SUNRISE, Fla., May 14 /PRNewswire-FirstCall/ -- The common shares of Ceramic Protection Corporation (the "Corporation") are traded on the Toronto Stock Exchange under the symbol "CEP". Additional information such as Annual and Quarterly Reports, Press Releases, and Annual Information Forms as issued by the Corporation, are presented in electronic form on SEDAR at http://www.sedar.com/ or on the Corporation's website at http://www.cerpro.com/.
Unaudited Financial Results
The unaudited financial results for the first quarter ended March 31, 2007 are summarized below.
Three month Three month
period ended period ended
March 31, March 31,
(Thousands except 2007 2006
per share figures) $ $
Revenue 8,631 15,552
Gross Margin 598 7,489
Gross Margin % 7 % 48 %
Net (Loss)/Income (3,664) 2,978
EBITDA (1) (4,604) 5,617
Basic (Loss)/Earnings
per Common Share (0.36) 0.31
Diluted (Loss)/Earnings
per Common Share (0.36) 0.31
EBITDA per Common Share (1) (0.45) 0.58
(1) EBITDA represents net (loss)/income before interest, taxes,
depreciation and amortization. EBITDA is a supplemental non-GAAP
financial measure used by management, as well as industry analysts, to
evaluate operations. Not all companies calculate EBITDA in the same
manner and EBITDA does not have a standardized meaning prescribed by
GAAP. Accordingly, EBITDA, as the term is used herein, is unlikely to
be comparable to EBITDA as reported by other entities.
The unaudited consolidated balance sheet as at March 31, 2007 with comparative figures as at year end, December 31, 2006, are summarized below:
March 31, December 31,
(Thousands) 2007 2006
Total Assets 119,296 112,276
Long Term Debt, including current portion 21,905 24,471
Total Liabilities 46,675 35,893
Shareholders Equity 72,621 76,383
Shares Outstanding 10,211 10,172
Ceramic Protection Corporation (the "Corporation") today reported 2007 first quarter revenues of $8.6 million, a 45% decrease over first quarter 2006 revenues of $15.6 million. The Corporation reported a net loss of $3.7 million or $0.36 per diluted share, versus a profit of $3.0 million or $0.31 per diluted share in the first quarter of 2006.
The decrease in revenues in the first quarter was primarily attributed to lower demand for boron carbide ceramic plates, which was offset by sales of soft armour products. For the first quarter 2007, armour related revenues were $8.4 million, of which hard armour products were $2.4 million and soft armour products, which were a result of the acquisition of Protective Products International Corporation in May 2006, were $6.0 million. In the first quarter of 2006, armour related revenues were $14.7 million, all of which were hard armour products.
The margins in the first quarter 2007 were 7% as compared to 48% in the first quarter 2006. This reduction was attributed to lower production volumes in the current quarter.
After a considered review of the expected financial performance at the Corporation's Calgary, Alberta, Canada manufacturing plant, which took into consideration factors such as international competition and pricing in certain alumina ceramic products, the Corporation has chosen to restructure and consolidate its ceramic manufacturing capabilities, including the Ford police door panels, to Newark, Delaware. The Calgary closure should be completed by the third quarter 2007 and will allow the Corporation to discontinue the wear management product line in order to focus on the ballistic protection marketplace.
"We were disappointed with the financial results in the first quarter 2007, however, this was to be expected as a result of the minimal deliveries of ballistic ceramic plates and the delay in the original anticipated delivery schedule for the US Marines Modular Tactical Vests (MTV)," said Steve Giordanella, Chief Executive Officer. "However, initial shipments of the MTV commenced in March 2007 and we look forward to increased levels of shipments of this product."
Conference Call
Ceramic Protection Corporation will host a teleconference to review the Corporation's financial results and outlook on May 15, 2007. The call will begin at 4:00 pm EST
To participate in the teleconference follow the instructions below:
Phone: 1-888-458-1598
Participant pass code: 33398#
The conference call will be recorded and available for playback approximately 30 minutes after the end of the meeting for a period of 10 days. To listen to the playback follow the instructions below:
Phone: 1-877-653-0545
Reference number: 459830#
Forward Looking Statements
This release may contain forward looking statements including expectations of future sales, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties that could cause actual results to differ from those anticipated. These risks include, but are not limited to, uncertainties associated with the defense industry, commodity prices, exchange rate fluctuations and risks resulting from the potential delays or changes related to government orders in the defense sector. The Corporation depends on reliable supplies of high quality source materials used in the manufacturing of armour products, including aramid fabrics and polyethylene plates, and works actively with key suppliers to ensure that requirements and demands for these materials are anticipated and properly met.
The foregoing is not exhaustive and other risks are detailed from time to time in other disclosure filings of the Corporation. Should one or more of these risks or uncertainties materialize, or should stated assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. The reader is also referred to other uncertainties and risks discussed in detail in the MD&A section of the Corporation's December 31, 2006 Annual Report dated March 20, 2007, and also the Corporation's Annual Information Form.
In light of certain sensitive aspects in regard to customers and products, the Corporation may choose not to disclose all information related to the purchasers of its products, such as government agencies, countries or other end-users. Export sales of armour products manufactured in Canada must first be approved by the Canadian Department of Foreign Affairs and International Trade. Other armour sales may be made to recognized domestic agencies such as the military and those involved in local, provincial or national law enforcement.
Business of the Corporation
Ceramic Protection Corporation, with offices in Calgary, Alberta, Canada, and in Newark, Delaware and Sunrise, Florida, USA, is a manufacturer and distributor of advanced materials for use in the ballistic protection marketplace. The Corporation manufactures a wide range of products for the law enforcement and military markets.
A more comprehensive discussion regarding the Corporation's markets for ballistic and wear management products is contained in the Corporation's Annual Report and in marketing materials distributed by the Corporation. These informative materials are available by request from the Corporation. Similar information is also posted on SEDAR at http://www.sedar.com/ and on the Corporation's website at http://www.cerpro.com/.
Mr. Steven G. Giordanella Mr. Larry Moeller
Chief Executive Officer Chairman
Calgary, Alberta, Canada
May 14, 2007
