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DAC Technologies Announces Third Quarter Results
LITTLE ROCK, AR--(Marketwire - November 14, 2007) - DAC Technologies (OTCBB : DAAT ) today
announced net sales for the quarter ending September 30, 2007 of $3,380,969
and net income of $146,768. This compares to net sales of $3,936,195 and
net income of $273,923 for the same period in 2006. Gross profit for the
quarter ending September 30, 2007 was $965,869 versus $1,287,606 for the
same period in 2006. Operating expenses were $669,242 for the quarter as
compared to $774,640 in 2006.
David A. Collins, Chairman and CEO, stated, "The decrease in sales is due
mainly to unseasonably warm weather across the country that has affected
sales for all hunting related products. Gross margins for the third
quarter were 29%, as we ship our lower gross margin products such as meat
grinders and game processing kits during this period. The Company
announced a price increase in June 2007, with Wal-Mart agreeing to consider
a price increase on gun accessory products in January 2008. The Company
anticipates that this price increase will be between 4% and 6%."
Collins also stated, "Operating expenses continue to decrease in every
category, with the exception of insurance costs and accounting fees, which
we have little control over. Operating expenses decreased $105,398 for the
quarter as compared to 2006. The Company feels it has tightly controlled
expenses and will continue to do so."
Collins further stated, "The Company feels there may be some growth
opportunities remaining in sporting goods or the gun accessory markets, and
in fact, has received an order from Wal-Mart for a new large roll-top
camping table that will begin shipping in January 2008 that will contribute
$1,000,000 in revenue in 2008. The Company feels real growth lies in the
Company's expertise and knowledge in overseas manufacturing to make other
products in new categories. The Company has begun to manufacture a line of
household cleaning products, starting with ostrich, lamb's wool and micro
fiber dusters, and will expand into items such as brooms, mops, buckets,
brushes and all related household cleaning items. The Company has received
orders from Wal-Mart for its duster line that will begin shipping in late
November, and will add $2.5 million in annual revenue. The Company has a
line review meeting with Wal-Mart in December to review many other new
items in household cleaning for 2008. The Company will be offering these
items to other retailers and distributors throughout 2008. The Company has
also entered the hardware market, manufacturing several new items,
including fireplace bellows, and is developing a total line of fireplace
equipment for line review at Wal-Mart in January 2008. Both the household
cleaning and hardware markets are multi-billion dollar markets and the
Company feels these areas offer tremendous opportunities for growth. The
Company has already booked new business of $3.5 million in these areas for
2008, and looks forward to increasing this number greatly throughout 2008.
Although 2007 has been a year of adjustment, we have positioned ourselves
both in reduced expenses and adding new products lines in new categories
that will enable the Company to get back on the path of rapid growth."
SKIT International, Ltd. filed an appeal to the U.S. Supreme Court, halting
the Company's collection proceedings for the $1,650,560 judgment against
SKIT. On November 13, 2007, the Company was informed that on October 29,
2007, the Supreme Court denied SKIT's appeal, ending all appeal processes
available to SKIT International, Ltd. This ruling allows the Company to
now resume collection proceedings against SKIT International, Ltd. to
collect the $1,650,560 judgment.
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, Marlin, 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.