DHB Industries, Inc. EXHIBIT 99.1
March 16, 2005
[COMPANY LOGO] NEWS FROM DHB INDUSTRIES, INC.
400 Post Avenue; Suite 303 * Westbury, NY 11590
T:516/997-1155 * 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 POSTS RECORD FOURTH QUARTER RESULTS
- FOURTH QUARTER EPS INCREASES 200% TO RECORD $0.18 -
- FOURTH QUARTER REVENUES CLIMB 24% TO RECORD $90.2 MILLION -
-FULL-YEAR 2004 REVENUES INCREASE 48% TO A RECORD $340 MILLION -
- DHB ANNOUNCED APPROXIMATELY $544 MILLION IN NEW ORDERS IN 2004-
WESTBURY, NY - (March 16, 2005) DHB INDUSTRIES INC. (AMEX: DHB), a provider of
body armor to the military, law enforcement and federal agencies, announced
today record revenues and earnings for the fourth quarter and full-year ended
December 31, 2004, posting its 20th consecutive year-over-year increase in
quarterly revenues. The current backlog of firm orders exceeds $415 million.
For the fourth quarter ended December 31, 2004, DHB reported record revenues of
$90,196,000, an increase of 24% as compared to revenues of $72,916,000 for the
fourth quarter of 2003. Gross margins for the fourth quarter of 2004 were 27.3%
versus 27.5% in the fourth quarter of 2003. Selling, general and administrative
expenses ("SG&A expenses") for the fourth quarter of 2004 were 13.5% of net
sales versus 20.2% of net sales for the fourth quarter of 2003.
Operating income for the fourth quarter increased 133% to $12,406,000 as
compared to $5,327,000 for 2003. Operating margins in the fourth quarter
increased to 13.8% in 2004 from 7.3% in 2003. Fourth quarter 2004 income
available to common stockholders was $8,178,000 or $0.18 per diluted share, as
compared to $2,762,000, or $0.06 per diluted share in the fourth quarter of
2003. The effective tax rate for the fourth quarter of 2004 was 30.87% as
compared to 50.52% in the fourth quarter of 2003. Weighted shares outstanding on
a diluted basis for the fourth quarter of 2004 were 46,082,240 as compared to
45,049,051 for the fourth quarter of 2003.
For the full year ended December 31, 2004, total revenues increased 47.9% to a
record $340,075,000 as compared to $230,011,000 for the full year ended December
31, 2003. Gross margins for the 2004 year were 27.7% as compared to 27.5% for
the 2003 year. SG&A expenses for the 2004 year decreased to 13.1% of net sales
versus 16.2% of net sales for the 2003 year.
DHB Industries, Inc. EXHIBIT 99.1
March 16, 2005
Operating income for the 2004 full year increased 90.5% to a record $49,571,000
as compared to $26,016,000 for the 2003 year. Operating margins increased to
14.6% in 2004 from 11.3% in 2003. Income available to common stockholders for
the full year 2004 rose 103% to $30,075,000 or $0.67 per diluted share as
compared to $14,812,000, or $0.34 per diluted share in 2003. The effective tax
rate for the 2004 full year was 36.4% as compared to 42.2% in 2003. Weighted
shares outstanding on a diluted basis for the 2004 full year were 45,735,023 as
compared to 44,196,802 for the 2003 full year.
FOURTH QUARTER HIGHLIGHTS:
o DHB's subsidiary, Point Blank Body Armor, Inc. ("Point Blank" -
HTTP://WWW.POINTBLANKARMOR.COM), was the only recipient of a three-year
contract awarded in December 2004 by the U.S. Army for Point Blank's
Interceptor(TM) Outer Tactical Vest (OTV). DHB received an initial
delivery order on the award valued at $100 million on December 23,
2004.
o In December 2004, DHB appointed U.S. Army 4-Star General (Ret.) Larry
R. Ellis to its Board of Directors.
o During the fourth quarter of 2004, DHB continued shipments on a
three-year, $239.4 million purchase contract it was awarded in June
2004 from the U.S. Army for the new Deltoid Auxiliary Protection System
(D.A.P.S.). D.A.P.S. is an entirely new product line that is
complementary to DHB's Interceptor(TM) Outer Tactical Vest, which
provides ballistic protection to areas of the body not covered by the
Interceptor(TM), including the under-arm, shoulder and upper arm.
o In the fourth quarter, DHB announced new purchase and delivery orders
totaling $178.6 million, including a $24.6 million order from the U.S.
Mission Iraq for body armor for Iraqi military and law enforcement
personnel.
Sandra Hatfield, COO of DHB Industries, commented, "During the fourth quarter,
we continued to produce and deliver body armor at a record pace, meeting all of
our internal operating and performance goals. Moreover, our success as the sole
recipient of the U.S. Army OTV contract awarded in December capped a fourth
quarter full year of extrordinary effort by our company and our people. Our
business has grown in all segments - military, state and local law enforcement,
and federal agencies."
David Brooks, Chairman and CEO of DHB Industries, added, "During the 2004 full
year, DHB announced new contracts and purchase orders totaling approximately
$544 million. We have seen our backlog increase over the past three years from
$57 million in March 2003, to $132 million in March 2004, to $415 in March 2005.
Our Point Blank subsidiary, providing life-saving protection for our troops, has
shipped more than 850,000 Interceptor(TM) Outer Tactical Vests to the U.S.
military. Whereas our recent growth has been exceptional, we see additional
opportunities to both expand existing market share and enter new geographic
markets internationally."
