DHB Industries, Inc. EXHIBIT 99.1
August 5, 2004
[DHB Industries Inc. Logo Appears Here]
NEWS FROM DHB INDUSTRIES, INC.
400 Post Avenue; Suite 303 o Westbury, NY 11590
T: 516/997-1155 o F: 516/997-1144 www.dhbindustries.com
Investor Contact: 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
bprag@delmarconsulting.com dschlegel@dhbt.com
FOR IMMEDIATE RELEASE
DHB INDUSTRIES ANNOUNCES RECORD 2ND QUARTER REVENUE
OF $86 MILLION AND RECORD EARNINGS OF $0.17 PER SHARE
-2ND QUARTER INCOME AVAILABLE TO SHAREHOLDERS JUMPS 91%;
NET REVENUE INCREASES 52%-
-COMPANY UPS GUIDANCE FOR FULL-YEAR 2004 REVENUES TO EXCEED $300 MILLION-
-COMPANY'S CURRENT BACKLOG EXCEEDS $393 MILLION-
WESTBURY, NY - (August 5, 2004) DHB INDUSTRIES, INC. (AMEX: DHB), the market
leader in the rapidly growing body armor industry, today announced record
revenues and earnings for the second quarter ended June 30, 2004, posting its
18th consecutive year-over-year increase in quarterly revenues. The current
backlog exceeds $393 million, an 83% increase from the $215 million backlog
reported with the Company's first quarter results on May 6, 2004.
For the quarter ended June 30, 2004, DHB reported record revenues of
$86,066,000, an increase of 52% as compared to revenues of $56,525,000 for the
second quarter of 2003. Operating income increased 68% in the second quarter to
a record $12,990,000 as compared to $7,751,000 in the second quarter of 2003.
Second quarter 2004 income available to common stockholders was a record
$7,570,000 or $0.17 per diluted share, a 91% increase as compared to $3,961,000,
or $0.09 per diluted share in the second quarter of 2003. The effective tax rate
for the second quarter of 2004 was 39.1% as compared to 45.4% in the second
quarter of 2003. Weighted shares outstanding on a diluted basis for the second
quarter of 2004 were 45,739,277 as compared to 44,235,879 for the second quarter
of 2003.
Gross margins for the second quarter of 2004 were 27.7% versus 27.5% in the
second quarter of 2003. Selling, general and administrative expenses ("SG&A
expenses") for the second quarter of 2004 were 12.7% of net sales versus 13.8%
of net sales for the second quarter of 2003.
For the six months ended June 30, 2004, DHB reported record revenues of
$160,469,000, an increase of 56% as compared to revenues of $102,678,000 for the
first six months of 2003. Operating income increased 60% in the first six months
to a record $23,883,000 as compared to $14,926,000 in the first six months of
2003. Income available to common stockholders in the first
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DHB Industries, Inc. EXHIBIT 99.1
August 5, 2004
six months was a record $13,839,000 or $0.30 per diluted share, as compared to
$8,890,000, or $0.20 per diluted share in the first six months of 2003. The
effective tax rate for the first six months of 2004 was 39.3% as compared to
39.6% in the first six months of 2003. Weighted shares outstanding on a diluted
basis for the first six months of 2004 were 45,440,655 as compared to 43,722,690
for the first six months of 2003.
Gross margins for the first six months of 2004 were 27.8% versus 27.7% in the
first six months of 2003. Selling, general and administrative expenses ("SG&A
expenses") for the first six months of 2004 were 12.9% of net sales versus 13.2%
of net sales for the first six months of 2003.
Stockholders' equity rose to a record $60,737,000 at June 30, 2004, a 30%
increase as compared to $46,738,000 at year-end December 31, 2003.
SECOND QUARTER HIGHLIGHTS:
o On June 8, 2004, DHB Industries announced what it believes to be the
largest single contract for armor ever awarded in the history of the
body armor industry. The contract, valued at $239.4 million over three
years, was awarded by the U.S. Army Robert Morris Acquisition Center
for DHB's recently developed Dorsal Axillary Protection System
(D.A.P.S.). D.A.P.S. is an entirely new business and product line that
complements DHB's Interceptor Body Armor currently being sold to the
U. S. military which provides the same level of ballistic protection
to areas not currently covered by Interceptor, including the under
arm, shoulder and upper arm areas.
o In April 2004, DHB expanded its operations to accommodate the rapid
growth in its Armor Group by opening a third manufacturing facility in
South Florida. The new 104,000 square foot manufacturing plant located
in Pompano Beach has enhanced the Armor Group's ability to increase
production and improve workflow and efficiency. The Armor Group
maintains two additional Florida facilities in Oakland Park and
Deerfield Beach, plus a facility in Jacksboro, Tennessee.
Dawn Schlegel, CFO of DHB Industries, commented, "During the second quarter, the
Company once again met or exceeded all of its operating goals which it
previously provided as guidance to the financial community on May 6,2004. The
four income statement items that we deem most important - net sales, gross
margins, selling, general and administrative expenses and operating margins -
all met or exceeded our expectations. We are beginning to realize significant
operating and earnings leverage as our sales increase. Moreover, the balance
sheet continues to strengthen as stockholders' equity has increased by 30% since
December 31, 2003."
