ARNPRIOR, ONTARIO--(Marketwired - Oct 28, 2013) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or the "Company"), a leading North American manufacturer of advanced armour and personal protection solutions, today reported financial results for the three month period and year ended June 30, 2013.
- The Company reported a net loss for the fourth quarter of $0.02 million compared to net income of $0.3 million during the fourth quarter of the prior year.
- Revenues for the year were $11.7 million, a decrease of $5.0 million or 30.1% as compared to the prior year.
- Gross margin as a percentage of revenues was 24.8%, which was a decrease over gross margin of 28.8% during the prior year.
- Expenses were $3.3 million, a decrease of $1.6 million or 31.5% as compared to the prior year.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") was a Loss of $0.3 million compared to an Adjusted EBITDA gain of $0.2 million during the prior year.
- The Company has removed the "going concern" note disclosure from its financial statements, which reflects its current performance as being able to manage its liquidity and debt requirements.
"Several factors impacted our ability to normalize revenue and grow our gross margin in fiscal 2013. In the US, our prospects were shaken by our two failed corporate initiatives in 2012, and in addition PSP suffered as a result of certain contracts expiring and delayed retendering resulting in fewer sales materializing. In Canada, while we have not experienced competitive losses, the timing of anticipated customer orders has not matched our original expectations," remarked CEO, Terry Vaudry. "That all being said, our Canadian brand remains strong and we maintain a dominant position in the marketplace. Our focus over the last year in decreasing our operations and infrastructure costs, while strategically investing in product development, has us extremely well positioned for fiscal 2014."
About PSP: The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely®. PSP is an established industry leader in the production and sale of high-performance and high-quality safety products for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, tactical clothing, and protective products against chemical and biological hazards. PSP is the largest body armour manufacturer in Canada, directly supplying the Canadian Department of National Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products under the GH Armor Systems® brand to U.S. based law enforcement and private security firms. The Company also produces tactical clothing. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.
Forward-Looking Information: This news release contains certain statements which may constitute "forward-looking information" within the meaning of applicable securities laws. These statements relate to anticipated or assumed events or results including, without limitation, with respect to the Company's positioning for fiscal 2014. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Although the Company believes that the expectations conveyed by the forward-looking information are reasonable based on information currently available to it, these statements are based on management's expectations, estimates and projections and involve a number of risks, uncertainties and assumptions, both known and unknown. As a result, the results or events depicted in these forward-looking statements may differ materially from actual results or events. Many factors could cause results to differ materially from those stated including, but not limited to the impact of price and product competition, changes in general industry and market conditions, inability to successfully plan and execute cost reduction and business improvement strategies, ability to retain key staff, restrictions and covenants contained in credit agreements, fluctuations in currency, exchange and interest rates and commodity prices, ability to retain existing customer contracts, reliance on key customers, the uncertainty associated with the outcome of research and development of new products, including regulatory approval and market acceptance, as well as various other factors which are discussed in the Company's filings with applicable securities regulatory authorities at www.sedar.com. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Note on Adjusted EBITDA: Adjusted EBITDA consists of earnings before interest expense, income taxes, share-based compensation, depreciation and amortization, foreign exchange, and other one-time charges and gains. PSP believes Adjusted EBITDA is a useful measure in the evaluation of performance. Adjusted EBITDA is not a recognized performance measure under International Financial Reporting Standards ("IFRS") and does not have a standardized meaning as prescribed by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other entities.
For complete condensed consolidated interim financial statements with notes and management discussion and analysis, refer to SEDAR (www.sedar.com).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Chief Executive Officer