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Dyna Group International Announces Q2 Results

16 July 1998

Dyna Group International Announces Second Quarter Sales and Earnings

    NEW BRAUNFELS, Texas--July 15, 1998--Dyna Group International announces second quarter sales and earnings.

                     3 months  3 months   6 months  6 months
                       ended     ended      ended     ended
(In thousands)        June 30,  June 30,   June 30,  June 30,
                        '98       '97        '98       '97

Revenues             $ 2,183   $ 2,403    $ 3,672   $ 4,890
Net income               123      (183)       144      (371)
Earnings per share       .02      (.03)       .02      (.05)

    1997 has been restated to reflect the year end loss on a percent of sales. The gross profit margin is 37%, however the gain from Mexico reduces the cost of goods sold and increases the margin to 44%. To support the cost of sales, commissions and royalties, Dyna Group International's margins must be increased to 50%. This will be corrected by reducing costs, increasing Mexico's production and modest price increases. During the quarter the Broadview facility was sold and the majority of the reported gain was from this sale.
    In January, Dyna Group International made a commitment to ship 95% of all orders within 48 hours of receipt. Dyna Group International is happy to report that they have achieved and maintained this objective. The rewards of shipping orders within 48 hours of receipt are substantial.
    Dyna Group International's sales efforts are concentrating in markets that are both profitable and efficient for them to operate in. An example of this shift in sales focus is NASCAR. Dyna Group International is currently experiencing a 400% increase in sales in the NASCAR market. Strong licensing relationships with top drivers including Earnhardt and Gordon has positioned the company for continued growth in this market.
    New licensing agreements with Jack Daniels, CART, Ford and others that are pending will fuel the growth of the company. Dyna Group International's rep force has been revamped and is stronger than ever. The current level of incoming orders indicates that Dyna Group International's sales are successfully growing.