EXHIBIT 99.1
[COMPANY LOGO APPEARS HERE] NEWS FROM DHB INDUSTRIES INC.
400 Post Avenue: Suite 303 Westbury, NY 11590
T: 516/997-1155 F: 516/997-1144 www.dhbindustries.com
Company Contact: Ishmon Burks, VP iburks@dhbt.com
DHB INDUSTRIES REPORTS RECORD SECOND QUARTER RESULTS
[COMPANY LOGO APPEARS HERE] NEWS FROM DHB INDUSTRIES INC.
400 Post Avenue: Suite 303 Westbury, NY 11590
T: 516/997-1155 F: 516/997-1144 www.dhbindustries.com
Company Contact: Ishmon Burks, VP iburks@dhbt.com
WESTBURY, NY - July 28, 2005 - DHB Industries Inc. (AMEX: DHB), which
principally operates in the rapidly growing field of body armor, announced today
results for the second quarter ended June 30, 2005. DHB posted record second
quarter revenues of over $88 million and its 22nd consecutive year-over-year
increase in quarterly revenues.
For the second quarter ended June 30, 2005, DHB reported revenues of $88,196,000
as compared to revenues of $86,066,000 in the second quarter of 2004. DHB was
cash flow positive, generating $13,252,000 in cash from operations this quarter.
During the second quarter of 2004, DHB was cash flow negative, using cash in
operations of $16,257,000. Operating income was $12,642,000 as compared to
$12,990,000 in the comparable year-ago period. Income available to common
stockholders was $7,598,000 as compared to $7,570,000 in the second quarter of
2004. Earnings per share was $0.17 per diluted share as compared to $0.17 per
diluted share reported in the year-ago period. The effective tax rate was 35.5%
as compared to 39.1% in the second quarter last year. Weighted shares
outstanding on a diluted basis were 46,021,501 as compared to 45,739,277 in the
comparable 2004 period.
The gross profit margin for the second quarter of 2005 was 27.2% versus 27.7% in
the comparable year-ago period. Selling, general and administrative expenses
were 12.9% of net sales versus 12.7% of net sales for the second quarter of
2004.
For the six months ended June 30, 2005, DHB reported record revenues of
$173,661,000 as compared to revenues of $160,469,000 for the first six months of
2004. DHB was cash flow positive during this period, generating $8,291,000 of
cash from operations. During the second quarter of 2004, the Company was cash
flow negative, using cash in operations of $19,425,000. Operating income
increased to a record $25,213,000 as compared to $23,883,000 in the first six
months of 2004. Income available to common stockholders was a record $15,217,000
or $0.33 per diluted share as compared to $13,839,000 or $0.30 per diluted share
in comparable period last year. The effective tax rate was 35.5% as compared to
39.6% reported in the comparable six month period of 2004.
Stockholders' equity rose to $92,799,000 at June 30, 2005, a 20.5% increase as
compared to $77,026,000 at year-end December 31, 2004 and an increase of 8.9% as
compared to $85,201,000 at March 31, 2005.
Commenting on the Company's second quarter performance, General (Ret.) Larry
Ellis said, "I am very pleased with the progress we've made this past quarter,
as we continue to execute on our strategy to become the leading and trusted
provider of protective body armor to the U.S. Armed Forces, and our nation's
federal, state and law enforcement agencies. Our second quarter results are
indicative of the ongoing demand for our products and reinforce the quality and
reliability that our customers have come to depend upon. The management team at
DHB remains focused on driving both top-and bottom-line results and we believe
our efforts to strengthen our senior staff, improve business processes and
expand our market presence both domestically and internationally will lead to
enhanced shareholder value over the long-term."
DHB REPORTS RECORD SECOND QUARTER RESULTS
PAGE 2 OF 5
Sandra Hatfield, the Company's Chief Operating Officer, said, "We continue to
work very closely with our customers and partners to ensure that our products
and services exceed their expectations. And despite ongoing industry-wide supply
issues, we have continued to meet customer demand. I'm encouraged by the strong
receptivity our products have received in the market place, and the steps we are
taking to drive product innovation."
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:
* Date: Thursday, July 28, 2005
* Time: 4:30 p.m. eastern daylight time / 1:30 p.m.
pacific daylight time
* Dial-in Number: (866) 271-6130
* Live Internet broadcast and replay can be accessed at
http//www.dhbindustries.com
Those choosing to listen via the 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. The Question and Answer section of the conference call will be limited
to analysts and institutional investors who called the Company by 4:00 by
eastern daylight time on Wednesday, July 27, 2005 to receive an access code.
ABOUT DHB INDUSTRIES INC.
DHB Industries Inc.'s Armor Group is 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.
[COMPANY LOGO GOES HERE] NEWS FROM DHB INDUSTRIES INC.
400 Post Avenue: Suite 303 Westbury, NY 11590
T: 516/997-1155 F: 516/997-1144 www.dhbindustries.com
Company Contact: Ishmon Burks, VP iburks@dhbt.com
DHB REPORTS RECORD SECOND QUARTER RESULTS
PAGE 3 OF 5
DHB Sports Group produces and markets a comprehensive line of athletic supports
and braces which are merchandised through national superstore chains including
Wal-Mart, Walgreen's and Kerr Drugs as well as private label distributors such
as Meijer, Amerisource, Cardinal Health, and Chain Drug Marketing Association
(CDMA).
