Force Protection, Inc. Files Outstanding SEC Documents

Business Wire, Sept 30, 2008

- Files Amended Form 10-Qs for Quarterly Periods During the Year Ended December 31, 2007 -

- Files First and Second Quarter 2008 Form 10-Qs -

- Reports Significantly Improved Profitability for First Half of Fiscal 2008 -

LADSON, S.C. -- Force Protection, Inc. (NASDAQ: FRPT) today filed with the Securities and Exchange Commission its Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2008 and June 30, 2008. The Company also filed with the SEC its amended Quarterly Reports on Form 10-Q/A for the quarterly periods ended March 31, 2007, June 30, 2007, and September 30, 2007 which include restated financial results for each of those periods. The Company noted that it is now up to date with reporting requirements for the SEC and listing requirements for the NASDAQ market.

Michael Moody, Chairman and Chief Executive Officer of Force Protection, Inc., said, "We are very grateful for the hard work of our finance team and the cooperation and assistance of both the Securities and Exchange Commission and the NASDAQ market during the last few months. Our team has worked hard to generate accurate and timely operating and financial information, which not only allows us to remain in good standing with the financial marketplace, but is also essential to create a more responsive, flexible and profitable business. During the first six months of 2008 we began to focus on operating the business more efficiently. This work will continue as we transform our business and look forward."

The Company reported, for the six months ended June 30, 2008, net sales of $743.9 million, an increase of 206% compared to the $243.5 million recorded for the six months ended June 30, 2007. The increased Company revenue was driven by higher shipments of MRAP vehicles for the U.S. government and an increase in service and support programs for our fielded fleet of vehicles. The Company reported net income for the six months ended June 30, 2008 of $15.3 million, or $0.22 per fully diluted share, compared to net income of only $183,000, or less than a penny per fully diluted share, in the year-ago six-month period.

Michael Moody, continued, "We saw benefits in the early part of fiscal 2008 from significant shipments of Cougar MRAP vehicles, Cougar variants, and Buffalo vehicles, as well as revenues from the related service and support work to maintain and sustain the operational readiness of our fleet. Although we recognize the improvements in the first half of 2008 over the comparable periods in 2007, we are by no means satisfied. We are committed to making further improvements in every aspect of our business. We are working to achieve process improvements and efficiencies in our existing operations as well as to identify specific areas of business development that have been driven by successful research and development efforts in the areas of material science and blast- and ballistic- solutions."

First Quarter 2008 Summary

For the three months ended March 31, 2008, the Company reported net sales of $403.0 million, an increase of 285% compared to $104.8 million in the same period of the prior year. Gross margin for the first quarter of 2008 was 9.5% compared to 18.8% in the prior-year quarter. The Company noted that the gross margin was negatively affected by the recognition of $196.4 million of net sales with no associated gross profit for vehicles produced for us by General Dynamics Land Systems. General and administrative expenses for the first quarter of 2008 were $24.6 million, or 6.1% of net sales compared to $17.1 million, or 16.3% of net sales for the prior-year period. The dollar increase reflects a $4.9 million impairment charge related to assets at our Roxboro, North Carolina facility, a contribution to the Medical University of South Carolina Foundation for brain trauma research, higher legal and accounting and consulting fees, employee severance. These increases were partially offset by the absence of a liquidated damages charge totaling $4.9 million incurred in the first quarter of 2007. Operating income in the first quarter of 2008 increased to $10.8 million compared to an operating loss of $(2.4) million for the same quarter of 2007. Net income for the 2008 period was $7.0 million, or $0.10 per fully diluted share, compared to a net loss of $(480,000), or $(0.01) per fully diluted share, in the prior-year quarter.

Second Quarter 2008 Summary

For the three months ended June 30, 2008, the Company reported net sales of $340.9 million, an increase of 146% compared to $138.7 million reported in the same period of the prior year. Gross margin for the second quarter was 11.0% compared to 14.8% in the prior-year period. The Company noted that the gross margin was negatively affected by the recognition of $143.3 million of net sales with no associated gross profit for vehicles produced by GDLS during the quarter. General and administrative expenses were $21.5 million, or 6.3% of net sales, during the second quarter of 2008 compared to $17.3 million, or 12.5% of net sales, in the second quarter of 2007. The dollar increase reflects higher legal, accounting, auditing and consulting fees, and employee severance. These increases were partially offset by the absence of a liquidated damages charge totaling $1.8 million incurred in the second quarter of 2007. Operating income in the second quarter of 2008 was $12.8 million compared to an operating loss of $(273,000) in the comparable year-ago quarter. Net income for the 2008 period was $8.3 million, or $0.12 per fully diluted share, compared to net income of $663,000, or $0.01 per fully diluted share, in the prior-year quarter.