November, 2009 Press Releases

November 16th, 2009

Mace Reports Financial Results For The Third Quarter And Nine Months Ended September 30, 2009

Mace Security International, Inc. (“Mace” or the “Company”) (NASDAQ Global: MACE) today announced financial results for the third quarter and nine months ended September 30, 2009.

2009 Third Quarter Highlights

  • Mace is continuing to align its operations for today’s economy and future direction. Mace has:
  • Reduced selling, general and administrative (“SG&A”) expenses by $710,000 for the third quarter of 2009 as compared to the third quarter of 2008, partially as a result of our company-wide cost cutting measures.
  • Completed the move of Linkstar inventory and warehousing operations from Dallas, Texas to York, Pennsylvania. This move is expected to improve product deliveries to our customers by one day and reduce our distribution costs by approximately 50%.
  • Completed additional consolidation of our Florida and Texas electronic surveillance equipment operations.
  • Added additional updates to our Mace Professional product line.
  • Mace continued to add new capabilities to its recently acquired wholesale security monitoring station, Mace CSSS, Inc. Mace has:
  • Announced a new partnership with Xanboo Security Enhanced Services. Xanboo enables remote monitoring and access to devices in a home or business via the internet or web-enabled mobile phone.
  • Launched a new monitoring platform-stages by Secure Global Solutions that allows security dealers the ability to maintain full control of their clients and database.
  • Received the ETL listing from Intertek for compliance with operational and safety standards. Mace was one of the first alarm monitoring centers to receive this listing.
  • Announced the entry into the Access Control market with the MaceTrac professional access control system and MaceLock stand-alone access control units.

Dennis Raefield, CEO and President of Mace, stated, “The third quarter was disappointing in that we were not able to achieve the revenue growth we had anticipated. The effects of the economic downturn which began in 2008 were much longer lasting, limiting new building construction, which continues to delay projects requiring our security products, and separately, negatively impacting our Digital Media business through a tightening of credit availability for our customers. Even with continued rising monthly sales in our Security Segment, we were not able to achieve our overall sales and profit goals. We recognize that, while we are recovering, it is still not fast enough.

“As a result, we are continuing our company-wide cost cutting, and we showed a significant reduction in our SG&A expenses for the third quarter. We have also recently announced another series of personnel reductions in the fourth quarter to further align our expenses with our current revenue base. We are committed to reduce costs and conserve cash reserves to withstand whatever lies in front of us.

“Despite our revenue shortfall, we continue to move forward in building a stronger company. We announced the introduction of a new Mace Access Control product line that will give us a stronger product portfolio and we continued to add new products and monitoring services to our Mace CSSS subsidiary. We have realigned our sales team to provide better support to our Mace security dealer network as we look to strengthen this sales channel. We continue to focus our strategy on becoming a security and internet centric global company.

“We believe that we are on the road to long term success,” Mr. Raefield concluded.

Financial Results, Third Quarter of 2009 Compared to Third Quarter of 2008

Total revenues for the third quarter ended September 30, 2009 were $8.2 million, as compared to $10.3 million for the same period in 2008. The decrease in overall revenues during the third quarter of 2009 was primarily due to a decrease in revenues of $1.1 million from Mace’s Digital Media Marketing segment as a result of an increase in credit card decline rates as the recession continues and as credit card companies continue to tighten their credit to our customers. There was also a reduction in sales in Mace’s Security and Car Wash segments.

Loss from continuing operations for the third quarter of 2009 was approximately ($2.3) million, or ($0.14) per share, compared to a loss from continuing operations of ($1.9) million, or ($0.11) per share, for the third quarter of 2008. The increase in operating loss from continuing operations was primarily due to the decrease in revenues previously noted, partially offset by a reduction in SG&A expenses from $4.5 million to $3.8 million for the three months ended September 30, 2008 as compared to the same period in 2009. The SG&A expense savings were realized through a reduction in costs of approximately $545,000 within our Digital Media Marketing segment, a $216,000 reduction in costs within our Florida and Texas electronic surveillance equipment operations, offset partially by SG&A expense of $279,000 related to our new Mace CSSS operation which we acquired in April 2009.

Discontinued operations include the Company’s Florida; San Antonio, Texas; Lubbock, Texas; and Austin, Texas car wash operations. The results for these operations are shown as discontinued operations for financial reporting purposes. These operations generated losses of approximately ($103,000), or ($0.01) per share, in the three months ended September 30, 2009 and ($192,000), or ($0.02) per share, in the same period of 2008.

Net loss for the three months ended September 30, 2009 was approximately ($2.4) million, or ($0.15) per share, compared to a net loss of approximately ($2.1) million, or ($0.13) per share, for the three months ended September 30, 2008.

Financial Results, Nine Months of 2009 Compared to Nine Months of 2008

 

Total revenues for the nine months ended September 30, 2009 were $25.3 million, as compared to $35.5 million for the same period in 2008.


November 10th, 2009

Mace Conference Call On Wednesday, November 18th At 11:00 Am Et

Horsham, PA, November 10, 2009 — Mace will conduct a conference call on Wednesday November 18th at 11:00 AM Eastern Time. The Conference call number is (888) 826-2406, conference ID: 40452491. There will be access to a tape recording of the teleconference by calling 800-642-1687 and entering the conference ID: 40452491. This will be available after the teleconference from 4 PM Eastern, Wednesday, November 18, 2009 through Friday December 4, 2009.


November 3rd, 2009

Mace Csss Now Offers Integration To Videofied™ Remote Video Security System

Horsham, PA, November 3, 2009 – Mace Security International, Inc. (“Mace” or the “Company”) (Nasdaq Global: MACE) today announced that its subsidiary, Mace CSSS, Inc. through its stages™ central station automation system, has successfully integrated to the Videofied™ video verification security monitoring system. This unique state of the art platform allows the Mace CSSS central station monitoring center to receive video verification of alarm events activated through the Videofied security system. The Videofied™ system was developed by RSI VIDEO TECHNOLOGIES® a global manufacturer and solutions provider. Mace CSSS has added RSI’s server to its central station and integrated the signal and video processing with the stages™ automation processing system.

The Videofied™ system incorporates a wireless motion viewer, with a built in digital camera and illuminator for night vision. Upon detecting motion, the viewer sends a 10 second video clip to the Mace CSSS monitoring center. Mace receives the video verification and utilizes two way voice to investigate the alarm incident and respond immediately. Video verification provides greater alarm accuracy and reduced false alarms, providing faster and more efficient law enforcement response. Video verification is increasingly in demand in remote sites such as construction, utility substations, and communication towers.

Peter P. Giacalone, President of Mace Security Services, stated: “As a recognized leader in remote video monitoring, it’s essential that the Mace CSSS line of services includes platforms like Videofied™ to enhance our dealer’s offerings while increasing their revenue stream. This unique platform will afford our dealers the opportunity to raise their competitive position by offering services to remote applications where electricity and communications are not available.”

Keith Jentoft, President of RSI Video Technologies added: “We are pleased to have Mace as a partner.  Mace understands that police give higher priority response when the monitoring center confirms an intruder is present.  Central stations using Videofied™ for higher priority police response get apprehensions and deliver greater value to their customers.

Dennis Raefield, CEO of Mace further stated, “This new integration provides a unique security application for an exploding market for remote video verification. We are very pleased to be able to offer this service to our customers.”

About RSI
RSI VIDEO TECHNOLOGIES® was founded in 2000 in Strasbourg, France as RSI, and renamed RSI VIDEO TECHNOLOGIES® in 2008. The company began selling products internationally in 2003. In 2005, a subsidiary company was created in the USA. RSI VIDEO TECHNOLOGIES® develops solutions to the problem of security against intrusions with a real dedication to technological innovation. RSI products offer an innovative concept, unique in the world, which allows them to export their know-how to Europe and North America.

About Mace
Mace Security International, Inc. is a manufacturer of personal defense and electronic surveillance products marketed under the famous brand name, Mace®. The Company also operates a Digital Media Marketing and e-commerce business. In addition, Mace owns and operates car washes, and has previously announced that it is exiting this segment of its business. The Company’s remaining car washes are located in Texas. Mace’s web site is http://mace.com.

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 the final results of the independent investigation, the determination of the Panel with respect to the Company’s request for an exception to Marketplace Rule 4310(c)(14), the impact on trading in the Company’s common stock if the exception is not granted and the Company’s common stock is delisted, economic conditions, dependence on management, dilution to shareholders, limited capital resources, the effects of weather on the demand for car care services, the effects of rapid growth on Mace and the ability of management to effectively respond to that growth, our ability to achieve operating synergies, our ability to compete against established competitors, regulatory matters, the effects of competition, and our ability to obtain additional financing. Such factors could materially adversely affect Mace’s financial performance and could cause Mace’s actual results for future periods to differ materially from any opinions or statements expressed within this press release. Additional discussion of factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations are contained under the heading “Risk Factors” in Mace’s SEC filings, including its registration statements and its periodic reports on Form 10-K and Form 10-Q. This press release should be read in conjunction with the financial statements and notes contained in Mace’s annual reports on Form 10-K and quarterly reports on Form 10-Q.