Defense Industries International Reports First Quarter 2004 Financial Results.Business Editors ASHKELON, Israel--(BUSINESS WIRE)--May 17, 2004 Defense Industries International, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DFNS), a leading manufacturer and global provider of personal military and civilian protective equipment and supplies, today announced its financial results for the first quarter ended March 31, 2004. Revenues for the quarter ended March 31, 2004 were $3.75 million, an increase of 18% compared to revenues of $3.17 million for the three months ended March 31, 2003. The Company reported comprehensive income for the quarter of $273,396, compared to comprehensive income of $196,292 for the first quarter of 2003. Comprehensive income for each period includes adjustments related to foreign currency translation and unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. or losses on securities available for sale. Excluding these adjustments, net income for the period was $349,224, or $0.01 per share, an increase of 100% compared with net income of $174,112, or $0.01 per share for the comparable period in 2003. Total shares outstanding used in the calculation of EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for both periods was 25,350,000. Gross profit for the first quarter of 2004 was $966,239, compared with gross profit of $894,332 for the first quarter of 2003. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter increased 41% to $538,625, compared with $382,308 for the year-ago period. Revenues for the quarter included sales of approximately $0.7 million to the local market, compared with local sales of $1.42 million for the first quarter of 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight from exports increased approximately 74% to $3.05 million, from $1.75 million in the first quarter of 2003. Commenting on the results, Joseph Fostbinder, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Defense Industries said, "We are extremely pleased with our results for the first quarter of 2004 as we saw continued successful implementation of our growth strategy, resulting in a substantial year-over-year increase in our export sales. While our sales to the local market decreased in comparison to the first quarter of 2003, the 74% increase in export revenues offset the local decline and allowed us to achieve net revenue growth for the quarter." He continued, "We received several large orders from key customers in North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. during the first quarter and have seen this trend continue into the early part of the second quarter. Our recently introduced ballistic bal·lis·tic adj. 1. a. Of or relating to the study of the dynamics of projectiles. b. Of or relating to the study of the internal action of firearms. 2. plates and lightweight vehicle armor kits were a major contributor to our revenue growth and the reaction to the products from our initial customers has been extremely positive. These products address a growing need in the market and we believe that our offering is among the best available, as evidenced by the recent receipt of a $1 million follow-on order from a North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. customer. We believe that a great deal of potential exists for continued successful cooperation in this arena, both as a result of the overall quality of our products and the strong relationship we have developed with this customer since our initial sales at the beginning of the year." "We continue to see positive signs from the South American market, which is integral to our international growth strategy. During the first quarter, we added several new customers and received follow-on orders from several existing customers in the region, resulting from the combination of our direct sales efforts and the activities of our joint venture partner in the area." Mr. Fostbinder concluded, "Our sales and marketing efforts in the region remain extremely aggressive, as we believe that a significant opportunity exists for further growth in the market going forward. We recently exhibited at the FIDAE FIDAE Federazione Istituti di Attività Educative (Italian labor union) 2004 International Air & Space Fair in Santiago, Chile Santiago, officially Santiago de Chile (Spanish: (helpinfo)), is the capital of Chile, and the center of its largest conurbation (Greater Santiago). , the largest military and security trade show in South America. We received a great deal of interest in our products throughout the event from a number of high-profile potential customers, including government and municipal agencies, as well as private-sector companies. Perhaps more encouraging than the level of interest itself was the positive reaction to our more recent product offerings, including vehicle armor, our patented ballistic wall covering and minefield shoes, as well as our traditional products; bulletproof Refers to extremely stable hardware and/or software that cannot be brought down no matter what unusual conditions arise. See industrial strength. bulletproof - Used of an algorithm or implementation considered extremely robust; lossage-resistant; capable of correctly vests, body armor Noun 1. body armor - armor that protects the wearer's whole body body armour, cataphract, coat of mail, suit of armor, suit of armour armet - a medieval helmet with a visor and a neck guard , dry storage and liquid logistics Liquid Logistics is a special category of logistics that relates to liquid products, and is utilized extensively in the "Supply Chain for Liquids" discipline. Standard logistics techniques are generally used for discrete or unit products. systems. We are confident in our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the continued growth opportunities that exist for Defense Industries and believe that we can continue to successfully execute on our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategic growth initiatives." About Defense Industries International, Inc. Defense Industries International, Inc. ("Defense Industries") (www.defense-industries.com) is a leading manufacturer and global provider of personal military and civilian protective equipment and supplies. Defense Industries' subsidiary, Export Erez Ltd., was formed and registered in 1983. Defense Industries' main products include body armor, bomb disposal suits and bullet-resistant vests and jackets; ballistic wall covers, helmets, plates and one-way protective windows; personal military equipment, battle pouch pouch (pouch) a pocket or sac. abdominovesical pouch one formed by reflection of the peritoneum from the abdominal wall to the anterior surface of the bladder. units and combat harness units; dry storage units, liquid logistics, tents and vehicle covers; and winter suits, sleeping bags and backpacks. Defense Industries' products are used by military, law enforcement, border patrol enforcement and other special security forces, corporations, non-governmental organizations “NGO” redirects here. For other uses, see NGO (disambiguation). A non-governmental organization (NGO) is a legally constituted organization created by private persons or organizations with no participation or representation of any government. and individuals throughout the world. Customers include the Israel Defense Forces, the North Atlantic Treaty Organization North Atlantic Treaty Organization (NATO), established under the North Atlantic Treaty (Apr. 4, 1949) by Belgium, Canada, Denmark, France, Great Britain, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal, and the United States. (NATO NATO: see North Atlantic Treaty Organization. NATO in full North Atlantic Treaty Organization International military alliance created to defend western Europe against a possible Soviet invasion. ), the United Nations Peacekeeping Forces peacekeeping force n → fuerza de pacificación peacekeeping force n → forces fpl qui assurent le maintien de la paix and other U.N. organizations. Defense Industries manufactures its own products, thereby enabling it to offer highly competitive pricing and to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. product orders on a rapid and efficient basis. Its manufacturing facilities meet American EQNET EQNET Earthquake Information Network and international ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 standards. Quality control in the Company's manufacturing facilities is performed according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. ISO 9001; MIL.STD (Subscriber Trunk Dialing) Long distance dialing outside of the U.S. that does not require operator intervention. STD prefix codes are required and billing is based on call units, which are a fixed amount of money in the currency of that country. .105D; MIL-I-45208A (for the U.S. Armed Forces); AQAP AQAP Allied Quality Assurance Publication AQAP Air Quality Attainment Plan AQAP Allied Quality Assurance Provision AQAP As Quickly As Possible (for the German Armed Forces and NATO); and the National Institute of Justice (N.I.J.). Defense Industries' strategic objective is to be the leading global provider of personal military and civilian protective equipment and supplies. Defense Industries intends to realize its strategic objective by, amongst other methods, selectively pursuing strategic acquisitions that enhance its product lines and geographic presence in an effort to consolidate its highly fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. industry and to create a more diverse and global reach in its marketplace. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This press 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. as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to publicly release to these forward-looking statements made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Neither the Company nor its agents assume responsibility for the accuracy and completeness of the forward-looking statements. This release and prior releases are available on the KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Worldwide website at www.kcsa.com. (Tables to Follow)
DEFENSE INDUSTRIES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS March 31, December
------ 2004 31, 2003
CURRENT ASSETS (Unaudited)
----------------------
Cash and cash equivalents $1,096,023 $784,026
Trade accounts receivable, net 2,184,878 1,912,747
Trade accounts receivable -
related parties, net 329,404 322,373
Inventory 1,962,507 2,115,825
Investment in marketable securities 692,564 704,046
Deferred taxes 41,066 45,353
Other assets 459,372 422,489
----------------------
Total Current Assets 6,765,814 6,306,859
----------------------
PROPERTY, PLANT AND EQUIPMENT, NET 1,697,162 1,662,902
----------------------
OTHER ASSETS
Deposits for the severance of
employer-employee relations 431,908 437,963
Deferred taxes, long-term 233,154 232,713
Intangible assets 37,268 41,105
----------------------
Total Other Assets 702,330 711,781
----------------------
TOTAL ASSETS $9,165,306 $8,681,542
------------ ======================
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Trade accounts payable $886,952 $730,562
Short-term debt 433,742 719,642
Current portion of long-term debt 426,103 489,524
Other liabilities 1,161,675 603,514
Total Current Liabilities 2,908,472 2,543,242
----------------------
LONG-TERM LIABILITIES
Long-term portion of debt 632,080 728,678
Provisions for the severance of employer-
employee relations 290,010 290,573
Minority interest 837,866 852,914
Total Long-Term Liabilities 1,759,956 1,872,165
----------------------
TOTAL LIABILITIES 4,668,428 4,415,901
----------------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Preferred stock, $.0001 par value, 50,000,000
shares authorized, none issued and outstanding - -
Common stock, $.0001 par value, 250,000,000
shares authorized, 25,350,000 issued and
outstanding 2,535 2,535
Common stock to be issued (250,000 shares) - -
Additional paid-in capital 1,711,450 1,711,450
Retained earnings 3,117,005 2,767,781
Accumulated other comprehensive loss (334,112) (215,631)
Total Shareholders' Equity 4,496,878 4,266,135
----------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $9,165,306 $8,681,542
------------------------------------------ ======================
DEFENSE INDUSTRIES INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(UNAUDITED)
Three Months Ended
March 31,
----------------------
2004 2003
----------------------
NET REVENUES $3,746,079 $3,168,144
Cost of sales 2,779,840 2,273,812
----------------------
Gross profit 966,239 894,332
----------------------
OPERATING EXPENSES
Selling 120,919 188,676
General and administrative 306,697 323,348
----------------------
TOTAL OPERATING EXPENSES 427,616 512,024
----------------------
INCOME FROM OPERATIONS 538,625 382,308
----------------------
OTHER INCOME (EXPENSE)
Financial (expense), net (24,482) (70,753)
Other income - net 27,198 -
----------------------
TOTAL OTHER INCOME (EXPENSE) 2,716 (70,753)
----------------------
INCOME BEFORE INCOME TAXES 541,339 311,555
Less: Income tax expense 194,338 129,247
----------------------
INCOME BEFORE MINORITY INTEREST 347,001 182,308
Minority interest loss (income) 2,223 (8,196)
----------------------
NET INCOME 349,224 $174,112
----------------------
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain (loss),
net of minority interest translation
gain (loss) (118,481) 37,858
Unrealized gain (loss) on available-for-sale
securities - (3,202)
----------------------
Other comprehensive income (loss) before tax (118,481) 34,656
Income tax (expense) benefit related to
items of other comprehensive income 42,653 (12,476)
----------------------
TOTAL OTHER COMPREHENSIVE INCOME (LOSS),
NET OF TAX (75,828) 22,180
----------------------
COMPREHENSIVE INCOME $273,396 $196,292
-------------------- ======================
Net income per ordinary share - basic and
diluted $0.01 $0.01
======================
Weighted average of number of shares
outstanding during the period - basic and
diluted 23,350,000 25,350,000
======================
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion