ARNPRIOR, ONTARIO--(Marketwire - Feb. 26, 2013) - Pacific Safety Products Inc. ("PSP" or the "Company") (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour and personal protection solutions, today reported financial results for the three month period ended December 31, 2012.
- The Company reported a net loss for the second quarter of $0.06 million compared to a net loss of $1.4 million (including an asset impairment charge of $1.2 million) during the second quarter of the prior year.
- Revenues for the second quarter were $2.8 million, a decrease of 22.8% compared to revenues of $3.6 million during the second quarter of fiscal 2012.
- Gross margin as a percentage of revenues for the second quarter was 32.1% compared to 28.1% for the second quarter of the prior year.
- Expenses for the second quarter were $0.9 million compared to $1.2 million for the second quarter of the prior year, a decrease of 26.7%.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")1 was $0.05 million compared to an Adjusted EBITDA loss of $0.09 million in the second quarter of the prior year.
"Quarter by quarter PSP continues to identify costs to remove from its operations resulting in lower expenses and improved gross margin", says CEO, Terry Vaudry. "During the second quarter significant emphasis was placed on product development and a new NIJ .06 Level IIIa best-in-class vest is expected to be introduced to the marketplace in early March. Timing of customer orders in Canada and a decline in orders from U.S. distributors continue to make it difficult to normalize revenue expectations. PSP's cost model is increasingly becoming more and more optimized to take advantage of any gains we make in building revenue".
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 anticipated impact of the steps being taken to align and size the Company's operations to current North American business opportunities and the introduction of new NIJ .06 Level IIIa product into the marketplace. 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.
1Adjusted 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).
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Chief Executive Officer
Pacific Safety Products Inc.