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Datrek Miller International Announces 2005 Year-End Results; Organic Growth and Strategic Acquisitions Expected to Drive 2006 Growth.


SPRINGFIELD, Tenn. -- Datrek Miller International, Inc. ("DMI (Desktop Management Interface) The first desktop management standard from the DMTF. Enabling PCs to be monitored from a central console, it was superseded by the DMTF's Common Information Model (see CIM). ") (OTCBB OTCBB

See OTC Bulletin Board (OTCBB).
: DMLL), a leading supplier of products and value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions.  to the golf industry, reported its year-end results for fiscal 2005.

Revenues for the year ended December 31, 2005 were $26.6 million compared to $9.3 million reported for 2004. The revenue increase in 2005 was due to the integration of the Datrek Professional Bags ("Datrek"), which was acquired in October 2004, into three selling channels, which include Off-Course, On-Course and Premium International OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and . Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts.

The phrase pro forma
 revenue for 2005, assuming Datrek was acquired on January 1, 2004, would have been $26.0 million.

Gross profit margin Gross profit margin

Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.


gross profit margin

A measure calculated by dividing gross profit by net sales.
 for 2005 was 25.3%, or $6.7 million, as compared to 15.1%, or $1.4 million, in 2004. The gross profit margin improvement in 2005 was due to sale of higher margin products, lower overhead costs overhead costs

see fixed costs.
 as a percentage of revenues, and higher volume across all three sales channels. DMI's net loss in 2005 was $6.9 million, or $1.21 loss per share, compared to $6.2 million, or $2.86 loss per share, in 2004.

"We worked diligently dil·i·gent  
adj.
Marked by persevering, painstaking effort. See Synonyms at busy.



[Middle English, from Old French, from Latin d
 in 2005 to improve the quality of service we provided our customers by expanding our sales and customer service organizations. We also formed process improvement teams to strengthen our operational infrastructure," said Michael Hedge, Chairman of the Board and Chief Executive Officer of DMI. "We are very optimistic op·ti·mist  
n.
1. One who usually expects a favorable outcome.

2. A believer in philosophical optimism.



op
 about 2006 and believe that we can continue to expand our sales through our current product lines within new and existing distribution channels. Our management team and systems infrastructure is now robust enough to support strategic acquisitions as the right opportunities present themselves."

"I am pleased with the operational improvements implemented during the latter half of 2005 and continuing into 2006," commented Randy Frapart, DMI's Chief Financial Officer. "During the first quarter of 2006, we successfully restructured our revolving credit Revolving Credit

A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs.
 facility, which greatly improved our available credit while lowering our borrowing costs. Our principal shareholder, Stanford International Bank, Ltd., has also made available the framework to increase our equity base in conjunction with acquisitions."

Recent Highlights

During the past year, DMI realized several significant accomplishments in its efforts to execute strategic growth objectives including:

--The completion of the integration of Miller Golf's Rockland, Massachusetts-based operation into the Datrek operations located in Springfield, Tennessee Springfield is a city in Robertson County, Tennessee, United States. The population was 14,329 at the 2000 census. It is the county seat of Robertson CountyGR6. .

--The recruitment and relocation of four new members of DMI's executive management team including the COO, CFO See Chief Financial Officer. , and divisional Vice Presidents for the On Course and the Premium International OEM channels.

--The closing of a transaction establishing a new business venture between DMI and Chatham Plastic Ventures, Inc., DMI's largest provider of plastic bag tags Bag tags, also known as baggage tags, baggage checks or luggage tickets, have traditionally been used by airlines to route passenger luggage that is checked in to the final destination.  and accessories. This vertical integration effort will help to ensure the continuing availability of key product components.

--The creation of a strategic alliance with world-renowned PGA (1) (Professional Graphics Adapter) An early IBM PC display standard for 3D processing with 640x480x256 resolution. It was not widely used.

(2) (Programmable Gate Array) See gate array and FPGA.
 teaching Professional Rob Akins to serve as a spokesperson for the Company and develop a line of golf training aids Any item developed or procured with the primary intent that it shall assist in training and the process of learning. . This effort will increase product offerings and create further sales channel expansion.

--The restructuring of the Company's revolving credit facility, expanding its borrowing base and lowering interest costs.

Business Outlook

DMI is building a successful business comprised of long standing and loyal customers, top-notch management, and high-quality products and services, and expects to leverage all of these components to become a leader in the golf industry. To achieve its goals in 2006, DMI plans to continue to:

--Enhance its sales and marketing processes and grow current and future product lines within existing and new customer channels.

--Increase product offerings through strategic acquisitions and/or alliances.

--Leverage operational expertise over a broader product offering.

--Develop a golf events division to gain a portion of the tournament and events market.

--Make further investments in information technology in order to provide customers, vendors and employees as close to real-time information as possible on a 24 by 7 basis.

The Company believes it is now poised to take advantage of the opportunities and present market conditions within the golf industry to deliver its shareholders considerable financial improvement over the next eighteen months.

About Datrek Miller International, Inc.

Datrek Miller International, Inc. (DMI) is a leading supplier of products and value-added services to the golf industry. For over 50 years, the Years, The

the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109]

See : Time
 Company has a history and reputation for designing, manufacturing, marketing, and supplying premium golf accessories including golf bags, travel covers, bag tags, head covers, towels, luggage, and a wide assortment of gifts and awards. DMI services over 7000 points of sale through multiple distribution channels with a wide selection of products and value-added services representing multiple brands within the golf industry.

This release contains forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties, including without limitation, our success in integrating the operations of any newly-acquired businesses, and associated reduction in costs, strategic acquisitions, continued and increased demand for our products, general economic conditions, the successful negotiation of the potential acquisition and disposal of transactions described above, successful implementation of the company's business strategy and competition, any of which may cause actual results to differ materially from those described in the statements. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent Form 10-QSB and Form 10-KSB filings with the Securities and Exchange Commission. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Apr 4, 2006
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