Contact Information: For Shareholder Information please call: 1-800-920-0098
DAC Technologies Announces 2007 Results and New Business
LITTLE ROCK, AR--(Marketwire - March 31, 2008) - 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.