CEP.V Ceramic Protection Corporation - Record Fourth Quarter Results
The fourth quarter ended October 31, 2003 was the most profitable quarter in the history of the Corporation. Armour sales of $3,362,000 were realized in the fourth quarter, a 195% increase over the comparable period in 2002. Total revenue was $17,011,000 for the year ended October 31, 2003. This compares favourably with the $4,780,000 recorded in the prior year, a 256% increase.
Sales of bonded and bare ceramic plates accounted for the majority of the armour product sales and new orders were received from customers in the USA, Australia, South America and Israel. The Corporation continues to actively pursue other significant personnel armour orders, including the Ceramic Armour on Patrol (CAP) system for police applications. The Corporation's vehicular armour development program for potential police vehicle applications was strengthened during the fourth quarter when the National Research Council agreed to further assist the research and development funding through IRAP.
Sales of polyethylene personnel body armour purchased from a supplier and distributed within the USA remained strong, accounting for 22% of total armour sales in the fourth quarter.
Sales of wear management products were $199,000 in the quarter, down from the $416,000 recorded in the fourth quarter of 2002. The Corporation continued the development of a ceramic-lined choke valve designed for steam assisted gravity drainage (SAGD) heavy oil production.
Financial Review
Revenues for the three months ended October 31, 2003 were $3,561,000, an increase of 129% over the same period of the prior year. Gross profit for the period was $1,506,000 as compared to $353,000 reported in the same period in 2002, an increase of 327%. The Corporation's general and administrative, interest and depreciation expenses were $448,000 during the three months ended October 31, 2003 as compared to $432,000 during the same period of the prior year. Net income was $981,000 as compared to a loss of $62,000 for the fourth quarter ended October 31, 2002. The significant increase in net income was a result of much stronger armour sales and increased margins. A foreign currency exchange loss of $85,000 was recorded in the fourth quarter. Net income per share for the three months ended October 31, 2003 was $0.14 versus a loss of $0.01 in 2002. Net income for the twelve month period ended October 31, 2003 was $0.38 per share compared to a loss of $0.03 per share in the prior year.
Outlook
The Corporation has experienced strong demand for its products during the past year. The international marketplace continues to require the products offered by the Corporation and it is expected that, at a minimum, demand and sales will remain strong for the near term. The Corporation is also anticipating growth in the longer term through sales in the vehicular armour segment of the marketplace.
Business Environment and Risks
The Corporation continues to maintain a base of customers while competing for contracts in a competitive technical marketplace. Marketing efforts to increase the Corporation's visibility and sales include the use of internal sales personnel and external agents as well as offering training courses in ballistic protection technology. The Corporation is responding to market demand for improved materials and alliance partners are used to bring products to market quickly with minimal capital investment from CPC. Much of the Corporation's revenue is derived from international contracts which are bid in US currency. The Corporation must react quickly to market demands by constantly adjusting production levels to meet supply requirements. World economic, military and political factors affect the number and size of contracts available for bid.
Business of the Company
Ceramic Protection Corporation of Calgary, Alberta, Canada is an ISO 9002 certified manufacturer and distributor, providing products for the industrial wear management and ballistic protection marketplace in both personnel and vehicular armour systems. Since its inception, the Corporation has become a leading supplier of products for ballistic protection in the vehicular and personnel armour sectors. The Corporation's wear-resistant materials are used in mining, oil and gas production, oil sands processing and other industrial applications throughout North America.
Ceramic Protection Corporation of Calgary, Alberta is listed on the TSX Venture Exchange as "CEP".
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For further information
Dr. Ron Wallace, Chief Executive Officer, Tel: (403) 250-1007, Mr. Larry Moeller, Chairman, Board of Directors, Tel: (403) 221-8155
Source: Ceramic Protection Corporation |
