SOURCE: DAC Technologies Group International, Inc.

November 16, 2009 08:30 ET

DAC Technologies Announces Third Quarter 2009 Results

LITTLE ROCK, AR--(Marketwire - November 16, 2009) - DAC Technologies (OTCBB: DAAT) today announced results for the quarter ending September 30, 2009. For the nine months ending September 30, 2009 the Company reported net income of $386,241 on net sales of $9,774,701, as compared to net income of $133,548 and net sales of $9,360,487 for the same period in 2008. This is an increase in net income of $252,693, or 189%. Earnings per share for the nine months ending September 30, 2009 were seven cents per share as compared to two cents per share in 2008, an increase of 250%.

For the three months ending September 30, 2009 the Company reported net income of $73,375 and net sales of $3,098,204 as compared to $83,484 and $3,920,460, respectively, in 2008.

David A. Collins, Chairman and CEO, stated, "As discussed in previous press releases, the Company is not manufacturing the low gross margin items, such as fireplace accessories and game processing equipment. This business was all done in the 3rd and 4th quarters of 2008 and totaled $4,796,387 in revenue during that period. Although we knew this would affect sales in 2009, the Company has chosen to concentrate on its core business of gun cleaning kits and gun accessories and in increasing its gross margins. The Company has increased its core business in 2009 by $1,901,049, or 32%. Gross margins have increased from 25% in 2008 to 30% in 2009. Although sales for the nine months increased only 4%, the Company's net income has increased 189%, in large part due to the increase in gross margins. The Company has introduced a new line of Winchester® gun cleaning kits into Wal-Mart in 2009 and looks forward to expanding its Winchester® products in both Wal-Mart and other retailers in 2010."

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, 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.

                DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
                   Condensed Consolidated Balance Sheet
                 September 30, 2009 and December 31, 2008


                        Assets
                                                    Sept. 30     Dec. 31
                                                      2009         2008
                                                  -----------  -----------
                                                  (unaudited)
Current assets
   Cash                                           $   212,325  $   599,103
   Accounts receivable, less allowance for
    doubtful accounts of $20,000 in 2009 and 2008     682,479      495,718
   Due from factor                                      4,913    1,542,918
   Inventories                                      6,502,796    2,742,563
   Prepaid expenses and deferred charges               73,095       72,068
   Current deferred income tax benefit                 31,019       31,019
                                                  -----------  -----------
Total current assets                                7,506,627    5,483,389
                                                  -----------  -----------

Property and equipment, net                           266,359      266,011
                                                  -----------  -----------

Other assets                                          518,317      430,586
                                                  -----------  -----------

Total assets                                      $ 8,291,303  $ 6,179,986
                                                  ===========  ===========

         Liabilities and Stockholders' Equity

Current liabilities
   Notes payable                                  $   417,611  $   104,609
   Accounts payable                                 2,174,836      795,136
   Accrued expenses                                    73,738      118,369
   Income taxes payable                               195,625       89,700
                                                  -----------  -----------
Total current liabilities                           2,861,810    1,107,814
                                                  -----------  -----------

Deferred income tax liability                          66,574       66,574
                                                  -----------  -----------

Stockholders' equity
   Common stock                                         6,323        6,323
   Additional paid-in capital                       1,963,102    1,963,102
   Treasury stock, at cost                           (401,043)    (372,124)
   Retained earnings                                3,794,537    3,408,297
                                                  -----------  -----------
Total stockholders' equity                          5,362,919    5,005,598
                                                  -----------  -----------

Total liabilities and stockholders' equity        $ 8,291,303  $ 6,179,986
                                                  ===========  ===========



                DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
             Condensed Consolidated Statements of Operations
          For The Nine Months Ended September 30, 2009 and 2008
                               Unaudited
                                                                  Percent
                                                                  Increase
                                             2009        2008    (Decrease)
                                          ----------  ----------

Net sales                                 $9,774,700  $9,360,487     4%

Cost of sales                              6,878,764   7,029,159    -2%
                                          ----------  ----------

Gross profit                               2,895,936   2,331,328    24%
                                          ----------  ----------

Operating expenses
   Selling                                 1,253,450   1,061,411    18%
   General and administrative                882,198     848,629     4%
                                          ----------  ----------
Total operating expenses                   2,135,648   1,910,040    12%
                                          ----------  ----------

Income from operations                       760,288     421,288    80%
                                          ----------  ----------

Other income (expense)
   Interest expense                         (129,987)   (170,349)
   Other income                                   14           0
                                          ----------  ----------
     Total other income (expense)           (129,973)   (170,349)  -24%
                                          ----------  ----------

Income before income tax provision           630,315     250,939   151%

Provision for income taxes                   244,075     117,391   108%
                                          ----------  ----------

Net income                                $  386,240  $  133,548   189%
                                          ==========  ==========

Basic and diluted earnings per share      $     0.07  $     0.02   250%
                                          ==========  ==========

Weighted average number of common shares:
   Basic and diluted                       5,814,802   6,033,985

Contact Information

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