Mr. Terry Vaudry reports

PACIFIC SAFETY REPORTS FISCAL 2015 FIRST QUARTER

Pacific Safety Products Inc. has released financial results for the three-month period ended Sept. 30, 2014.

Highlights:

• Adjusted earnings before interest, taxes, depreciation and amortization were $200,000 compared with adjusted EBITDA of $200,000 during the first quarter of the prior year.
• The company reported net income for the first quarter of $40,000 compared with a net income of $200,000 during the first quarter of the prior year.
• Revenues for the first quarter were $3.7-million, a decrease of 2.4 per cent compared with revenues of $3.8-million during the first quarter of fiscal 2014.
• Gross margin as a percentage of revenues for the first quarter was 28.7 per cent compared with 28.4 per cent for the first quarter of the prior year.
• Expenses for the first quarter were $900,000 unchanged compared with the first quarter of the prior year.
• Pacific Safety has a backlog of business now that exceeds $9.5-million.

"We are achieving our goal of delivering positive earnings in consecutive quarters while protecting the bottom line," said chief executive officer, Terry Vaudry. "Our backlog of business will assist the company in growing its topline sales results and expanding our gross margin. Our announced contract wins will begin to be capitalized in the third quarter and will drive results higher. We continue to work on new tenders, and we have identified significant opportunities for the company in calendar year 2015."

We seek Safe Harbor.