Guardian Technologies Announces 2nd Quarter Results; Posts Operating Profit of $103,000.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers CAREFREE, Ariz.--(BUSINESS WIRE)--Sept. 18, 2002 Guardian Technologies International Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GDTI), today announced results for the 2nd quarter ended June June: see month. 30, 2002. It should be noted that the discussion of results of operations for the three and six months ended June 30, 2002 reflects items of income and expense generated by the company's structural steel operations while the discussion of results of operations for the three and six months ended June 30, 2001 reflects items of income and expense generated by the company's armor operations. The reason for this is a transition from the equity method of accounting to consolidation accounting for reporting results of operations of its structural steel business due to a change in control and a change from consolidation accounting for reporting results of armor operations to the equity method of accounting due to a reduction of its ownership in that business from 51% to 33%. Results of Operations: Three Months Ended June 30, 2002 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 for the three months ended June 30, 2002 were $1,571,575 compared to $134,952 for the same period in 2001. Gross profit for the three months ended June 30, 2002 was $362,500 compared to gross profit of $51,960 for the same period last year. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the three months ended June 30, 2002 were $259,471 compared to total operating expenses in 2001 of $317,528. No selling expenses were incurred during the three months ended June 30, 2002 because the company's structural steel operation does not maintain a standing sales force. Sales are generated through a bid process administered by the General Manager and Vice President of this business unit. Total operating expenses in 2001 were comprised of selling expenses of $52,541 and general and administrative expenses of $264,987. The company posted a net loss for the three months ended June 30, 2002 of $8,631, or $nil per share compared to a net loss of $135,289, or $0.14 per share for the same period a year ago. The company generated income from operations for the three months ended June 30, 2002 of $103,029 compared to a loss from operations of $265,568 during the three months ended June 30, 2001. The company incurred interest charges of $64,186 (net of interest income) primarily attributable to debt associated with structural steel operations. Contributing to the company's overall net loss was $15,195 of losses in connection with the company's equity interest in armor operations. The company's overall net loss was partially offset by an allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of $38,978 of losses from structural steel operations allocated to minority interest shareholders. "The company generated income from operations during the current quarter compared to a loss during the same period a year ago because the company's structural steel operations completed several profitable projects. Last year, the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was generated by poor performance of the company's armor operations. "The potential for greater profitability in structural steel operations over that of armor operations was the dominant factor in the company's decision to shift the focus of management and available resources to build and promote that side of the business," stated J. Andrew Moorer, Guardian's president and 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. . "While 2002 business levels are not expected to match that of 2001 because of a general slowing in the economy, the infrastructure of this business sector has been changed to a point where the operation can achieve profitability on lower sales volume. "In addition, the policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental implemented in recent months are designed to eliminate or at a minimum reduce the impact of problems incurred while performing on a job, a situation not previously managed well and an area which caused substantial losses to be incurred in prior years," continued Moorer. Results of Operations: Six Months Ended June 30, 2002 Net sales for the six months ended June 30, 2002 were $2,567,799 compared to $244,129 for the same period in 2001. Gross profit for the six months ended June 30, 2002 was $421,912 compared to gross profit of $52,039 for the same period last year. Total operating expenses for the six months ended June 30, 2002 were $542,363 compared to total operating expenses in 2001 of $535,930. No selling expenses were incurred during the six months ended June 30, 2002 because the company's structural steel operation does not maintain a standing sales force. Sales are generated through a bid process administered by the general manager and vice president of this business unit. Total operating expenses in 2001 were comprised of selling expenses of $100,432 and general and administrative expenses of $435,498. General and administrative expenses for the three months ended June 30, 2002 increased $106,865 over that of the previous year. The reason for the increase is that the company's structural steel operation generates large depreciation expense charges due to extensive capital equipment requirements. In addition, the company incurred $43,500 of consulting expenses during the first quarter at the corporate level for which common stock of the company was issued in the previous year. These costs were classified as a prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. asset at Dec. 31, 2001 and have been expensed in
