Mace Reports Third Quarter 2015 Financial Results
-
Results for quarter down due to timing of customer shipments; up
year-to-date - Adds 20 new accounts during the quarter
- On track to deliver profitable growth in the near term
CLEVELAND–(BUSINESS WIRE)–Mace Security International Inc. (OTCPINK: MACE) today announced
unaudited financial results for the third quarter and nine-month period
ended September 30, 2015. As a result of the timing of customer
shipments, which will we be recognized in the fourth quarter of 2015,
the company’s financial results for the quarter are down from those
reported in the third quarter of 2014. On a nine-month basis, the
company continues to deliver strong growth from a year ago.
“While the year-to-year quarterly comparison would suggest otherwise, we
continued to build positive momentum for the company with strong demand
across our product lines from existing and new customers,” said Richard
Barone, chairman. “As evidenced by our year-to-date results, we remain
on track to deliver sustainable, profitable growth for investors in the
near term.”
Third Quarter/Nine Months 2015 Financial
Highlights
- Net revenue down 9.9% for quarter; up 6.1% year-to-date
- Gross profit down 17.7% for quarter; up 16% year-to-date
-
Key channels of distribution (sporting goods & consumer) net revenues
down 9.9% for the quarter; up 20.9% year-to-date -
General and administrative expenses down 3.6% for the quarter, 11.7%
year to date -
Net loss from continuing operations increased 3.1% for the quarter,
improved 65.3% year to date
Select Consolidated Financial Results, Third Quarter Ended |
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For the Three Months Ended | |||||||||||||||||||||||||
Sept 30, 2015 |
% of |
Sept 30, |
% of |
||||||||||||||||||||||
$ Chg | % Chg | ||||||||||||||||||||||||
Net revenue | $ | 1,985 | 100.0 | % | $ | 2,203 | 100.0 | % | -218 | -9.9 | % | ||||||||||||||
Gross profit | 730 | 36.8 | % | 887 | 40.3 | % | -157 | -17.7 | % | ||||||||||||||||
Selling, general, and administrative expenses | 1,056 | 53.2 | % | 1,095 | 49.7 | % | 39 | -3.6 | % | ||||||||||||||||
Operating loss | (363 | ) | -18.3 | % | (248 | ) | -11.3 | % | -115 | 46.4 | % | ||||||||||||||
Net loss | (335 | ) | -16.9 | % | (325 | ) | -14.8 | % | -10 | 3.1 | % | ||||||||||||||
Third Quarter Operational 2015 Highlights
During the quarter, the company added 20 new customer accounts,
including seven from the “tactical” market and six from the “sporting”
market. Mace also entered an exclusive licensing agreement with Kourt
Security Partners – which is part of one of the largest security
companies in the nation – that will bring Mace-branded security products
to homes across the United States.
According to Mace President and Chief Executive Officer John J. McCann,
the strength of the Mace brand continues to be a key growth driver and
differentiator in the marketplace. “The Mace brand is synonymous with
high-quality, non-lethal personal protection,” he said. “As a result, we
are seeing steadily increasing interest in our expanded product
offering, which includes our Nite-Beams LED safety products for people
and pets, as well as an array of state-of-the-art tactical products for
law enforcement.”
McCann noted that the company will have two new Mace-branded products in
the marketplace before year end – the previously announced Mace®
Alert911 device, which provides direct access to emergency assistance
through the push of a button, and a new WiFi-based home security system.
“New products like these are just another example of our commitment to
keeping people of all ages safe and at a safe distance,” he said.
Conference Call
Mace® will conduct a conference call on Tuesday, November 24,
2015 at 11:00 AM ET, 8:00 AM PT to discuss its financial and operational
performance for the quarter ended September 30, 2015. The participant
conference call number is (877) 719-8065, conference ID: 87668382. A
full set of the consolidated financial statements are available on the
Mace website. Presentation materials for the conference call will be
available Monday, November 23, 2015 on Mace’s website under Investor
Relations, Shareholder Transcripts & Presentations. A digital recording
of the teleconference will be available on the Mace website within 24
hours of the teleconference.
About Mace Security International, Inc.
Mace Security International Inc. is a globally recognized leader in
personal safety and security. Based in Cleveland, Ohio, the company has
spent more than 40 years designing and manufacturing consumer and
tactical products for personal defense, security and surveillance under
its world-renowned Mace® Brand – the original trusted brand
of pepper spray products. The company also offers aerosol defense sprays
and tactical products for law enforcement and security professionals
worldwide through its Mace® Take Down® brand.
