March, 2018 Press Releases

March 28th, 2018

Mace Reports Fourth Quarter and Full-Year 2017 Financial Results

  • Net sales up 10.3% for the year, $929k improvement over 2016
  • Operating income of $94,000 for the year, $283,000 improvement over 2016
  • EBITDA of $270,000 for the year, $323,000 improvement over 2016
  • Adds 112 new accounts in 2017
  • Strategic acquisitions expand revenues

 

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

The Company is pleased to announce another year of growth in 2017. The Company has grown its top line sales through organic growth and strategic acquisitions during the past year while managing spending and operations to turn a profit at the same time. The Company in 2017 added 112 new accounts across all channels of commerce.

The acquisitions contributed in part to the Company finishing the year with $270,000 in positive EBITDA. Outgoing Chairman Richard Barone stated: “The work which was started over five years ago is paying off for the investors and the Company. Although we are pleased with the results we do see bigger and better things for the Company in the future.”

The Company additionally launched several new products and repositioned its self to compete in the ever evolving retail environment by implementing the following:

  • Company added key staff to help it compete effectively in the growing e-commerce channel
  • Added several new products in 2017
  • Streamlined operations to serve its customers effectively and efficiently
  • Made investments in advertising and branding to promote and protect the trademarks and the Company’s brands

The Company acknowledges and thanks former Board members Dan Perella and Carl Grassi for their contributions and hard work over the past several years with helping place the foundation for future success.

Fourth Quarter/ Full-Year 2017 Financial Highlights – Compared to 2016

  • Net sales up 31.1% for quarter; up 10.3% year-to-date
  • Gross profit up 64.9% for quarter; up 19.5% year-to-date
  • EBITDA of $74,000 reported for the quarter; $270,000 year-to-date

   

Select Consolidated Financial Results, Fourth Quarter Ended December 31, 2017 and 2016

(in thousands):

 

For the Three Months Ended
Dec 31, 2017 % of Sales Dec 31, % of Sales
2016 $ Chg
Net sales $2,935 100.0% $2,238 100.0% 697
Gross profit 1,423 48.5% 863 38.6% 560
Selling, general, and administrative expenses 1,348 45.9% 947 42.3% 401
Operating income (loss)  26 0.9% (123) (5.5%) 149
Net income (loss) (30) (1.0%) 120 5.4% 150
EBITDA 74 2.5% (103) (3.8%) 177

 

Fourth Quarter / Full Year 2017 Operational Highlights

The Company, by expanding its revenue base with the 2017 acquisitions of Washington Laboratories and Vigilant, was able to grow revenues by 10.3% despite a cyclical downturn in international sales and sluggish sales in the sporting goods channel in 2017. The acquisition of Washington Laboratories added stable top line growth. The increased production volume and automation derived from this acquisition increased overall profitability by lowering per unit costs. The Vigilant acquisition, and addition of David Happe to the Mace team, provided the Company with an instant vibrant e-commerce presence both domestically and internationally as well as the expertise to manage and grow this critical segment. “Mace was the perfect partner for me as they have the brand, the infrastructure and the tools to raise the ceiling on my goals and abilities” stated David Happe.

Conference Call

Mace® will conduct a conference call on Thursday, March 29, 2018 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter and full-year ended December 31, 2017. The participant conference call number is (877) 719-8065, conference ID: 7699986.A full set of the consolidated financial statements are available on www.Mace.com. Recording of the teleconference will be available on the Mace website within 48 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, and Vigilant® Brand alarms which is the world-wide leader and number one recognized brand in personal alarms.

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.

 

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.

 

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Mace Security International, Inc.

Condensed Consolidated Balance Sheets

(Amounts in thousands)

ASSETS December 31, 2017   December 31, 2016
Current assets:
Cash and cash equivalents $662 $970
Restricted cash

Short-term investments

251

60

1,794

Accounts receivable, net 1,622 1,655
Inventories, net 2,317 1,568
Notes receivable and other current assets 1,143 952
Total current assets  5,995 6,999
 Property and equipment, net  781  714
Goodwill 771
 

Intangible assets, net

3,211 685
Notes receivable and other assets 906 1,184
Total other assets 4,888 1,869
Total assets $11,664  $9,582
  

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt $427 $-
Accounts payable 457 194
Income taxes payable 62 60
Accrued expenses and other current liabilities 633 518
Total current liabilities 1,579 772
Long-term debt, net of current portion 678
Other liabilities 2 4
Total liabilities 2,259 776
Total stockholders’ equity 9,405 8,806
     Total liabilities and stockholders’ equity $11,664 $9,582

 

 

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Three Months Ended December 31, 2017 and 2016

