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    Chris Brennan

    Research Analyst at Brennan Asset Management

    Chris Brennan is Vice President and Senior Research Analyst at Baird Asset Management, specializing in growth strategies with a focus on energy, industrials, and materials. He has covered companies in sectors such as industrial software, coatings, and water technology, and is recognized for his rigorous analytical approach spanning multiple industries. Brennan began his investment career at PricewaterhouseCoopers Management Consulting, followed by research roles at AB Bernstein and Rudius Management in New York City, before joining Baird in 2024 to further expand his sector expertise. He holds an MBA in Finance from The Wharton School at the University of Pennsylvania and a BA in Economics and Mandarin Chinese from Washington University in St. Louis.

    Chris Brennan's questions to Leatt (LEAT) leadership

    Chris Brennan's questions to Leatt (LEAT) leadership • Q4 2024

    Question

    Chris Brennan from Brennan Asset Management questioned Leatt's path to profitability, noting that while revenue is similar to 2020 levels, operating expenses have nearly doubled. He asked if the $100 million revenue target is still feasible and whether the company can achieve profitability during its growth phase, or if it will be a breakeven effort until the target is reached. He also inquired about management's view on a "normalized" level of sales for the industry and how they factor that into their investment strategy.

    Answer

    CEO Sean MacDonald affirmed the $100 million revenue goal is achievable and expects the company to be "strongly profitable" at that scale, not merely breakeven. He explained that the current cost structure is designed to support future growth and that profitability is expected to increase alongside a return to double-digit revenue growth. Regarding normalized sales, MacDonald stated the industry is still depressed but that Leatt's relatively small market share in key categories provides substantial growth opportunities independent of the broader market recovery.

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