Ceramic Protection Corporation Second Quarter 2007 Financial Results



    Symbol: CEP
    Exchange: TSX

    CALGARY, Aug. 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 financial results for the second quarter ended June 30,
2007 are summarized below.

    
     ------------------------------------------------------------------------
                                    Three Month Period     Six Month Period
                                           Ended                 Ended
                                          June 30               June 30
    -------------------------------------------------------------------------
    (Thousands except                 2007       2006       2007       2006
     per share figures)                 $          $          $          $
    -------------------------------------------------------------------------
    Revenue                          27,028     19,698     35,659     35,251
    -------------------------------------------------------------------------
    Gross Margin                      5,532      9,787      6,130     17,276
    -------------------------------------------------------------------------
    Gross Margin %                      20%        50%        17%        49%
    -------------------------------------------------------------------------
    Net (Loss) Income                (2,482)     3,960     (6,146)     6,938
    -------------------------------------------------------------------------
    EBITDA(1)                        (2,115)     7,308     (6,717)    12,926
    -------------------------------------------------------------------------
    Adjusted EBITDA(2)                1,316      7,308     (3,286)    12,926
    -------------------------------------------------------------------------
    Basic (Loss) Earnings
     per Common Share                 (0.24)      0.41      (0.60)      0.72
    -------------------------------------------------------------------------
    Diluted (Loss) Earnings
     per Common Share                 (0.24)      0.40      (0.60)      0.70
    -------------------------------------------------------------------------
    EBITDA per
     Common Share(1)                  (0.21)      0.75      (0.59)      1.34
    -------------------------------------------------------------------------

    (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.

    (2) Adjusted EBITDA is EBITDA adjusted for what management considers to
        be nonrecurring charges.

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

    -------------------------------------------------------------------------
                  (Thousands)                       June 30,     December 31,
                                                       2007             2006
    -------------------------------------------------------------------------
    Total Assets                                    121,670          112,276
    -------------------------------------------------------------------------
    Long Term Debt, including
     current portion                                 21,905           24,471
    -------------------------------------------------------------------------
    Total Liabilities                                56,134           35,893
    -------------------------------------------------------------------------
    Shareholders Equity                              65,536           76,383
    -------------------------------------------------------------------------
    Shares Outstanding                               10,211           10,172
    -------------------------------------------------------------------------
    

    Ceramic Protection Corporation (the Corporation) achieved revenue of
$27.0 million, a net loss of $2.5 million, and basic and diluted loss per
share of $0.24 in the second quarter of 2007. This is a significant increase
in revenue and earnings when compared to the 1st Quarter 2007, but continues
to be a disappointment when compared to similar periods in 2006.
    The Corporation increased sales and margins over previous periods
primarily because of sales of Modular Tactical Vests (MTVs) to the US Marines.
The Corporation delivered 26,700 MTV vests in the 2nd Quarter 2007 from its
new 126,000 sq ft manufacturing facility in Sunrise, Florida. In addition, the
Corporation was informed that the US Marines intended to award to the
Corporation "Bridge Buys" which will allow the continuance of MTV shipments
well into the early part of 2008. During the quarter significant other
shipments of MTVs were also made to the US Navy.
    Contributing negatively to the current performance were the costs
relating to the Calgary plant closing and the transfer of production
capability to the US. During the quarter the Corporation also incurred
significant costs relating to litigation and the settlement of certain
litigation. These costs are not expected to continue into following periods.
Also contributing negatively were: the current costs relating to the
establishment of the US based corporate infrastructure, including management
additions, and, the costs relating to the low capacity utilization in our hard
armor manufacturing facility in Delaware. The Corporation has made significant
progress with its intended sale of the Calgary, Alberta manufacturing facility
and is currently negotiating sales terms with several potential purchasers for
the plantsite and land and with other interests for certain capital equipment
located at the plant.
    In April, 2007 the Corporation announced a Letter of Intent had been
executed for the Corporation to acquire Composix, Co., a manufacturer of
military component armor. The acquisition efforts continued throughout the 2nd
Quarter 2007. The transaction is contingent upon the Corporation obtaining
appropriate financing.

    Conference Call

    Ceramic Protection Corporation will host a teleconference to review the
Corporation's financial results and outlook on August, 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(followed by the number sign)

    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:           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. Steven G. Giordanella         Mr. Larry Moeller
    Chief Executive Officer           Chairman

    Sunrise, Florida
    August 14, 2007
    





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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