DFNS April 15, 2005
DEFENSE INDUSTRIES INTERNATIONAL, INC.
DEFENSE INDUSTRIES INTERNATIONAL REPORTS FOURTH QUARTER 2004 FINANCIAL RESULTS
ASHKELON, Israel, April 15, 2004, Defense Industries International, Inc.
(OTCBB:DFNS), a leading manufacturer and global provider of personal military
and civilian protective equipment and supplies, announced today its financial
results for the fourth quarter and the twelve month period ended December 31,
2004.
HIGHLIGHTS
o Revenues for 2004 increased 33% to over $12 million.
o Export sales for full-year 2004 increased by 106%
o Gross profit for 2004 increased 25.1% to $3.2 million
o Net income for 2004 increased to $381,169
Net revenues for the year ended December 31, 2004 increased by 33.2% to
$12,036,404 compared to $9,031,963 for the year ended December 31, 2003.
Export sales for the year ended December 31, 2004 increased by 106% to
$8,305,787, from $4,030,138 reported for the year ended December 31, 2003. Sales
to the local market were approximately $3,730,617 in 2004, compared with local
sales of $5,001,825 in 2003.
Gross profit for the year ended December 31, 2004 increased by 25.1% to $
3,224,449 from $2,576,648 for the year ended December 31, 2003. The increase in
gross profit is mainly attributable to the increase in total sales. The Company
does not anticipate any major changes in its gross profit margins in 2005.
Selling expenses for the year ended December 31, 2004 was $826,267, similar to
$862,155 in 2003. The stability in selling expenses was achieved due to lower
commission payment on sales to a major export customer.
General and administrative expenses for the year ended December 31, 2004
increased slightly to $1,489,440 from $1,414,531 for the year ended December 31,
2003. The Company does not anticipate any material change in its general and
administrative expenses in 2005.
The Company reported operating income of $872,742 for the year 2004, compared
with $299,962 for the year 2003.
Net income for the year 2004 was $381,169, or $0.02 per share, compared with
$127,771, or $0.01 per share for the year 2003.
Commenting on the results, Joseph Fostbinder, CEO of Defense Industries said:
"We are extremely pleased with our full-year results. Our 2004 results reflect
continued strength in our total revenues and export sales. We believe this is
attributable to the successful implementation of our strategy of focusing our
efforts on international expansion."
Mr. Fostbinder continued, "As part of our strategy of international expansion
and in an effort to achieve long-term growth, we have recently acquired Owen
Mills Company, a Los Angeles-based manufacturing and service company
specializing in military and industrial sewing of marine and ballistic fabric
products. We believe that our combined expertise and the expected synergy
between our companies will enable us to offer diversified solutions to existing
and potential customers as well as provide us with a robust platform for future
growth and international expansion."
"During 2004 we worked diligently to acquire new customers and to secure
follow-on orders from our existing customers. This resulted, among other things,
in obtaining several first-time orders from leading international companies in
the personal protective equipment market and several follow-on orders from
existing clients for our bulletproof plates and bullet-resistant vests. These
companies recognized the superb quality and unparalleled features of our
equipment in providing solutions for personal protection".
"Looking into 2005, we plan to continue to diversify our products by offering
them through our newly acquired U.S. - based platform and through increased
investment in R&D. We also plan to continue to focus our efforts on increasing
export sales, broadening our customer base, and in securing follow-on business
in order to enhance our leading position in the global protective equipment and
supplies markets." |
