WATKINS, Minn. and VANCOUVER, British Columbia, Dec. 1, 2004 (PRIMEZONE) -- International Barrier Technology Inc. ("Barrier") (OTCBB:IBTGF) (TSX Venture Exchange:IBH), a manufacturer of proprietary fire resistant building materials, reports financial results for the fiscal 2005 quarter ending September 30th, 2004.
Revenue in the fiscal first quarter was $1,400,619 (CDN), a 148% increase over the previous year's revenue of $565,088, and the highest first-quarter results in Barrier's corporate history. Operating income was $92,730 (CDN) compared to an operating loss of $72,228 in the prior year's quarter, resulting in the return to a profitable quarterly operation and a record quarterly operating income.
Financial highlights of Barrier's Q1 (FY2005) include:
-- Sales Volume of 1,206,300 sq. ft continued the aggressive pace
established since the beginning of this calendar year and marked
the third consecutive quarter exceeding one million sq.ft.
-- Barrier's gross profit and gross margin percentage on sales
increased significantly to $357,772 (CDN) versus $80,459 (CDN) for
the comparable quarter ended September 30, 2003. This reflects
new manufacturing volumes and efficiencies.
-- Total operating expenses decreased to 18.9% of revenue compared to
27% in the same quarter last year.
-- Barrier has a financially strong balance sheet as of Sept. 30/04
with a working capital surplus of $2,336,053 (CDN) (deficit of
$43,280 for the comparable period Sept. 30/03) and total assets
over $5,000,000 (CDN) including the world technology rights and
long term debt of only $740,178 (CDN).
-- Mulehide Products, Inc., Barrier's new business partner in the
commercial modular business, accounted for 32.5% of sales. Demand
and sales from existing territories continue to show strength and
growth.
-- With the recently completed acquisition of the Pyrotite technology
and additional financing, Barrier has committed to a production
line enhancement project being engineered by an experienced and
well respected US engineering and project development company.
This project is intended to double the company's production
capacity, significantly improve operating efficiencies, and serve
as a model facility to enable management to secure licensing
agreements with third parties globally.
"Barrier is well positioned to continue its aggressive growth this fiscal year," said Barrier's President Michael Huddy. "Our strong financial position, and improving efficiencies, coupled with increasing market penetration in all of our markets, has positioned us to capitalize on new opportunities. We are focused on increasing market share in our existing businesses, developing new products and markets, and developing relationships that will lead to technology licensing in the future."
To see full financial statements, please download the following document:
www.intlbarrier.com/pdf/Fiscal2005first.pdf
About International Barrier Technology Inc.
International Barrier Technology, Inc. develops, manufactures, and markets proprietary fire resistant building materials. Its patented, non-combustible, non-toxic Pyrotite formulation has an extraordinary capability: it releases water when exposed to the heat of fire. Barrier's award-winning Blazeguard wood panels exceed International Building Code requirements in every targeted fire test and application, and uniquely combine properties that increase panel strength and minimize environmental and human impact. Blazeguard customers include Centex (NYSE:CTX), D.R. Horton (NYSE:DHI), KB Home (NYSE:KBH), and Lennar (NYSE:LEN). Lowe's Companies (NYSE:LOW), Stock Building Supply, and Mule-Hide Products Co., Inc. are Blazeguard distributors. Pyrotite has potential applications with engineered wood products, paint, plastics, and expanded polystyrene
Barrier is part of the DJ Building Materials Index (US).
International Barrier Technology Inc. ------------------------- David J. Corcoran CFO, Director
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
For more information please visit: www.intlbarrier.com or www.investorideas.com Toll free 1.866.735.3519 Richard Angle ir@intlbarrier.com or Peter Kletas, ECON Investor Relations, Inc. pkletas@investorideas.com
Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including but not limited to the ability to generate and secure product sales. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.