DHB maintains facilities in Westbury, NY, Deerfield Beach, FL, Pompano 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, WHICH ARE BASED LARGELY ON THE COMPANY'S
EXPECTATIONS AND ARE SUBJECT TO VARIOUS BUSINESS RISKS AND UNCERTAINTIES,
CERTAIN OF WHICH ARE BEYOND THE COMPANY'S CONTROL. WORDS SUCH AS "EXPECTS,"
"ANTICIPATES," "TARGETS," "GOALS," "PROJECTS," "INTENDS," "PLANS," "BELIEVES,"
"SEEKS," "ESTIMATES," VARIATIONS OF SUCH WORDS, AND SIMILAR EXPRESSIONS ARE
INTENDED TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING
STATEMENTS ARE ONLY PREDICTIONS THAT SPEAK AS OF THE DATE HEREOF AND ARE SUBJECT
TO RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT.
THEREFORE, ACTUAL RESULTS MAY DIFFER MATERIALLY AND ADVERSELY FROM THOSE
EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT CAUSE OR
CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED
IN OUR REPORTS ON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION. YOU ARE
CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS THAT
SPEAK ONLY AS OF THE DATE HEREOF. WE UNDERTAKE NO OBLIGATION TO REVISE OR UPDATE
PUBLICLY ANY FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGE IN THE
EXPECTATIONS OF OUR MANAGEMENT WITH REGARD THERETO OR ANY CHANGE IN EVENTS,
CONDITIONS, OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED.
COMPANY CONTACTS:
Ishmon F. Burks, VP Glenn Wiener
DHB Industries Inc. GW Communications for DHB
516/997-1155 or iburks@dhbt.com 212/786-6011 or gwiener@GWCco.com
*** STATEMENT OF OPERATIONS AND BALANCE SHEET TO FOLLOW ***
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 Six Months Ended
June 30, June 30,
2005 2004 2005 2004
------ ------ ------ ----
Net sales $88,196 $86,066 $173,661 $160,469
Cost of goods sold (includes related party purchases
of $2,535, $4,917, $11,874, and $8,219, respectively)
64,166 62,186 126,244 115,824
------ ------ ------- -------
Gross profit 24,030 23,880 47,417 44,645
Selling, general and administrative expenses 11,388 10,890 22,204 20,762
------ ------ ------- -------
Income before other income (expense) 12,642 12,990 25,213 23,883
------ ------ ------- -------
Other income (expense)
Interest expense (645) (359) (1,189) (658)
Other income 10 4 27 14
------ ------ ------- -------
Total other income (expense) (635) (355) (1,162) (644)
------ ------ ------- -------
Income before income taxes and minority interest 12,007 12,635 24,051 23,239
Income taxes 4,259 4,936 8,530 9,122
----- ----- ----- -----
Income before minority interest of subsidiary 7,748 7,699 15,521 14,117
Minority interest of subsidiary (60) (39) (124) (98)
------ ------ ------- -------
Net income 7,688 7,660 15,397 14,019
Dividend - preferred stock (90) (90) (180) (180)
------ ------ ------- -------
Income available to common stockholders $7,598 $7,570 $15,217 $13,839
====== ====== ======= =======
Earnings per common share:
Basic shares $0.17 $0.19 $0.34 $0.34
===== ===== ===== =====
Diluted shares $0.17 $0.17 $0.33 $0.30
===== ===== ===== =====
Weighted average shares outstanding:
Basic shares 45,300,796 40,808,345 45,297,388 40,776,064
Effect of convertible preferred 500,000 500,000 500,000 500,000
Warrants 220,705 4,430,932 269,315 4,164,590
------- --------- ------- ---------
Diluted shares 46,021,501 45,739,277 46,066,703 45,440,654
========== ========== ========== ==========
*** Balance Sheet to Follow ***
DHB INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2005 (UNAUDITED) AND
DECEMBER 31, 2004 (In thousands,
except share and per share data)
June 30, December 31,
ASSETS 2005 2004
---- ----
Current assets
Cash and cash equivalents $62 $447
Accounts receivable, less allowance for doubtful accounts of
$762 and $702, respectively 37,640 47,560
Accounts receivable - related party 6,583
Inventories 101,353 85,973
Deferred income tax assets 615 483
Prepaid expenses and other current assets 1,771 1,220
------- -------
Total current assets 141,441 142,266
------- -------
Property and equipment, net 2,477 2,632
------- -------
Other assets
Deferred income tax assets 580 593
Deposits and other assets 1,122 366
------- -------
Total other assets 1,702 959
------- -------
Total assets $145,620 $145,857
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of term loan payable $8,000 $4,000
Accounts payable 10,891 8,014
Accrued expenses and other current liabilities 7,160 8,350
Income taxes payable 5,373 14,816
------- -------
Total current liabilities 31,424 35,180
------- -------
Long-term liabilities
Notes payable-bank 10,708 25,634
Term loan payable 9,000 6,500
Other liabilities 1,134 1,086
------- -------
Total liabilities 52,266 68,400
------- -------
Commitments and contingencies
Minority interest in consolidated subsidiary 555 431
Stockholders' equity
Convertible preferred stock, $0.001 par value, 5,000,000 shares 1 1
authorized, 500,000 shares of Series A, 12% convertible preferred
stock issued and outstanding; liquidation preference $3,000
Common stock, $0.001 par value, 100,000,000 shares 45 45
authorized, 45,337,575 and 45,282,536 issued
Additional paid in capital 36,096 35,540
Retained earnings 56,657 41,440
------- -------
Total stockholders' equity 92,799 77,026
------- -------
Total liabilities and stockholders' equity $145,620 $145,857
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*** End ***