DHB Industries, Inc. EXHIBIT 99.1
March 16, 2005
GUIDANCE AND OUTLOOK
Given our existing backlog and the current demand for our products, we
anticipate revenues will increase in 2005 as compared to 2004.
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 - Wednesday, March 16, 2005
o Time - 4:30 p.m. eastern standard time/1:30 p.m. pacific standard 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 a provider of body armor to the military,
law enforcement and federal agencies. Its 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's 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, Walgreen's, Long's Drug
Store, 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, AVAILABILITY OF
RAW MATERIALS,DEPENDENCE ON A MAJOR CUSTOMER, DEVELOPMENT OF NEW PRODUCTS,
GOVERNMENT CONTRACTING REQUIREMENTS, IMPACT OF COMPETITIVE PRODUCTS OR PRICING,
TECHNOLOGICAL CHANGES, EFFECT OF POLITICAL AND 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. EXHIBIT 99.1
March 16, 2005
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31,
(In thousands, except share and per share data)
FOR THE QUARTER ENDED FOR THE YEAR ENDED
DECEMBER 31, DECEMBER 31,
----------- ------------
2004 2003 2004 2003
---- ---- ---- ----
Net sales (including related party sales of $6,559, $90,196 $72,916 $340,075 $230,011
$3,750, $6,559, and $15,109, respectively)
Cost of goods sold (including related party purchases
of $3,118, $8,387, $17,627 and $29,243, respectively) 65,579 52,885 245,940 166,670
------- ------- -------- --------
Gross profit 24,617 20,031 94,135 63,341
Selling, general and administrative expenses 12,211 14,704 44,564 37,325
------- ------- -------- --------
Income before other income (expense) 12,406 5,327 49,571 26,016
------- ------- -------- --------
Other income (expense)
Interest expense (327) (366) (1,374) (1,344)
Write down of other investment (904) -- (904)
Gain on sale of subsidiary stock 1,450 -- 1,450
Other income (including insurance settlement of
$1,009 in 2003) (20) 272 35 1,059
------- ------- -------- --------
Total other income (expense) (347) 451 (1,339) 261
------- ------- -------- --------
Income before income tax (benefit) expense 12,059 5,778 48,232 26,277
Income taxes (benefit) expense
Current taxes 3,866 2,919 17,840 7,186
Deferred tax expense (benefit) (143) -- (267) 3,912
------- ------- -------- --------
Total income tax (benefit) expense 3,723 2,919 17,573 11,098
------- ------- -------- --------
Income before minority interest of subsidiary 8,336 2,859 30,659 15,179
Less minority interest of subsidiary (68) (7) (224) (7)
------- ------- -------- --------
Net income 8,268 2,852 30,435 15,172
Dividend - preferred stock (related party) (90) (90) (360) (360)
------- ------- -------- --------
Income available to common stockholders $8,178 $2,762 $30,075 $14,812
======= ======= ======== =======
Basic earnings per common share $0.19 $0.07 $0.73 $0.36
======= ======= ======== =======
Diluted earnings per common share $0.18 $0.06 $0.67 $0.34
======= ======= ======== =======
Weighted average shares outstanding
Basic shares 42,410,791 40,687,774 41,217,312 40,588,605
Effect of convertible preferred 500,000 500,000 500,000 500,000
Warrants 3,171,449 3,861,277 4,017,711 3,108,197
---------- ---------- ---------- ----------
Diluted shares 46,082,240 45,049,051 45,735,023 44,196,802
========== ========== ========== ==========
***Balance Sheet to Follow***
DHB Industries, Inc. EXHIBIT 99.1
March 16, 2005
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
DECEMBER 31,
ASSETS 2004 2003
---- ----
Current assets:
Cash and cash equivalents $447 $441
Accounts receivable, less allowance for doubtful
accounts of $702 and $852, respectively 47,560 33,707
Accounts receivable - related party 6,583 -
Inventories 85,973 54,753
Deferred income tax assets 483 372
Prepaid expenses and other current assets 1,220 1,518
-------- -------
Total current assets 142,266 90,791
-------- -------
Property and equipment, net 2,632 1,819
-------- -------
Other assets
Deferred income tax assets 593 437
Deposits and other assets 366 381
Total other assets 959 818
-------- -------
Total assets $145,857 $93,428
======== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,014 $9,465
Accrued expenses and other current liabilities 8,350 5,635
Note payable - bank 4,000 2,000
Income taxes payable 14,816 6,869
-------- -------
Total current liabilities 35,180 23,969
-------- -------
LONG TERM LIABILITIES
Notes payable-bank 25,634 22,012
Term loan payable 6,500 --
Other liabilities 1,086 502
-------- -------
Total liabilities 68,400 46,483
-------- -------
Minority interest in consolidated subsidiary 431 207
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;
liquidation preference $3,000 1 1
Common stock, $0.001 par value, 100,000,000 shares
authorized, 45,282,536 and 40,742,136 shares issued and
outstanding, respectively 45 41
Additional paid in capital 35,540 35,384
Accumulated other comprehensive loss -- (53)
Retained earnings 41,440 11,365
-------- -------
Total stockholders' equity 77,026 46,738
-------- -------
Total liabilities and stockholders' equity $145,857 $93,428
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