full in 2002.The company posted a net loss for the six months ended June 30, 2002 of $265,512, or $0.20 per share compared to a net loss of $233,422, or $0.26 per share for the same period a year ago. The company sustained a loss from operations for the six months ended June 30, 2002 of $120,451 compared to a loss from operations of $483,891 during the six months ended June 30, 2001. The company incurred interest charges of $148,454 (net of interest income) primarily attributable to debt associated with structural steel operations. Contributing to the company's overall net loss was $52,110 of losses in connection with the company's equity interest in armor operations. The overall loss was partially offset by an allocation of $53,050 of losses from structural steel operations allocated to minority interest shareholders. "During 2001, we completed our transition from a 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 manufacturer to that of a structural steel fabricator fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: , an industry with greater 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. revenue and profit potential. "While our real estate activities center around liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of properties to reduce debt and our armor manufacturing activities now passive in nature, our primary focus has been to complete the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. of the structural steel business and grow its revenues and profits in future periods," said Moorer. "We believe that by focusing in one area and performing well in that area, the company will achieve greater shareholder return than its previously adopted strategy of diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. . That is the reason why the company decided in late 2001 to eliminate its majority control position of the armor business and to begin liquidating its real estate holdings. "The aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. strategy is expected to return the company to profitability in future periods and ultimately enhance shareholder value," concluded Moorer. About Guardian Guardian, through its wholly-owned subsidiary Guardian Steel, is engaged in structural steel fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. for governmental, military, commercial and industrial construction projects such as dormitories, aircraft hangers hangers used for hanging x-ray films to dry. There is a clip type, with a clip at each corner, and a channel type in which the film sits in channels in the sides of the frame. , special operations Operations conducted in hostile, denied, or politically sensitive environments to achieve military, diplomatic, informational, and/or economic objectives employing military capabilities for which there is no broad conventional force requirement. centers, high and low-rise low-rise adj. Of or relating to a building having few stories and often no elevators: a low-rise apartment house. [low1 + (high)-rise.] Adj. buildings and office complexes, hotels and casinos A list of casinos. Antigua and Barbuda
Guardian, through its wholly-owned subsidiary Guardian Security & Safety Products Inc. (GSSP GSSP Global Boundary Stratotype Sections and Points GSSP Generally-Accepted System Security Principles (NSSOG) GSSP Gifted Student Services Plan (Kentucky Department of Education) ), serves the law enforcement, security and military communities. GSSP maintains a 33% ownership interest in ForceOne ForceOne - A programming language by Andrew K. Wright. ["Polymorphism in the Compiled Language ForceOne", G.V. Cormack et al, Proc 20th Annual Hawaii Intl Conf on System Sciences, 1987, pp.284-292]. ["Design of the Programming Language ForceOne", A.K. LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which manufactures a variety of high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. 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. protective equipment including patented personal protection devices commonly referred to as body armor. Guardian, through its wholly-owned subsidiary Palo Pa´lo n. 1. A pole or timber of any kind; - in the names of trees. Verde Verde (vûrd`ē, vĕrd`ē), river, c.190 mi (310 km) long, rising in central Ariz. and flowing S to the Salt River. The valley supported early Native American civilizations and is dotted with ruins, such as those at Tuzigoot National Group Inc. (Palo Verde) is engaged in the acquisition, development and sale of commercial and residential real estate. The statements made in this press release contain certain 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 involve a number of risks and uncertainties. Actual events or results may differ from the company's expectations. In addition to the matters described in this press release, risk factors listed from time to time in the company's SEC reports and filings, including, but not limited to, its report on Form 10-QSB for the quarter ended Sept. 30, 2000 and its report on Form 10-KSB for the year ended Dec. 31, 1999, may affect the results achieved by the company.
3 MONTHS 3 MONTHS
ENDED ENDED
DESCRIPTION 30-Jun-02 30-Jun-01
-----------
NET SALES:
STEEL $ 1,571,575 $ -
ARMOR $ - $ 134,952
----------- -----------
$ 1,571,575 $ 134,952
COST OF GOODS SOLD
STEEL 1,209,075 -
ARMOR - 82,992
----------- -----------
1,209,075 82,992
GROSS PROFIT 362,500 51,960
OPERATING EXPENSES
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 259,471 317,528
----------- -----------
TOTAL OPERATING EXPENSES 259,471 317,528
----------- -----------
OPERATING INCOME (LOSS) 103,029 (265,568)
OTHER INCOME (EXPENSE) (57,487) (14,044)
----------- -----------
INCOME (LOSS) BEFORE MINORITY INTEREST AND
EARNINGS FROM EQUITY INVESTMENT 45,542 (279,612)
MINORITY INTEREST (38,978) -
----------- -----------
INCOME (LOSS) BEFORE EARNINGS FROM EQUITY
INVESTMENT 6,564 (279,612)
EQUITY IN NET EARNINGS (LOSS) FROM INVESTMENT (15,195) 144,323
----------- -----------
NET LOSS $ (8,631) $ (135,289)
NET LOSS PER COMMON SHARE, BASIC & DILUTIVE $ - $ (0.14)
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 1,335,541 961,535
6 MONTHS 6 MONTHS
ENDED ENDED
DESCRIPTION 30-Jun-02 30-Jun-01
-----------
NET SALES:
STEEL $ 2,567,799 $ -
ARMOR $ - $ 244,129
----------- -----------
$ 2,567,799 $ 244,129
COST OF GOODS SOLD
STEEL 2,145,887 -
ARMOR - 192,090
----------- -----------
2,145,887 192,090
GROSS PROFIT 421,912 52,039
OPERATING EXPENSES
SELLING, GENERAL & ADMINISTRATIVE EXPENSES 542,363 535,930
----------- -----------
TOTAL OPERATING EXPENSES 542,363 535,930
----------- -----------
OPERATING INCOME (LOSS) (120,451) (483,891)
OTHER INCOME (EXPENSE) (146,001) 11,146
----------- -----------
INCOME (LOSS) BEFORE MINORITY INTEREST AND
EARNINGS FROM EQUITY INVESTMENT (266,452) (472,745)
MINORITY INTEREST 53,050 98,000
----------- -----------
INCOME (LOSS) BEFORE EARNINGS FROM EQUITY
INVESTMENT (213,402) (374,745)
EQUITY IN NET EARNINGS (LOSS) FROM INVESTMENT (52,110) 141,323
----------- -----------
NET LOSS $ (265,512) $ (233,422)
NET LOSS PER COMMON SHARE, BASIC & DILUTIVE $ (0.20) $ (0.26)
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 1,318,722 914,225
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