updated 5/18/2011 9:16:59 AM ET 2011-05-18T13:16:59

SACRAMENTO, Calif., May 18, 2011 (GLOBE NEWSWIRE) -- Pro-Tech Industries, Inc. (OTCBB:PTCK), a leader in design-build infrastructure services, announced its results for the quarter ending March 31, 2011.

For the quarter ended March 31, 2011, the Company reported revenue of $3.6 million and net income of $50,000 from continuing operations or $0.00 per share. This compares to revenue of $2.8 million and net loss from continuing operations of $402,000 or $(0.02) per share for the quarter ended March 31, 2010.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $31,000 or $0.00 per share for the quarter ended March 31, 2011, compared to a $374,000 loss or $0.02 loss per share for the quarter ended March 31, 2010. 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 from the ongoing operations.

For the trailing twelve months, the Company's revenues were $14.6 million with an operating profit of $622,000 and net income of $553,000 from continuing operations or $0.03 per share. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $861,000 or $0.05 per share for the quarter ended March 31, 2011. A reconciliation of these numbers has been included in the tables section and is taken from our filings.

Donald Gordon, Chairman of the Board and CEO, stated, "We are pleased with the progress made over the past twelve months. It shows the hard work of the management team and our associates is paying off. We have made hard decisions which at times have been difficult, but the positive results help to reinforce these decisions."

Sean McGuire, President of Pro-Tech Fire Protection Systems Corp, added, "Decisions we have made to emphasize the service and support side of our Fire Life Safety segment are beginning to pay dividends as we go into the second quarter. We are excited about the possibilities these services bring to the segment as we build up the services division to take on a more prominent role. We believe but cannot guarantee that we will see significant market penetration in this area as our investment takes hold in late second quarter and into quarter three."  

About Pro-Tech Industries, Inc.:

Through its wholly owned subsidiary, Pro-Tech Fire Protection Systems Corp., Pro-Tech Industries, Inc. provides design-build services in the following infrastructure segments: Fire Protection, Alarm and Detection, Telecommunications and Network Services. These services are provided to the Commercial/Industrial Sector, Fortune 1000 companies, and Federal, State, and Local government. For more information please visit http://www.pro-techind.com .

Forward Looking Statements

Statements about the Company's expectations, including revenue and earnings and all other statements in this press release, other than historical facts, are "forward looking" statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve risks and uncertainties and are subject to change at any time. The Company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the Company undertakes no obligation to update forward looking statements.

The following statements are summarized from the Company's annual report for the year ended December 31, 2010, on Form 10-K, filed on April 15, 2011. Please see this filing on the Security and Exchange Commission's Edgar website (sec.gov) in its entirety for full footnote disclosures and discussions.

Pro-Tech Industries, Inc.
Consolidated Balance Sheet
     
  3/31/11 12/31/10
Assets     
Current Assets:     
Cash and cash equivalents  $290,999 $323,472
Contract receivable, net of allowance for doubtful accounts  2,778,822 2,471,505
Costs and estimated earnings in excess of billings 556,253 347,254
Inventory 56,366 59,948
Other current assets 105,237 127,399
Deferred financing cost, net 3,979 30,130
Total current assets  3,791,656 3,359,708
     
Property plant and equipment, net 273,909 282,183
     
Other Assets:    
Deposits 10,856 10,856
Total assets  $4,076,421 $3,652,747
     
Liabilities and Stockholders' Equity (Deficit)    
Current Liabilities:     
Accounts payable and accrued expenses $2,587,930 $1,821,676
Short term note payable  17,500 26,658
Notes payable – current portion 205,375 214,872
Accruals on uncompleted projects 172,429 310,082
Reserve for loss on uncompleted contracts  6,838 6,472
Line of credit 925,000 950,000
Warrant and preferred stock derivative liability  456,368 547,472
Discontinued operations 146,648 554,114
Total current liabilities  4,518,088 4,431,346
     
