Published:
DAC Technologies Announces Six Months Results Ending June 30, 2006
DAC Technologies (OTCBB: DAAT) today
announced net sales for the six months ending June 30, 2006 of $5,480,336
as compared to $4,527,240 for the same period in 2005. This is an increase
of $953,126, or 21%. Income from operations for the six months was
$770,512 versus $654,754, an increase of $115,758, or 18% over 2005. Net
income for the six month period was $403,078 versus $353,092 for the same
period in 2005. This is an increase of $49,986, or 14%. Earnings per
share for the six month period were $0.07 as compared to $0.06 for 2005.
This is an increase of $0.01, or 17%.
For the three month period ending June 30, 2006, net sales were $2,717,169
as compared to $2,264,162 for the same period in 2005. This is an increase
of $453,007, or 20%. Income from operations for the three month period was
$386,784 versus $335,934, an increase of $50,850, or 15%. Net income for
the three months was $205,896 as compared to $186,650 in the prior year.
This is an increase of $19,246, or 10%.
David A. Collins, Chairman and CEO, stated, "The Company's inventory is
considerably higher this year due to the Company bringing in goods earlier,
primarily to meet customers' demands and service Wal-Mart with electric
meat grinders and the new game processing kit. The Company incurred extra
freight and borrowing costs, primarily in the second quarter, which
affected earnings, but should be beneficial in the third and fourth
quarters. The Company has also installed a totally new computer system to
accommodate growth and Wal-Mart. This has required the Company to employ a
computer analyst and an additional assistant, but will service the Company,
its customers and growth in the years to come."
Collins also stated, "The Company is developing new products for the
sporting goods market and products outside of the sporting goods market.
The Company will continue to grow revenues and tightly control expenses.
The Company has also received a large, special holiday order from Wal-Mart
for its TBX Firearm Wooden Tool Box to begin shipping the end of October,
beginning of November, for the Christmas holiday season."
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Condensed Statements of Operations (Consolidated)
For The Six Months Ended June 30, 2006 and 2005
$ Increase % Increase
2006 2005 (Decrease) (Decrease)
---- ----
Net sales $5,480,366 $4,527,240 $ 953,126 21%
Cost of sales 3,540,411 2,911,277 629,134 22%
---------- ---------- ----------
Gross profit 1,939,955 1,615,963 323,992 20%
---------- ---------- ----------
Operating expenses
Selling 659,331 517,890 141,441 27%
General and administrative 510,112 443,319 66,793 15%
---------- ---------- ----------
Total operating expenses 1,169,443 961,209 208,234 22%
---------- ---------- ----------
Income from operations 770,512 654,754 115,758 18%
Other income (expense)
Interest expense (110,871) (76,608) 34,263 45%
---------- ---------- ----------
Income before income tax
provision 659,641 578,146 81,495 14%
Provision for income taxes 256,563 225,054 31,509 14%
---------- ---------- ----------
Net income $ 403,078 $ 353,092 $ 49,986 14%
========== ========== ==========
Basic and diluted earnings
per share $ 0.07 $ 0.06 $ 0.01 17%
========== ========== ==========
Key Balance Sheet Information
June 30, 2006 and December 31, 2005
June 30, Dec. 31, $ Increase % Increase
2006 2005 (Decrease) (Decrease)
Cash $ 356,024 $ 130,886 $ 225,138 172%
Accounts receivable 1,420,850 692,690 728,160 105%
Due from factor 552,638 1,313,618 (760,980) -58%
Inventories 3,691,108 2,704,310 986,798 36%
Total current assets 6,215,210 4,920,677 1,294,533 26%
Total assets 6,794,521 5,499,502 1,295,019 24%
Current liabilities 2,632,380 1,658,106 974,274 59%
Retained earnings 2,360,949 1,957,871 403,078 21%
Total stockholders' equity $4,129,041 $3,825,896 $ 303,145 8%
About DAC:
DAC Technologies Group International, Inc. is an outsource manufacturer of
high quality, reasonably priced security safes, gunlocks, gun cleaning kits
and security products, as well as accessory items for the sporting goods
market. DAC distributes its products through mass merchandisers such as
Wal-Mart and Kmart, and sporting goods retailers and distributors such as
Dick's, Big Five, Cabela's, Acusport, Jerry's, RSR and others. DAC also
provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage,
Marlin and Taurus, 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)
contain 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.
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