SOURCE: DAC Technologies Group International, Inc.

August 17, 2009 07:00 ET

DAC Technologies Announces Second Quarter 2009 Results

Second Quarter Profits Increase 1489%

LITTLE ROCK, AR--(Marketwire - August 17, 2009) - DAC Technologies (OTCBB: DAAT)

--  Positive Trends Continue
--  Gross Margins Continue to Increase
--  FY2009 Guidance Increased
    

DAC Technologies (OTCBB: DAAT) today announced net income for the quarter ending June 30, 2009 of $128,566 versus $8,090 for the same period in 2008. This is an increase of $120,476, or 1489%. Net sales for the second quarter 2009 were $3,143,041 versus $2,724,258 for the second quarter 2008. This is an increase of $418,783, or 15%.

David A. Collins, Chairman and CEO, stated, "The Company continues to benefit from a positive trend in firearm accessories and concentrating on its core business of gun cleaning kits, gun locks and firearm accessories. The Company also continued to increase its gross margins, from 25% in the second quarter of 2008 to 30.2% for the second quarter of 2009, an increase of 5.2%. Gross margins also increased in the first quarter by 3.5% over 2008. The Company is also benefiting from lower shipping costs, elimination of low gross margin products such as fireplace equipment and game processing items, and lower commodity prices. We expect this trend to continue through 2009 into 2010, even as commodity prices go to average levels."

Collins also stated, "Net sales were $6,676,498 for the first six months of 2009, an increase of 23% over 2008. Net income for the first six months of 2009 was $312,865, almost equal to the full year's net income of $356,694 for 2008. It will be difficult to maintain the large sales increases we have enjoyed in the first six months, mainly due to the fact that most of the low gross margin products we have eliminated were fall sales items. We do expect to maintain large sales increases in our core business of gun accessories, both through existing customers and increased market share. Due to these facts, the Company is raising guidance on EPS from 12 to 14 cents per share to 14 to 16 cents per share."

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
                    June 30, 2009 and December 31, 2008



               Assets
                                                    June 30    December 31
                                                      2009         2008
                                                  -----------  -----------
                                                  (unaudited)

Current assets
   Cash                                           $    69,026  $   599,103
   Accounts receivable                                610,838      495,718
   Due from factor                                    524,170    1,542,918
   Inventories                                      5,399,082    2,742,563
   Prepaid expenses and deferred charges              108,184       72,068
   Current deferred income tax benefit                 31,019       31,019
                                                  -----------  -----------
Total current assets                                6,742,319    5,483,389
                                                  -----------  -----------

Property and equipment, net                           269,943      266,011
                                                  -----------  -----------

Other assets                                          480,726      430,586
                                                  -----------  -----------

Total assets                                      $ 7,492,988  $ 6,179,986
                                                  ===========  ===========

    Liabilities and Stockholders' Equity

Current liabilities
   Notes payable                                  $    80,155  $   104,609
   Accounts payable                                 1,838,194      795,136
   Accrued expenses                                    70,281      118,369
   Income taxes payable                               148,240       89,700
                                                  -----------  -----------
Total current liabilities                           2,136,870    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                                3,721,162    3,408,297
                                                  -----------  -----------
Total stockholders' equity                          5,289,544    5,005,598
                                                  -----------  -----------

Total liabilities and stockholders' equity        $ 7,492,988  $ 6,179,986
                                                  ===========  ===========




                DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
              Condensed Consolidated Statements of Operations
            For The Three Months Ended June 30, 2009 and 2008
                                Unaudited

                                                                  Percent
                                                                  Increase
                                         2009         2008       (Decrease)
                                     -----------  -----------

Net sales                            $ 3,143,041  $ 2,724,258           15%

Cost of sales                          2,195,174    2,043,077            7%
                                     -----------  -----------

Gross profit                             947,867      681,181           28%
                                     -----------  -----------

Operating expenses
   Selling                               399,352      336,131           19%
   General and administrative            298,514      287,764            4%
                                     -----------  -----------
Total operating expenses                 697,866      623,895           12%
                                     -----------  -----------

Income from operations                   250,001       57,286          336%
                                     -----------  -----------

Other income (expense)
   Interest expense                      (41,265)     (43,579)
                                     -----------  -----------
     Total other income (expense)        (41,265)     (43,579)          -5%
                                     -----------  -----------

Income before income tax provision       208,736       13,707         1423%

Provision for income taxes                80,170        5,617         1327%
                                     -----------  -----------

Net income                           $   128,566  $     8,090         1489%
                                     ===========  ===========

Basic and diluted earnings per share $      0.02  $         -
                                     ===========  ===========

Weighted average number of common
 shares:
   Basic and diluted                   5,793,699    6,032,899

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