DHB Industries, Inc.
November 11, 2003
Exhibit 99.1
[LOGO OF DHB INDUSTRIES GOES HERE]
NEWS FROM DHB INDUSTRIES INC.
555 Westbury Avenue o Carle Place, NY 11514 o T:516/997-1155 o F:516/997-1144
www.dhbindustries.com
---------------------
Contact Information: For Investors: Company Contact:
Robert B. Prag, President Dawn M. Schlegel, CFO
The Del Mar Consulting Group, Inc. DHB Industries Inc.
858/794-9500 516/997-1155
FOR IMMEDIATE RELEASE bprag@delmarconsulting.com dschlegel@dhbt.com
- ---------------------
DHB INDUSTRIES REPORTS THIRD QUARTER REVENUES INCREASE 80%
----------------------------------------------------------
- COMPANY UPS 4TH QUARTER REVENUE GUIDANCE TO RECORD $60 MILLION -
- COMPANY INCREASES 2003 REVENUE EXPECTATIONS TO RECORD $217 MILLION -
- COMPANY PROJECTS FULL-YEAR 2004 REVENUES TO REACH RECORD $250 MILLION -
- COMPANY REPORTS CURRENT BACKLOG OF FIRM ORDERS INCREASED TO RECORD $161
MILLION -
CARLE PLACE, NY - (November 11, 2003) DHB INDUSTRIES INC. (AMEX: DHB), the
market leader in the rapidly growing body armor industry, announced today
operating results for the third quarter ended September 30, 2003, posting its
15th consecutive year-over-year increase in quarterly revenues.
During the third quarter, DHB announced that its wholly-owned subsidiary, Point
Blank Body Armor, Inc. ("Point Blank" - http://www.pointblankarmor.com), had
received more than $31 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 worldwide are wearing Point Blank's
Interceptor OTV, which has been credited with saving numerous lives of many
Americans during the War in Iraq and Operation Anaconda in Afghanistan. Point
Blank is currently the only military approved provider of Interceptor OTV to the
United States Armed Forces.
For the third quarter ended September 30, 2003, DHB reported record revenues of
$54,417,000, an increase of 80% as compared to revenues of $30,146,000 for the
third quarter of 2002. Operating income increased 275% to $5,763,000 for the
third quarter of 2003 as compared to $1,536,000 in the third quarter of 2002.
Third quarter 2003 income available to common stockholders was $3,160,000, or
$0.07 per diluted share, a 232% increase as compared to $952,000, or $0.02 per
diluted share in the third quarter of 2002. The effective tax rate for the third
quarter of 2003 was 40.7%. In the third quarter of 2002 the tax rate was nominal
(1%) due to the utilization of net operating loss carryforwards in 2002.
Weighted shares outstanding on a
diluted basis for the third quarter of 2003 were 44,510,790 as compared to
43,827,580 for the third quarter of 2002.
Gross margins for the third quarter of 2003 were 27.2% versus 27.5% in the
second quarter of 2003. Selling, general and administrative expenses ("S,G &A
expenses") for the third quarter of 2003, which included $925,000 of unforeseen
special accounting and legal fees, were 16.6% of net sales versus 25.2% of net
sales for the third quarter of 2002, which included $1.3 million of unforeseen
special legal and professional fees related to, among other matters, the
successful defense of a patent infringement case and legal and the union
organizing campaign. Stockholders' equity rose to a record $43,699,000 at the
end of the third quarter of 2003 as compared to $31,345,000 at year-end December
31, 2002.
For the nine months ended September 30, 2003, total revenues increased 61% to a
record $157,095,000 as compared to $97,799,000 for the first nine months of
2002. Operating income increased 80% to a record $20,689,000, as compared to
$11,477,000 for the first nine months of 2002. Income available to common
stockholders for the first nine months 2003 was a record $12,050,000, or $0.27
per diluted share, a 22% increase as compared to $9,912,000 or $0.23 per diluted
share in the first nine months of 2002. The effective tax rate for the nine
months ended September 30, 2003 was 39.9%. In the first nine months of 2002, the
tax rate was nominal (1%) due to the utilization of net operating loss
carryforwards in 2002.
SG&A expenses for the first nine months of 2003, which included $1,225,000 of
unforeseen special accounting and legal fees, were 14.4% of net sales versus
17.5% of net sales for the first nine months of 2002, which included $1.3
million of unforeseen special legal and professional fees related to, among
other matters the successful defense of a patent infringement case and the union
organizing campaign. Weighted shares outstanding on a diluted basis for the
first nine months of 2003 were 44,053,330 as compared to 43,519,653 for the
first nine months of 2002.
Total backlog of firm orders in hand as of November 11, 2003, increased to a
record $161 million, as compared to total backlog of firm orders in hand of $57
million on March 1, 2003.
