, consider by a nonbinding advisory vote, the approval of the compensation of our named executive officers. So first, I would like to introduce the Officers and Directors of Lakeland Industries, Inc. that are present today via Webex. Charles Roberson, CEO, President, Secretary, and Member of the Board of Directors; Allen Dillard, Chief Financial Officer; Daniel Edwards, Senior Vice President Sales for North America; and our other Directors, John Kreft, Tom McAteer, Jim Jenkins, Jeff Schlarbaum. Also present via Webex is [ James Michael ], who is the inspector of elections for this meeting. Ron Frimmer from Firmmer LLP (sic) [ Friedman LLP ] our independent registered public accounting firm or one representative will be available by telephone. If there is any stockholder who has not voted, will you please do so online at this time as voting will be open through the duration of the meeting. Please use the link, vote my shares, and following the prompts pause go through each instruction. The following documents will be filed with the minutes of this meeting: A, a copy of the printed notice of meeting dated May 4, 2020, stating the time, place and purpose thereof; B, a complete list of holders of record of common stock of the company as of the close of business on May 1, 2020; and C, the affidavit of mailing of notice, of Internet availability of proxy materials to the stockholders of record. Pursuant to the authority vested in me by the Board of Directors of this company, I hereby appoint James Michael as inspector of election and direct that the inspector take an oath of office and make a poll of the stockholders represented at this meeting in person or by proxy. Mr. Roberson?

Chris, we have had a change in the inspector of elections. Present with us now is [ Emily Watson ], will you appoint her as the inspector of elections?

Okay. [ Emily ], I appoint you as the inspector of elections as a stand-in for [ Mr. Michael ].

[ Mrs. Watson ] has taken an oath of office and has made a poll of the stockholders. The number of shares present in person or by proxy is 6,122,600 or 76.56% of the 7,997,191 outstanding shares of common stock of the company entitled to vote at the meeting.

Okay. I declare that a quorum is present and that this meeting is regularly and lawfully convened and ready to transact business. The first matter to come before this meeting is the election of 2 directors, each serve for a term of 3 years until the Annual Meeting of Stockholders in 2023 or until their respective successors are duly elected and qualified. Mr. Roberson?

The Board of Directors recommends the following nominees, which have been appointed -- approved by the Nominating and Governance Committee of the Board of Directors to serve for a term of 3 years until the Annual Meeting of Stockholders in 2023 or until their respective successors are chosen and qualified. Christopher J. Ryan and A. John Kreft.

Are there any questions that have been submitted online with respect to the nomination?

Let me check. I do not see any at this time.

Mr. Schlarbaum?

Yes. I hereby move that the nomination be closed and second this nomination.

I here report the voting results for Lakeland Industries. For Proposal #1 for the Director of Christopher J. Ryan, there were 3,887,433 shares -- 3,887,423 shares. For A. John Kreft, there were 3,884,923 shares voted. For Proposal #2, there were 6,122,000 -- I'm sorry.

Chris, you're next.

Okay. The inspector of election has advised me that the plurality of votes has been cast with the nominated directors. The directors nominated for election at the meeting have been elected to serve for a term of 3 years until the next Annual Meeting of Shareholders in 2023 or until their successor is chosen and qualified. The next matter to come before the meeting is the ratification of the selection by the company's Audit Committee of Friedman LLP to serve as the company's independent registered public accounting firm for the fiscal year ending January 31, 2021, as set forth in the proxy statement. May I have motion. Mr. Kreft?

I hereby recommend the ratification of the selection by the company's Audit Committee of Friedman LLP to serve as the company's independent registered public accounting firm for the fiscal year ended January 31, 2021.

Are there any questions that have been submitted online with respect to this proposal?

We do not have any questions with respect to this. We do have 1 question that says, it looks like the voting window has closed. It has not. It remains open through this meeting. The filings made tomorrow will reflect any adjustments in voting that are made during the meeting.

Mr. Jenkins?

Sure. I hereby move that the matter be closed and second the motion of Mr. Kreft.

For Proposal #2, there were 6,122,600 shares voted.

Okay. The inspector of election has advised me that a majority of the shares present in person or by proxy and entitled to vote on this proposal have cast votes in favor of the ratification of the selection of Friedman LLP as our company's independent registered public accounting firm for the fiscal year ending January 31, 2021. The last matter to come before the meeting is the approval on an advisory basis of the compensation of our named executive officers. May I have a motion? Mr. McAteer?

I hereby recommend the approval on an advisory basis of the compensation of our named executive officers.

Okay. Thank you. Are there any questions that have been submitted online with respect to this proposal? Mr. Kreft?

I hereby...

There are none.

I hereby move that the matter be closed and second the motion of Mr. McAteer.

Mr. Chairman, there were 3,884,923 shares voted for Proposal #3.

Okay. The inspector of election has advised me that a majority of the shares present in person or by proxy entitled to vote on this proposal have cast votes in favor of advisory vote of the compensation of our named executive officers. Are there any other questions that have been submitted online to be discussed at this meeting?

Chris, we have no other questions.

Okay. There being no other questions, I ask for a motion to adjourn.

I hereby move that this meeting be adjourned.

I second the motion to adjourn the meeting.

The meeting is adjourned.

Thank you, ladies and gentlemen. This concludes today's conference, and you may disconnect at this time. We thank you for your participation, and have a great day.