Mace Security International distributes and supports Mace®
Brand products and services through mass-market retailers, wholesale
distributors, independent dealers, e-commerce marketers and installation
service providers. For more information, please visit www.mace.com.
Forward-Looking Statements
Certain statements and information included in this press release
constitute “forward-looking statements” within the meaning of the
Federal Private Securities Litigation Reform Act of 1995. When used in
this press release, the words or phrases “will likely result,” “are
expected to,” “will continue,” “is anticipated,” “estimate,”
“projected,” “intend to” or similar expressions are intended to identify
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to
certain risks, known and unknown, and uncertainties, including but not
limited to economic conditions, dependence on management, our ability to
compete with competitors, dilution to shareholders, and limited capital
resources.
Mace Security International, Inc. |
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ASSETS |
Sept 30,
2015 |
December 31, |
||||
Current assets: | (Unaudited) | |||||
Cash and cash equivalents | $ | 1 | $ | 359 | ||
Restricted cash | 60 | 60 | ||||
Short-term investments | 2,287 | 5,848 | ||||
Accounts receivable, net | 1,382 | 1,352 | ||||
Inventories, net | 2,567 | 1,783 | ||||
Prepaid expenses and other current assets | 1,203 | 1,303 | ||||
Total current assets | 7,500 | 10,705 | ||||
Plant and equipment, net | 559 | 585 | ||||
Other intangible assets | 685 | 685 | ||||
Other assets | 686 | 1,054 | ||||
Total assets | $ | 9,430 | $ | 13,029 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Current portion of long-term debt | $ | – | $ | 1,241 | ||
Accounts payable | 359 | 481 | ||||
Income taxes payable | 59 | 60 | ||||
Accrued expenses and other current liabilities | 567 | 961 | ||||
Total current liabilities | 985 | 2,743 | ||||
Total stockholders’ equity | 8,445 | 10,286 | ||||
Total liabilities and stockholders’ equity | $ | 9,430 | $ | 13,029 | ||
Mace Security International, Inc. |
||||||||
2015 | 2014 | |||||||
Net revenue | $ | 1,985 | $ | 2,203 | ||||
Cost of revenue | 1,255 | 1,316 | ||||||
Gross profit | 730 | 887 | ||||||
Selling, general, and administrative expenses | 1,056 | 1,095 | ||||||
Depreciation | 37 | 40 | ||||||
Operating loss | (363 | ) | (248 | ) | ||||
Interest expense | (13 | ) | (58 | ) | ||||
Interest income | 44 | 64 | ||||||
Gain (loss) on sale of short-term investments | (3 | ) | 10 | |||||
Note receivable write-down | – | (100 | ) | |||||
Other loss | – | 7 | ||||||
Loss from continuing operations before income tax provision | (335 | ) | (325 | ) | ||||
Income tax provision | – | – | ||||||
Loss from continuing operations | (335 | ) | (325 | ) | ||||
Income from discontinued operations, net of tax | – | – | ||||||
Net loss | $ | (335 | ) | $ | (325 | ) | ||
Mace Security International, Inc. |
||||||||
2015 | 2014 | |||||||
Net revenue | $ | 6,051 | $ | 5,703 | ||||
Cost of revenue | 3,676 | 3,655 | ||||||
Gross profit | 2,375 | 2,048 | ||||||
Selling, general, and administrative expenses | 3,253 | 3,685 | ||||||
Depreciation | 112 | 127 | ||||||
Operating loss | (990 | ) | (1,764 | ) | ||||
Interest expense | (38 | ) | (171 | ) | ||||
Interest income | 138 | 174 | ||||||
Gain (loss) on sale of short-term investments | (19 | ) | 134 | |||||
Note receivable write-down | – | (100 | ) | |||||
Other income | 312 | 8 | ||||||
Loss from continuing operations before income tax provision | (597 | ) | (1,719 | ) | ||||
Income tax provision | – | – | ||||||
Loss from continuing operations | (597 | ) | (1,719 | ) | ||||
Income from discontinued operations, net of tax | 20 | 408 | ||||||
Net loss | $ | (577 | ) | $ | (1,311 | ) | ||
Contacts
Mace Security International Inc.
John J. McCann, 440-424-5322
President
and Chief Executive Officer
john@mace.com