KANATA, ONTARIO--(Marketwire - May 26, 2009) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") today announced its consolidated financial results for the three-month period ended March 31, 2009.
- The Company increased net income during the quarter by almost 40% as compared to the same period of the prior year.
- U.S. sales during the quarter more than doubled as compared the same period of the prior year.
- The Company generated almost $1.0 million of Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") during the quarter, an increase of 11% as compared to the same period of the prior year.
- Operational improvements have increased gross margins by more than 1% on a year to date basis as compared to the same period of the prior year.
- Selling, general and administrative expenses decreased by more than 25% during the quarter as compared to the same period of the prior year.
- The Company entered into a contract with the National Research Council Canada with a Contribution Agreement valued at up to $0.5 million to begin development of a next generation Integrated Helmet for soldier modernization.
Mr. David Scott, Chief Executive Officer commented, "I am extremely pleased with our progress to date. With three quarters of the year complete, sales are up more than 13% and gross margins are up more than 1% over last year. In addition operating expenses decreased by more than 25% during the quarter as compared to the comparable period last year. These results are a function of the operational improvements made over the last 12 months, specifically, the establishment of our manufacturing facility in Arnprior, the re-location of our head office to the Ottawa area, and the integration of the APS acquisition. The Company also generated net income of more than $0.4 million during the quarter, an increase of almost 40% as compared to the comparable period of the prior year. The Company continues to be well within its operating line and bank covenants. Cash flow continues to strengthen as the Company generated almost $1.0 million of EBITDA during the quarter. In addition to our positive financial results, we are excited about the market opportunity related to integrated soldier systems and to that end have secured up to $500,000 in financing through the National Research Council Canada with a Contribution Agreement to begin development of a next generation Integrated Helmet for soldier modernization."
For complete consolidated financial statements with notes and management discussion and analysis please refer to PSP's annual report to shareholders. This report is posted on SEDAR (www.sedar.com) and on our web site.
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, and protective products against chemical and biological hazards. PSP is the largest armour manufacturer in Canada, directly supplying the Canadian Department of Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company also provides specialized law enforcement and safety products through APS Distributors, a division of PSP that services law enforcement and public safety agencies across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products to U.S. based law enforcement and private security firms. The Company also produces tactical clothing and emergency medical kits. 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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.