Exhibit 99.1
[DHB LOGO GOES HERE]
NEWS FROM DHB INDUSTRIES INC.
555 Westbury Avenue * Carle Place, NY 11514 * T:516/997-1155 * F516/997-1144
WWW.DHBINDUSTRIES.COM
Contact Information: For Investors: Company Contact:
Robert B. Prag, President Dawn M. Schlegel, CFO
The Del Mar Consulting DHB Industries Inc.
Group, Inc.
858/794-9500 516/997-1155
FOR IMMEDIATE RELEASE BPRAG@DELMARCONSULTING.COM DSCHLEGEL@DHBT.COM
DHB INDUSTRIES REPORTS BEST QUARTER IN COMPANY'S HISTORY
- COMPANY POSTS RECORD REVENUES OF $46.1 MILLION; RECORD OPERATING INCOME OF
$7.2 MILLION -
- SECOND QUARTER REVENUES EXPECTED TO EXCEED $46 MILLION -
CARLE PLACE, NY - (April 30, 2003) DHB INDUSTRIES INC. (AMEX: DHB), announced
today that for the first quarter ended March 31, 2003, the Company achieved an
all-time high in total revenue, operating income, and EBITDA. Given continued
strong demand across all customer segments, second quarter revenue is expected
to exceed $46 million.
For the first quarter of 2003, DHB reported record revenues of $46,153,248, an
increase of 37% over the $33,635,519 of revenues for the first quarter of 2002.
This marks the 13th consecutive quarter of increases in quarter-over-quarter
revenue. Operating income increased 37% to a record $7,174,723 as compared to
$5,225,861 in the first quarter of 2002. Income available to common stockholders
rose to a FULLY TAXED $4,928,781, or $0.12 per diluted share, from an UNTAXED
$4,757,688, or $0.11 per diluted share, in the prior-year first quarter. First
quarter 2003 tax rate was 34% as compared to a 1% tax rate for the first quarter
2002.
EBITDA was a record $8,059,735 for the first quarter 2003, an increase of 50% as
compared to $5,386,179 for the first quarter 2002. SG&A expenses for the first
quarter of 2003 were $5,793,083, or 12.6% of revenues, unchanged from the same
12.6% of revenue, or $4,227,661, for the first quarter 2002. Included in the
three months ended March 31, 2003 is income of $487,980, net of taxes, for the
settlement of a lawsuit with its insurance agent. Stockholder equity rose to
$36,271,605 at the end of the first quarter of 2003 as compared to $31,344,936
at the end of the first quarter of 2002.
Commenting on the results, Dawn M. Schlegel, Chief Financial Officer at DHB
Industries Inc., stated, "The Company's first quarter revenues, and the
prospects for strong revenue growth in the second quarter, reflect the high
demand for our products across all sectors. In addition to robust revenue
growth, the first quarter's strong operating performance was significantly
improved by successful management of expenses as reflected in first quarter SG&A
expenses at 12.6% of revenues as compared to 22.4% of revenues in the fourth
quarter of 2002."
David H. Brooks, Chairman of the Board of DHB Industries Inc. stated, "Our
record breaking performance reinforces DHB's continued leadership and dominance
in the protective body armor industry. We recently completed the staffing and
integration of an additional 51,000 square foot manufacturing facility, bringing
our total manufacturing footprint to approximately 200,000 square feet. We can
now begin to optimize our production processes and operating efficiencies while
continuing to execute our cost containment strategies."
DHB Industries Inc.
April 30, 2003
Page 2 of 4
Mr. Brooks continued, "We have the right combination of philosophy, team,
brands, distribution and financial strength to continue achieving new
milestones. The future for DHB, its employees and its shareholders appears
excellent."
DHB announced earlier this month that its wholly-owned subsidiary, Point Blank
Body Armor, Inc., had received more than $85 million in delivery orders from
several branches of the U.S. Department of Defense for body armor, including its
"Interceptor" Outer Tactical Vest (OTV). U.S. Armed Forces are wearing Point
Blank Body Armor's Interceptor OTV, which has been credited with saving the
lives of many Americans during the War in Iraq and Operation Anaconda in
Afghanistan. Point Blank Body Armor has been, and is, the sole supplier of
Interceptor.
CONFERENCE CALL:
DHB will discuss its results during a conference call to be broadcast live over
the Internet starting at 4:30 p.m. eastern standard time.
Conference call particulars are as follows:
o Date - Wednesday, April 30, 2003
o Time - 4:30 p.m. eastern standard time/1:30 p.m. pacific standard time
o Dial in number - (800) 756-4697
o Live Internet broadcast -can be accessed at HTTP://WWW.DHBINDUSTRIES.COM
Those choosing to listen via telephone are encouraged to call in at least ten
minutes prior to the start of the call to allow time to register with the
operator.
ABOUT DHB INDUSTRIES INC.
