ARNPRIOR, ONTARIO--(Marketwired - Feb. 29, 2016) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or the "Company"), a leading North American manufacturer of advanced armour and personal protection solutions, today reported financial results for the three month period ended December 31, 2015.
- Revenues for the second quarter were $4.4 million, an increase of 25.7% compared to revenues of $3.5 million during the second quarter of fiscal 2015. Revenue from our U.S. operations were $2.3 million, an increase of $1.0 million or 76.9% compared to the same period last year. Canadian revenues were $2.1 million, a decrease of $0.1 million or 4.5%.
- The Company reported net income for the second quarter of $0.004 million compared to a net loss of $0.09 million during the second quarter of the prior year.
- Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")(i) was $0.068 million compared to the EBITDA of $0.005 million during the second quarter of the prior year.
- Adjusted EBITDA(i) was a loss of $0.09 million compared to Adjusted EBITDA of $0.002 million during the second quarter of the prior year.
- Gross margin as a percentage of revenues for the second quarter was 21.3% compared to 27.5% for the second quarter of the prior year.
- Expenses for the second quarter were $1.1 million an increase of 7.1% compared to $1.0 during the second quarter of the prior year.
"PSP's refreshed products are beginning to gain traction, especially in the U.S. market. We attribute the gross margin decline to significant shipments of samples to clients and our sales team. In Canada, order timing was slightly slower than anticipated. In addition, the Company has spent considerable time and resources on larger tender projects that we believe will benefit the Company," says CEO, Terry Vaudry. "We remain committed to protecting and growing shareholder value as we move the business forward."
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 GH 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.
Neither 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.
(i) EBITDA and Adjusted EBITDA are not recognized performance measures under International Financial Reporting Standards ("IFRS") and do not have a standardized meaning prescribed by IFRS. The term EBITDA consists of net loss and excludes interest, income tax expense (recovery), depreciation and amortization. Adjusted EBITDA consists of net loss and excludes interest, income tax expense (recovery), depreciation and amortization, and also excludes share-based compensation, foreign exchange and one-time charges and gains. EBITDA and Adjusted EBITDA are included as a supplemental disclosure because management believes that such measurements provides a better assessment of the Company's operations on a continuing basis by eliminating certain non-cash charges and, in the case of Adjusted EBITDA, charges that are non-recurring. The most directly comparable measure to EBITDA and Adjusted EBITDA calculated in accordance with IFRS is net loss for the year.