ARNPRIOR, ONTARIO--(Marketwired - Nov 25, 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 ended September 30, 2013.
- The Company reported net income for the first quarter of $0.2 million compared to a net loss of $0.5 million during the first quarter of the prior year.
- Revenues for the first quarter were $3.8 million, an increase of 35.7% compared to revenues of $2.8 million during the first quarter of fiscal 2013.
- Gross margin as a percentage of revenues for the first quarter was 28.4% compared to 20.1% for the first quarter of the prior year.
- Expenses for the first quarter were $0.9 million compared to $1.0 million for the first quarter of the prior year, a decrease of 14.8%.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")(1) was $0.2 million compared to the Adjusted EBITDA loss of $0.4 million during the first quarter of the prior year.
"PSP continued to identify and remove costs from its operations during its first quarter", says CEO, Terry Vaudry. "We remain committed to rightsizing the company while continuing to invest in our products and customers ahead of what we believe will be a healthy business environment in calendar year 2014".
Grant of Stock Options
The Company has granted an aggregate of 2,725,000 to certain directors, officers and employees of the Company, including to Mr. Fraser Campbell and Mr. Ken Hight, Directors of the Company, Mr. Terry Vaudry, the Chief Executive Officer and a Director of the Company and Mr. Rudy Witlox, Chief Financial Officer. The stock options are exercisable at a price of $0.11 and expire five years from the date of grant. The stock options vest immediately upon grant.
The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely®. PSP is an established industry leader in the production, distribution 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 anticipated impact of the steps being taken to align and size the Company's operations to current North American business opportunities. 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, 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.
1 Adjusted EBITDA consists of earnings before interest expense, income taxes, stock based compensation, 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
Pacific Safety Products Inc.