Ceramic Protection Corporation Announces Financial Results for the Third Quarter 2007



    Symbol:   CEP
    Exchange: TSX

    SUNRISE, FL, Nov. 14 /CNW/ - 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 www.sedar.com or on the Corporation's
website at www.cerpro.com.

    Unaudited Financial Results
    ---------------------------
    The unaudited results from operations for the three and nine month
periods ended September 30, 2007 are summarized below.

    
    -------------------------------------------------------------------------
                                  Three Month Period      Nine Month Period
                                  Ended September 30,     Ended September 30,
    -------------------------------------------------------------------------
    (In thousands, except           2007        2006        2007        2006
     per share figures)
    -------------------------------------------------------------------------
    Revenue                      $30,978     $24,886     $66,637     $60,137
    -------------------------------------------------------------------------
    Gross Margin                   8,123      10,896      14,253      28,172
    -------------------------------------------------------------------------
    Gross Margin Percentage          26%         44%         21%         47%
    -------------------------------------------------------------------------
    Net (Earnings (Loss)              55       3,411      (6,090)     10,349
    -------------------------------------------------------------------------
    EBITDA(1)                      1,616       7,082      (5,101)     20,007
    -------------------------------------------------------------------------
    Adjusted EBITDA(2)             1,443       7,082      (1,843)     20,007
    -------------------------------------------------------------------------
    Basic Earnings (Loss) per
     Common Share                  $0.01       $0.34      ($0.60)      $1.05
    -------------------------------------------------------------------------
    Diluted Earnings (Loss) per
     Common Share                  $0.01       $0.33      ($0.60)      $1.03
    -------------------------------------------------------------------------
    EBITDA per Common Share(1)     $0.16       $0.70      ($0.50)      $2.03
    -------------------------------------------------------------------------

    (1) Earnings 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.
        EBITDA does not have a standardized meaning prescribed by GAAP and is
        unlikely to be comparable to similar measures presented by other
        entities.
    (2) Adjusted EBITDA is EBITDA before charges that management considers
        nonrecurring.

    The unaudited consolidated balance sheet as at September 30, 2007 with
comparative figures as at year end, December 31, 2006, are summarized below:

    -------------------------------------------------------------------------
                                                   September 30, December 31,
    (In thousands)                                         2007         2006
    -------------------------------------------------------------------------
    Total Assets                                        $111,667    $112,276
    -------------------------------------------------------------------------
    Total Debt                                            33,358      24,471
    -------------------------------------------------------------------------
    Total Liabilities                                     49,858      35,893
    -------------------------------------------------------------------------
    Shareholders' Equity                                 $61,809     $76,383
    -------------------------------------------------------------------------
    Common Shares Outstanding                             10,226      10,172
    -------------------------------------------------------------------------
    

    Ceramic Protection Corporation today reported revenue of approximately
$31.0 million, an increase of 24% from the $24.9 million achieved during the
comparable period of 2006. The Corporation reported net earnings of
approximately $0.1 million, or $0.01 per diluted share as compared to net
earnings of $3.4 million, or $0.33 per diluted share in the comparable period
in 2006,
    Additionally, the Corporation continued to improve upon its gross margin,
increasing to 26% for the three months ended September 30, 2007 principally
through the sale of Modular Tactical Vests ("MTV") to the United States Marine
Corps ("USMC"); delivering in excess of 32,000 carriers and 16,000 ballistic
inserts from its Sunrise, Florida manufacturing facility. However, margins
continued to be negatively impacted by the low production volumes of ceramic
plates at its Newark, Delaware facility and finalization of the closure of its
Calgary, Alberta facility.
    On October 1, 2007, the Corporation announced that it received a
substantial amount of orders in excess of US $75.0 million during the latter
portion of September 2007. Inclusive in the orders, the USMC awarded a
contract of approximately US $30.0 million for additional MTV and related
parts and the US Navy placed multiple orders totaling in excess of US
$25.0 million ESAPI ceramic plates.
    On October 29, 2007, the Corporation entered into a Sale of Asset
Agreement with a purchaser concerning its Calgary facility. The transaction is
anticipated to close in mid-December 2007. Future period performance is
expected to benefit from significantly decreased costs in Calgary and the
increased production volumes of ceramic plate systems in Delaware.

    Conference Call

    Ceramic Protection Corporation will host a conference call to review the
Corporation's financial results and outlook on November 15, 2007. The call is
scheduled to commence at 12:00 PM EST.
    To participate in the conference call, please use the following
instructions:

    
    Dial-in number:    (888) 458-1598
    Pass code:         33398 followed by the number sign
    

    The conference call will be recorded and available for replay, for a
10 day period, approximately 30 minutes after the conclusion of the call. To
listen to the replay, please use the following instructions:

    
    Dial-in replay:    (877) 653-0545
    Reference number:  509400 followed by the number sign
    

    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 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 www.sedar.com and on the Corporation's
website at www.cerpro.com.

    Mr. Stephen G. Giordanella
    Chief Executive Officer

    Mr. Larry Moeller
    Chairman

    Sunrise, Florida
    November 14, 2007

    %SEDAR: 00001737E




For further information:

For further information: Grimie Villarreal at (954) 846-8222, email:
grimiev@body-armor.com

Organization Profile

CERAMIC PROTECTION CORPORATION

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