Friday October 31 3:45 PM EST
Company Press Release
Dyna Group Announces Third Quarter Results
NEW BRAUNFELS, Texas--(BUSINESS WIRE)--Oct. 31, 1997-- Dyna Group International Inc. (NASDAQ:DGIX)
(Unaudited)
(in thousands except the per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997 1996
_______________________________________________
Net sales $2,471 $3,437 $7,361 $8,216
Net Profit (Loss) $ 104 $ 263 ($50) $ 107(a)
Earnings Per Share $ 0.01 $ 0.03 ($0.01) $ 0.02
Weighted average
shares
outstanding 7,497,925 7,482,925 7,500,415 7,477,592
(a) Note: During the 4th Qtr. of 1996, the company recorded a
book-to-physical inventory adjustment. The financial
statements for the quarter ended Sept. 30, 1996 have
been restated to reflect the impact of this adjustment
on the third quarter and first nine months operating
results. The restated profit level of 1996 reflects
actual activity at that time and is comparable with
1997 as no similar inventory adjustments are being
made in 1997.
Third quarter revenues were down primarily due to product returns and lost sales due to a failure with the adhesive used in the
assembly process. The adhesion problem is corrected; however, the lost revenues will not be recovered. The company is exploring
its options to recoup the loss.
The company is now firmly established in Texas. The Broadview, Ill. facility is for sale and is experiencing considerable interest. The
company is focusing its marketing efforts into its most productive and largest growth areas of sports, motor sports, buckles and the
corporate premium markets. Investments in the markets that have not proven to be successful will cease. The company is looking for
distributors and marketers to sell its inventory to, and withdraw from its direct involvement in these markets.
Despite the reduced revenues and increased costs associated with the physical relocation to Texas, gross margin percentages
remained close to the same level and overall operating expenses remain lower in the third quarter of 1997 as compared to 1996. This
can be directly attributed to the lower operating costs in Texas and the continued increased utilization of the lower cost joint venture
facility in Mexico.
Operating performance during the 4th quarter is anticipated to improve over the same period in 1996 as we are entering our first full
quarter of operation in Texas.
Contact:
Dyna Group International Inc.
Roger Tuttle/Scott Schwind, 830/620-4400
Fax: 830/620-8430 |
