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DAC Technologies Announces 2006 Sales Results
LITTLE ROCK, AR -- (MARKET WIRE) -- March 16, 2007 --DAC Technologies (OTCBB : DAAT ) today
announced net sales for the year ended December 31, 2006 of $15,476,881 as
compared to $13,351,115 for 2005. This is an increase of $2,125,766, or
16%.
David A. Collins, Chairman and CEO, stated, "Overall, we are pleased with
the increase in sales over 2005. However, due to a number of factors, we
have experienced a decrease in our gross profit margins of about 5% for the
year as compared to last year. During 2006, we experienced some
significant price increases on some of our items, particularly some of the
gun cleaning kits. These increases were due to increases in commodity
prices for brass, metal, plastic, as well as wood. There has also been a
devaluation of the US dollar versus the Chinese RMB of 4% in the past year.
Since our Chinese manufacturers operate their business in RMB, they are now
receiving 4% less when they convert the US dollars we pay into RMB. This
has caused them to have to increase their prices to recover this loss. It
has been difficult to raise our own prices in response to these increases.
We are currently working with our manufacturers to develop ways to reduce
our costs as best we can."
Collins also stated, "The effect of these reduced margins will have an
impact on our profit levels, therefore we will not meet our earnings
estimates. Although the Company is still very profitable, it appears that
our earnings will fall below 2005 because of the decrease in gross
margins."
Bob Goodwin, CFO, added, "Due to some issues with the new accounting
software installed at the beginning of 2006, we did not become aware of the
decrease in our margins until after year end. These issues have been
corrected."
Collins further stated, "On a positive note, the Company continues to grow.
We have shipped 3,200 Wal-Mart Stores our new camping table as a year-round
item. We have also shipped them the new hunting Turkey seat for the spring
Turkey hunting season. The Company will also be shipping a major, 1,200
store retailer, six new gun cleaning kits for their spring/summer module as
the one item they carried last year did extremely well. These kits will be
year-round items. The Company is also manufacturing a new fish fillet
knife set in a blow mold case at the request of customers. This new item
should be finished in approximately four to six weeks. The Company has
also hired the premier sales rep group to represent the Company in the
southeast part of the United States, and is reviewing the performance of
our other sales reps."
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.