November 18, 2003
International Barrier Technology Reports Record Annual Sales of Blazeguard® Fire Resistant Building Material
Watkins, MN, Vancouver, BC, November 18, 2003 - International Barrier Technology Inc. ("Barrier") (IBTGF: OTCBB, IBH: TSX-V), a provider of environmentally friendly fire resistant building materials, has released audited financial results for its fiscal year ending June 30, 2003.
Barrier reported fiscal year sales of $2,254,562, a 21.2% increase over the previous year and record high revenue from Barrier's fire resistant Blazeguard panels. Gross profit was up slightly to $487,570. The gross margin of 21.6% compares to 23.6% in fiscal 2002. Barrier realized a net income of $46,775, compared to a $317,041 net loss in the prior year. This is the first positive net income in Barrier's corporate history.
Corporate Milestones & Highlights
Sales - Multi-Family Dwellings: Total sales as measured by surface footage of product shipped increased to 2.11 million square feet from 1.77 million square feet, an increase of 19.1%. Sales into Florida increased 77%, or 394,100 square feet, after growing 11% the previous year. Barrier also achieved sales growth in new markets including Maryland, Virginia, and North Carolina. This growth was achieved through a key distributor, Lowe's Companies, and the addition of a new distributor, Stock Building Supply, which focuses exclusively on professional builders.
New Applications and Markets: Barrier achieved an important milestone toward the commercialization of Blazeguard® in a valuable new market. This milestone was the successful completion of stringent fire and wind tests in June and, subsequent to the year end, July. The success of these tests enable Barrier's commercial partner in this endeavor to have Class C and Class A rated roof deck assemblies labelled and listed by Underwriters Laboratories Inc. (UL). There are notable unmet needs for these assemblies in the construction of factory-built commercial modular buildings, which are used for construction sites, education, healthcare and other uses. Blazeguard is the most important component of this assembly, and Barrier expects significant sales in this new market in 2004.
Technology and Patent Acquisition: In March, Barrier announced a letter of intent to acquire the Pyrotite technology and patents that are the basis of Blazeguard. The negotiation to complete a definitive agreement is in an advanced stage. Management is optimistic that a successful conclusion will be achieved. This would position Barrier to dramatically expand its business potential from the U.S. to global markets and eliminate royalty payments currently payable by the company.
"We achieved important financial milestones in F2003. I expect more builders to make Blazeguard their preferred fire-rated sheathing, leading to further sales growth in the multi-family dwelling market in F2004," said Dr. Michael Huddy, Barrier's president. "In addition, the Blazeguard-based roof deck assembly for modular buildings provides competitive positioning in our first entry into a commercial market. I look forward to notable sales growth in this area. Barrier has never been so well positioned for expanding corporate development and growth."
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