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Dyna Group International Announces Q3 Sales and Earnings

22 October 1998

Dyna Group International Announces Third Quarter Sales and Earnings

    NEW BRAUNFELS, Texas--Oct. 22, 1998--Dyna Group International announces third quarter sales and earnings.

                         3 months ended            9 months ended
(In thousands)        Sept. 30,  Sept. 30,      Sept. 30,  Sept. 30,
                         '98        '97            '98        '97
------------------    ---------  ---------      ---------  ---------      
Revenues                 $2,670     $2,471         $6,342     $7,361
Net income                  123       (187)           339       (559)
Earnings per share          .02       (.02)           .05       (.07)
 
NOTE: 1997 has been restated to reflect the year end loss on a percent
      of sales.

    For the third quarter of 1998, sales increased $200,000 or 8% over the same period of 1997. Gross profit margins increased from 33% to 44% and net profits increased from a loss in 1997 of $187,000 to a gain of $123,000.
    For the nine months ended Sept. 30, 1998, revenues were $6,342,000 as compared to $7,361,000 in 1997. However, gross profit margins have increased from 33% to 44%. SG&A expenses have been reduced from $2,707,000 to $2,380,000 and net profits have increased from a loss in 1997 of $559,000 to a gain of $339,000 in 1998. Included in the gain year to date is $180,000 net gain on the sale of the Broadview facility.
    Inventory has been reduced by $376,000 and $566,000 for the quarter and the year respectively. Our goal for 1998 is to reduce inventory by $950,000.
    We have successfully reduced overhead and operating expenses, while concentrating our sales efforts on NASCAR, sports and our other licensed products. We are increasing profit margins due to our lower cost of production in Mexico. Also, our commitment to quality and service are the factors contributing to our return to profitability.