EX-99 2 ex99-1.txt EXHIBIT 99.1 - PRESS RELEASE DATED 11-09-04 EXHIBIT 99.1 DHB Industries, Inc. November 9, 2004 DHB Industries Inc. NEWS FROM DHB INDUSTRIES, INC. 400 Post Avenue; Suite 303 o Westbury, NY 11590 T: 516/997-1155 o F: 516/997-1144 o 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 ACHIEVES RECORD THIRD QUARTER RESULTS - EPS INCREASES 157% TO RECORD $0.18 - - REVENUE CLIMBS 64% TO RECORD $89.4 MILLION - - COMPANY UPS GUIDANCE FOR FULL-YEAR 2004 REVENUE TO EXCEED $330 MILLION - -DHB HAS ANNOUNCED OVER ONE-HALF BILLION DOLLARS IN ORDERS OVER THE PAST TWELVE MONTHS - WESTBURY, NY - (November 9, 2004) DHB INDUSTRIES, INC. (AMEX: DHB), the market leader in the rapidly growing body armor industry, announced today record revenues and earnings for the third quarter ended September 30, 2004, posting its 19th consecutive year-over-year increase in quarterly revenues. The current backlog of firm orders exceeds $365 million. For the third quarter ended September 30, 2004, DHB reported record revenues of $89,410,000, an increase of 64% as compared to revenues of $54,417,000 for the third quarter of 2003. Operating income increased 130% in the third quarter of 2004 to a record $13,282,000 as compared to $5,763,000 in the third quarter of 2003. Third quarter 2004 income available to common stockholders was a record $8,058,000 or $0.18 per diluted share, a 157% increase as compared to $0.07 per diluted share or $3,160,000, in the third quarter of 2003. The effective tax rate for the third quarter of 2004 was 36.6% as compared to 40.7% in the third quarter of 2003. Weighted shares outstanding on a diluted basis for the third quarter of 2004 were 45,962,109 as compared to 44,510,790 for the third quarter of 2003. Gross margins for the third quarter of 2004 were 27.8% versus 27.2% in the third quarter of 2003. Selling, general and administrative expenses ("SG&A expenses") for the third quarter of 2004 were 13.0% of net sales versus 16.6% of net sales for the third quarter of 2003. For the nine months ended September 30, 2004, DHB reported record revenues of $249,879,000, an increase of 59% as compared to revenues of $157,095,000 for the first nine months of 2003. Operating income increased 80% in the first nine months to a record $37,165,000 as compared to $20,689,000 in the first nine months of 2003. Income available to common stockholders in the first nine months was a record $21,897,000 or $0.49 per diluted share, an 82% increase as compared (Page 1) DHB Industries, Inc. EXHIBIT 99.1 November 9, 2004 to $12,050,000, or $0.28 per diluted share in the first nine months of 2003. The effective tax rate for the first nine months of 2004 was 38.3% as compared to 39.9% in the first nine months of 2003. Weighted shares outstanding on a diluted basis for the first nine months of 2004 were 45,614,473 as compared to 44,053,330 for the first nine months of 2003. Gross margins for the first nine months of 2004 were 27.8% versus 27.6% in the first nine months of 2003. Selling, general and administrative expenses ("SG&A expenses") for the first nine months of 2004 were 13.0% of net sales versus 14.4% of net sales for the first nine months of 2003. Stockholders' equity rose to a record $68,795,000 at September 30, 2004, a 47% increase as compared to $46,738,000 at year-end December 31, 2003. THIRD QUARTER & RECENT HIGHLIGHTS: o In the third quarter of 2004, DHB Industries began shipping on its recently announced three-year, $239.4 million purchase contract from the US Army for DHB's new Dorsal Axillary Protection System (D.A.P.S.). D.A.P.S. is an entirely new product line that is complementary to DHB's enormously successful Interceptor Outer Tactical Vest, which provides the same level of ballistic protection to areas of the body not covered by the Interceptor, specifically including the underarm, shoulder and upper arm. o Since October 5, 2004, DHB has announced new purchase and delivery orders totaling $78.6 million, including a $24.6 million order from the US Mission Iraq for body armor for Iraqi military and law enforcement personnel. All of the $78.6 million of new orders were for body armor products other than Interceptor vests. Sandra Hatfield, COO of DHB Industries, commented, "We continue to meet or exceed all of our internal operating and performance goals. Our base of business is strengthening in all segments - military, state and local law enforcement, and federal agencies - and we believe we are increasing market share in all segments. We are especially encouraged by substantial orders we have recently received that are either for new products or are from new customers. Lastly, we are extremely excited about the prospects of a number of R & D initiatives as well as new products currently in either prototype or field testing stage." David Brooks, Chairman and CEO of DHB Industries, added, "Our strength, commitment and leadership position within the body armor industry is extremely strong. Over the past year, DHB has announced new contracts and purchase orders totaling more than $525 million. To date, our Point Blank subsidiary, providing life-saving protection for our troops, has shipped more than 