November, 2016 Press Releases

November 15th, 2016

Mace Reports Strong Third Quarter 2016 Financial Results

-       2nd consecutive positive Net Income quarter vs. prior year losses

-       Highest revenue quarter in over 3 years led by growth in key channels

-       Strongest quarterly Gross Profit and EBITDA in over 4 years

-       Added 19 new accounts for the quarter, 65 for the year-to-date

-       Sale of surveillance business provides on-going royalty opportunity

 

CLEVELAND – November 15, 2016 – Mace Security International Inc. (OTCPINK: MACE) today announced unaudited financial results for the third quarter and nine-month period ended September 30, 2016.

“Strong sales to key domestic and international retailers and distributors along with improved operational efficiencies allowed Mace to post back-to-back profitable quarters.” said Richard Barone, Chairman. “Management’s continued focus on growing the top line, while reducing and managing costs in a restructured organization, has positioned the company to deliver sustainable profitable growth for investors.”  Mr. Barone added.

 

Third Quarter/Nine Months 2016 Financial Highlights

  • Net revenue up 58.2% for quarter; up 33.8% year-to-date
  • Gross profit up 81.9% for quarter; up 39.0% year-to-date
  • Key channels of distribution (sporting goods & consumer) net revenues up 65.2% for the quarter; up 32.2% year-to-date
  • International net revenues up 218.2% for the quarter; up 137.8% year-to-date
  • Selling, general and administrative expenses at 34.7% of net revenue, down from 54.1%
  • Net income of $250,000 reported for the quarter
  • EBITDA of $272,000 reported for the quarter

 

Select Consolidated Financial Results, Third Quarter Ended September 30, 2016 and 2015

(in thousands):

For the Three Months Ended

Sept 30,

% of Sales

Sept 30,

% of Sales

2016

2015

$ Chg

% Chg

Net revenue

$      2,706

100.0%

 $      1,710

100.0%

996

58.2%

Gross profit

       1,166

43.1%

            641

37.5%

525

81.9%

Selling, general, and administrative expenses

         940

34.7%

            925

54.1%

15

1.6%

Operating income (loss)           186

6.9%

          (319)

-18.7%

   505

Net income (loss)

       250

9.2%

          (335)

-19.6%

   585

  

Third Quarter 2016 Operational Highlights

All key channels experienced growth.  In particular, International is up 218% for the quarter, and is becoming an increasing part of the sales mix. The sporting goods channel also experienced growth, despite the loss of a former major customer that completed its bankruptcy liquidation earlier this year. The Company continued to broaden its customer base, adding another 19 accounts in the third quarter across consumer, tactical and sporting goods channels.  “Retailers and distributors see the power of the Mace Brand in the safety and security business segment. This provides Mace with opportunities to continue its top line growth”, said Mace President and CEO John J. McCann.

Mace® recently announced the November 2016 sale of its surveillance business to SecureCheck LLC.  The business was sold for a modest amount of cash in excess of the September 30, 2016 net Assets held for sale balance plus an on-going royalty revenue stream.  “By partnering with SecureCheck LLC, the Mace® brand will continue to be seen and become advertised nationally. The Mace team can now better focus on expanding the Company’s core business, add complimentary product lines, and look for additional royalty opportunities featuring the Mace Brand,” Mr. McCann added.

 

Conference Call

Mace® will conduct a conference call on Thursday, November 17, 2016 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended September 30, 2016. The participant conference call number is (877) 719-8065, conference ID: 20895961. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Thursday, November 17, 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, manufacturing,  and distributing 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® and Take Down® brands.

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.

 

Contact:
John J. McCann
President and Chief Executive Officer
440-424-5322
john@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.

Condensed Consolidated Balance Sheets

 (Amounts in thousands)

ASSETS

September 30,

2016

 

December 31, 2015

Current assets:

(Unaudited)

Cash and cash equivalents

 $          380

 $         446

Restricted cashShort-term investments

60

2,134

60

2,142

Accounts receivable, net

            2,084

            1,562

Inventories,  net

            1,665

            1,601

Prepaid expenses and other current assets

861

              779

Assets held for sale, net

219

430

Total current assets

           7,403

          7,020

Plant and equipment, net

             697

522

Other intangible assets

            685

            685

Other assets

 785

              1,034

Total assets

  $      9,570

 $        9,261

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:
Accounts payable  $             337   $              222
Income taxes payable

                  59

61

Accrued expenses and other current liabilities

539

695

Total current liabilities

          935

          978

Other liabilities

24

-

Total stockholders’ equity

       8,611

8,283

     Total liabilities and stockholders’ equity $           9,570  $            9,261

 