Long -Term Liabilities:     
Notes payable- others – long term portion 140,564 183,530
Discontinued Operations 71,418 123,526
Total Long Term Liabilities 307,056 307,056
     
Series A 10% convertible redeemable preferred stock 602,079 459,411
     
Stockholders' Equity (Deficit):     
Common Stock 18,894 18,833
Additional paid in capital 1,046,939 1,152,934
Accumulated deficit  (2,321,561) (2,716,833)
Total stockholders' equity (deficit) (1,255,728) (1,545,066)
     
Total liabilities and stockholders' equity (deficit) $4,076,421 $3,652,747
 
Pro-Tech Industries, Inc.
Consolidated Income Statement
Three Months Ended March 31,
     
  2011 2010
     
Net revenue $3,549,362 $2,807,467
Cost of sales 2,209,933 1,998,567
Gross profit 1,339,429 808,900
     
Operating Expenses:    
Depreciation and amortization 51,068 75,677
Selling, general and administrative 1,308,223 1,182,430
Total Operating Expenses 1,359,291 1,258,107
     
Income (Loss) from Operations (19,862) (449,207)
     
Other Income (Expense):    
Gain on change in fair value of derivative liability 91,104 --
Interest expense, net (21,472) (33,737)
Total Other Income (Expense)  69,632 (33,737)
     
Income (loss) income before income taxes 49,770 (482,944)
     
Income tax benefit (expense)   -- 80,490
     
Income(loss) from continuing operations 49,770 (402,454)
     
Income(loss) from discontinued operations 359,679 (650,162)
     
Net Income(Loss) 409,449 (1,052,616)
     
Preferred stock dividends and amortized discount 154,689  --
     
Net Income(loss) attributable to common shareholders $254,760 $ (1,052,616)
     
Net income (loss) per share from continuing operations: $0.00 $ (0.02)
     
Net income (loss) per share: $0.02 $ (0.06)
     
Weighted average common shares outstanding (Note C) 18,398,574 18,022,600
 
Pro-Tech Industries, Inc.
Reconciliation of Income (Loss) from Operations to EBITDA
       
  Quarter Ended Trailing Twelve Months 
  March 31, 2011 March 31, 2010 March 31, 2011
       
Income (Loss) from Operations $ (19,862) $ (449,207) $622,000
       
Add back:      
Depreciation and amortization 51,068 75,677 239,000
       
EBITDA(loss BITDA) $31,206 $ (373,530) $861,000
       
EBITDA(loss BITDA) per share $0.00 $ (0.02) $0.05
       
Weighted average common shares outstanding 18,398,574 18,022,600 18,398,574
 
Trailing Twelve Months Reconciliation
(000's)
         
  Twelve Months  Less YTD Plus YTD  Trailing Twelve 
  12/31/10  3/31/10 3/31/11 3/31/11
         
Net revenue $13,891 $2,807 $3,549 $14,633
Cost of sales 9,120 1,999 2,210 9,331
Gross profit 4,771 808 1,339 5,302
         
Operating Expenses:        
Depreciation and amortization 264 76 51 239
Selling, general and administrative 4,315 1,182 1,308 4,441
Total Operating Expenses 4,579 1,258 1,359 4,680
         
Income (Loss) from Operations 192 450 (20) 622
         
Other Income (Expense):        
Gain (loss) on change in fair value of derivative liability (34) 0 91 57
Interest expense, net (139) 34 (21) (126)
Total Other Income (Expense)  (173) 34 70 (69)
         
Income before income taxes 19 484 50 553
         
Income tax benefit (expense) 80 (80)  --  --
         
Income from continuing operations $99 $404 $50 $553
         
Net income from continuing operations per share       $0.03
Weighted average common shares outstanding       18,398,574
CONTACT: INVESTOR CONTACT:
         
         Pro-Tech Industries, Inc.
         Michael P. Walsh, CFO
         info@pro-techind.com
         916-504-4044

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