November 21, 2008 17:42 ET

BRS Announces Workforce Reductions

SOUTH ST. PAUL, MN--(Marketwire - November 21, 2008) - Ballistic Recovery Systems, Inc. (PINKSHEETS: BRSI) announced today that, in light of recent cutbacks from two of its major customers, a temporary layoff of employees has been required. An approximate 25% reduction in total workforce occurred today, primarily at the company's South St. Paul headquarters location. It believes this layoff may last several weeks to months depending on when its main customers see their own sales improve. "While we never enjoy doing this, the ups and downs of the marketplace, especially with this most recent and current economic downturn, require us to make difficult choices with regard to the labor component of our business," said BRS CEO and President, Larry Williams. "The General Aviation and sport aviation markets have taken a substantial nosedive recently (off 18% this year) with a potential further erosion of sales through at least the 1st half of 2009. While we, thankfully, have other non-aviation business to support ourselves during this period, our core business lines are taking a substantial hit and we need to react proactively to this reality," he added.

While BRS, as a whole, realized strong double-digit sales in the first month of its new fiscal year, it does not expect to sustain this rate in light of these developments with its key aviation customers; consequently, cutting expenses has become a priority. "We will make it through this downturn, of this I have no doubt, and realigning our workforce to this new environment is one component that is required," Williams summarized.

About Ballistic Recovery Systems and Advanced Tactical Fabrication

Based in South Saint Paul, Minnesota, BRS designs, manufactures, and distributes whole-aircraft emergency parachute systems for general aviation and recreational aircraft. ATF (or Advanced Tactical Fabrication), a wholly-owned subsidiary of BRS, designs and manufactures reflective and load-bearing safety vests, and is a leader in the safety apparel and "cut & sew" industry. Ballistic Recovery Systems is a publicly traded company (PINKSHEETS: BRSI). Since 1981, BRS has delivered more than 29,000 parachute systems to aircraft owners worldwide, including over 3,500 systems on FAA-certificated aircraft such as the Cirrus Design SR20 and SR22 manufactured in Duluth, Minnesota. To date, BRS parachute recovery systems have been credited with saving the lives of 221 pilots and passengers.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words such as "anticipates," "expects," "plans," "believes," "intends," and other similar words or phrases. These statements are only predictions, and are based on current information and expectations. Such statements involve a number of risks and uncertainties, including market fluctuations, pricing, procurement, manufacturing efficiencies, operating risks, and other risks that could cause the actual results to differ materially from those projected. For more information, review the company's filings with the Securities and Exchange Commission, particularly the Company's annual report on Form 10-KSB. All forward-looking statements are qualified in their entirety by this cautionary statement, and BRS undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

Contact Information

  • Ballistic Recovery Systems, Inc.
    Voice: 651-457-7491