CHARLESTON, S.C., Dec. 17, 2003 (PRIMEZONE) -- Force Protection, Inc. (OTCBB:FRCP), in its quarterly report dated September 30th, 2003, indicated profitability for the third quarter. Revenues were up 129% to $2.78 million compared to the same period in the prior year, while operating expenses decreased by more than 300%. For the quarter, the company showed a net profit of $183,246 compared to a loss of $2.34 million in the same period in 2002.
Net sales for the three and nine months ended September 30, 2003 increased by approximately $1,500,000 and $1,900,000, respectively, compared to the three months and nine months ended September 30, 2002. Last year, the company acquired Technical Solutions Group (TSG). TSG began shipping production Buffalos under a U.S. Army contract in June of 2003. This resulted in more than 90% of the sales of that division.
Third quarter consolidated income was approximately $256,000 in 2003, compared to a loss of approximately $2,300,000 in 2002. The loss for the nine months in 2003 decreased approximately 10% to approximately $2,900,000 from approximately $3,200,000 in 2002. The improvement in operations is due to the sales increase in the TSG division and the downsizing of the boat operations.
Selling, general and administrative expenses decreased for the three months ended September 30, 2003 from the corresponding period in 2002 by approximately $2,100,000. Last year the company wrote-off non-performing and obsolete assets, settled with vendors related to the TSG purchase, and paid stock and cash for services incurred to finance the businesses and attract consultants to help with operations. For the nine months ended September 30, 2003, selling, general and administrative expenses were substantially the same in both years and reflected asset write downs, financing costs, outside professional services, and grants of stock to employees. CEO Mike Watts stated, "It's been a great quarter, and the annual numbers are shaping up as well. We believe the company is positioned for success, and it's very gratifying to see the financial results start to reflect the potential of the company. We hope that all interested parties will take a look at our quarterly report and read it very carefully."
The full text of the quarterly report is available at http://ir.forceprotectioninc.com by clicking on the button labeled "SEC Filings."
About Force Protection, Inc.
Force Protection, Inc. manufactures and distributes vehicles that protect and save lives and property. Its subsidiary, Technical Solutions Group, Inc., (TSG) manufactures and markets military vehicles that are protected against landmines and hostile fire. These vehicles are typically used to transport personnel safely in areas infested with landmines and for the actual removal of landmines. The vehicles are manufactured in Ladson, S.C., where TSG is based. For more information visit www.forceprotection.net.
Recently, Technical Solutions Group was highlighted on CNBC's Business Center. A video clip of the segment is available at: www.forceprotectioninc.com. Contact: Investor Relations, Force Protection, Inc., 714-903-0025, investorrelations@forceprotectioninc.com or visit www.forceprotectioninc.com.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to those, set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.