David Brooks, Chairman and CEO of DHB Industries, added, "DHB Industries
continues to experience extraordinary growth as order activity from all four
sectors of business - military, law enforcement, federal agencies and
international - has been expanding at a rapid pace for more than a year. Over
the past ten months, DHB has announced new contracts and purchase orders
totaling more than $415 million. To date, our Point Blank subsidiary, providing
life-saving protection for our troops, has shipped more than 750,000 Interceptor
Outer Tactical Vests to the US military. We believe the future outlook for DHB
and its industry-leading soft body armor products remains exceptionally strong."
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DHB Industries, Inc. EXHIBIT 99.1
August 5, 2004
GUIDANCE AND OUTLOOK
DHB continues to experience accelerating demand for its industry-leading
protective soft body armor products. The Company is raising its previous
guidance, and now expects revenues of at least $300 million for the full 2004
year.
CONFERENCE CALL:
DHB will discuss its results during a conference call today to be broadcast live
over the Internet starting at 4:30 p.m. eastern daylight time.
Conference call particulars are as follows:
o Date - Thursday, August 5, 2004
o Time - 4:30 p.m. eastern daylight time/1:30 p.m. pacific daylight time
o Dial in number - (888) 809-3629
o Live Internet broadcast and replay 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. (http://www.pointblankarmor.com) and Protective Apparel
Corporation of America (PACA) (http://www.pacabodyarmor.com) 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 (http://www.ndlproducts.com) 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 Westbury, NY, Pompano Beach, FL, 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***
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DHB Industries, Inc. EXHIBIT 99.1
August 5, 2004
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except share and per share data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
___________________________ ___________________________
2004 2003 2004 2003
___________ ___________ ___________ ___________
Net sales $ 86,066 $ 56,525 $ 160,469 $ 102,678
Costof goods sold (includes related party
purchases of $4,917, $6,931, $8,219,
and $13,479, respectively) 62,186 41,001 115,824 74,186
___________ ___________ ___________ ___________
Gross profit 23,880 15,524 44,645 28,492
Selling, general and administrative expenses 10,890 7,773 20,762 13,566
___________ ___________ ___________ ___________
Income before other income (expense) 12,990 7,751 23,883 14,926
___________ ___________ ___________ ___________
Other income (expense)
Interest expense (359) (342) (658) (671)
Proceeds from settlement of lawsuit -- -- -- 739
Other income 4 11 14 24
___________ ___________ ___________ ___________
Total other income (expense) (355) (331) (644) 92
___________ ___________ ___________ ___________
Income before income taxes and minority interest 12,635 7,420 23,239 15,018
Income taxes 4,936 3,369 9,122 5,948
___________ ___________ ___________ ___________
Income before minority interest of subsidiary 7,699 4,051 14,117 9,070
Minority interest of subsidiary (39) -- (98) --
___________ ___________ ___________ ___________
Net income 7,660 4,051 14,019 9,070
Dividend - preferred stock (90) (90) (180) (180)
___________ ___________ ___________ ___________
Income available to common stockholders $ 7,570 $ 3,961 $ 13,839 $ 8,890
=========== =========== =========== ===========
Earnings per common share:
Basic shares $ 0.19 $ 0.10 $ 0.34 $ 0.22
=========== =========== =========== ===========
Diluted shares $ 0.17 $ 0.09 $ 0.30 $ 0.20
=========== =========== =========== ===========
Weighted average shares outstanding:
Basic shares 40,808,345 40,458,867 40,776,064 40,436,557
Effect of convertible preferred 500,000 500,000 500,000 500,000
Warrants 4,430,932 3,277,012 4,164,590 2,786,133
___________ ___________ ___________ ___________
Diluted shares 45,739,277 44,235,879 45,440,655 43,722,690
=========== =========== =========== ===========
***BALANCE SHEET TO FOLLOW***
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DHB Industries, Inc. EXHIBIT 99.1
August 5, 2004
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2004 (UNAUDITED) AND DECEMBER 31, 2003
(In thousands, except share and per share data)
June 30, December 31,
2004 2003
________ ____________
ASSETS
Current assets
Cash and cash equivalents $ 102 $ 441
Accounts receivable, less allowance for doubtful accounts of
$936 and $852, respectively 58,787 33,707
Inventories 74,342 54,753
Deferred income tax assets 262 372
Prepaid expenses and other current assets 1,626 1,518
________ ________
Total current assets 135,119 90,791
________ ________
Property and equipment, net 3,025 1,819
________ ________
Other assets
Deferred income tax assets 581 437
Deposits and other assets 418 381
________ ________
Total other assets 999 818
________ ________
Total assets $139,143 $ 93,428
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of term loan payable $ 4,000 $ 2,000
Accounts payable 12,672 9,465
Accrued expenses and other current liabilities 10,065 6,869
Income taxes payable 9,818 5,635
________ ________
Total current liabilities 36,555 23,969
________ ________
Long-term liabilities
Notes payable-bank 32,334 22,012
Term loan payable 8,500
Other liabilities 712 502
________ ________
Total liabilities 78,101 46,483
________ ________
Commitments and contingencies
Minority interest in consolidated subsidiary 305 207
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; liquidation preference $3,000 1 1
Common stock, $0.001 par value, 100,000,000 shares authorized, 41 41
40,822,136 and 40,742,136 issued
Additional paid in capital 35,544 35,384
Accumulated other comprehensive loss (53) (53)
Retained earnings 25,204 11,365
________ ________
Total stockholders' equity 60,737 46,738
________ ________
Total liabilities and stockholders' equity $139,143 $ 93,428
======== ========
*** End ***
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