News

“Quarter by quarter PSP continues to identify costs to remove from its operations resulting in lower expenses and improved gross margin”, says CEO, Terry Vaudry. “During the second quarter significant emphasis was placed on product development and a new NIJ .06 Level IIIa best-in-class vest is expected to be introduced to the marketplace in early March. Timing of customer orders in Canada and a decline in orders from U.S. distributors continue to make it difficult to normalize revenue expectations. PSP’s cost model is increasingly becoming more and more optimized to take advantage of any gains we make in building revenue”.

ARNPRIOR, ONTARIO–(Marketwire – Oct. 18, 2012) – 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 months and year ended June 30, 2012.

Highlights:

The Company reported net income for the fourth quarter of $0.3 million compared to a net loss of $3.1 million during the fourth quarter of fiscal 2011. Net loss for the fiscal year was $1.0 million compared to a net loss of $4.4 million during the previous fiscal year.
Gross margin as a percentage of revenues for the year was 28.8%, which was a significant improvement over a gross margin of 22.0% in the prior year. The increase in gross margin is primarily related to cost reductions, operating efficiencies and the sale of the distribution business in May 2011.
Operating expenses of $4.9 million decreased by 1.5 million or 22.9% as compared to the previous year.
Generated $0.4 million of Adjusted Earnings before Interest, Taxes, Depreciation and Amortization(1) (“Adjusted EBITDA”) for the year ended June 30, 2012 compared to an Adjusted EBITDA loss of $0.8 million during the prior year.
Working capital improved from $2.9 million at June 30, 2011 to $3.1 million at June 30, 2012. The working capital ratio at June 30, 2012 is 1.89 compared to 1.73 at June 30, 2011 and the debt to tangible net worth ratio at June 30, 2012 was 1.46 compared to 1.87 at June 30, 2011
The Company recorded an impairment charge with respect to intangible assets in the second quarter of fiscal 2012 in the amount of $1.2 million.
Revenues for the year were $16.7 million, a decrease of 26.2% compared to the prior year’s revenues of $22.7 million.
On January 16, 2012, the Company was awarded a new contract by the Ontario Ministry of Community Safety and Correctional Services for the delivery and disposal of ballistic personal soft body armour systems (“Contract”). PSP was the incumbent bidder.
“PSP is beginning to take advantage of cost savings initiatives while continuing to invest in its products,” says Chief Executive Officer, Terry Vaudry. The Company has successfully realized a number achievements including setting a clear strategic direction of right sizing the company, building out our NIJ.06-certified body armour product portfolio, and re-engaging our clients.

For complete consolidated financial statements with notes and management discussion and analysis, refer to SEDAR (www.sedar.com).

(1) Adjusted EBITDA consists of net loss and excludes interest expense, income tax expense (recovery), depreciation and amortization. Adjusted EBITDA excludes stock based compensation, foreign exchange, and one-time charges and gains. PSP believes 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 prescribed by IFRS. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other entities. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net loss determined in accordance with IFRS.

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.

ARNPRIOR, ONTARIO — (Marketwire) — 10/12/12 — Pacific Safety Products Inc. (“PSP” or the “Company”) (TSX VENTURE:PSP) announced today that it intends to issue a total of 800,000 common shares in satisfaction of $40,000 of interest owing on the 10% convertible debentures of PSP (“Debentures”) indirectly held by Mr. Fraser Campbell and Mr. Terry Vaudry, at a price of $0.05 per share. An aggregate of $1,000,000 of principal amount of Debentures were originally issued by the Company on August 17, 2010, to investors including Messrs. Campbell and Vaudry. The Company satisfied interest owing on the Debentures held by other investors through the payment of $60,000 in cash.

In addition, PSP intends to issue to Mr. Vaudry, Mr. Dirk Schlimm and Mr. Ken Hight an aggregate of 900,000 common shares in satisfaction of an aggregate of $45,000 of accrued director’s fees for the period from January 1, 2012 to September 30, 2012, at a price of $0.05 per share.

PSP also intends to issue to Fraser Campbell, at a price of $0.05 per share: (i) 200,000 common shares in satisfaction of $10,000 of accrued director’s fees for the period from January 1, 2012 to June 30, 2012, and; (ii) 150,000 common shares in satisfaction of $7,500 of accrued compensation for acting as Interim Chief Executive Officer for the period of July 18, 2012 to September 20, 2012.

Messrs. Campbell, Schlimm and Hight are each directors of PSP, and Mr. Vaudry is a director and the chief executive officer of PSP. The Company determined to satisfy the indebtedness through the issuance of shares in order to preserve a total of $102,500 in cash to be used for operations and working capital purposes.

The share issuance is conditional upon acceptance by the TSX Venture Exchange, and the common shares will be subject to a four month hold period from the date of issuance.

