TMCnet News
Law Enforcement Associates Reports First Quarter Financial Results(Marketwire Via Acquire Media NewsEdge) RALEIGH, NC, May 15 / MARKET WIRE/ -- Law Enforcement Associates Corporation (LEA) (AMEX: AID), the largest U.S. developer and manufacturer of undercover surveillance equipment, today reported financial results for its first quarter ended March 31, 2008. Revenue increased 12% to $2.0 million from $1.8 million in the first quarter last year. First quarter gross margin was 41% versus 44% in last year's first quarter. The decrease in gross margin was partially attributable to costs associated with the initiation of operations at LEA's new surveillance vehicle division. Net income was $19,000, or less than $0.01 per share, versus net income of $55,000, or less than $0.01 per share, in the same period a year ago. LEA's 2008 first quarter earnings were impacted by expenses associated with the relocation of its headquarters, as well as consulting fees related to the launch of its Graffiti Cam surveillance product. Results also were affected by an increase of approximately $40,000 in non-cash amortization and interest accretion expense associated with LEA's fourth quarter 2007 acquisition of select assets of Advanced Vehicle Systems LLC (AVS). "We achieved our first-quarter sales objectives and returned to quarterly profitability, despite a number of expenses associated with the advancement of our long-term growth objectives," said Paul Feldman, president. "Our first quarter revenue growth was primarily driven by continued strong sales of our BirdDog(TM) GPS tracking system and by an encouraging level of activity within our new AVS surveillance vehicle division. "We are pursuing a significant order opportunity for our Smith & Wesson-branded SWIFT Under-Vehicle Inspection System, and also are optimistic that improving weather in the Denver market will provide a favorable environment for more active testing by local law enforcement of our Graffiti Cam offering. Initial Graffiti Cam sales and widespread customer interest in this product indicate there is a sizable end-market opportunity, and we are working hard to capitalize on it." Feldman added, "Our objective for the balance of 2008 is to build on the sales momentum we established for our core business during the first quarter. We also are pursuing various strategic opportunities designed to enhance our top-line growth prospects over the long-term. We hope to provide more detail on these efforts in the coming quarters." About Law Enforcement Associates Corporation LEA is a leading security and surveillance technology company that manufactures and markets a diverse product line to the worldwide law enforcement, military, security and corrections markets. The company's Audio Intelligence Devices (AID) division has been serving the law enforcement sector for more than 30 years and is one of the most respected names in the surveillance equipment industry. LEA's products are used by a wide variety of government and non-governmental agencies, as well as public and private companies. These include military bases, nuclear facilities, embassies, government installations, oil refineries, United Nations and NATO locations. The company enjoys close working relationships with other prominent players in the security and surveillance industry, such as Smith & Wesson (NASDAQ: SWHC), one of the world's largest manufacturers of quality firearms and firearm safety/security products; and FLIR Systems, Inc., a world leader in the design, manufacture and marketing of thermal imaging and stabilized camera systems. LEA's products have been used at high-profile events such as the Summer & Winter Olympics, Super Bowl, U.S. Golf Championship, and the Democratic and Republican National Conventions. Its products include the Under Vehicle Inspection System (UVIS), Smith & Wesson-branded UVIS Swift, EDK123 (Explosive Detection Kit), Bloodhound and Birddog GPS Tracking Systems, Graffiti Cam, Letter-bomb Visualizer Spray, and a wide variety of Audio & Video Surveillance Equipment. Headquartered in Youngsville, N.C., the company has been featured in many industry publications and websites. For more information, please visit www.leacorp.com. Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that use words such as "believe," "anticipate," "estimate," "intend," "could," "plan," "expect," "project," "predict," "forecast," "outlook," "potential," "continue," "may," "future," "can," "enhance," and "should," or the negative of these, as well as similar expressions, can be used to identify forward-looking statements. Such forward-looking statements involve certain risks, assumptions and uncertainties, including the inability to generate and secure the necessary product sales, or the lack of acceptance of the company's products by its customers. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized. Law Enforcement Associates Corporation Consolidated Statement of Operations March 31, March 31, 2008 2007 (Compiled) (Compiled) ----------- ----------- Net sales $ 1,979,659 $ 1,765,054 Cost of sales 1,172,651 989,862 ----------- ----------- Gross profit 807,008 775,192 ----------- ----------- Research and development 9,204 24,072 Operating expenses 744,306 679,756 ----------- ----------- Total operating expenses 753,510 703,828 ----------- ----------- Net income before other income (expense) and provision for income taxes 53,498 71,364 ----------- ----------- Other income (expense): Interest income (expense), net (23,508) (372) ----------- ----------- Total other income (expense) (23,508) (372) ----------- ----------- Net income before provision for income taxes 29,990 70,992 Provision for income taxes 11,396 16,089 ----------- ----------- Net income 18,594 54,903 Retained earnings beginning of period (972,947) 58,091 ----------- ----------- Retained earnings end of period $ (954,353) $ 112,994 =========== =========== Net income per weighted average share, basic $ 0.00 $ 0.00 =========== =========== Weighted average number of shares 25,782,433 25,252,433 =========== =========== Law Enforcement Associates Corporation Consolidated Balance Sheet March 31, March 31, 2008 2007 Assets (Compiled) (Audited) ------ ----------- ----------- Current assets: Cash $ 48,229 $ 325,244 Trade accounts receivable (net of allowance for doubtful accounts of $20,000 at March 31, 2008 and $33,205 at December 31, 2007) 1,204,622 713,067 Inventories 1,591,211 1,256,346 Prepaid expenses 31,740 19,083 Prepaid insurance 43,832 19,104 Deferred tax asset-current 757,943 769,338 ----------- ----------- Total current assets 3,677,577 3,102,182 ----------- ----------- Property and equipment, net 250,765 257,025 ----------- ----------- Other assets: Intangibles, net 2,826,892 2,883,542 Deferred tax asset less current portion 296,147 296,147 ----------- ----------- Total other assets 3,123,039 3,179,689 ----------- ----------- Total assets $ 7,051,381 $ 6,538,896 =========== =========== Liabilities and Stockholders' Equity ------------------------------------ Current liabilities: Trade accounts payable 685,393 593,515 Line of credit 525,000 200,000 Accrued expenses: Compensation and payroll taxes 93,298 120,304 Profit sharing plan 80,422 61,796 Warranty provision 54,591 59,911 Professional fees 112,250 92,862 Customer deposits 70,307 24,533 ----------- ----------- Total current liabilities 1,621,261 1,152,921 ----------- ----------- Total liabilities 1,621,261 1,152,921 ----------- ----------- Common stock, subject to possible redemption 1,200,000 shares, at redemption value 1,363,721 1,338,170 Stockholders' equity: Common stock, $0.001 par value, 50,000,000 authorized, 25,782,433 issued and outstanding at March 31, 2008 and December 31, 2007 25,782 25,782 Treasury stock at cost, 595 shares of common stock held by the Company (625) (625) Paid in capital in excess of par 4,995,595 4,995,595 Retained earnings/(accumulated deficit) (954,353) (972,947) ----------- ----------- Total stockholders' equity 4,066,399 4,047,805 ----------- ----------- Total liabilities and stockholders' equity $ 7,051,381 $ 6,538,896 =========== =========== CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044 Copyright ? 2008 Marketwire |