Guardian Technologies Announces First Quarter Results
DULLES, Va.--(BUSINESS WIRE)--May 18, 1999--Guardian Technologies
(Nasdaq:GRDN), announced its results for the quarter ended March 31,
1999.
Net sales for the period were $216,842 compared to $562,022 for
the same period in 1999. The decrease in sales is primarily
attributable to one specific order to supply armor products to an
allied government. During the three months ended March 31, 1998, sales
to this customer were $219,317, compared to nil during the first
quarter of 1999.
Following the close of the current quarter, however, Guardian
received an order of approximately $200,000 to supply armor products
to this same customer. Therefore, the majority of the decrease in
sales during the quarter is represented by a shift in revenue rather
than a decline in business.
Gross margin for the three months ended March 31, 1999 was
$26,063, or 12% of net sales compared to $78,168, or 14% of net sales
for the same period in 1998. The gross margin percentage decreased
slightly as a result of lower sales volume.
Guardian's net loss for the period was $30,810, or $0.02 per
share compared to a net loss of $160,824 or $0.14 per share for the
same period a year ago. Positively impacting the Company's bottom line
during the quarter ended March 31, 1999 was the recognition of a gain
of $106,039 on the sale of Guardian's manufacturing and administrative
facility.
"We sold the facility during the first quarter to generate
capital for acquisitions and to better manage our space requirements.
Net proceeds realized from the building sale of $833,000 were utilized
to facilitate our first acquisition," stated J. Andrew Moorer,
Guardian's President and CEO.
On April 23, 1999, Guardian consummated the acquisition of a
material interest in Structural Holdings, Inc., for $765,000. Guardian
has an option to acquire an additional 10% of Structural Holdings for
$170,000, which will bring Guardian's total ownership in Structural
Holdings to 55%. Guardian anticipates exercising its option during
the second quarter ending June 30, 1999.
Structural Holdings, a Delaware corporation, was formed to
acquire specialized structural steel fabrication facilities in
strategic geographic locations within the United States. On April 23,
1999 Structural Holdings consummated its first acquisition by
acquiring 100% of the outstanding stock of H&M Steel for $4,500,000.
H&M Steel is a certified steel fabrication facility located in Luther,
Oklahoma. H&M Steel has been involved in several military base
renovation projects in the Midwest. H&M Steel posted unaudited
revenues of approximately $15 million for the twelve months ended
February 28, 1999, had gross margin of nearly 35% and was profitable.
"Guardian is now consistently achieving positive gross margin on
sales and must focus during the remainder of 1999 on expanding revenue
generation opportunities while further reducing administrative burden.
Aside from the positive aspects of increased revenue from the
acquisition of a material interest in Structural Holdings, Guardian's
Armor Division is currently growing and diversifying its revenue
base," continued Moorer.
"During the first quarter of 1999, Guardian's Armor Division set
in motion a Sales and Marketing Agreement with NS Microwave of San
Diego, California. The NS Microwave Agreement is anticipated to
produce an additional element of revenue in the form of microwave
linked video surveillance systems that can be offered to Guardian's
existing customer base in the law enforcement community. In addition,
Guardian is currently adding NS Microwave products to the Federal
Supply Schedule which is administered by the General Services
Administration. Further, Guardian recently participated in the Force
Protection Equipment Demonstration II, a major event sponsored by the
Department of Defense at the Quantico Marine Base located in Quantico,
Virginia. Guardian's armor products and NS Microwave products were
both displayed at the demonstration," concluded Moorer.
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FINANCIAL HIGHLIGHTS
3 Months Ended March 31,
1999 1998
DESCRIPTION
Net sales $ 216,842 $ 562,022
Cost of goods sold 190,749 483,854
Gross profit 26,093 78,168
Operating expenses
Selling expenses 12,952 40,150
General & administrative expenses 178,150 207,343
Total operating expenses 191,102 247,493
Operating loss (165,009) (169,325)
Other income (expense)
Interest expense, net (24,932) (33,298)
Rent income 49,372 41,799
Gain on sale of assets 109,759 --
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Total other income (expense) 134,199 8,501
Net loss $(30,810) $(160,824)
Net loss per common share $ (0.02) $ (0.14)
Net loss per dilutive share $ (0.02) $ (0.14)
Average common and common
equivalent shares outstanding 1,243,631 1,114,201
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Note to Editors: Certain statements contained herein with respect
to factors, which may affect future earnings, including management's
beliefs, and assumptions based on information currently available, are
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995.
Any such forward-looking statements that are not historical facts
involve risks and uncertainties. For more information on risk factors,
see the company's annual reports on Form 10-K, quarterly reports on
Form 10-Q and other filings with the Securities and Exchange
Commission.
CONTACT:
Guardian Technologies International Inc., Dulles
J. Andrew Moorer, 703/444-7931
www.guardiantech.com |