ARNPRIOR, ONTARIO–(Marketwire – Sept. 20, 2012) – Pacific Safety Products Inc. (“PSP” or the “Company”) (TSX VENTURE:PSP), announced today that Terry Vaudry, a Director of the Company since September, 2010 and the Chair of the Audit Committee, has been appointed as the Chief Executive Officer of the Company effective October 1, 2012. Mr. Vaudry will replace Fraser Campbell who had filled the position on an interim basis since July 18th, 2012. Mr. Campbell remains the Interim Chairman of the Company.

“Terry has become increasingly involved in the operations of PSP over the past several months as the Company has completed its right-sizing, and has made an important contribution to the Company’s return to near term profitability,” said Fraser Campbell, Interim Chairman. “We are excited to have Terry take on an even greater leadership role as Chief Executive Officer of the Company.”

Terry Vaudry commented, “PSP remains a brand that represents quality and innovation. PSP has faced challenges in the past but its terrific reputation remains solidly intact and I look forward to leading a team of dedicated professionals.”

The Company also announced that Brad Field has resigned from the Board of Directors. The Company would like to thank Mr. Field for his contributions over the past months.

The Company has been taking the necessary steps to align and size its operations to current North American business opportunities and expects these efforts to improve the financial outlook of PSP. On May 22, 2012, PSP reported a profitable third quarter of its 2012 fiscal year. The Company also continues to consider and evaluate on an ongoing basis all alternatives available to it in the course of realizing its strategic direction.

ARNPRIOR, ONTARIO–(Marketwire – Sept. 4, 2012) – Pacific Safety Products Inc. (“PSP” or the “Company”) (TSX VENTURE:PSP), is pleased to announce the appointment of Barb Peacock as Chief Financial Officer of the Company. For the past seven months, Ms. Peacock has been Acting Chief Financial Officer for the National Aboriginal Health Organization. Ms. Peacock has four years of previous experience with PSP, when she was Corporate Controller from 2007 to 2011.

“We are pleased to welcome Ms. Peacock back to PSP; she has a strong understanding of our business and finance department” stated Fraser Campbell, Interim Chairman of the Board and Interim Chief Executive Officer of PSP. “PSP would also like to thank Ms. Sharon Johnston for the fantastic job she did during her tenure and wish her all the best in her future endeavors.”

PSP is also pleased to announce that it has received a new contract for supply and disposal of Soft Body Armour from the Department of Fisheries and Oceans. The product is the certified NIJ0101.06 Helix II for male and female armour and carriers. The term of the contract is for up to five years in total (three years plus two one-year options) for a total estimated value of $910,000 over the 5 years.

ARNPRIOR, ONTARIO–(Marketwire – July 18, 2012) – Pacific Safety Products Inc. (“PSP” or the “Company”) (TSX VENTURE:PSP), announced today that Mr. Fraser Campbell, the Interim Chairman of the Company, has been appointed as the Chief Executive Officer of the Company on an interim basis, following the resignation of Mr. Douglas Lucky.

The Company also announced that Mr. Brad Field has been appointed to the Board of Directors of the Company, and it is expected that Mr. Field will also assume the Chief Executive Officer position commencing October 1, 2012. The appointment marks the return of Mr. Field to the Company. Mr. Field founded PSP in 1984 and held the position of Chief Executive Officer for 22 years. Under his tenure, PSP was named one of Canada’s fastest growing companies for three years running from 1999 to 2001 and received an Okanagan Science and Technology Innovation award in 2005. Mr. Field was also a member of the Board of Directors of PSP until 2008. He is the former Director of Corporate Development for ArmorWorks Enterprises LLC with responsibilities in the US, Canada and UK assisting in defining the strategic direction of the business. Mr. Field is the recipient of three Entrepreneur of the Year awards, a Science and Technology Innovator of the Year award, the Queen’s Golden Jubilee Community Achievement award and a St. John Ambulance Lifesaving award. He also holds numerous patents pertaining to safety related products.

“We are thrilled to bring Brad Field back into the PSP family”, said Interim Chairman, Fraser Campbell. “Mr. Field’s depth of knowledge and relationships within the personal safety industry, as well as his familiarity and past experience leading the Company, are strong assets that will benefit the Company. The appointment of Mr. Field will catalyze the Company’s growth strategy and is an important milestone in the Board’s effort to position the Company for future profitability.”

“I look forward to becoming re-acquainted with the Company and its business and assisting in the development of a strong top line growth strategy based on solid industry knowledge and key industry relationships,” said Brad Field.

The Company has been taking the necessary steps to align and size its operations to current North American business opportunities and expects these efforts to improve the financial outlook of PSP. On May 22, 2012, PSP reported a profitable third quarter of its 2012 fiscal year. The Company also continues to consider and evaluate on an ongoing basis all alternatives available to it in the course of realizing its strategic direction.

Mr. Campbell added, “On behalf of the Board, I would like thank Douglas Lucky for his service and contribution to the Company as Chief Executive Officer and a member of the Board over the past two years.”

The Company also announced that Ms. Sharon Johnston, the Interim Chief Financial Officer of the Company, will be leaving her position in August, 2012. The Company will commence a search for a Chief Financial Officer to replace Ms. Johnston.

More News