ARNPRIOR, ONTARIO--(Marketwired - Sept. 28, 2016) - 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 and year ended June 30, 2016.
Fiscal Year 2016
- Revenues for the year were $20.1 million, an increase of $2.4 million or 13.7% as compared to the prior year.
- Gross margin as a percentage of revenues for the year was 24.6%, which was a decrease over gross margin of 28.9% during the prior year, largely due to the one time effects of a settlement with the Company's landlord in fiscal 2015.
- The Company reported net income for the year of $2.1 million compared to net income of $1.1 million during the prior year, including of a write up of tax losses of $ 1.6 million.
- Expenses were $4.4 million, an increase of $0.7 million or 18.5% as compared to the prior year, largely due to PSP expensing $200,000 in financial advisory, legal and other fees and expenses incurred to date in connection with an ongoing strategic review process and a reduction in expenses in 2015 due to the one time landlord settlement.
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") was $0.7 million compared to Adjusted EBITDA of $1.5 million during the prior year, largely due to the one time landlord settlement. Adjusted EBITDA would have been $0.9 million had PSP not expensed the strategic review fees.
- Working Capital increased $0.6 million or 17.5% to $4.0 million compared to $3.4 million in the prior year.
- Revenues for the fourth quarter were $5.6 million, an increase of $0.1 million or 1.8% as compared to the fourth quarter of the prior year.
- Gross margin as a percentage of revenues for the fourth quarter was 27.0%, which was a decrease over gross margin of 31.5% during the fourth quarter of the prior year.
- The Company reported net income for the fourth quarter of $1.8 million compared to net income of $1.0 million during the fourth quarter of the prior year.
- Adjusted EBITDA for the fourth quarter was $0.4 million compared to Adjusted EBITDA of $1.1 million during fourth quarter of 2015 largely due to the one time landlord settlement
"Fiscal 2016 was a solid year for PSP. We continue to see excellent growth from our US operations and, with manufacturing set to begin and with an expected shortened delivery schedule of 10-12 months for the delivery of the initial order of $ 11.2 million firm quantity on our Canadian military contract, we expect fiscal 2017 to be an outstanding year," remarked CEO Terry Vaudry.
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.
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 and, in some cases, can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms. The forward-looking events and circumstances discussed in this news release, may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. 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.
Note on Adjusted EBITDA: Adjusted 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.
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