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Three Months Ended September 30, 2016 and 2015

(Unaudited)

(Amounts in thousands)

 

Three Months Ended September 30,

 

2016

 

2015

Net revenue

 $       2,706

 $       1,710

Cost of  revenue

          1,540

1,069

Gross profit

        1,166

       641

Selling, general, and administrative expenses

          940

925

Depreciation

           40

35

Operating income (loss)

       186

       (319)

Interest expense

              (12)

(13)

Interest income

              30

              44

Loss on sale of short-term investments

-

(3)

Income (loss) from continuing operations before income tax provision

        204

(291)

Income tax provision

-

                -

     
Income (loss) from continuing operations

       204

       (291)

Income (loss) from discontinued operations, net of tax

46

(44)

Net income (loss)

 $      250

 $       (335)

 

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Nine Months Ended September 30, 2016 and 2015

(Unaudited)

(Amounts in thousands)

 

Nine Months Ended September 30,

 

2016

 

2015

Net revenue

 $       6,816

 $       5,094

Cost of  revenue

          3,994

3,064

Gross profit

        2,822

       2,030

Selling, general, and administrative expenses

          2,772

2,816

Depreciation

           116

107

Operating loss

       (66)

       (893)

Interest expense

              (35)

              (38)

Interest income

              102

              138

Loss on sale of short-term investments

              -

              (19)

Other income

-

312

Income (loss) from continuing operations before income tax provision

        1

(500)

Income tax provision

-

                -

     
Income (loss) from continuing operations

       1

       (500)

Income (loss) from discontinued operations, net of tax

             129

(77)

Net income (loss)

 $      130

 $       (577)


November 8th, 2016

Mace Sells Electronic Surveillance Business to SecureCheck LLC

header_Mace_SecureCheck

- SecureCheck will pay Mace Security International cash for the business 

- SecureCheck will promote and support the Mace® brand of electronic surveillance products 

- SecureCheck will also pay Mace an ongoing royalty for use of the Mace® brand 

- Deal allows Mace to further focus on consumer and tactical markets 

- Future royalty streams helps to insure future profitability for Mace Security International 

 

CLEVELAND – November 8th, 2016 – Mace Security International Inc. (OTCPINK: MACE) today announced the sale of the electronic surveillance business to Houston based SecureCheck LLC. The transaction includes a royalty agreement for the use of the world renowned brand name on certain electronic surveillance products.

“SecureCheck LLC is the right partner for Mace due to their expertise and their commitment to customer service. It is very important for Mace Branded customers to have the same positive experience regardless of the product or service provided stated John McCann – President and CEO of Mace Security International.” 

Mace Security International and SecureCheck LLC have begun to transfer responsibility for the business and anticipate the transition will be complete prior to the end of 2016. Both companies anticipate being able to launch new products and services under the Mace Brand name in 2017.

Mace recently reported a profitable second quarter and anticipates continued profitability in third quarter and beyond. “We believe this transaction with Secure Check will build on that profitability in the months and years to come” notes Chairman Richard Barone. 

“SecureCheck LLC, a leading security solutions provider is proud to be the newest member of the MACE family. “Our strategic partnership with this world class, internationally-renowned brand is a perfect fit, and a great addition, to our portfolio of security services and products. There is unlimited potential for success with the combined resources of our two companies,” observes Jack Molho, CEO of SecureCheck LLC. 

 

About SecureCheck, LLC.
SecureCheck LLC is an industry leader in Total Security Solutions©. Its CEO, Jack Molho reiterates the company’s philosophy by saying “If it’s important to you, it’s important to us.” SecureCheck employs only the most experienced professionals with the industry leading experience needed to safeguard what is most valuable to you.

“We stand ready to provide a turnkey solution to your security concerns. Our employees are prepared to tailor a system to your specific needs. Whether designing a new program of protection, installing or servicing your existing system, SecureCheck is the only call you should make.”

The firm is proud to be led by law enforcement and security professionals who understand the needs of our clients. SecureCheck is proud to provide proven results to commercial, industrial, corporate and residential clients. The company offers state of the art burglar/intrusion and detection systems, video surveillance-utilizing the latest in analytical software as well as remote video monitoring and access control systems. Accuracy is not an option, it is the essential principal on which all SecureCheck services are based.

SecureCheck also offers its customers the best in monitoring facilities. Exclusively utilizing Underwriters Laboratories/UL Listed, CSAA Five Diamond and FM Certified Central Station Monitoring services. Only a fraction of monitoring companies have achieved this exclusive recognition and we are proud to offer this as one of our premier service options.

“We’re on guard so you don’t have to be!” 

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