Pro-Tech Industries Announces Second Quarter 2010 Results

Pro-Tech Industries, Inc. (OTCBB:PTCK), a leader in design-build infrastructure services, announced its results for the second quarter of fiscal 2010 ending June 30, 2010.

For the quarter ended June 30, 2010, the Company reported revenue of $3.7 million, operating profit of $329,000 and net income of $208,000 or $0.02 per share. This compares to revenue of $3.6 million, operating loss of $479,000 and net loss of $903,000 or $0.01 per share for the quarter ended June 30, 2009.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $426,000 or $0.02 per share, compared to a $398,000 loss or $0.02 loss per share for the same quarter last year. The Company views EBITDA as a useful measure of its operating performance as it eliminates the aberrations produced by amortization and discontinued operations, and enables the investment community to better evaluate our long run profitability.

For the six months ended June 30, 2010, Pro-Tech Industries, Inc. had revenue of $7.2 million, operating loss of $479,000 and net loss of $845,000 or $0.04 per share. This compares to revenue of $7.6 million, operating profit of $352,000 million and net loss of $103,000 or $0.01 per share for the first six months of fiscal 2009.

EBITDA for the six month period ended June 30, 2010 totaled a loss of $306,000 or $0.02 per share, compared to a loss of $273,000 or $0.02 per share for the same period last year.

Donald Gordon, Chairman of the Board and CEO, stated, "We are pleased with the progress made this quarter. We have positive sales growth and positive earnings for the first time in two quarters. We believe our results show the sales effort and cost cutting measures are taking hold as we continue to execute our growth strategy and enjoy the benefit of a favorable mix of products.

"Our Fire Protection segment performance is leading the way and remains solid. This segment represented 61% of our sales for the first six months of fiscal 2010 as compared to 50% of our sales at the close of fiscal 2009. Currently we have see our Telecommunications segment drop off compared to the second quarter of the prior year. However, we are trying to backfill this revenue through our relationship with Atazz Technical Services and are starting to see an increase in bid activity and job wins. We expect, but cannot guarantee, this relationship to help start to replace the decrease in revenue from our contract with the Sacramento based systems integrator for the State of California which begins to wind down. While private sector work in all of our segments remains slow, we are starting to see some increases in bid activity. The turbulence in the economy continues to impact all of our segments and management has worked hard at cutting costs to better position the Company to be competitive in the bidding process. We expect, but can provide no assurances, that both of these segments will gain strength over the balance of the year and we envision modest continued improvement into fiscal 2011.

"Despite the economic environment, Pro-Tech is in good position to continue to execute our long-term strategy. As part of this strategy, Pro-Tech has signed a non-binding LOI to divest Conesco, the flooring segment. Pro-Tech management has decided that, in the long-term, Conseco does not fit well with our core fire and telecommunication business segments.