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Protective Products of America, Inc. (PPA) recently announced financial results for the fourth quarter and full year ended December 31, 2008. Results of operations from its Delaware-based ceramic manufacturing business were accounted for as discontinued operations for the periods referenced herein.
Highlights include a sales increase of 16% to $85.4 million for 2008; an increase in gross profit of 17% for 2008; streamlined operations to enhance strategic focus on core soft armor business; decreased total indebtedness by 24% to $18.9 million at December 31, 2008; enhanced board of directors and leadership team; recent sale of Delaware assets for cash proceeds of $3.2 million, with the cash used to repay debt; and a decrease in operating expense, including workforce reductions.
“During 2008, we achieved growth in sales revenue and gross profit despite a more challenging environment,” said Brian L. Stafford, acting chief executive officer. “In order to streamline operations and focus on our highest return opportunities, we recently sold our ceramic manufacturing business and paid down debt with proceeds from the sale. Additionally, we expect that the downsizing of our workforce will result in improved utilization and a more conservative cost structure for our operations.
“These actions have facilitated a strategic emphasis on the strongest areas of future growth and cash flow potential: our core soft armor products, carriers for ballistic armor, other law enforcement business and military personnel protection systems. Our international sales initiatives are progressing well, and we are confident in the opportunities that we see in the pipeline for 2009.”
For the year ended December 31, 2008, the net loss from continuing operations was $31.1 million, or $2.37 per share based on 13.1 million weighted average common shares outstanding, and included a non-cash charge for impairment of goodwill and intangible assets of $28.3 million. This compares with a net loss from continuing operations of $1.4 million, or $0.14 per share based on 10.2 million weighted average common shares outstanding, for the year ended December 31, 2007.
Sales for the quarter ended December 31, 2008, increased 7% to $20.1 million, compared with $18.8 million for the quarter ended December 31, 2007. Gross margin increased to 27.1% for fourth quarter 2008, compared with 15.3% for fourth quarter 2007.
The net loss from continuing operations for the fourth quarter of 2008 was $1.7 million, or $0.13 per share based on 13.8 million weighted average common shares outstanding. This compares with a net loss from continuing operations of $3.5 million, or $0.34 per share for fourth quarter 2007 based on 10.2 million weighted average common shares outstanding.
Additional details are available at www.protectiveproductsofamerica.com.