(Amounts in thousands)

  

2017         2016

Net sales

$2,935 $2,238
Cost of revenue 1,512 1,375

Gross profit

1,423

863

Selling, general, and administrative expenses 1,348 947
Depreciation 49 39
Operating income (loss) 26 (123)
Interest expense (15) (13)
Interest income 25 34
Loss on sale of short-term investments (1) (15)
Amortization of intangible assets (63)
Other expense, net (4)
Loss from continuing operations before income tax provision (28) (121)
Income tax (benefit) provision 2 (19)
     
Loss from continuing operations (30) (102)
Income from discontinued operations, net of tax 222
Net income (loss) $(30) $120

 

 

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Twelve Months Ended December 31, 2017 and 2016

(Audited)

(Amounts in thousands)

 

2017   2016
Net sales $9,983 $9,054
Cost of revenue 5,580 5,369
Gross profit 4,403 3,685
Selling, general, and administrative expenses 4,121 3,719
Depreciation 188 155
Operating income (loss) 94 (189)
Interest expense (45) (48)
Interest income 96 136
Loss on sale of short-term investments (12) (15)
Amortization of intangible assets (174)  –
Other expense, net (4)
Income (loss) from continuing operations before income tax provision (41) (120)
Income tax (benefit) provision 2 (19)
     
Loss from continuing operations (43) (101)
Income (loss) from discontinued operations, net of tax (22) 351
Net income (loss) $(65) $250

 

 

Contact:

John J. McCann

President and Chief Executive Officer

440-424-5322

john@mace.com

 


March 12th, 2018

Mace Security International, Inc. appoints Chuck Gehrisch and Sanjay Singh to its Board of Directors

CLEVELAND, Ohio – Mace Security International, Inc. (MSI) (OTCQX:MACE) announced that RKI, Inc., d/b/a Roll-Kraft, has acquired  shares of the Company’s common stock from accounts managed by Ancora Advisers, LLC   As a result of this transaction, Roll-Kraft now owns 20% of the Company’s outstanding shares. Contemporaneous with the transaction, Chuck Gehrisch, CEO of Roll-Kraft, and Sanjay Singh, President of Roll-Kraft, were appointed to the Company’s Board of Directors, effective March 9, 2018.

Carl Grassi and Daniel Perella have respectfully resigned from the board effective March 9th, Both Dan and Carl had previously expressed their desire to resign due to personal and professional reasons.

“We want to thank Dan Perella and Carl Grassi for their exceptional leadership and hard work, as we welcome our new board members who will bring new talent, expertise and energy to the company,” said Richard Barone. “We are very fortunate to have a very talented board of directors.”

The board has created the roles of Executive Chairman and Executive Vice Chairman to work with the CEO and the current management team on operational efficiency with the goal of creating an even more robust company. The Executive Chairman and Executive Vice Chairman will be eligible to receive compensation for their services based on certain improvements in the Company’s financial performance.

Mr. Gehrisch has been elected as Executive Chairman, replacing Richard Barone, who resigned as Chairman but remains on the board. Mr. Singh has been elected to the newly created position of Executive Vice-Chairman. A letter written by Mr. Barone is available for review here and has been mailed to shareholders. 

As part of the transaction, Roll-Kraft and Ancora have entered into a mutual voting agreement with the goal of continued stability and oversight for the company.

 

About George C. “Chuck” Gehrisch, Jr.

Mr. Gehrisch is the Chairman and CEO of Roll-Kraft in Mentor, OH.  His entire career has been devoted to building local business, creating hundreds of jobs and providing custom tooling to roll forming, tube and pipe manufacturers around the world.  Roll-Kraft tooling is used to produce thousands of items used by the public every day.

Prior to holding his position as Chairman and CEO of Roll-Kraft, Mr. Gehrisch led the company as President for more than 20 years.   He expanded Roll-Kraft’s outreach to include a worldwide presence and the company outgrew its facilities and moved into a state-of-the-art 110,000 sq. ft. building in Mentor, OH.   In addition, Mr. Gehrisch opened other privately held Roll-Kraft facilities in Chicago, Illinois; Houston, Texas; and Woodbridge, Ontario, Canada.

Mr. Gehrisch’s innovative direction has led Roll-Kraft to actively focus on the exceptional goal of providing customers with 100% on-time deliveries and first-time performance.  Through his consistent leadership, the company has become known around the world as an industry leader for its superior service and reliable quality tooling.

About Sanjay Singh

Mr. Singh is the President of Roll-Kraft, where he directs and leads the company’s efforts to excel in operational efficiencies and market penetration. He has most recently sharpened the company’s continuous improvement focus to meet the company’s goals of 100% on-time delivery and first-time performance.

