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.
“As evidenced by our year-to-date results, we remain on track to deliver sustainable, profitable growth for investors in the near term.”
“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 September 30, 2015 and 2014
|For the Three Months Ended|
|Sept 30,2015||% of
|$ Chg||% Chg|
|Selling, general, and administrative expenses||1,056||53.2||%||1,095||49.7||%||39||-3.6||%|
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.
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.
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.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
|ASSETS||Sept 30,2015||December 31,
|Cash and cash equivalents||$||1||$||359|
|Accounts receivable, net||1,382||1,352|
|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|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Current portion of long-term debt||$||-||$||1,241|
|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. Condensed Consolidated Statements of Operations
Three Months Ended September 30, 2015 and 2014
|Cost of revenue||1,255||1,316|
|Selling, general, and administrative expenses||1,056||1,095|
|Gain (loss) on sale of short-term investments||(3||)||10|
|Note receivable write-down||-||(100||)|
|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||-||-|
Mace Security International, Inc.
|Cost of revenue||3,676||3,655|
|Selling, general, and administrative expenses||3,253||3,685|
|Gain (loss) on sale of short-term investments||(19||)||134|
|Note receivable write-down||-||(100||)|
|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|
Mace Security International Inc.
John J. McCann, 440-424-5322
President and Chief Executive Officer