Guardian Technologies Announces Year-End Results.Business Editors CAREFREE, Ariz.--(BUSINESS WIRE)--May 17, 2002 Guardian Technologies International Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: GRDN GRDN Garden (postal suffix) ) Friday announced results for the year ended Dec. 31, 2001. It should be noted that the discussion of results of operations for 2001 reflects items of income and expense generated by the company's armor operations from Jan. 1, 2001 through Sept. 30, 2001 and items of income and expense generated by the company's structural steel operations from Oct. 1, 2001 through Dec. 31, 2001. The reason for this is the company's transition from consolidation accounting for reporting results of armor operations due to the elimination of the company's control position effective Nov. 30, 2001 and a transition from the equity method of accounting for its investment in Structural to consolidation accounting for reporting results of Structural's operations. The transition occurred effective Oct. 1, 2001. The discussion of results of operations for the 12 months ended Dec. 31, 2000 reflect only results from armor operations. 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 12 months ended Dec. 31, 2001 were $1,651,781 comprised of sales from structural steel operations of $1,045,328 and armor operations of $635,832. Sales from armor operations for the prior year were $606,453 comprised entirely of sales from armor operations. Although the company introduced a new line of lower cost, lightweight armor products in 2001, the company was unable to increase sales levels in this division over that of the previous year and, therefore, only experienced a slight increase in sales from armor operations. Gross profit for the 12 months ended Dec. 31, 2001 was $328,447 or 20% and was comprised of gross profit from structural steel operations of $148,704 and gross profit from armor operations of $179,743. This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to gross profit from armor operations last year of $22,451 or 4%. The increase in gross profit from armor operations as a percentage of sales is attributable to sales of higher margin ForceOne products over that of the "old style" Guardian products sold last year. In addition, gross profit during 2001 was positively impacted by the sale of unusually high-margin "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. mats" during the second quarter of 2001. 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 12 months ended Dec. 31, 2001 were $1,716,582 comprised of selling expenses of $243,539 (all related to armor operations) and general and administrative expenses of $1,473,043 (armor operations including corporate related expenses of $1,176,460 and structural steel operations of $296,583). Total operating expenses for the 12 months ended Dec. 31, 2000 were $1,123,347 comprised of selling expenses of $70,709 (all armor operations) and general and administrative expenses of $1,052,638 (all armor operations including corporate-related expenses). The increased selling expenses from armor operations during 2001 resulted from hiring additional sales people to market the ForceOne product line, travel associated with trade shows to promote the ForceOne product line and costs associated with establishing a nationwide dealership network to increase the sales exposure of the ForceOne product line. General and administrative expenses associated with armor operations (including corporate-related expenses) increased $123,822 over that of the previous year. Included in these costs and contributing significantly to the overall increase in general and administrative expenses were substantial accounting, legal and consulting expenses incurred in connection with the company's failed acquisition of Vairex. Also included in general and administrative expenses for 2001 were $414,320 of services for which common stock of the company was issued. The company posted a net loss for the 12 months ended Dec. 31, 2001 of $1,039,755 or $0.19 per share compared to a net loss of $1,819,142 or $0.51 per share for the same period a year ago. Armor operations, land and property investments and corporate-related activities contributed $1,247,935 to the overall loss while structural steel operations generated income of $208,180 for the year. "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 are passive in nature and armor manufacturing activities all but eliminated, my primary focus since assuming the role of president of H&M in 2001 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 that business and grow its revenues and profits in future periods," stated J. Andrew Moorer, Guardian's president and chief executive officer. "During 2001, H&M generated revenues of $11,400,000, achieved earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
"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 by H&M and an area which caused substantial losses to be incurred in prior years," continued 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 Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. 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 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, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , which manufactures a variety of high-end ballistic protective equipment including patented personal protection devices commonly referred to as body armor. Guardian, through its wholly owned subsidiary Palo Verde 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.
GUARDIAN TECHNOLOGIES
FINANCIAL HIGHLIGHTS
12 MONTHS 12 MONTHS
ENDED ENDED
DESCRIPTION 31-Dec-01 31-Dec-00
NET SALES:
STEEL $ 1,015,950 $ --
ARMOR $ 635,831 $ 606,453
----------- -----------
$ 1,651,781 $ 606,453
COST OF GOODS SOLD
STEEL 867,246 --
ARMOR 456,088 584,002
----------- -----------
1,323,334 584,002
GROSS PROFIT 328,447 22,451
OPERATING EXPENSES
SELLING, GENERAL & ADMINISTRATIVE
EXPENSES 1,324,276 1,123,347
TOTAL OPERATING EXPENSES 1,324,276 1,123,347
OPERATING LOSS (995,829) (1,100,896)
OTHER INCOME (EXPENSE) (363,926) 68,423
LOSS BEFORE EARNINGS FROM EQUITY
INVESTMENT (1,359,755) (1,032,473)
EQUITY IN NET EARNINGS (LOSS) OF
INVESTMENT 320,000 (786,669)
NET LOSS $(1,039,755) $(1,819,142)
NET LOSS PER COMMON SHARE, BASIC &
DILUTIVE $ (0.19) $ (0.51)
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 5,366,744 3,541,630
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion