Pollard Banknote Limited reported unaudited earnings results for the first quarter ended March 31, 2012. For the quarter, the company reported sales of $36.6 million against $39.2 million a year ago. Income from operations was $1.7 million against $1.4 million a year ago. Adjusted EBITDA was $3.4 million against $3.8 million a year ago. Net income decreased to $0.8 million in the first quarter of 2012 from $0.9 million in the first quarter of 2011. The primary reasons for the decline were higher administration expenses of $0.2 million, higher amortization of deferred financing costs of $0.1 million and lower foreign exchange gain of $0.6 million, which were partially offset by increased gross profit of $0.5 million and lower interest expense of $0.3 million. Income before income taxes was $0.8 million against $0.9 million a year ago. The company expects production and sales volumes for the full year of 2012 to equal those attained in 2011. It anticipates capital expenditures during the remainder of 2012 to be slightly higher than the amounts expended over the last two years. The company believes that its credit facilities and ongoing cash flow from operations will be sufficient to allow it to meet ongoing requirements for investment in capital expenditures, working capital and dividends at existing business levels.