He also leads the company’s private investment initiatives in lower middle market companies located in northeast Ohio. Mr. Singh has held various financial executive leadership roles in Fortune 1000, privately held and private equity backed portfolio companies across various industries, including consumer products, manufacturing and service. Mr. Singh was actively involved in acquisitions and operational improvements in those businesses.

Mr. Singh has a Bachelor’s degree in Accounting and an MBA. He currently serves as an advisor to the Board of two non-profits and a technology startup.

 

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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 defense 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. MIS 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, visit www.mace.com.

 

Contact:

John J. McCann

President and Chief Executive Officer

440-424-5322

john@mace.com


March 7th, 2018

Mace Security International Inc. Announces E-commerce Expansion to European Union

CLEVELAND, Ohio – After establishing a logistics network including fulfillment partnerships, and meeting all of the regulatory requirements for distribution in Europe, Mace Security International Inc. (MSI) is launching distribution to the European Union (EU).  MSI completed the first Vigilant brand test model shipment to our European distribution center and successfully sold the first product in Europe this week.

“International e-commerce is one of the pillars of Mace’s continued global expansion,” said David Happe, EVP of e-commerce for MSI. “We are excited about the potential for incremental revenue and profit through this high velocity new sales channel.”

Following that successful test, several additional models will be activated for shipment to Europe throughout March, including various Mace Brand items and Vigilant Personal Protection Systems alarms.

“We are in a unique position for rapid expansion, due to the fact that our electronics products all meet the high performance standards and regulatory requirements for marketing in the EU,” said Happe. “We see this e-commerce expansion potential in the EU for Mace products that could some day rival our United States online efforts.”

Mace Brand and Vigilant Personal Protection Systems alarms products will be initially available to customers in France, Italy, Spain, Germany and the UK with additional planned international distribution expansion later in 2018.

 

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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 defense 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. MIS 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, visit www.mace.com.

 

Contact:

John J. McCann

President and Chief Executive Officer

440-424-5322

john@mace.com 

 

Forward-Looking Statement

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.


March 5th, 2018

Mace launches Police Strength Less-Than-Lethal Pepper Gel Spray Defense Kit Solution for Homes, Schools and Businesses

CLEVELAND, Ohio – In light of recent developments involving modern sporting rifles (MSR’s), national retail chains and both proposed and pending legislation, Mace Brand has launched a Mace Brand Safety Kit, which includes two Pepper Gel Magnum 9 cans and one Mace Brand Relief decontamination spray.

“Mace Security International, Inc. (MSI) continues to offer less-than-lethal solutions for all Americans and concerned citizens around the world,” said John McCann, CEO and president of MSI. “Mace Security International, Inc. is a supporter of the 2nd Amendment, as well as the 1st Amendment. We respect a person’s right to choose how they will protect themselves.”

Mace Brand Pepper Gel Magnum 9 has a pistol grip design, making it easy to deploy, is light weight, and has a 25-foot range with a 330 gram canister that empties in six seconds – great for indoor defense. The kit also includes the Mace Brand Relief decontamination spray, which is designed to help speed up the decontamination time needed to recover. The specialized herbal extract formula cuts through the capsaicinoids that cause the burning sensation. The Mace Brand Safety Kit also includes more information on how to use the products and how to store the kit.

Mace Brand pepper sprays are a less-than-lethal self-defense alternative for anyone 18 years of age or over, and can be purchased at leading retailers and independent dealers across the United States. Mace Brand pepper sprays are offered in many different sizes, formulations and delivery systems designed to meet the needs and applications of both civilians and professionals.

Mace Brand also offers personal alarms and stun guns to complete your personal defense strategy. From our professional division, Mace Tactical Solutions, we also offer less-than-lethal sprays and products tailored for law enforcement, correctional and government agencies.

To purchase the Mace Brand Safety Kit, visit http://www.mace.com/macer-brand-police-strength-less-than-lethal-pepper-gel-spray-defense-kit. Available on Walmart.com and Amazon.com as well. This kit is not available in select states; please check on the Mace Brand Safety Kit product listing on Mace.com for a list of restricted states.

Mace Brand is recognized as the #1 brand in safety and security through independent research. When shopping for Mace Brand products, look for the Mace Brand Authentic Product Seal; if it doesn’t have the seal, it is not an authorized product of Mace Brand.

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 defense 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. MIS distributes and supports Mace® Brand products and services through mass market retailers, wholesale distributors, independent dealers and retailers, e-commerce marketers and installation service providers. For more information, visit www.mace.com.

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Contact:

John J. McCann

President and Chief Executive Officer

440-424-5322

john@mace.com