SOURCE: DAC Technologies Group International, Inc.

November 14, 2005 08:30 ET

DAC Technologies Announces a 48% Increase in Third Quarter Earnings

LITTLE ROCK, AR -- (MARKET WIRE) -- November 14, 2005 -- DAC Technologies (OTC BB: DAAT) today announced net income for the quarter ended September 30, 2005 of $280,737 as compared to $189,930 for the same period in 2004. This is an increase of $90,807, or 48%. Net sales for the quarter were $3,193,129, a 52% increase from 2004 third quarter sales of $2,095,876. For the nine months ended September 30, 2005, the Company reported net income of $633,829 on net sales of $7,720,369, as compared to $501,154 and $5,053,397, respectively, for the same nine month period in 2004.

David A. Collins, Chairman and CEO, stated, "The Company's sales for the three month and nine month periods increased 53% and 52%, respectively, while operating expenses only increased 29% and 35%. As we have stated before, our net income comparisons to last year are greatly affected by the tax loss carryforwards that were utilized during the first six months of 2004. The third quarter comparisons are not affected by these tax loss carryforwards, as evidenced by the 48% increase in net income for the quarter. Had the Company not benefited from these tax loss carryforwards during the first six months of 2004, net income for the nine month period in 2004 would have been approximately $383,000 instead of the reported $501,154. This would have resulted in an increase in net income for the nine month period of 65% as compared to the actual 26%."

Collins also stated, "Since we first introduced our line of GunMaster gun cleaning kits in 2003, the fourth quarter has become our best quarter, due to the hunting seasons in the fall and winter months and the Holiday Season. Typically, sales in the fourth quarter approach our total sales during the first nine months combined. We expect this trend to continue, with fourth quarter sales expected to be between $6,300,000 and $6,900,000, enabling us to reach our projected sales and earnings."

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's mission is to provide the consumer with great value in the purchase of affordable products. Firearm safety and gun violence are key issues facing the American people. DAC's goal is to assist in the reduction of gun violence and the unintentional use of firearms by children and other unauthorized persons through the distribution and sale of its gunlocks and security safes. 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 such as Cabela's, LL Bean and others.

For Shareholder Information please call 1-800-920-0098 or email at investorrelations@dactec.com.

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.

Contact Information

  • For Shareholder Information please call:
    1-800-920-0098
    Email Contact