EX-99.1 3 exhibit99-1.txt NEWS RELEASE OF DHB INDUSTRIES, INC. ... 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 ======= =======