August, 2013 Press Releases

August 26th, 2013

Mace Security International, Inc. Reports Financial Results for the Three and Six Months Ended June 30, 2013

Business Wire Mace Security International, Inc.

August 26, 2013 12:00 PM

Cleveland, Ohio–(BUSINESS WIRE)–

 

Mace Security International, Inc. (“Mace” or the “Company”) (MACE) today announced financial results for the three and six months ended June 30, 2013.

 

2013 Second Quarter Sales and Other Highlights

 

Net sales for the quarter were $2.8 million or 4.5% below prior year sales. Decline attributed to 24% decrease in electronic surveillance equipment net sales offset by a 6.6% increase and continued sales growth of Mace® Branded Pepper Spray and other personal defense products.

Effective June 13, 2013, the Board of Directors appointed Garnett R. Meador as Corporate Secretary.

Effective June 11, 2013 Remigijus H. Belzinskas replaced Eric Lewis as Corporate Controller. Mr. Belzinskas was employed by SIFCO Industries, Inc., a publicly traded aerospace products manufacturer, from 2000 to 2013, serving as Corporate Controller. Prior to that he served at Signature Brands, Inc., a manufacturer and distributor of consumer products, from 1990 to 1999, serving as Corporate Controller; and from 1978 to 1990 he was employed by KPMG LLP, last serving as a Senior Manager in its Assurance Group.

Relocation of Mace’s corporate headquarters from Horsham, PA (transitioned temporarily through Solon, OH) and its manufacturing and distribution operations from Bennington, VT to a combined facility located at 4400 Carnegie Avenue, Cleveland, OH is on schedule for September, 2013. John J. McCann, CEO and President of Mace, stated, “once the move to our new facility is complete and the various one time charges plus the costs associated with the move and consolidation are behind us, we anticipate experiencing significant improvement to the bottom line.”

Mr. McCann stated, “Although 2nd quarter sales revenues were down slightly for the second quarter, we continue to grow our core Mace® branded personal defense business. Growing our core business along with eliminating non-core assets and expenses has been our mission. We have more work to do as we strive towards our goal of profitability and recognition as the brand leader in Safety and Security.”

 

Financial Results, Three Months Ended June 30, 2013 and 2012

 

Consolidated net sales were $2.828 million and $2.960 million for the three months ended June 30, 2013 and 2012, respectively, a decrease of $132,000 or 4.5%. This decrease is mainly attributed to a $133,000 or 24% decrease in electronic surveillance equipment net sales, a $68,000 or 73% decrease in private label sales, and a $38,000 or 3.5% decrease in revenues from Mace’s wholesale security monitoring operations. Offsetting these decreases were a $68,000, or 6.6% increase in net sales of Mace® Branded Pepper Spray and other personal defense products, and a $45,000 increase in net sales of our TG Guard line of products.

 

Consolidated gross profits were approximately $1.1 million for both quarters ending June 30, 2013 and 2012. Despite the $132,000 decrease in net sales, gross profits remained flat due to a favorable sales mix and slightly higher margins. The margin increase can be attributed to lower overhead costs derived from consolidation of operations and elimination of costs.

 

Selling, general, and administrative (SG&A) expenses for the second quarter ended June 30, 2013 and 2012 were $1.7 million and $1.6 million, respectfully. The $0.1 million or 6.2% increase is mainly attributed to professional expenses related to the retention of a leading federal government public relations firm to promote the Mace® brand in Washington, D.C., expenses associated with the issuance of stock options to key employees, and increased SG&A expenses incurred by our wholesale security monitoring operations. These increases were offset by overall lower corporate general and administrative expenses.

 

Loss from continuing operations for the second quarter of 2013 was approximately $(823,000), compared to a loss from continuing operations of $(727,000) in the second quarter of 2012. The $96,000 or 13.2%, increase in operating loss from continuing operations was mainly attributable to the increase in SG&A as discussed above.

 

Discontinued operations are comprised of the Company’s car wash operations. These operations generated a loss of approximately $(18,000) and $(52,000), for the three months ended June 30, 2013 and 2012, respectfully.

 

Net loss for the three months ended June 30, 2013 was approximately $(841,000), compared to a net loss of approximately $(780,000) for the three months ended June 30, 2012.

 

Financial Results, Six Months Ended June 30, 2013 and 2012

 

Consolidated net sales were approximately $6.1 million and $6.4 million for the six months ended June 30, 2013 and 2012, respectively, a decrease of $300,000 or 4.7%. This decrease is mainly attributed to a $452,000 or 36.5% decrease in electronic surveillance equipment net sales. This decline is mainly offset by a 9.9% or $236,000 increase in Mace® personal defense products net sales.

