Thursday, August 10th, 2017
Mace Security International, Inc.
4400 Carnegie
Cleveland, OH 44103

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)