Nov. 6, 2009 (PR Newswire) -- SUNRISE, FL, Nov. 6 /PRNewswire-FirstCall/ - Protective Products of America, Inc. (PPA:TSX), a leading manufacturer and distributor of advanced products in ballistics protection, today announced financial results for its third quarter and nine months ended September 30, 2009.
Third Quarter and Recent Highlights
- Reported total sales of $6.2 million and gross margin of 18.8%;
- Reduced total SG&A expenses by approximately 50% year-over-year to
$2.6 million;
- Net loss from continuing operations of $2.4 million or a loss of
$0.18 per share;
- Backlog of $3.3 million at September 30, 2009;
- Participation in the United States Marine Corps' Improved Modular
Tactical Vests (IMTV)/Plate Carrier Program as the exclusive
ballistics provider to HUBZone-certified companies Carter Enterprises
and Ibiley Manufacturing Corp.;
- Master contract and initial delivery orders in place with both
prime contractors;
- Production and revenues to begin in early 2010;
R. Patrick Caldwell, Chief Executive Officer of PPA, stated, "We are pleased with our participation in the United States Marine Corps program, which we believe substantiates the progress we are making in building on existing relationships while casting a wider net around new government business opportunities. We estimate that PPA will realize revenue of approximately 50 to 60% of initial delivery orders awarded to our partners, Carter and Ibiley, over the next 12 to 24 months.
"This type of program business is supplemental to our domestic and government agency business, and our international business - the core of our three-pronged business model and growth strategy, and the foundation of our Company. Our recent, successful execution of this business model, coupled with the cost control measures we have put in place, are helping us through a difficult period. We have rightsized the company for greater efficiency, while maintaining our highest quality standards and preparing for a better balance of high-quality business.
"We believe that the results of our increased domestic focus and more concentrated sales efforts are reflected in improved domestic bookings to date. We have generated strong growth in sales to federal agencies and recently received a new four-year contract and a twelve-month extension of another multi-year federal agency contract. Our highly competitive ballistics protection systems are generating substantial interest from the security and law enforcement sectors as we close out 2009 and plan for 2010. Recent activity suggests that budget spending is beginning to be freed up and funds are being appropriated more consistently. We are increasingly optimistic by what we see from the domestic and government agency markets, and believe that the Company is well positioned for growth as we move forward," Mr. Caldwell noted.
Third Quarter 2009 Financial Results
Total sales for the quarter ended September 30, 2009 were $6.2 million, compared with $16.6 million for the quarter ended September 30, 2008. Gross margin was 18.8% for the third quarter of 2009, compared with 22.3% for the third quarter of 2008.
Total SG&A expenses were $2.6 million for the third quarter of 2009, compared with $5.2 million for the third quarter of 2008. SG&A expenses for the third quarter of 2009 include one-time non-cash costs of approximately $0.4 million associated with the accelerated amortization of certain share-based compensation.
For the quarter ended September 30, 2009, net loss from continuing operations was $2.4 million, or a loss of $0.18 per share. This compares with net loss from continuing operations of $30.5 million, or a loss of $2.21 per share for the quarter ended September 30, 2008. Net loss from continuing operations for the three months ended September 30, 2008 included a $28.3 million impairment charge against goodwill and intangible assets.
Adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations was a loss of $1.1 million for third quarter 2009, compared with an Adjusted EBITDA loss from continuing operations of $0.7 million for third quarter 2008. Adjusted EBITDA is EBITDA before non-recurring and certain non-cash charges. Management believes that this non-GAAP measure provides a better assessment of the Corporation's operations on a continuous basis by eliminating certain non-cash charges and charges that are non-recurring. Adjusted EBITDA does not have a standardized meaning prescribed by GAAP and is unlikely to be comparable to similar measures presented by other entities.
Financial Position
As of September 30, 2009, Protective Products of America had total assets of $26.6 million, total consolidated debt of $18.2 million, and shareholders' deficiency of $2.4 million.
Conference Call
A conference call to discuss third quarter financial results will be held at 9:00 a.m. Eastern time on Friday, November 6, 2009. Investors and analysts interested in participating in the call are invited to dial-in using the following numbers:
Canada or international dial-in number: 1-480-629-9715
US toll free dial-in number: 1-877-941-2322
Participants will be able to dial in and listen to a replay of the conference 60 minutes after the meeting end time. An audio replay of the conference call will be available through November 20, 2009. To access the replay, dial 1-800-406-7325 from the US, or dial 1-303-590-3030 from Canada or internationally, and enter the conference reference number 4175276 followed by the number sign.
About Protective Products of America, Inc.
Protective Products of America, Inc.