 

Consolidate gross profits were approximately $2.3 million for the six months ended June 30, 2013 compared to prior year gross profits of $2.4 million. The $100,000 or 4.2% decrease in gross profits is mainly attributed to the $300,000 decline in net sales, as year-to-date overall gross profit margins were comparable to prior year margins.

 

SG&A expenses for the six months ended June 30, 2013 and 2012 were $3.5 million and $3.3 million, respectfully. The $200,000 or 6.1% increase is mainly attributed to increased professional expenses related to public relations, retail channel consulting, advertising, EPA consulting, and expenses associated with the issuance of stock options to key employees. These increases were offset by significant savings incurred by Mace’s decision to elect non-reporting status with the SEC and the consolidation of operations and facilities. Prior year SG&A also included a $100,000 gain on the sale of IVS, our former high-end digital and machine vision camera operation.

 

Loss from continuing operations for the six months ended June 30, 2013 was approximately $(1.53 million), compared to a loss from continuing operations of $(1.24 million) for the six months ended June 30, 2012. The $(290,000) or 23.4%, increase in operating loss from continuing operations was mainly attributable to the $100,000 decline in gross profits on a $300,000 decrease in net sales, and an increase of $200,000 in SG&A expenses.

 

Discontinued operations are comprised of the Company’s car wash operations. These operations generated income of approximately $39,000 for the six months ended June 30, 2013 compared to a loss of $(72,000) for the same period in 2012. Income from discontinued operations in 2013 is attributed to insurance proceeds and interest income.

 

Net loss for the six months ended June 30, 2013 was approximately $(1.6 million) compared to a net loss of approximately $(1.3 million) for the six months ended June 30, 2012.

 

Conference Call

 

Mace will conduct a conference call on Wednesday, August 28, 2013 at 2:00 PM EST, 11:00 AM PST. The participant conference call number is (877) 719-8065, conference ID: 41103011. Presentation materials for the conference call will be available Wednesday, August 28th, on Mace’s website under Investor Relations, Shareholder Transcripts & Presentations. There will also be access to a digital recording of the teleconference by calling (855) 859-2056 and entering the conference ID: 41103011. This will be available from two hours following the teleconference until September 27, 2013.

 

About Mace® Brand

 

Mace Security International, Inc. (MACE) is the manufacturer of personal defense products and markets such products and electronic surveillance products under the well known brand name Mace®, and is the owner and operator of a wholesale central security monitoring station. Mace’s web site is www.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 economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.

 


August 20th, 2013

Mace® Brand Muzzle Bear Spray is a safe deterrent for the rising amount of bear and aggressive animal attacks.

The link below to an ABC® News report is an important reminder for all of us who like to enjoy being active outdoors. You can protect yourself with Mace® Brand Muzzle® line of animal attack defense sprays. Mace® Brand Muzzle Bear Magnum Fogger delivers a powerful blast that reaches up to 35 feet! Mace® Brand product is essential gear for hunters and those living in states with active bear or other wild animal populations. Think of the brand “Mace®”… just in case.

“You can safely DEFEND YOURSELF when threatened by an unexpected bear encounter with the effective power of Mace® Brand Muzzle® Bear Spray … Just spray and get away” stated Eric Crawford, VP of Sales and an active outdoorsman.

Bear Attacks on the Rise, Raising Safety Concerns
ABC News


Facts you should know about bear attacks:

  • A grizzly is 22 times more likely to attack you than a black bear
  • 65 percent of people were hiking when attacked
  • 16 percent of people were working when attacked
  • Most bears that attack are alone – single bears are involved in conflicts eight times more often than females with cubs
  • About 33 percent of bear attacks occurred after they were startled

  • You need something you can depend on in the woods. Mace® Brand Muzzle® Bear Spray is an effective deterrent to attacking bears. Treat all bear encounters with extreme caution.


    About Mace® Brand
    Mace Security International, Inc. (OTCPINK: MACE) is a manufacturer and provider of personal defense, safety, and electronic security products to consumer and business market segments under the highly recognized Mace® brand. Mace® Brand also owns and operates a UL/ETL listed central station providing remote alarm and video monitoring services to the wholesale security trade. For more information, go to www.mace.com or write to Mace Security International, Inc., 29100 Aurora Road, Suite 100, Solon, Ohio 44139.