-- Q2 operating income reported at $1.4 million; net income at $789,000,
or $0.03 per share
-- Year-to-date operating cash flow reaches $1.1 million
-- Quoting and booking activity accelerating as stimulus funds reaching
customers
Law Enforcement Associates Corporation (LEA) (
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Three Months ended June 30, 2009 and June 30, 2008
June 30, June 30,
2009 2008
----------- -----------
Revenues $ 6,786,665 $ 1,848,700
Cost of goods sold 4,568,594 1,327,259
----------- -----------
Gross profit 2,218,071 521,441
----------- -----------
Research and development 138,199 30,688
Operating expenses 683,538 662,238
----------- -----------
Total operating expenses 821,737 692,926
----------- -----------
Net income (loss) before other income (expenses)
and income taxes 1,396,334 (171,485)
----------- -----------
Other income (expense)
Loss on sale of assets (8,361) (43,666)
Other income 7,504 -
Interest income 25 308
Interest expense (111,113) (30,919)
----------- -----------
Total other income (expense) (111,945) (74,277)
----------- -----------
Net income (loss) before income taxes 1,284,389 (245,762)
Income tax (expense) benefit (495,131) 78,824
----------- -----------
Net income (loss) $ 789,258 $ (166,938)
=========== ===========
Net income (loss) per weighted average share,
basic and diluted $ 0.03 $ (0.01)
=========== ===========
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
=========== ===========
Law Enforcement Associates Corporation
Consolidated Statement of Operations
Six Months ended June 30, 2009 and June 30, 2008
June 30, June 30,
2009 2008
----------- -----------
Net sales $ 8,538,399 $ 3,828,359
Cost of sales 5,854,309 2,499,910
----------- -----------
Gross profit 2,684,090 1,328,449
----------- -----------
Research and development 176,099 39,892
Operating expenses 1,245,743 1,406,544
----------- -----------
Total operating expenses 1,421,842 1,446,436
----------- -----------
Net income (loss) before other income (expense)
and income taxes 1,262,248 (117,987)
----------- -----------
Other income (expense)
Loss on sale of assets (8,361) (43,666)
Other income 10,338 6,606
Interest income 25 1,320
Interest expense (136,664) (62,045)
----------- -----------
Total other income (expense) (134,662) (97,785)
----------- -----------
Net income (loss) before income taxes 1,127,586 (215,772)
Income tax (expense) benefit (435,546) 67,428
----------- -----------
Net income (loss) $ 692,040 $ (148,344)
=========== ===========
Net income (loss) per weighted average share,
basic and diluted $ 0.03 $ (0.01)
=========== ===========
Weighted average number of shares, basic and
diluted 25,782,436 25,782,436
=========== ===========
Law Enforcement Associates Corporation
Consolidated Balance Sheets
June 30, 2009 and December 31, 2008
June 30, December
2009 31, 2008
ASSETS (Unaudited) (Audited)
----------- -----------
CURRENT ASSETS
Cash $ 734,550 $ 254,705
Trade accounts receivable (net of allowance
for doubtful accounts of $30,000 and $30,000
at June 30, 2009 and December 31, 2008,
respectively) 1,876,973 2,011,293
Accounts receivable - other 49,253 -
Inventories 1,529,329 1,368,049
Prepaid expenses 49,837 45,629
Deferred tax asset - current 304,326 244,741
----------- -----------
Total current assets 4,544,268 3,924,417
----------- -----------
PROPERTY AND EQUIPMENT - net 158,620 170,027
----------- -----------
OTHER NON-CURRENT ASSETS
Intangibles - net 2,092,431 2,174,564
Assets held for sale 335,505 335,505
Deferred tax asset less current portion 565,995 820,425
----------- -----------
Total non-current assets 2,993,931 3,330,494
----------- -----------
Total assets $ 7,696,819 $ 7,424,938
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 362,926 $ 331,451
Line of credit 439,450 1,038,809
Accrued expenses:
Income taxes 240,702 -
Compensation and payroll taxes 139,961 126,695
Profit sharing plan 29,994 76,769
Warranty provision 54,865 58,809
Other accrued expenses 65,392 97,205
Deferred expenses 56,336 104,628
Customer deposits 4,019 30,540
----------- -----------
Total current liabilities, before shares
subject to redemption 1,393,645 1,864,906
----------- -----------
Common stock, subject to possible redemption,
1,200,000 shares, at redemption value 1,491,476 -
Total current liabilities 2,885,121 1,864,906
----------- -----------
Total liabilities 2,885,121 1,864,906
----------- -----------
Commitments and contingencies
Common stock, subject to possible redemption,
1,200,000 shares, at redemption value - 1,440,374
----------- -----------
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 50,000,000
authorized, 25,782,436 issued and outstanding
at June 30, 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) (209,054) (901,094)
----------- -----------
Total stockholders' equity 4,811,698 4,119,658
----------- -----------
Total liabilities and stockholders' equity $ 7,696,819 $ 7,424,938
=========== ===========
Contact Information: Contact: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044