SOURCE: DAC Technologies Group International, Inc.

August 15, 2005 08:45 ET

DAC Technologies Announces July 2005 Sales, Six Month Earnings, and Second Quarter Earnings

LITTLE ROCK, AR -- (MARKET WIRE) -- August 15, 2005 -- DAC Technologies (OTC BB: DAAT) today announced net sales for July 2005 of $739,834 as compared to $502,596 for the same period ending July 2004. This is an increase of $237,238 or 47%. Net income for the six months ended June 30, 2005 is $353,092 as compared to $311,244 for the same period ending June 30, 2004. This is an increase of $41,868, or 13%. Pre-tax income for the six months ending June 30, 2005 was $578,146, as compared to $317,491 for the same period ending June 2004. This is an increase of $260,655 or 82%. Net income for the three months ending June 30, 2005 was $186,650 as compared to $192,168 for the same period in 2004. Pretax income for the three months ending June 30, 2005 was $305,387 as compared to $170,195 for the same period ending June 30, 2004. This is an increase of $135,192 or 79%. In June 2004, the company utilized its total remaining tax loss carry forwards, resulting in a tax benefit of $21,973, to increase its net income to $192,168 for the three months ended June 30, 2004.

David A. Collins, Chairman and CEO, stated, "I think it is important to note that our net income comparisons to last year are greatly affected by the tax loss carryforwards. During the first six months of 2004, the Company benefited from the effects of net operating loss carry forwards for tax purposes, resulting in an income tax provision of only 2% for the first six months of 2004. These net operating loss carry forwards were completely utilized as of June 30, 2004. Actual income before taxes for the first six months of 2005 is $578,146 verses $317,491 for 2004, or an increase of 82%. Since June 30, 2004, the Company has been subject to an effective tax rate of 38%. Net sales for the six months is up 53%, while operating expenses are only up 25%. We believe we have continued to do a good job of increasing sales, while at the same time holding down expenses. Income from operations is up 70% and income before taxes is up 82% over the prior year. Had the Company not had the benefit of the loss carry forwards last year, net income would also have been up 82%. As we look to the third and fourth quarters, this distortion will no longer exist, as these loss carry forwards did not benefit the Company the last six months of 2004. I feel confident that this trend of increases will continue, resulting in the Company having sales of $9 million to $11 million during the last six months of 2005 and reaching its earnings projections for the year."

Collins also stated, "We are just now beginning to see significant orders for the fall and winter hunting seasons. The new items added to the Wal-Mart permanent module in June are doing well, as are the items carried over from last year, and reorders are picking up significantly, not only from Wal-Mart, but all major sporting goods stores and distributors. The company is also excited about the trigger lock legislation before Congress, being one of the largest manufacturers of gunlocks and handgun safes in the United States. The company also has many new products that are being developed and will be introduced in 2006, enabling to company to continue its rapid growth into 2006 and beyond."

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 at Email Contact.