SOURCE: DAC Technologies Group Int'l, Inc.

April 02, 2007 08:45 ET

DAC Technologies Releases 2006 Financial Results

LITTLE ROCK, AR -- (MARKET WIRE) -- April 2, 2007 -- DAC Technologies (OTCBB: DAAT) today announced financial results for the year ended December 31, 2006. The Company reported net income of $752,838 and pretax income of $1,224,968. On a fully diluted basis, the Company earned 12 cents per share. The Company had operating income of $1,530,333, or 10% of sales revenues of $15,475,880.

David A. Collins, Chairman and CEO, stated, "These results were affected by large increases in commodity prices and a decrease in the value of the US dollar versus the Chinese RMB of 4%. This resulted in an increase in cost of goods and a decrease in gross profit margins of 6%."

Collins also stated, "Although the Company has been operating fairly lean, with only six employees in its corporate headquarters and five regular employees in its shipping department, there are areas we feel we can better control expenses. We will be looking at all areas of our operations where expenses can be controlled and establishing strict budgets in all areas. Not all operating expenses have increased in proportion to sales. Sales commissions only increased $56,708, or only 2.7% of the increase in sales of $2,124,765. I have also decided to reduce my salary by 50%, to $60,000 annually, until the Company achieves a higher level of profitability. The Company is also reviewing all product categories and will be increasing wholesale prices where it can, effective July 1, 2007, to offset the increase in cost of goods."

Collins further stated, "The Company will be focusing on increasing revenue and controlling expenses. DAC has entered the camping business and hunting accessory business with the shipping to Wal-Mart of its new camping table and Turkey hunting seat. Also, we will be shipping to Kmart five new items in the April/May timeframe. We are in the process of manufacturing a new fish fillet knife set. We are investigating all areas of new business, including sporting goods and areas outside of sporting goods, where we can use our extensive knowledge of overseas manufacturing. The Company is investigating getting into the clay pigeon target business, baseball pitching machines and putting together new kits for the household cleaning market. These are areas that we have been asked by our largest customers to investigate, or feel we can be extremely competitive in."

Collins also stated, "The Company's financial condition remains very strong. Retained earnings increased 38% and total stockholders' equity increased 17%. The company also reported total assets of $6,417,575 versus $5,499,502 for 2005. Total stockholders equity rose to $4,478,801 versus $3,825,896 in 2005."


                  Key Balance Sheet Information
                   December 31, 2006 and 2005


                                  2006             2005
                                  ----             ----

Current assets               $  5,799,626     $  4,920,677
Total assets                    6,417,575        5,499,502
Current liabilities             1,905,674        1,658,106
Retained earnings               2,710,709        1,957,871
Total stockholders' equity   $  4,478,801     $  3,825,896


           DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
              Consolidated Statements of Income
         For the Years Ended December 31, 2006 and 2005


                                  2006             2005
                                  ----             ----

Net sales                    $ 15,475,880     $ 13,351,115
Cost of sales                  10,985,564        8,625,762
                             ------------     ------------
Gross profit                    4,490,316        4,725,353
                             ------------     ------------

Operating expenses
  Selling                       1,866,453        1,538,715
  General and administrative    1,093,530          991,555
                             ------------     ------------
Total operating expenses        2,959,983        2,530,270
                             ------------     ------------
Income from operations          1,530,333        2,195,083
                             ------------     ------------
Other income (expense)
  Interest expense               (318,116)        (231,619)
  Other income                     12,751                0
                             ------------     ------------
Total other income
 (expense), net                  (305,365)        (231,619)
Income before income
 tax expense                    1,224,968        1,963,464
Provision for income taxes        475,130          782,917
                             ------------     ------------
Net income                   $    752,838     $  1,180,547
                             ============     ============

Earnings per share                  $0.12            $0.19
                             ============     ============
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 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.

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

  • Contact:
    DAC Technologies Group International, Inc.
    1-800-920-0098
    Email Contact