Diversified Security (AMEX:DVS)
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Diversified Security Solutions Reports First Quarter 2005 Results
Company Grows First Quarter Revenues 52% in 2005
SADDLE BROOK, N.J., May 4 /PRNewswire-FirstCall/ -- Diversified Security
Solutions, Inc. (AMEX:DVS), a full service provider of integrated electronic
security systems, announced financial results for the three months ended March
31, 2005.
Sales for the quarter ended March 31, 2005 increased $2,945,581, or 52%, to
$8,613,074 from $5,667,493 for the same period a year ago. Net income for the
quarter ended March 31, 2005 was $62,297, or $0.01 per share, compared to a net
loss of $101,132, or ($0.02) loss per share, for the same period in 2004.
Backlog as of March 31, 2005 was $17.5 million.
Jim Henry, Chief Executive Officer of DVS, said, "Our first quarter results are
in-line with our expectations and we remain on track to meet our 2005 annual
revenue and earnings guidance."
The company noted that projected sales for 2005 are between $36 and $40 million
with a target operating margin of 5%. Net income is expected to be between
$1.0 and $1.2 million, or $0.17 to $0.21 per share.
Mr. Henry continued, "We believe our quarter end backlog was impacted by a
normal seasonal delay in the timing of orders, as existing and potential
customers shifted their focus from finalizing 2004 security projects to
planning their 2005 security projects. Despite the challenges of seasonal
customer ordering, we continued winning new projects, grew revenue by more than
50 percent compared to the first quarter of last year and recorded a strong
backlog of $17.5 million at March 31, 2005.
"Looking ahead, we are approaching an exciting point in our business. Having
maintained the healthy labor utilization rates and cost disciplines that
strengthened our margins and fueled our return to profitability in 2004, we are
well positioned to capitalize on the profit potential of incremental sales
growth. With the U.S. Homeland Security budget reaching an all time high, we
are optimistic about the future performance of our company."
The Company will host a conference call on Wednesday, May 4, 2005 at 11:00 AM
EDT to discuss these results. To participate in the conference call, please
dial 1-800-322-0079 (Domestic) or (973) 935-2100 (International) by 10:55 AM
EDT. A digital recording of the call will be available by dialing 877-519-4471
using code 6024014 until Wednesday, May 11, 2005.
About Diversified Security Solutions, Inc.
Diversified Security Solutions (AMEX:DVS) provides technology-based integrated
electronic security systems, services and emergency preparedness consultation
to commercial enterprises and government agencies. DVS' integration subsidiary
Henry Bros. Electronics (HBE) has offices in New Jersey, California, Texas, and
Arizona. For more information visit http://www.hbeonline.net/ or
http://www.dssi-hq.com/.
Safe Harbor Statement: Certain statements in this press release constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended. Forward-looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. There can be no
assurances that the Company's revenue will continue to increase or that the
Company will continue to be profitable. Additional information concerning
factors that could cause actual results to differ materially from those in the
forward looking statements is contained under the heading of risk factors
listed in the Company's filings with the U.S. Securities and Exchange
Commission. Diversified Security Solutions does not assume any obligation to
update the forward-looking information.
DIVERSIFIED SECURITY SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Unaudited
For the three months ended
March 31,
2005 2004
Revenue $8,613,074 $5,667,493
Cost of revenue 6,429,293 4,388,786
Gross profit 2,183,781 1,278,707
Operating Expenses:
Selling general & administrative expenses 2,050,750 1,426,834
Operating profit (loss) 133,031 (148,127)
Interest income 3,753 1,525
Interest (expense) (19,821) (24,808)
Net income (loss) before tax expense (benefit) 116,963 (171,410)
Tax expense (benefit) 54,666 (70,278)
Net income (loss) after taxes $62,297 ($101,132)
BASIC EARNINGS (LOSS) PER COMMON SHARE:
Basic Profit (Loss) Per Common Share $0.01 ($0.02)
Weighted Average Common Shares 5,739,398 5,130,540
DILUTED EARNINGS (LOSS) PER COMMON SHARE:
Diluted Profit (Loss) Per Common Share: $0.01 ($0.02)
Weighted Average Diluted Common Shares 5,739,398 5,130,540
Investor Contacts:
Todd Fromer / Erika Levy James Henry, CEO
KCSA Diversified Security Solutions, Inc.
212-896-1215 / 212-896-1208 201-794-6500
/
DATASOURCE: Diversified Security Solutions, Inc.
CONTACT: Todd Fromer, +1-212-896-1215, , or Erika Levy, +1-
212-896-1208, , both of KCSA; or James Henry, CEO of Diversified
Security Solutions, Inc., +1-201-794-6500,
Web site: http://www.dssi-hq.com/