DAC Technologies
DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits, sporting goods, household cleaning tools and various hardware items. The company was founded in 1993 as an Arkansas corporation. It’s publicly traded on the OTC Bulletin Board with ticker symbol DAAT.
Virtually all of the Company’s products are manufactured and imported from mainland China and shipped to the Company’s warehouses in Little Rock, Arkansas and Los Angeles for further distribution.
These products are primarily sold to mass merchandisers such as Wal-Mart and Kmart, and sporting goods retailers and distributors such as Cabela's, Acusport, Jerry's, RSR, Maurice, Academy Sports and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Weatherby, as well as others. Net sales in 2008 were over $17 million.
History
1993 - 1997
The Company was formed in 1993 as DAC Technologies of America, Inc. in Little Rock, Arkansas. In that same year, DAC began selling its first product, a small, beeper sized, 130 decibel, electronic personal security alarm that sold for less than $10. This alarm was designed to be used when the user faced the possibility of an attack.
In 1994 the company expanded its number of products. It brought a small, 120 decibel alarm with key chain and built-in flashlight to the market, which could be activated by a push button, when its user felt threatened. It also developed a plastic trigger lock for handguns to prevents unwanted or accidental discharge of the firearm.
Over the next years, more security and gun safety related products followed, including two car alarms, a metal trigger lock, a steel gun lock and a lever rifle lock. Already in those first few years DAC’s gun safety devices were carried by major retailers like Wal Mart, Walgreens and K Mart.
1998 - 1999
In July of 1998, DAC Technologies of America, Inc. was incorporated in Florida and purchased nearly all the assets of the Arkansas corporation. The owners and management also remained the same and continued to hold their positions. Because the company started selling its products outside the United States, it was decided to change the company name to DAC Technologies Group International, Inc. in July of 1999.
During these years, the company’s management concentrated on expanding its number of gun safety products because they believed that federal, state and local governments would pass more stringent gun safety legislation on all guns manufactured. By 1999, DAC offered over thirty different products in the personal, home and automotive security and gun safety categories.
Although the company had some of its products manufactured in the U.S., the majority was imported from mainland China and shipped to a central location for distribution in Little Rock, Arkansas.
2000 - 2002
DAC continued on its path of selling gun related items and introduced a gun lock for semi-automatic pistols that sold well to Heckler & Koch and Glock Inc., two renowned gun manufacturers.
DAC also ventured into the training and consultation business in February 2001 as it formed a subsidiary called Summit Training International (STI) to provide training services for law enforcement and corrections officers. These activities were complimentary to DAC's core business and were intended to provide access to more customers for the Company's products. However, because of the September 11, 2001 [...] attacks, law enforcement travel and training activities were abruptly stopped and all scheduled seminars and conferences had to be cancelled.
STI never recovered from this blow and operations were discontinued in January 2002. A few months later, DAC sold most assets of Summit Training International.
Although this was a setback, the company’s revenues and earnings increased significantly in 2002 over the prior year. Main contributors were two products that were introduced in 2002: the DAC SportSafe, a portable, quick-access, digital safe and the Sportsman Lighter, a wind-proof, water-resistant butane lighter.
A remarkable trend in 2002 was the fact that in response of new legislation, more and more gun manufacturers immediately provided a gun lock with each of the firearms they sold. Maryland was the first state to enact mandatory gun lock requirements for handguns and California has also enacted similar provisions.
2003 - Present
2003 was the year of the big breakthrough for DAC Technologies as it introduced a line of GunMaster gun cleaning kits. Because these kits, that contain brushes, mops and other tools to clean and maintain a firearm, were high quality and were priced significantly lower than its competition, sales totalled almost $2 million in 2003 and increased to $6.7 million the following year.
Due to the initial success of the GunMaster line, the Company added over thirty new gun cleaning items in 2004 and was able to sell kits to several of the largest sporting goods retailers, distributors and mail order companies like [...]'s Sporting Goods, RSR Group, Inc., Jerry's Sport Center, Inc, AcuSport Corp., and Cabella Catalogue Co. Additionally, the GunMaster kits were sold in the 2,900 Wal-Mart stores that carry gun accessories.
DAC’s management even increased its focus on gun cleaning items and gun maintenance accessories and as a result, the product line continued to grow. In 2005 sales increased to $10 million or 75% of the company’s total revenues.
The company continued to develop products in the hunting and camping area, adding a game processing kit (knife set) in 2006, and an aluminum camping table and turkey hunting seat in 2007. At the request of a large customer, DAC even began looking into new items like housewares and household cleaning tools.
Today, DAC Technologies is a profitable business that sells its products to national retail chains, distributors, sporting goods retailers, gun manufacturers, regional retail chains and sole proprietors. Their products can be grouped into four main categories: gun cleaning and maintenance, hunting and camping, gun safety and household products. The end users are mainly hunters, gun owners, sportsmen and outdoor enthusiasts.
Competition
DAC Technologies operates in the very competitive consumer goods industry, which is dominated by well-established national and international companies. The company tries to maintain a competitive position based on product design and quality, pricing and the maintenance of favourable relationships with various mass merchandisers.
The major competitors in the gun safety category are Master Lock (which presently controls 60%-70% of the market), Smith & Wesson, Shot Lock. The biggest competitors in the gun maintenance category are Outers and Hoppes.
Key directors
David A. Collins - Founder, Chairman, CEO and President
Mr. Collins is a founder of the Company and it predecessors, and previously served as its President, CEO and Director from inception in 1993 until July 11, 2001. From July 2001 until May 2002, Mr. Collins served as a consultant to the Company, particularly in the areas of sales and marketing. In May 2002, Mr. Collins was reappointed as President, CEO and Chairman upon the resignation of James R. Pledger.
Robert C. Goodwin - CFO and Principal Accounting Officer
Mr. Goodwin has served as the Company’s CFO since its inception in July 1998, as well as DAC Arkansas continuously since 1993. In July 1998, Mr. Goodwin was elected to the Company’s board.