RALEIGH, NC--(Marketwire - April 1, 2010) - Law Enforcement Associates Corporation (LEA)
(
OTCBB:
LAWE), a leading U.S.-based developer, manufacturer and distributor
of electronic surveillance and monitoring equipment, today announced
financial results for its fiscal year ended December 31, 2009.
Revenue advanced 23% to $11.9 million from of $9.2 million during fiscal
2008. The increase was primarily due to the second quarter shipment of a
major order from a large federal customer. Operating income was $382,000,
up 57% from $243,000 during fiscal 2008. Net income was $127,000, or less
than $0.01 per share, versus net income of $72,000, or less than $0.01 per
share, in the prior year.
"Fiscal 2009 was a transitional year for LEA, and it was encouraging that
we could deliver improved financial results while concurrently implementing
broad strategic enhancements to our business," said Paul Briggs, president
and CEO. "In addition to the management changes we made during the fourth
quarter, we conducted a detailed analysis of our entire product portfolio,
and also began restructuring our sales infrastructure."
Briggs, who was appointed president and CEO in December, added, "We are
enhancing the features and functionality of several of our existing
surveillance products, and recently introduced our anticipated PDT Digital
Audio offering. This new suite of RF transmitters, receivers and repeaters
is generating significant interest from our existing customer base and has
given us access to a range of prospective federal organizations that were
not customer candidates prior to our transition to digital. We are
preparing to ship our first PDT order, which we received in February."
Briggs said the Company will soon introduce a sophisticated new digital
video product that will initially be marketed to the Company's traditional
law enforcement customers, but could ultimately be used to target ancillary
markets. "The additions we have made to our product portfolio,
particularly in the area of digital technology, represent a significant
strategic accomplishment and position us to address a much broader pool of
customers."
"I am particularly encouraged by enhancements we have made to our sales and
marketing organization," Briggs added. "We recently hired a
California-based sales executive who has an extensive law enforcement
background and should significantly improve our exposure on the West Coast.
We have added new marketing personnel at our headquarters in Raleigh, and a
new director of customer training will join the Company in May. We also
just shipped approximately 27,000 of our new product catalogs to law
enforcement agencies across the country."
"We continue to make progress on the legal issues that emerged in 2009, and
believe we are a fundamentally stronger company than we have been in recent
years," Briggs added. "We are optimistic that 2010 will be a much improved
year for our core business."
About Law Enforcement Associates Corporation
LEA is a leading security and surveillance technology Company that
manufactures and markets a diverse product line to the worldwide law
enforcement, military, security and corrections markets. The Company's
Audio Intelligence Devices (AID) division has been serving the law
enforcement sector for more than 30 years and is one of the most respected
names in the surveillance equipment industry. LEA's products are used by a
wide variety of government and non-governmental agencies, as well as public
and private companies. These include military bases, nuclear facilities,
embassies, government installations, oil refineries, United Nations and
NATO locations. LEA's products have been used at high-profile events such
as the Summer & Winter Olympics, Super Bowl, U.S. Golf Championship, and
the Democratic and Republican National Conventions. Its products include
the Under Vehicle Inspection System (UVIS), EDK123 (Explosive Detection
Kit), Bloodhound and Birddog GPS Tracking Systems, Graffiti Cam,
Letter-bomb Visualizer Spray, and a wide variety of Audio & Video
Surveillance Equipment. Headquartered in Raleigh, N.C., the Company has
been featured in many industry publications and websites. For more
information, please visit
www.leacorp.com.
Forward-Looking Information:
This release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Among other things, these statements relate to our
financial condition, results of operations and future business plans,
operations, opportunities and prospects. In addition, we and our
representatives may from time to time make written or oral forward-looking
statements, including statements contained in filings with the Securities
and Exchange Commission and in our reports to stockholders. These
forward-looking statements are generally identified by the words or phrases
"may," "could," "should," "expect," "anticipate," "plan," "believe,"
"seek," "estimate," "predict," "project" or words of similar import.
