Ballistic Recovery Systems (BRS) Releases Third Quarter 2005 Results
August 15 2005 - 5:26PM
PR Newswire (US)
SOUTH ST. PAUL, Minn., Aug. 15 /PRNewswire-FirstCall/ -- Ballistic
Recovery Systems, Inc. (OTC:BRSI) (BULLETIN BOARD: BRSI) (
http://brsparachutes.com/ ), a manufacturer of whole-airplane
parachute recovery systems for general aviation and recreational
aircraft, reported today a total of $2,112,091 in sales for the
third quarter of fiscal year 2005. This total represents an
increase of 20.3 percent over the $1,755,944 figure reported over
the same period in fiscal year 2004. On a year-to-date basis fiscal
year 2005 sales figures are at $6,093,862, which is 35.9 percent
higher than comparable fiscal 2004 figures of $4,482,833. Net
income for the third quarter was $41,769 versus $56,831 for the
previous third quarter's results. On a year-to-date basis -- net
income was $168,946 versus 2004 $60,183. Commenting on the results,
Larry E. Williams, Chief Executive Officer, said, "The general
aviation segment continues to show strength and produced
year-to-date sales of $6.1 million, approximately 36 percent higher
than 2004. Quarterly net income fell to 2 percent of total sales
from 3.2 percent in the previous quarter as we have boosted our
investment in the company through increased spending on research
and development, production equipment repairs, maintenance and
upgrades to meet the strong growth in sales. The operating margin
through the first nine months was 38.7 percent of total sales
compared with 32 percent for the same period last year due to
improvements in cost management and labor utilization. Lower
selling prices as a result of intense price competition in Europe
and higher legal, healthcare and employee costs all contributed to
the lower net income for the quarter. This trend is likely to
continue. The markets for both our general aviation and sport
products are improving and we have been investing aggressively in
research and development." On May 25, 2005, the Company filed an
amended 10KSB for the year ended September 30, 2004 in connection
with the restated valuation of certain warrants issued to Cirrus
Design Corporation that became exercisable during the year ended
September 30, 2004. The restatement was to decrease sales, gross
profit, income from operations and income before income taxes by
$369,831, decrease the income tax expense by $146,700 and decrease
net income by $223,131 for the year ended September 30, 2004. The
restatement increased total assets, deferred tax asset -- current
and shareholders' equity by $146,700 as of September 30, 2004. In
addition, the basic earnings per common share and diluted earnings
per common share decreased by $.03 and $.04 for the year ended
September 30, 2004, respectively. On August 12, 2005, the Company
filed amended 10QSB's for the first three quarters of fiscal year
2004 in connection with this revaluation. BRS is a South St. Paul,
Minnesota, based company that designs, manufactures and distributes
whole-plane emergency parachute systems for use on general aviation
and recreational aircraft. Since the early 1980s, BRS has delivered
more than 20,000 parachute systems to aircraft owners around the
world including over 2,000 systems on certified aircraft like the
Cirrus Design aircraft manufactured in Duluth, Minnesota. The
forward looking matters discussed here should be considered subject
to risks and uncertainties, including market fluctuations, pricing,
procurement, manufacturing efficiencies, the results of litigation
and other risks that could cause the actual results to differ
materially from those projected. For more information, review the
company's filings with the Securities and Exchange Commission,
particularly the Company's annual report on Form 10-KSB.
DATASOURCE: Ballistic Recovery Systems, Inc. CONTACT: Robb Leer,
+1-612-701-0608, or , for Ballistic Recovery Systems, Inc.; or
Larry E. Williams of Ballistic Recovery Systems, Inc.,
+1-651-457-7491, or Web site: http://brsparachutes.com/
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