ARNPRIOR, ONTARIO--(Marketwire - Oct. 18, 2012) - 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 months and year ended June 30, 2012.
- The Company reported net income for the fourth quarter of $0.3 million compared to a net loss of $3.1 million during the fourth quarter of fiscal 2011. Net loss for the fiscal year was $1.0 million compared to a net loss of $4.4 million during the previous fiscal year.
- Gross margin as a percentage of revenues for the year was 28.8%, which was a significant improvement over a gross margin of 22.0% in the prior year. The increase in gross margin is primarily related to cost reductions, operating efficiencies and the sale of the distribution business in May 2011.
- Operating expenses of $4.9 million decreased by 1.5 million or 22.9% as compared to the previous year.
- Generated $0.4 million of Adjusted Earnings before Interest, Taxes, Depreciation and Amortization(1) ("Adjusted EBITDA") for the year ended June 30, 2012 compared to an Adjusted EBITDA loss of $0.8 million during the prior year.
- Working capital improved from $2.9 million at June 30, 2011 to $3.1 million at June 30, 2012. The working capital ratio at June 30, 2012 is 1.89 compared to 1.73 at June 30, 2011 and the debt to tangible net worth ratio at June 30, 2012 was 1.46 compared to 1.87 at June 30, 2011
- The Company recorded an impairment charge with respect to intangible assets in the second quarter of fiscal 2012 in the amount of $1.2 million.
- Revenues for the year were $16.7 million, a decrease of 26.2% compared to the prior year's revenues of $22.7 million.
- On January 16, 2012, the Company was awarded a new contract by the Ontario Ministry of Community Safety and Correctional Services for the delivery and disposal of ballistic personal soft body armour systems ("Contract"). PSP was the incumbent bidder.
"PSP is beginning to take advantage of cost savings initiatives while continuing to invest in its products," says Chief Executive Officer, Terry Vaudry. The Company has successfully realized a number achievements including setting a clear strategic direction of right sizing the company, building out our NIJ.06-certified body armour product portfolio, and re-engaging our clients.
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.
For complete consolidated financial statements with notes and management discussion and analysis, refer to SEDAR (www.sedar.com).
||Adjusted EBITDA consists of net loss and excludes interest expense, income tax expense (recovery), depreciation and amortization. Adjusted EBITDA excludes stock based compensation, foreign exchange, and one-time charges and gains. PSP believes 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 prescribed by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other entities. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net loss determined in accordance with IFRS.
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.