Pacific Safety Products Reports Financial Results for the Third Quarter of Fiscal 2016

ARNPRIOR, ONTARIO--(Marketwired - May 30, 2016) - 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 and nine months ended March 31, 2016.

Highlights:

• Revenues for the third quarter were $5.2 million, an increase of 4.6% compared to revenues of $5.0 million during the third quarter of fiscal 2015.
  
  
• Revenues in GH Armor Systems, PSP's wholly owned US operation, increased 115% quarter over quarter and for the nine months ended March 31, 2016 were $7.0 million, representing an increase of $2.8 million or 66.7% compared to the same period in fiscal 2015.
  
  
• Revenues from Canadian customers for the three and nine months ended March 31, 2016 were $2.4 million and $7.6 million, respectively, representing a decrease from the same periods in fiscal 2015 of $1.3 million (35.1%) and $0.5 million (6.2%), respectively.
  
  
• The Company reported net income for the third quarter of $0.004 million compared to net income of $0.079 million during the third quarter of fiscal 2015.
  
  
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") was $0.165 million compared to Adjusted EBITDA of $0.252 million during the third quarter of the prior year.
  
  
• Gross margin as a percentage of revenues for the third quarter was 25.2%, compared to 27.4% for the third quarter of fiscal 2015.
  
  
• Expenses for the third quarter were $1.2 million, an increase of 5.1% compared to expenses of $1.1 during the third quarter of the prior year.
  
  

"PSP is continuing to focus its effort on growing revenue but not at the expense of profitability", says CEO Terry Vaudry. "Sales growth in our US business is beginning to take hold due to the introduction of new products and the addition of more sales representatives. In Canada we continue to win new contracts and expect significantly larger opportunities that we have bid on to be awarded soon. The Company has higher margin revenue that should offset some of the short term drag on gross margin in Q3."