Announces Appointment of Two New Independent Board Members
SUNRISE, FL, Jan. 29 /CNW/ - 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
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
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 (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
For further information:
For further information: Ms. Grimie Del Valle, Company Contact,
Protective Products of America, Inc., (954) 846-8222,
email@example.com; Ms. Shelley Young, Vice President, The Piacente
Group, Inc., Investor Relations, (212) 481-2050, firstname.lastname@example.org