Valley Forge Composite Technologies Reports Financial Results for Fourth Quarter and Full Year 2011

COVINGTON, Ky., March 30, 2012 /PRNewswire/ -- Valley Forge Composite Technologies, Inc. (OTC BB: VLYF), developer of state-of-the-art detection systems, including the THOR LVX photonuclear detection system, today announced financial results for the three month and full year periods ended December 31, 2011.

"This was an important year for Valley Forge, as we set the stage for an exciting and productive 2012," commented Louis Brothers, president and chief executive officer of Valley Forge Composite Technologies.  Adding incremental high-margin revenue from THOR LVX could add to our established, momentum wheel-focused business, which would significantly change the face of the Company, driving revenue and profit growth in the years to come."

The Company finished the year with a backlog of approximately $25 million, related only to momentum wheel products. In addition, interest in the THOR LVX system continues to build.

"In the last year, we have more than doubled our backlog related to the momentum wheel business, with approximately $25 million scheduled to be delivered over the next year," Mr. Brothers added. "This sets the stage for double-digit revenue growth in 2012, even without contribution from THOR."

Full Year 2011 Financial Results
Revenues for the year ended December 31, 2011 were $15.0 million compared to $18.7 million for the full year 2010. Gross profit was $3.3 million, or 22% gross margin, compared to $2.6 million, or 14% gross margin, for full year 2010. Both the reduction in revenue, and the increase in gross margin, are related to changes in product mix. Total expenses were $2.6 million, including $946,000 in non-cash expenses related to share-based payments, compared to total expenses of $3.5 million, including $1,864,000 in non-cash expenses related to share-based payments, last year. Operating income was $744,000 compared to an operating loss of $863,000 in the year-ago period. Net income was $427,000, or $0.01 per basic and diluted share (based on 61,500,794 weighted average shares outstanding for basic and 63,778,097 weighted average shares outstanding for diluted) compared to a net loss of $1.5 million, or $(0.02) per basic share (based on 59,281,322 million weighted average shares outstanding) for the same period last year.

Fourth Quarter 2011 Financial Results
Revenues for the fourth quarter were $3.7 million compared to $5.8 million for the same period last year. Gross profit was $1.4 million, or 38% gross margin, compared to $824,000, or 14% gross margin, for the same period last year. Total expenses were $801,000 in the fourth quarter, including $262,000 in non-cash expenses related to share-based payments, compared to total expenses of $1.2 million, including $855,000 in non-cash expenses related to shared-based payments, in the fourth quarter last year.  Operating income was $601,000 compared to an operating loss of $346,000 in the year-ago period. Net income for the quarter was $525,000, or $0.01 per basic and diluted share (based on 62,033,550 weighted average shares outstanding for basic and 64,310,853 weighted average shares outstanding for diluted) compared to a net loss of $487,000, or $(0.01) loss per basic share (based on 61,299,904 weighted average shares outstanding) for the same period last year.

The Company had $372,435 in cash and no long term debt. Shareholders' equity was $3,239,388.

About Valley Forge
Valley Forge Composite Technologies, Inc., through its subsidiaries, develops, manufactures, and markets detection systems primarily in the United States. The company offers THOR LVX, a photonuclear detection system; and ODIN, a passenger weapons scanning device. These products consist of detection capability for illicit narcotics, explosives, and bio-chemical weapons hidden in cargo containers. It also engages in the design and manufacture of attitude control instruments for small satellites. Valley Forge Composite Technologies, Inc. was founded in 1996 and is headquartered in Covington, Kentucky. More information about Valley Forge Composite Technologies, Inc. can be found at www.vlyf.com.

Forward-Looking Statement
The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for certain forward-looking statements. Statements in this press release that relate to Valley Forge Composite Technologies, Inc.'s future plans, objectives, expectations, performance, events, reports made by others and the like, including a statement about the assumptions underlying a forward-looking statement, are forward-looking statements protected by the safe harbor. Investors should understand that future events, risks and uncertainties, individually or in the aggregate, are factors that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. These factors could include changes in economic conditions or government policies that may change the demand for the Company's products and services and could include other factors discussed in the sections of the Company's report on Form 10-K for the year ended 31 December, 2010 as filed with the U.S. Securities and Exchange Commission, entitled 'Business,' 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and 'Risk Factors.' This release is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Investments in the Company should be considered speculative and prior to acquisition, should be thoroughly researched. Valley Forge Composite Technologies, Inc. does not intend to update these forward-looking statements prior to its reporting of its quarterly or annual results.

Investor Relations Contact:

Hayden IR
Brett Maas
Phone: 646-536-7331
Email: [email protected]

SOURCE Valley Forge Composite Technologies, Inc.

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