SUNRISE, FL, Jan. 29 /PRNewswire-FirstCall/ -- Protective Products of America, Inc. (TSX:PPA), a leading manufacturer and distributor of advanced products in ballistics protection, today announced that it has completed the sale of substantially all of its Delaware assets for cash proceeds of $3.2 million. Following the sale, the Company used $3 million to further reduce its bank indebtedness. This sale is in addition to a prior sale of other Delaware assets in late 2008 for cash proceeds of $280,000.
Stephen Giordanella, Chief Executive Officer, said, "We are pleased to have completed the sale of substantially all of our Delaware assets so quickly. We used the cash proceeds to pay down debt, strengthen our balance sheet and improve liquidity. This is yet another step in the turnaround of the Company, and demonstrates management's ability to execute on its strategic vision for the future growth and profitability of the business."
Protective Products of America also announced the appointment of Charles Peters and Frank Jaumot to its Board of Directors effective January 1, 2009. Charles Peters is Executive Vice President and Chief Financial Officer of Red Hat, Inc., a NYSE-listed company, and Frank Jaumot is a Director at MasTec, Inc., also a NYSE-listed company.
Mr. Giordanella said, "It is an honor to have Charles Peters and Frank Jaumot join our Board. We will benefit tremendously from their public company experience and insight into financial matters, such as accounting, auditing and tax. Charles and Frank will be an asset to our Board as we continue to grow and expand our soft armor business."
Charles Peters has over 30 years of financial leadership including 20 years in publicly traded companies. Mr. Peters formerly held the position of Chief Financial Officer with multi-national Burlington Industries. Mr. Peters began his career with Price Waterhouse in 1973 in the audit division. Mr. Peters holds a Bachelor of Business Administration from the University of Massachusetts as well as a Masters of Science in Finance from Bentley College.
Frank E. Jaumot is a shareholder of Ahearn, Jasco + Company, which he joined in 1991, and is the firm's principal technical expert on accounting and auditing matters. Mr. Jaumot is a Certified Public Accountant in Florida and Ohio and is a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Mr. Jaumot holds a Bachelor of Science from Marquette University.
About Protective Products of America, Inc.
Protective Products of America, Inc. ("PPA"), formerly known as Ceramic Protection Corporation, is headquartered in Sunrise, Florida, with manufacturing facilities in Sunrise, Florida and Granite Falls, North Carolina. The Company, together with its subsidiaries, is engaged in the design, manufacture and marketing of advanced products used to provide ballistic protection for personnel and vehicles in the military and law enforcement markets. The Company's product portfolio includes concealable soft body armor products for law enforcement and the Modular Tactical Vest ("MTV"), a ballistic system for military personnel.
Management is of the opinion that the Company is an acknowledged industry leader in the design and manufacture of high performance and high quality products used for ballistic protection. Protective Products International Corp, a wholly owned subsidiary of PPA, is an ISO 9001:2000 certified manufacturer. Furthermore, PPA is one of a very few companies capable of providing customers with an integrated personnel armoring system of ceramic plates, soft ballistic material and vests for law enforcement and the military.
Safe Harbor Language
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 potential delays, appeals or changes related to government orders in the defense sector.
PPA depends on reliable supplies of high quality source materials used in the manufacture of armor products, including aramid fabrics and polyethylene materials, 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 PPA. 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 Company's December 31, 2007 Annual Report dated March 31, 2008, and the Company's Annual Information Form dated March 31, 2008. These documents are available on SEDAR (http://www.sedar.com/).
In light of certain sensitive aspects in regard to customers and products, PPA may choose not to disclose all information related to the purchasers of its products, such as government agencies, countries or other end-users. Products manufactured for export in the United States must first be approved for export by the appropriate U.S. government agencies. Other armor sales may be made to recognized domestic agencies such as the military and those involved in local, provincial, or national law enforcement and homeland security matters.