800,000 Interceptor Outer Tactical Vests to the US military. The surging operating performance and earnings leverage of the Company is largely a result of the significant investments we made over the past three years in R&D, expanding our manufacturing capacity by opening two new facilities totaling over 150,000 square feet, and significantly increasing our base of versatile employees. As we look to the future outlook of DHB, I can only say, this is just the beginning, the future is ours." (Page 2) DHB Industries, Inc. EXHIBIT 99.1 November 9, 2004 GUIDANCE AND OUTLOOK DHB continues to experience accelerating demand for its industry-leading protective body armor products. The Company is raising its previous guidance, and now expects revenues of at least $330 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 - Tuesday, November 9, 2004 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 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 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*** (Page 3) DHB Industries, Inc. EXHIBIT 99.1 November 9, 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 Nine Months Ended September 30, Ended September 30, ___________________________ ___________________________ 2004 2003 2004 2003 ___________ ___________ ___________ ___________ Net sales $ 89,410 $ 54,417 $ 249,879 $ 157,095 Cost of goods sold (includes related party purchases of $6,290, $6,802, $14,509, and $20,856, respectively) 64,537 39,599 180,361 113,785 ___________ ___________ ___________ ___________ Gross profit 24,873 14,818 69,518 43,310 Selling, general and administrative expenses 11,591 9,055 32,353 22,621 ___________ ___________ ___________ ___________ Income before other income (expense) 13,282 5,763 37,165 20,689 ___________ ___________ ___________ ___________ Other income (expense) Interest expense (389) (306) (1,047) (977) Proceeds from settlement of lawsuit -- -- -- 739 Other income 41 24 55 48 ___________ ___________ ___________ ___________ Total other income (expense) (348) (282) (992) (190) ___________ ___________ ___________ ___________ Income before income taxes and minority interest 12,934 5,481 36,173 20,499 Income taxes 4,728 2,231 13,850 8,179 ___________ ___________ ___________ ___________ Income before minority interest of subsidiary 8,206 3,250 22,323 12,320 Minority interest of subsidiary (58) -- (156) -- ___________ ___________ ___________ ___________ Net income 8,148 3,250 22,167 12,320 Dividend - preferred stock (90) (90) (270) (270) ___________ ___________ ___________ ___________ Income available to common stockholders $ 8,058 $ 3,160 $ 21,897 $ 12,050 =========== =========== =========== =========== Earnings per common share: Basic shares $ 0.20 $ 0.08 $ 0.54 $ 0.30 =========== =========== =========== =========== Diluted shares $ 0.18 $ 0.07 $ 0.49 $ 0.28 =========== =========== =========== =========== Weighted average shares outstanding: Basic shares 40,891,896 40,594,746 40,814,675 40,490,062 Effect of convertible preferred 500,000 500,000 500,000 500,000 Warrants 4,570,213 3,416,044 4,299,798 3,063,268 ___________ ___________ ___________ ___________ Diluted shares 45,962,109 44,510,790 45,614,473 44,053,330 =========== =========== =========== ===========
*** BALANCE SHEET TO FOLLOW*** (Page 4) DHB Industries, Inc. EXHIBIT 99.1 November 9, 2004
DHB INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2004 (UNAUDITED) AND DECEMBER 31, 2003 (In thousands, except share and per share data) September 30, December 31, 2004 2003 ________ ____________ ASSETS Current assets Cash and cash equivalents $ 87 $ 441 Accounts receivable, less allowance for doubtful accounts of $901 and $852, respectively 53,622 33,707 Inventories 81,970 54,753 Deferred income tax assets 632 372 Prepaid expenses and other current assets 1,498 1,518 ________ ________ Total current assets 137,809 90,791 ________ ________ Property and equipment, net 2,846 1,819 ________ ________ Other assets Deferred income tax assets 302 437 Deposits and other assets 382 381 ________ ________ Total other assets 684 818 ________ ________ Total assets $141,339 $ 93,428 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current maturities of term loan payable $ 4,000 $ 2,000 Accounts payable (includes 3,179 owed to a related party at September 30, 2004) 14,600 9,465 Accrued expenses and other current liabilities 9,216 5,635 Income taxes payable 11,042 6,869 ________ ________ Total current liabilities 38,858 23,969 Long-term liabilities Notes payable-bank 24,890 22,012 Term loan payable 7,500 Other liabilities 933 502 ________ ________ Total liabilities 72,181 46,483 ________ ________ Commitments and contingencies Minority interest in consolidated subsidiary 363 207 ________ ________ 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 41 41 authorized, 40,922,416 and 40,742,136 issued Additional paid in capital 35,544 35,384 Accumulated other comprehensive loss (53) (53) Retained earnings 33,262 11,365 ________ ________ Total stockholders' equity 68,795 46,738 ________ ________ Total liabilities and stockholders' equity $141,339 $ 93,428 ======== ========
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