Dawn Schlegel, CFO of DHB Industries, commented, "The Company's record backlog
reflects an accelerating demand for our products across all sectors - military,
law enforcement and federal agencies. As revenues continue to accelerate into
2004, we believe there will be a decrease in SG&A expenses as a percentage of
sales, and a corresponding increase in operating margins and EPS. Given current
visibility, we expect revenues for full-year 2003 will reach $217 million."
David Brooks, Chairman and CEO of DHB Industries, added, "DHB Industries is the
dominant leader in the protective soft body armor industry. We maintain a
commanding share of the military market, and we are increasing our presence in
the domestic law enforcement and federal agencies market. Our Point Blank
subsidiary is currently the only military approved provider of its highly
praised Interceptor OTV to the U.S. Department of Defense. Given the
geopolitical environment, the increased need for homeland security, and the
continuing war on terror, we project full-year 2004 revenues will reach $250
million."
DHB Industries, Inc.
November 11, 2003
CONFERENCE CALL:
DHB will discuss its results during a conference call to be broadcast live over
the Internet starting at 4:15 p.m. eastern daylight time.
Conference call particulars are as follows:
o Date - Tuesday, November 11, 2003
o Time - 4:15 p.m. eastern daylight time/1:15 p.m. pacific daylight time
o Dial in number - (888) 809-3657
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 Arlington, 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.
November 11, 2003
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
2003 2002* 2003 2002*
------ ----- ------ -----
Net sales $54,417 $30,146 $157,095 $97,799
Cost of goods sold (includes related party
purchases of $6,802, $1,905, $20,856,
and $3,791 respectively) 39,599 21,005 113,785 69,166
------ ------ ------- ------
Gross profit 14,818 9,141 43,310 28,633
Selling, general & administrative expenses 9,055 7,605 22,621 17,156
----- ----- ------ ------
Income before other income (expense) 5,763 1,536 20,689 11,477
----- ----- ------ ------
Other income (expense)
Interest expense (306) (538) (977) (1,475)
Proceeds from settlement of lawsuit -- -- 739 --
Other income 24 35 48 79
-- -- -- --
Total other income (expense) (282) (503) (190) (1,396)
----- ----- ----- -------
Income before income taxes 5,481 1,033 20,499 10,081
Income taxes 2,231 81 8,179 169
----- -- ----- ---
Net income 3,250 952 12,320 9,912
Dividend - preferred stock (90) -- (270) --
--- ----- ----- ------
Income available to common stockholders $3,160 $ 952 $12,050 $ 9,912
====== ===== ======= =======
Earnings per common share:
Basic shares $0.08 $0.02 $0.30 $0.27
===== ===== ===== =====
Diluted shares $0.07 $0.02 $0.27 $0.23
===== ===== ===== =====
Weighted average shares outstanding:
Basic shares 40,594,746 40,413,746 40,490,062 36,262,668
Effect of convertible preferred 500,000 500,000 500,000 500,000
Warrants 3,416,044 2,913,834 3,063,268 6,756,985
--------- --------- --------- ---------
Diluted shares 44,510,790 43,827,580 44,053,330 43,519,653
========== ========== ========== ==========
* - 2002 has been restated
DHB Industries, Inc.
November 11, 2003
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2003 (UNAUDITED) AND DECEMBER 31, 2002
(In thousands, except share and per share data)
September 30, December 31,
ASSETS 2003 2002
---- ----
Current assets
Cash and cash equivalents $562 $393
Accounts receivable, less allowance for doubtful
accounts of $1,064 and $1,070, respectively 26,492 22,904
Inventories 49,933 33,360
Deferred income tax assets 784 3,319
Prepaid expenses and other current assets 2,829 971
----- ---
Total current assets 80,600 60,947
------ ------
Property and equipment, net 1,823 1,620
----- -----
Other assets
Other investment 942 942
Deferred income tax assets -- 1,402
Deposits and other assets 414 460
--- ---
Total other assets 1,356 2,804
----- -----
Total assets $83,779 $65,371
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $5,608 $5,368
Accrued expenses and other current liabilities 8,394 2,454
Capital lease obligation 1 --
------ -----
Total current liabilities 14,003 7,822
------ -----
Long term liabilities
Notes payable-bank 25,638 24,354
Note payable - stockholder -- 1,500
Other liabilities 439 350
--- ---
Total liabilities 40,080 34,026
------ ------
Commitments and contingencies
Stockholders' equity
Convertible preferred stock, $0.001 par value,
5,000,000 shares authorized, 500,000 shares of Series
A, 12% convertible preferred stock issued and outstanding 1 1
Common stock, $0.001 par value, 100,000,000
shares authorized, 40,594,746 and 40,413,746 41 40
Additional paid in capital 35,108 34,792
Other comprehensive loss (54) (41)
Retained earnings (accumulated deficit) 8,603 (3,447)
----- -------
Total stockholders' equity 43,699 31,345
------ ------
Total liabilities and stockholders' equity $83,779 $65,371
======= =======