DHB Industries Inc.'s Armor Group is the market leader in the rapidly growing
protective body armor industry. Its highly recognized subsidiaries, Point Blank
Body Armor Inc. and Protective Apparel Corporation of America (PACA) are focused
on the design, manufacture, and distribution of bullet resistant and protective
body armor for military, law enforcement, and corrections in the U.S. and
worldwide. DHB Armor Group's customers include the U.S. Army, Air Force, Navy,
Marines, Coast Guard, Secret Service, FBI, DEA, INS, ATF, NATO, U.S. Marshals,
the NYC Police Department, the LA Police Department, and the California Highway
Patrol.
DHB Sports Group produces and markets a comprehensive line of athletic supports
and braces which are merchandised through national superstore chains including
Wal-Mart, Target and Meijer, as well as private label distributors such as
Amerisource Bergen and Cardinal Health.
DHB maintains facilities in Carle Place, NY, Deerfield Beach, FL, Oakland Park,
FL, Jacksboro, TN, and Alexandria, VA. To learn more about DHB Industries Inc.,
visit the website at HTTP://WWW.DHBINDUSTRIES.COM.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995: THE STATEMENTS WHICH ARE NOT HISTORICAL FACTS CONTAINED IN THIS
PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE CERTAIN RISKS AND
UNCERTAINTIES INCLUDING BUT NOT LIMITED TO RISKS ASSOCIATED WITH THE UNCERTAINTY
OF FUTURE FINANCIAL RESULTS, ADDITIONAL FINANCING REQUIREMENTS, DEVELOPMENT OF
NEW PRODUCTS, GOVERNMENT APPROVAL PROCESSES, THE IMPACT OF COMPETITIVE PRODUCTS
OR PRICING, TECHNOLOGICAL CHANGES, THE EFFECT OF ECONOMIC CONDITIONS AND OTHER
UNCERTAINTIES DETAILED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.
***STATEMENT OF OPERATIONS AND BALANCE SHEET TO FOLLOW***
DHB Industries Inc.
April 30, 2003
Page 3 of 4
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
For the Three Months Ended
March 31,
2003 2002
_______ _______
Net sales $46,153 $33,636
(i) COST OF GOODS SOLD 33,185 24,182
_______ _______
Gross profit 12,968 9,454
Selling, general and administrative expenses 5,793 4,228
_______ _______
Income before other income (expense) 7,175 5,226
_______ _______
Other income (expense)
Interest expense (329) (464)
Proceeds from settlement 739 --
Other income 13 23
_______ _______
Total other income (expense) 423 (441)
_______ _______
Income from continuing operations before income taxes 7,598 4,785
Income taxes 2,579 27
_______ _______
Net income 5,019 4,758
Dividend - preferred stock (90) --
_______ _______
Income available to common stockholders $4,929 $4,758
======= =======
Earnings per common share:
Basic shares $0.12 $0.15
======= =======
Diluted shares $0.12 $0.11
======= =======
Weighted average shares outstanding:
Basic shares 40,413,746 31,486,391
Effect of convertible preferred 500,000 422,222
Warrants 1,871,742 9,814,290
__________ __________
Diluted shares 42,785,488 41,722,903
========== ==========
*** BALANCE SHEET TO FOLLOW***
DHB Industries Inc.
April 30, 2003
Page 4 of 4
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
March 31, December 31,
2003 2002
ASSETS (Unaudited)
______ ____ ____
Current assets
Cash and cash equivalents $111 $393
Accounts receivable, less allowance for doubtful
accounts of $1,070 and $1,070, respectively 31,822 22,904
Inventories 41,833 33,360
Deferred income tax assets 784 3,319
Prepaid expenses and other current assets 1,091 971
_______ _______
Total current assets 75,641 60,947
_______ _______
Property and equipment, net 1,879 1,620
_______ _______
Other assets
Other investment 942 942
Deferred income tax assets 1,402 1,402
Deposits and other assets 494 460
_______ _______
Total other assets 2,838 2,804
_______ _______
Total assets $80,358 $65,371
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $7,688 $5,368
Accrued expenses and other current liabilities 2,622 2,454
Capital lease obligation 13 --
_______ _______
Total current liabilities 10,323 7,822
_______ _______
Long term liabilities
Notes payable-bank 31,883 24,354
Note payable - stockholder 1,500 1,500
Other liabilities 380 350
_______ _______
Total long term liabilities 33,763 26,204
Total liabilities 44,086 34,026
_______ _______
COMMITMENTS AND CONTINGENCIES
Stockholders' equity
Convertible preferred stock 1 1
Common stock 40 40
Additional paid in capital 34,792 34,792
Other comprehensive loss (43) (41)
Retained earnings (accumulated deficit) 1,482 (3,447)
_______ _______
Total stockholders' equity 36,272 31,345
_______ _______
Total liabilities and stockholders' equity $80,358 $65,371
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