Pacific Safety Products Inc. Reports Second Quarter of Fiscal 2014
27 February 2014 - 1:43AM
Marketwired
Pacific Safety Products Inc. Reports Second Quarter of Fiscal 2014
ARNPRIOR, ONTARIO--(Marketwired - Feb 26, 2014) - 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 ended December 31, 2013.
Highlights:
- Revenues for the second quarter were $3.0 million, an increase
of 6.3% compared to revenues of $2.8 million during the second
quarter of the prior year.
- Gross margin as a percentage of revenues for the second quarter
was 24.0% compared to 32.1% for the second quarter of the prior
year.
- Expenses for the second quarter were $1.1 million compared to
$0.9 million for the second quarter of the prior year.
- Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA")1 was a loss of $0.15 million
compared to Adjusted EBITDA of $0.05 million in the second quarter
of the prior year.
"PSP exited the second quarter with a loss largely due to
non-cash costs associated with the issuance of stock options in the
quarter and high one-time legal expenses related to ongoing lease
arbitration with the Company's landlord". At the half way point in
our fiscal year, PSP remains profitable with strong working capital
and we are continuing to execute our fiscal 2014 business plan.
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 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 including, without
limitation, with respect to the Company's business plan. The
forward-looking information contained herein is expressly qualified
in its entirety by this cautionary statement. Although the Company
believes that the expectations conveyed by the forward-looking
information are reasonable based on information currently available
to it, these statements are based on management's expectations,
estimates and projections and involve a number of risks,
uncertainties and assumptions, both known and unknown. As a result,
the results or events depicted in these forward-looking statements
may differ materially from actual results or events. Many factors
could cause results to differ materially from those stated
including, but not limited to the impact of price and product
competition, changes in general industry and market conditions,
inability to successfully plan and execute cost reduction and
business improvement strategies, ability to retain key staff,
restrictions and covenants contained in credit agreements,
fluctuations in currency, exchange and interest rates and commodity
prices, ability to retain existing customer contracts, reliance on
key customers, the uncertainty associated with the outcome of
research and development of new products, including regulatory
approval and market acceptance, as well as various other factors
which are discussed in the Company's filings with applicable
securities regulatory authorities at www.sedar.com. 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.
1 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.
For complete
condensed consolidated interim financial statements with notes and
management discussion and analysis, refer to SEDAR
(www.sedar.com).
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.
Pacific Safety Products Inc.Terry VaudryChief Executive
Officer(613) 623-6001www.pacsafety.com
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