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Monday, March 31, 2008 5:32:25 PM
DAAT DAC Technologies Announces 2007 Results and New Business
Internet Wire via COMTEX
Mar 31, 2008 4:31:15 PM
LITTLE ROCK, AR, Mar 31, 2008 (MARKET WIRE via COMTEX News Network) --
DAC Technologies (OTCBB: DAAT) today announced financial results for the year ended December 31, 2007. The Company reported net sales of $14,777,645 and operating income of $884,219 for 2007. Income before taxes was $557,841 and after tax net income was $340,894, or 6 cents per share.
David A. Collins, Chairman and CEO, stated, "During 2007, the Company continued to experience pressure on its gross margins due to the high cost of raw materials (commodities) and the devaluation of the U.S. dollar versus the Chinese RMB, resulting in a decrease in gross margins. The Company believes these issues have somewhat stabilized, and our gross margins will also stabilize. While the Company has been able to make significant reductions in its operating expenses in certain areas, our liability insurance costs in 2007 increased significantly, from $93,793 in 2006 to $300,994 in 2007. This increase of $207,201 includes the settlement of a lawsuit for $146,500 and other charges related to prior years. Without these increased insurance costs, earnings would have been 8 cents per share."
Collins also stated, "DAC Technologies' main growth in 2003 through 2006 came from the sporting goods area, mainly gun cleaning kits. This is a mature market, and the Company gained a large market share in this area, which it is mostly maintaining, although some business has been lost due to product maturity and competition. The Company will continue to introduce new items in the hunting/sporting goods area, such as a new line of gun cases, but we do not feel that the necessary growth the Company needs can come from this area. Therefore, the Company is entering other areas in which it can use its overseas manufacturing expertise to manufacture other items such as household cleaning items and fireplace equipment. The Company has begun to manufacture and ship three cleaning dusters for Wal-Mart, and recently was awarded two more items, a long Flex-Duster and refill. These two new items will begin shipping in May 2008. These five new household cleaning items are expected to add $2 to $2.5 million in revenue in 2008. Also, two weeks ago, the Company won a majority of the fireplace equipment business at Wal-Mart. These items will include fireplace screens, tool sets and accessories. The fireplace equipment will begin shipping in August 2008 and continue through December 2008. The Company looks for these items to contribute another $2 to $2.5 million in additional business for 2008. Most of the growth in sales for 2008 will come in the third and fourth quarters. The Company will be expanding its household/micro fiber cleaning line to ten to twelve items, and begin showing at the hardware/household trade shows, along with its fireplace line. Although these are competitive items, it shows the Company can manufacture and compete in most areas."
Collins further stated, "Although the Company has experienced some difficult times maintaining its growth in sales and profits, the Company is back on the right track for growth. We expect revenue in 2008 to be between $16 and $18 million, with earnings in the 13 to 15 cents per share range."
About DAC:
DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits, sporting goods, household cleaning products and various hardware items. DAC distributes its products through mass merchandisers such as Wal-Mart and Kmart, and sporting goods retailers and distributors such as Cabela's, Acusport, Jerry's, RSR, Maurice, Academy Sports, Sports Authority and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Marlin, Weatherby, as well as others. Also, DAC's products are distributed through catalog companies.
The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contains statements that are forward looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's and success of current public offerings. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.
For Shareholder Information please call: 1-800-920-0098 Email Contact
SOURCE: DAC Technologies Group International, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=9F31572F5763B642
Copyright 2008 Market Wire, All rights reserved.
Internet Wire via COMTEX
Mar 31, 2008 4:31:15 PM
LITTLE ROCK, AR, Mar 31, 2008 (MARKET WIRE via COMTEX News Network) --
DAC Technologies (OTCBB: DAAT) today announced financial results for the year ended December 31, 2007. The Company reported net sales of $14,777,645 and operating income of $884,219 for 2007. Income before taxes was $557,841 and after tax net income was $340,894, or 6 cents per share.
David A. Collins, Chairman and CEO, stated, "During 2007, the Company continued to experience pressure on its gross margins due to the high cost of raw materials (commodities) and the devaluation of the U.S. dollar versus the Chinese RMB, resulting in a decrease in gross margins. The Company believes these issues have somewhat stabilized, and our gross margins will also stabilize. While the Company has been able to make significant reductions in its operating expenses in certain areas, our liability insurance costs in 2007 increased significantly, from $93,793 in 2006 to $300,994 in 2007. This increase of $207,201 includes the settlement of a lawsuit for $146,500 and other charges related to prior years. Without these increased insurance costs, earnings would have been 8 cents per share."
Collins also stated, "DAC Technologies' main growth in 2003 through 2006 came from the sporting goods area, mainly gun cleaning kits. This is a mature market, and the Company gained a large market share in this area, which it is mostly maintaining, although some business has been lost due to product maturity and competition. The Company will continue to introduce new items in the hunting/sporting goods area, such as a new line of gun cases, but we do not feel that the necessary growth the Company needs can come from this area. Therefore, the Company is entering other areas in which it can use its overseas manufacturing expertise to manufacture other items such as household cleaning items and fireplace equipment. The Company has begun to manufacture and ship three cleaning dusters for Wal-Mart, and recently was awarded two more items, a long Flex-Duster and refill. These two new items will begin shipping in May 2008. These five new household cleaning items are expected to add $2 to $2.5 million in revenue in 2008. Also, two weeks ago, the Company won a majority of the fireplace equipment business at Wal-Mart. These items will include fireplace screens, tool sets and accessories. The fireplace equipment will begin shipping in August 2008 and continue through December 2008. The Company looks for these items to contribute another $2 to $2.5 million in additional business for 2008. Most of the growth in sales for 2008 will come in the third and fourth quarters. The Company will be expanding its household/micro fiber cleaning line to ten to twelve items, and begin showing at the hardware/household trade shows, along with its fireplace line. Although these are competitive items, it shows the Company can manufacture and compete in most areas."
Collins further stated, "Although the Company has experienced some difficult times maintaining its growth in sales and profits, the Company is back on the right track for growth. We expect revenue in 2008 to be between $16 and $18 million, with earnings in the 13 to 15 cents per share range."
About DAC:
DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits, sporting goods, household cleaning products and various hardware items. DAC distributes its products through mass merchandisers such as Wal-Mart and Kmart, and sporting goods retailers and distributors such as Cabela's, Acusport, Jerry's, RSR, Maurice, Academy Sports, Sports Authority and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Marlin, Weatherby, as well as others. Also, DAC's products are distributed through catalog companies.
The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contains statements that are forward looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's and success of current public offerings. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.
For Shareholder Information please call: 1-800-920-0098 Email Contact
SOURCE: DAC Technologies Group International, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=9F31572F5763B642
Copyright 2008 Market Wire, All rights reserved.
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