Construction materials have come a long way in development over recent years. Whereas fire-retardant materials were only required for very specific applications and projects, they were very expensive, generally contained all sorts of poisonous chemicals and, as such, their required uses were minimal.
Today, however, technology has advanced, prices have been reduced and now fire-resistant materials are not only much more prevalent, but being required on a lot more projects. Owners of the developments often prefer using them not only to help preserve their property in case of fire, but can receive discounted insurance rates by meeting criteria that lowers the risk of loss or potential fire.
Watkins, Minnesota-based International Barrier Technology Inc. (TSX-Venture:IBH) is a manufacturer of proprietary fire-resistant building materials that are branded as LP® FlameBlock® Fire-Rated OSB Sheathing and Mule-Hide FR Deck Panel.
The Company’s award-winning fire-resistant wood panels use a patented, non-toxic, non-combustible coating with an extraordinary capability to actually release water in the heat of fire. Barrier owns the patent-protected Pyrotite® Technology* and has received "patent pending" status on the new $3.2-million manufacturing line process.
The products have a wide array of uses including multi-family housing, hospitals, schools and commercial office space.
Today, the Company announced news of strong growth as it reported fiscal year-to-date revenue and sales volumes results for the period July 2010 to December 2010 and month ended December 31, 2010. Overall revenue generated for the reporting period was $1,756,507, as compared to $1,372,344 during the same period in the prior year; representing a 28% increase. It is also notable that sales revenue would have been approximately $340,000 higher if the pass through charges for both substrate and outbound freight were included as in previous years, which would have represented a nearly 50% increase.
Fiscal revenue into the Residential Roof Deck/Wall Assembly/Structural Insulated Panel Market increased 116% and revenue into the Commercial Modular Market increased 19%. Total revenue in the month of December 2010 totaled $294,231 as compared to $256,636 in 2009; a 15% increase.
Sales volume of shipments also increased dramatically for the fiscal year-to-date period July 2010 to December 2010. The first two quarters of 2010 saw volumes at 3,528,200 sq. ft.; an increase of 57% over the 2,245,700 sq. ft. that was shipped during the first two quarters in the previous fiscal year. Sales into the Residential Roof Deck/Wall Assembly/Structural Insulated Panel Market increased by 195% during the reporting period and shipments into the Commercial Modular Market grew by 28%.
Despite the strong numbers, shares of IBH have been on a slide this year; dropping from over 20 cents per share five months ago to the area of a dime presently. The indicators are giving hints that it is trying to form a base in this area and perhaps trying to build upon the base as the year progresses.
If the numbers can continue to come in steadily and show continued growth as exhibited recently, International Barrier Technology just may start garnering more attention in the investment community as investors are always looking for companies with products that can stand the test of time and can see benefits from our world constantly evolving to new technologies in the construction world.