These forward-looking statements are based upon our current knowledge and
assumptions about future events and involve risks and uncertainties that
could cause our actual results, performance or achievements to be
materially different from any anticipated results, prospects, performance
or achievements expressed or implied by such forward-looking statements.
These forward-looking statements are not guarantees of future performance.
Many factors are beyond our ability to control or predict. You are
accordingly cautioned not to place undue reliance on such forward-looking
statements, which speak only as of the date that we make them. For a
description of factors that may cause actual results to differ materially
from such forward-looking statements, see the Company's Annual Report on
Form 10-K for the year ended 2008, and other reports from time to time
filed with or furnished to the Securities and Exchange Commission. We do
not undertake to update any forward-looking statement that may be made from
time to time by us or on our behalf.
Law Enforcement Associates Corporation
Consolidated Balance Sheets
December 31, 2009 and December 31, 2008
December 31, December 31,
2009 2008
ASSETS (Audited) (Audited)
------------ ------------
CURRENT ASSETS
Cash $ 480,148 254,705
Trade accounts receivable (net of allowance
for doubtful accounts of $55,000 and $30,000
at December 31, 2009 and December 31, 2008,
respectively) 982,505 2,011,293
Tax Refund 150,000 -
Inventories 1,505,777 1,368,049
Prepaid expenses 43,946 45,629
Deferred tax asset-current 246,368 244,741
------------ ------------
Total current assets 3,408,744 3,924,417
------------ ------------
PROPERTY AND EQUIPMENT - net 150,971 170,027
------------ ------------
OTHER NON-CURRENT ASSETS
Intangibles-net 1,989,304 2,174,564
Assets held for sale 335,505 335,505
Deferred tax asset less current portion 704,643 820,425
------------ ------------
Total non-current assets 3,029,452 3,330,494
------------ ------------
Total assets $ 6,589,167 $ 7,424,938
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 490,646 $ 331,451
Line of credit - 1,038,809
Accrued expenses:
Accrued salaries, wages and benefits 116,288 203,464
Contract settlement 100,000 -
Warranty provision 50,271 58,809
Other accrued expenses 65,072 201,833
Customer deposits 20,000 30,540
------------ ------------
Total current liabilities, before shares
subject to redemption 842,277 1,864,906
------------ ------------
Common stock, subject to possible redemption,
1,200,000 shares, at redemption value 1,500,000 1,440,374
Total current liabilities 2,342,277 3,305,280
------------ ------------
Total liabilities 2,342,277 3,305,280
------------ ------------
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,436 issued and outstanding
at December 31, 2009 and December 31, 2008 25,782 25,782
Treasury stock at cost, 595 shares of common
stock held by the Company (625) (625)
Paid in capital in excess of par 4,995,595 4,995,595
Retained earnings/(accumulated deficit) (773,862) (901,094)
------------ ------------
Total stockholders' equity 4,246,890 4,119,658
------------ ------------
Total liabilities and stockholders' equity $ 6,589,167 $ 7,424,938
------------ ------------
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Twelve Months ended December 31, 2009 and December 31, 2008
December 31, December 31,
2009 2008
------------ ------------
Net sales $ 11,945,501 $ 9,246,170
Cost of sales 8,559,876 6,193,180
------------ ------------
Gross profit 3,385,625 3,052,990
------------ ------------
Research and development 296,667 81,327
Operating expenses 2,707,291 2,728,271
------------ ------------
Total operating expenses 3,003,958 2,809,598
------------ ------------
Operating income 381,667 243,392
------------ ------------
Other income (expense)
Loss on sale of assets (10,373) (43,666)
Other income 14,005 14,234
Interest income 1,276 1,507
Interest expense (145,188) (143,295)
------------ ------------
Total other income (expense) (140,280) (171,220)
------------ ------------
Net income (loss) before income taxes 241,387 72,172
Income tax (expense) benefit (114,155) (319)
------------ ------------
Net income (loss) $ 127,232 $ 71,853
============ ============
Net income (loss) per weighted average share,
basic and diluted $ 0.00 $ 0.00
============ ============
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
============ ============
Contact Information:
Contact:
Pfeiffer High Investor Relations, Inc.
Geoff High: 303-393-7044