Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

December 20, 2011 19:21 ET

Pacific Safety Products Inc. Reports First Quarter of Fiscal 2012

ARNPRIOR, ONTARIO--(Marketwire - Dec. 20, 2011) - Pacific Safety Products Inc. ("PSP" or the "Company") (TSX VENTURE:PSP), today reported financial results for the three month period ended September 30, 2011.

Highlights:

  • The Company is reporting under International Financial Reporting Standards ("IFRS") for the three month period ended September 30, 2011 including the restatement of comparative figures.

  • Sales for the first quarter were $3.5 million being approximately $0.8 million or 19.7% lower than first quarter of the prior year of $4.3 million which includes revenue from the Company's former distribution business.

  • The gross margin percentage for the first quarter was 24.3%, an improvement over the gross margin of 21.9% for the first quarter of the prior year. The increase in gross margin percentage, offset by lower sales, represented a decrease of $0.1 million in gross margin dollars or 10.7% compared to the prior year.

  • Operating expenses for the first quarter were $1.3 million, approximately 12.9% lower than first quarter of the prior year of $1.5 million.

  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")[1] was a loss of $0.4 million for the first quarter compared to a loss of $0.4 million in the first quarter of the prior year.

  • Working capital declined from $2.9 million at June 30, 2011 to $2.8 million at September 30, 2011. The working capital ratio at September 30, 2011 was 1.76 and improved compared to 1.69 at June 30, 2011, and the debt to tangible net worth ratio at September 30, 2011 was 1.68 and improved compared to 1.87 at June 30, 2011 and 25.9 at July 1, 2010.

"Our primary focus is adding value for our customers in conjunction with revenue stability and growth", says Chief Executive Officer, Doug Lucky, "and in order to further strengthen the Company, we continue to consider and evaluate on an ongoing basis, all alternatives available to us including seeking additional sources of financing, identifying and pursuing strategic partnerships, and other value enhancing opportunities."

About PSP:

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).

[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 EBITDA is a useful measure in the evaluation of performance. EBITDA is not a measure recognized under Generally Accepted Accounting Principles ("GAAP") and does not have a standardized meaning as prescribed by GAAP. Therefore, EBITDA may not be comparable to similar measures presented by other entities. Investors are cautioned that EBITDA should not be construed as an alternative to net loss determined in accordance with GAAP.

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.

Contact Information

  • Douglas Lucky
    Chief Executive Officer
    Pacific Safety Products Inc.
    (613) 623-6001
    www.pacsafety.com