Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

September 04, 2007 06:00 ET

Pacific Safety Products Announces Fiscal 2007 Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") today announced financial results for its fiscal year 2007.

"Our fiscal 2007 results confirm the positive trend started in fiscal 2006. Expansion of our markets in Canada and the United States has propelled PSP to record revenues," states David Scott, CEO.



Four Year Comparative Results

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In millions 2007 2006 2005 2004
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Revenue $ 39.204 $ 32.187 $ 16.704 $ 12.561
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Net Profit before tax $ 2.414 $ 1.075 $ (2.941) $ (0.820)
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Net Profit after tax $ 1.059(i) $ 0.978 $ (2.556) $ (0.614)
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(i) FY07 is the first year the Company has had taxable income for the
entire year and as a result has recorded an income tax expense. The
Net Profit Before Tax has continued a positive trend.


"Results from the Canadian Operations were particularly strong and real progress was made in establishing a U.S. Business that is sustainable. The acquisition of Gator Hawk Armor assets in April 2007 brings additional sales opportunities for our U.S. Business that are expected to be realized in our current fiscal year 2008 and beyond," continued Scott.

"The Company also made good progress in developing product for future defence applications. Multiple bids were submitted for large scale programs in the international market. While results may not be known for some time the Company is pleased that its products and design capabilities are being recognized both in Canada and overseas."

PSP ended fiscal 2007 with sufficient cash flow to fund its normal course of operations and entered fiscal 2008 with no long term debt. Management continues to be focused at generating shareholder value by building a growing, robust, sustainable and profitable business in the Defence and Security market.

For complete consolidated financial statements with notes and management discussion and analysis please refer to PSP's annual report to shareholders. This report will be posted on SEDAR (www.sedar.com) and on our web site or one can be requested by contacting PSP using the methods listed at the end of this release. Summary consolidated financial results for the year ended June 30, 2007 and June 30, 2006, are as follows:



SUMMARY BALANCE SHEETS

AS AT JUNE 30, 2007 JUNE 30, 2006
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ASSETS
CURRENT ASSETS $ 12,701,112 $ 12,091,804
FUTURE INCOME TAXES RECOVERABLE - 267,767
PROPERTY, PLANT AND EQUIPMENT 3,253,980 3,115,031
OTHER ASSETS 503,832 233,817
INTANGIBLE ASSETS 2,343,950 311,644
GOODWILL 5,619,490 2,834,353
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TOTAL ASSETS $ 24,422,364 $ 18,854,416
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LIABILITIES
CURRENT LIABILITIES $ 6,887,063 $ 6,510,183
LONG-TERM DEBT 1,892,000 2,532,000
FUTURE INCOME TAXES PAYABLE 13,196 -
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TOTAL LIABILITIES 8,805,455 9,042,183
SHAREHOLDERS' EQUITY 15,630,104 9,812,233
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 24,435,559 $ 18,854,416
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SUMMARY STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED JUNE 30, 2007 JUNE 30, 2006
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SALES $ 39,563,526 $ 32,186,804
COST OF SALES 30,490,144 24,085,210
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GROSS MARGIN 9,073,382 8,101,594
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EXPENSES 6,658,546 6,233,644
RESTRUCTURING EXPENSES - 793,200
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INCOME BEFORE INCOME TAXES 2,414,836 1,074,750
INCOME TAXES 1,356,061 97,239
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NET INCOME 1,058,775 977,511
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EARNINGS PER SHARE
BASIC $ 0.053 $ 0.051
FULLY DILUTED $ 0.052 $ 0.051
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WEIGHTED AVERAGE COMMON SHARES ISSUED
AND OUTSTANDING 20,029,823 19,042,177
WEIGHTED AVERAGE FULLY DILUTED COMMON
SHARES ISSUED AND OUTSTANDING 20,438,711 19,198,586
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OVERVIEW OF THE BUSINESS

PSP is an established industry leader in the development production, distribution and sale of high performance and high quality protective 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, and protective products against ChemBio hazards. PSP is the largest armour manufacturer in Canada and supplies its products to the Canadian Department of National Defence, Federal government agencies and major law enforcement organizations across the country. The Company, through its subsidiary Sentry Armor Systems Inc., provides body armour products to U.S. based law enforcement and private security firms.

The Company provides quality protection solutions by effectively integrating the latest technologies to serve our customers' needs. Founded in 1984, PSP has grown to include more than 280 employees at our Canadian and U.S. facilities. These facilities are equipped with complete design, production and research capabilities.

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 Statements

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding the intent, belief or current expectations of the Company with respect to the acquisition of Gator Hawk. There are no assurances that the Acquisition will be accretive to the Company or that the business acquired will be successfully integrated into PSP's current business.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include: failure to successfully negotiate or subsequently close such transactions, inability to obtain required shareholder or regulatory approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of shareholder, regulatory and governmental approvals for Pacific Safety's proposed transactions, and the ability of management to successfully consummate the proposed transactions. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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