Mace Reports Second Quarter 2017 Financial Results
– Net sales , up 24%
– Positive net income , up 112%
– Positive EBITDA of $124,000 reported for the quarter
– Adds 16 new accounts in the quarter
CLEVELAND – August 10, 2017 – Mace Security International Inc. (OTCQX: MACE) today announced unaudited financial results for the second quarter and six-month period ended June 30, 2017.
“The strategic acquisition, which the company closed at the end of the first quarter, along with organic growth drove the net sales increases in the second quarter,” said Richard Barone, chairman.”Additionally the company saw an increase in gross profit in the second quarter as well as year to date in 2017.”
Second Quarter/Six Months 2017 Financial Highlights
- Net sales up 23.6% for quarter; up 2.7% year-to-date
- Gross profit up 20.7% for quarter; up 1.9% year-to-date
- Consumer distribution channel net sales up 15.2% for the quarter; up 2.9% year-to-date
- International net sales up 59.1% for the quarter; down 15.7% year-to-date
- Net income of $87,000 reported for the quarter
- EBITDA of $124,000 reported for the quarter
Select Consolidated Financial Results, Second Quarter Ended June 30, 2017 and 2016
(in thousands):
|
For the Three Months Ended |
||||||||||||||
|
June 30, |
% of Sales |
June 30, |
% of Sales |
|||||||||||
|
2017 |
2016 |
$ Chg |
% Chg |
|||||||||||
| Net sales |
$ 2,510 |
100.0% |
$ 2,031 |
100.0% |
479 |
23.6% |
||||||||
| Gross profit |
1,013 |
40.4% |
839 |
41.3% |
174 |
20.7% |
||||||||
| Selling, general, and administrative expenses |
866 |
34.5% |
860 |
42.3% |
(6) |
0.7% |
||||||||
| Operating income (loss) | 97 |
3.9% |
(60) |
-3.0% |
157 |
|||||||||
| Net income |
87 |
3.5% |
41 |
2.0% |
46 |
|||||||||
Second Quarter 2017 Operational Highlights
“The company, continuing to expand its dominant Brand presence in the market place, added 16 new customer accounts in the second quarter. A significant portion of the revenue increase in the second quarter can be attributed to the strategic and accretive acquisition which the company closed at the end of the first quarter.” stated Mace President and CEO John J. McCann.”
McCann noted that the company will continue to work on new products, promotions and distribution opportunities in the back half of 2017.
Conference Call
Mace® will conduct a conference call on Friday, August 11, 2017 at 2:00 PM EDT, 11:00 AM PDT to discuss its financial and operational performance for the quarter ended June 30, 2017. The participant conference call number is (877) 719-8065, conference ID: 69268772. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Friday,
August 11, 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® 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 |
June 30, 2017 |
|
December 31, 2016 |
| Current assets: |
(Unaudited) |
||
| Cash and cash equivalents |
$ 568 |
$ 970 |
|
| Restricted cashShort-term investments |
– 606 |
60 1,794 |
|
| Accounts receivable, net |
1,796 |
1,655 |
|
| Inventories, net |
1,751 |
1,568 |
|
| Prepaid expenses and other current assets |
917 |
952 |
|
| Total current assets |
5,638 |
6,999 |
|
| Plant and equipment, net |
840 |
714 |
|
| Goodwill |
2,641 |
– |
|
| Other intangible assets |
685 |
685 |
|
| Other assets |
1,018 |
1,184 |
|
| Total assets |
$ 10,822 |
$ 9,582 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||
| Current liabilities: | |||
| Current portion of long-term debt | $ 183 | $ – | |
| Accounts payable |
281 |
194 |
|
| Income taxes payable |
60 |
60 |
|
| Accrued expenses and other current liabilities |
470 |
518 |
|
| Total current liabilities |
994 |
772 |
|
| Long-term debt, net of current portion |
773 |
– |
|
| Other liabilities |
3 |
4 |
|
| Total liabilities |
1,770 |
776 |
|
| Total stockholders’ equity |
9,052 |
8,806 |
|
| Total liabilities and stockholders’ equity |
$ 10,822 |
$ 9,582 |
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended June 30, 2017 and 2016
(Unaudited)
(Amounts in thousands)
|
2017 |
|
2016 |
||
| Net sales |
$ 2,510 |
$ 2,031 |
||
| Cost of revenue |
1,497 |
1,192 |
||
| Gross profit |
1,013 |
839 |
||
| Selling, general, and administrative expenses |
866 |
860 |
||
| Depreciation |
50 |
39 |
||
| Operating income (loss) |
97 |
(60) |
||
| Interest expense |
(12) |
(12) |
||
| Interest income |
25 |
35 |
||
| Income (loss) from continuing operations before income tax provision |
110 |
(37) |
||
| Income tax provision |
– |
– |
||
| Income (loss) from continuing operations |
110 |
(37) |
||
| Income (loss) from discontinued operations, net of tax |
(23) |
78 |
||
| Net income |
$ 87 |
$ 41 |
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Six Months Ended June 30, 2017 and 2016
(Unaudited)
(Amounts in thousands)
|
2017 |
|
2016 |
||
| Net sales |
$ 4,220 |
$ 4,110 |
||
| Cost of revenue |
2,533 |
2,454 |
||
| Gross profit |
1,687 |
1,656 |
||
| Selling, general, and administrative expenses |
1,831 |
1,832 |
||
| Depreciation |
90 |
76 |
||
| Operating loss |
(234) |
(252) |
||
| Interest expense |
(18) |
(23) |
||
| Interest income |
54 |
72 |
||
| Loss on sale of short-term investments |
(11) |
– |
||
| Loss from continuing operations before income tax provision |
(209) |
(203) |
||
| Income tax provision |
– |
– |
||
| Loss from continuing operations |
(209) |
(203) |
||
| Income (loss) from discontinued operations, net of tax |
(22) |
84 |
||
| Net loss |
$ (231) |
$ (119) |