February, 2017 Press Releases

February 27th, 2017

Mace Security International Reports Fourth Quarter and Full-Year 2016 Financial Results

-       Third consecutive positive net income quarter

-       Added several new accounts during the quarter and over Seventy for the full year

-       Margin improvement spurred by automation, production efficiencies, and cost reductions

-       Pending acquisition expected to increase revenues over 20% and improve overall margins

-       Mace shares recently up-listed to OTCQX Best Market

 

CLEVELAND – February 27, 2017 – Mace Security International Inc. (OTCQX: MACE) today released audited financial results for the year ended December 31, 2016.

Fourth Quarter/ Full-Year 2016 Financial Highlights

  • Net revenue up 9.1% for quarter; up 26.7% full-year
  • Gross profit up 19.0% for quarter; up 33.8% full-year
  • Key channels of distribution (sporting goods and consumer) net revenues up 22.0% for the quarter; up 29.4% year-to-date
  • Net income of $120,000, up $570,000 for the quarter; $250,000 for the year, up $1,277,000
  • EBITDA of $138,000, up $583,000 for the quarter; $317,000 for the year, up $1,332,000

  

Select Consolidated Financial Results, Fourth Quarter Ended December 31, 2016 and 2015

(in thousands): 

Dec 31,

% of Sales

Dec 31,

% of Sales

2016

2015

$ Chg

Net revenue

$      2,238

 $      2,051

$ 187

Gross profit

       863

38.6%

            725

37.5%

  138

Selling, general, and administrative expenses

         947

42.3%

         1,022

49.8%

 75

Operating loss          (123)

-5.5%

          (330)

-16.1%

   207

Net income (loss)

       120

5.4%

          (450)

-21.9%

  570

 

Fourth Quarter 2016 Operational Highlights

The Company experienced a 22% increase in net sales through its sporting goods and consumer sales channels in the fourth quarter.  “We experienced significant sales growth within some key accounts plus the Company continues to add more accounts every quarter,” said Mace President and CEO John J. McCann. Gross profit margins for the quarter improved significantly through investments in automation and package redesign that reduced material costs and improved productivity, while also reducing direct labor. During the fourth quarter, Mace completed the sale of its Surveillance business resulting in a $212,000 gain.

The above achievements contributed to Mace reporting net income for the third consecutive quarter and net profit for all of 2016.  “Our plan continues to be to grow sales, gain market share, control expenses, and further increase margins through cost reductions and improved productivity,” Mr. McCann added.

 

Subsequent Events

On January 19, 2017 Mace announced it entered into an agreement in principle to acquire all of the assets, rights and properties of Washington Labs, LLC, a producer of high quality defense spray products for an undisclosed amount of cash and stock. Upon closing, the transaction will make Mace one of the largest manufacturers and producers of less lethal defense sprays in the world.  The company now expects the transaction to close by March 31, 2017. “We look forward to integrating a business that perfectly complements Mace, adding EPA approved formulations, a portfolio of best-in-class products, and increased automation in the production process.” said Mr. McCann.

Also on February 16, 2017, the Company enhanced its stock by listing to trade on the OTCQX Best Market.

 

Chairman’s Letter on Mace.com Website

“I am pleased to see the Company continue to execute its business plan, and posting another quarter of income and increased sales,” said Richard Barone, Chairman.

Investors and interested parties are invited to read a letter from the Company’s Chairman, Richard Barone.  The letter can be found on the Company’s website, http://corp.mace.com/investor-relations/ under financial reports and information.

 

Conference Call

Mace® will conduct a conference call on Wednesday, March 1, 2017 at 2:00 PM EDT, 11:00 AM PDT to discuss its financial and operational performance for the quarter and year ended December 31, 2016. The participant conference call number is (877) 719-8065, conference ID: 79653569. A full set of the audited consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Wednesday, March 1, 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 and security 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

(Audited)

 (Amounts in thousands)

ASSETS

December 31,

2016

 

December 31, 2015

Current assets:
Cash and cash equivalents

 $          970

 $         446

Restricted cashShort-term investments

60

1,794

60

2,142

Accounts receivable, net

            1,655

            1,562

Inventories,  net

            1,568

            1,601

Prepaid expenses and other current assets

952

              779

Assets held for sale, net

-

430

Total current assets

           6,999

          7,020

Plant and equipment, net

             714

522

Other intangible assets

            685

            685

Other assets

 1,184

              1,034

Total assets

  $      9,582

 $        9,261

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:
Accounts payable  $             194   $              222
Income taxes payable

                  60

61

Accrued expenses and other current liabilities

518

695

Total current liabilities

          772

          978

Other liabilities

4

-

Total stockholders’ equity

       8,806

8,283

     Total liabilities and stockholders’ equity $           9,582  $            9,261

 

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Three Months Ended December 31, 2016 and 2015

 (Amounts in thousands) 

 

Three Months Ended December 31,

 

2016

 

2015

Net revenue

 $       2,238

 $       2,051

Cost of  revenue

          1,375

1,326

Gross profit

        863

       725

Selling, general, and administrative expenses

          947

1,022

Depreciation

           39

33

Operating loss

       (123)

       (330)

Interest expense

              (13)

(13)

Interest income

              34

              41

Loss on sale of short-term investments

(15)

(2)

Other income (expense), net

(4)

(16)

Loss from continuing operations before income tax provision

        (121)

(320)

Income tax (benefit) provision

(19)

                1

     
Loss from continuing operations

       (102)

       (321)

Income (loss) from discontinued operations, net of tax

222

(129)

Net income (loss)

 $      120

 $       (450)

  

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Years Ended December 31, 2016 and 2015

(Audited)

(Amounts in thousands)

 

Years Ended December 31,

 

2016

 

2015

Net revenue

 $       9,054

 $       7,145

Cost of  revenue

          5,369

4,390

Gross profit

        3,685

      2,755

Selling, general, and administrative expenses

          3,719

3,838

Depreciation

           155

140

Operating loss

       (189)

       (1,223)

Interest expense

              (48)

              (51)

Interest income

              136

              179

Loss on sale of short-term investments

              (15)

              (21)

Other income

(4)

296

Loss from continuing operations before income tax provision

        (120)

(820)

Income tax (benefit) provision

(19)

                1

     
Loss from continuing operations

       (101)

       (821)

Income (loss) from discontinued operations, net of tax

351

(206)

Net income (loss)

 $     250

 $       (1,027)


February 16th, 2017

Mace Security International Joins the OTCQX Best Market

CLEVELAND–()–Mace Security International, Inc. (OTCQX: MACE), a leader in designing, manufacturing, and distributing consumer and tactical products for personal defense and security, under its world-renowned Mace® Brand, has qualified to trade on the OTCQX® Best Market. Mace Security International upgraded to OTCQX from the Pink® market as of today. OTC Markets Group Inc. (OTCQX: OTCM) is an operator of financial markets for 10,000 U.S. and global securities.

Mace Security International begins trading today on OTCQX under the symbol “MACE.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

“Moving from the Pink market to the OTCQX market is another great achievement for the company as we continue to grow and increase shareholder value,” stated Richard Barone, Chairman of Mace Security International.

“Trading on OTCQX will allow Mace Security International to efficiently expand access to its news and financial disclosure and to demonstrate to investors that the company meets high financial standards and follows corporate governance best practices,” said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. “We look forward to supporting Mace Security International and its shareholders in the public markets.”

Mace Security International 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 and security 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

Contacts

Mace Security International Inc.
John J. McCann, 440-424-5322
President and Chief Executive Officer
john@mace.com