Pacific Safety Products Inc. Reports Third Quarter Results of Fiscal 2014

Pacific Safety Products Inc. Reports Third Quarter Results of Fiscal 2014
  
 

ARNPRIOR, ONTARIO--(Marketwired - May 13, 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 three month period ended March 31, 2014.

Highlights:

• Revenues for the third quarter were $3.7 million, an increase of 9.1% compared to revenues of $3.4 million during the second quarter of the prior year.
• Gross margin as a percentage of revenues for the second quarter was 28.0% compared to 26.4% for the second quarter of the prior year.
• Expenses for the second quarter were $0.9 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 $0.21 million compared to an Adjusted EBITDA of $0.03 million in the second quarter of the prior year.

"I am pleased with the revenue growth and Adjusted EBITDA results we have delivered in our third quarter. Our focus on cost control, while strategically investing in product development, is allowing PSP to remain leveraged for growth while limiting downside risk," remarked Chief Executive Officer, Terry Vaudry. "Recent contract wins reaffirm our belief that calendar year 2014 will present healthy opportunities and that we have created a business model capable of serving the needs of our shareholders, clients and staff."

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 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 the future opportunities and performance of the Company, 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.

[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