Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

October 02, 2014 08:00 ET

Pacific Safety Products Reports Fourth Quarter Fiscal 2014 and Audited Year End Fiscal 2014 Financial Results

ARNPRIOR, ONTARIO--(Marketwired - Oct. 2, 2014) - 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 fourth quarter and audited year ended June 30, 2014.

Highlights:

  • Revenues for the fourth quarter were $3.9 million, an increase of $1.1 million or 39.1% as compared to the prior year
  • Gross margin as a percentage of revenues for the fourth quarter were 25.1%, which was an increase over gross margin of 20.1% during the fourth quarter of the prior year
  • The Company reported a net income for the fourth quarter of $0.1 million compared to net loss of $0.02 million during the fourth quarter of the prior year
  • Revenues for the year were $14.3 million, an increase of $2.6 million or 22.6% as compared to the prior year
  • Gross margin as a percentage of revenues for the year were 26.4%, which was an increase over gross margin of 24.8% during the prior year
  • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") was $0.4 million compared to an Adjusted EBITDA loss of $0.2 million during the prior year
  • The Company reported a net loss for the year of $0.1 million compared to net loss of $0.7 million during the prior year
  • Expenses were $3.7 million, an increase of $0.4 million or 12.3% as compared to the prior year
  • Amalgamation of all sub-co's was completed at year end creating a very clean and simplified organizational structure

"PSP achieved positive EBITDA in the year while we continued to invest heavily in our products and operations. After taking into account high legal fees due to our ongoing lease arbitration, annualized cost savings made late in fiscal 2014 and high product development costs normalized EBITDA would have been approximately $ 990,000.00. Beginning in 2013 we began to see a more robust sales cycle and while we are pleased with the gains we have made in generating revenue we believe fiscal and calendar year 2015 will offer the company additional opportunities to grow revenue while protecting our balance sheet", commented Terry Vaudry, CEO.

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, including when the Company expects to commence delivery under the above noted contracts, 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.

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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.

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