First Quarter Financial Results

An International Barrier Technology product story

Edited by the Buildingtalk editorial team Dec 4, 2003

International Barrier Technology Reports First Quarter Financial Results

International Barrier Technology, a provider of environmentally friendly fire resistant building materials, has released unaudited financial results for its fiscal first quarter ending September 30, 2003.

Sales of CDN $565,088 were equivalent to sales in the same period last year.

Volume of product shipped was 10% lower.

Gross profit was down by $46,218, with the gross margin declining to 14.2% from 22.3%.

The decline in the gross margin occurred largely due to unprecedented high prices for OSB and plywood.

Barrier passes on this cost increase in its pricing, but the gross profit per sheet stays relatively consistent and effectively resulted in a smaller gross margin.

The company realized a $136,321 net loss, or $.01 per share, compared to $140,400 in the same period last year.

"With sheathing prices more than doubling over the last year, not only has our gross margin declined relatively, but distributors were reluctant to maintain their usual inventory levels of these materials for fear of being exposed to potentially sharp price drops," noted Dr Michael Huddy, Barrier's President.

"Despite this impact, we've continued to show volume and revenue growth in Florida, our primary market for Blazeguard.

With the success of our manufacturer's representatives in this market, we are now actively seeking manufacturer's representatives for the mid-Atlantic and mid-western markets as well." "Particularly positive is that the marketing and sales launch for the recently UL-certified roof deck system for commercial modular buildings is planned for December.

I expect to see the first orders in December and a notable impact on sales through 2004.".