August, 2018 Press Releases

August 6th, 2018

Mace Reports Second Quarter 2018 Financial Results

 

Mace Reports Second Quarter 2018 Financial Results

  • Net sales up 13.3%; $333,000 improvement over Q2 2017
  • Gross profit of $1,216,000; $203,000 improvement over Q2 2017
  • EBITDA improvement of $16,000 over Q2 2017
  • Adds 17 new customers in the quarter, and 43 new customers in 2018

 

CLEVELAND – August 6, 2018 – Mace Security International, Inc. (OTCQX: MACE) today released unaudited financial results for the quarter ended June 30, 2018.

The Company is pleased to announce another positive quarter with second quarter net sales of $2,843,000, a 13.3% increase over prior year second quarter. The Company, following a first quarter of 38% increased revenues, continued to grow revenues, gross profit margins, and EBITDA. Second quarter 2018 EBITDA increased $363,000 on a 20.3% or $479,000 increase in revenues over the first quarter. The increases in revenues came from the consumer products segments and the successful integration of the Company’s two recent acquisitions. The Company is continuing its efforts to increase profits by implementing efficiencies in production and realigning its go to market strategy.

 

Second Quarter/Six Months 2018 Financial Highlights – Compared to 2017

  • Net sales up 13.3% for quarter; $333,000 improvement over 2017, up 23.4% year-to-date
  • Gross profit up 20.0% for quarter; $203,000 improvement over 2017, up 30.6% year-to-date
  • Positive EBITDA of $140,000 reported for the quarter; $16,000 improvement over 2017, $94,000 year-to-date improvement

 

Select Consolidated Financial Results, Second Quarter Ended June 30, 2018 and 2017

(in thousands):

For the Three Months Ended
June 30, % of Sales June 30, % of Sales
2018 2017 $ Chg
Net sales $     2,843 100.0% $     2,510 100.0% 333
Gross profit       1,216 42.8%           1,013 40.4%                 203
Selling, general, and administrative expenses        1,085 38.2%              866        34.5%     (219)
Operating income        83 2.9%                97 3.9% (14)
Net income                  41 1.4%             110     4.4%    (69)
EBITDA 140 4.9%              124 4.9%     16

 

 

Second Quarter 2018 Operational Highlights

The Company continued to show growth and improvements in revenues, gross profit and EBITDA. The 200 basis point improvement in gross margin was significant and is a combination of increased efficiencies, a good mix of product sales, and distribution. Although the Company is pleased with the improvements, there are a number of initiatives underway which will help the Company achieve greater heights and profitability in the near future. “Our goal as a company has always been to be the thought leader and best in class organization for personal protection products. We will continue to work hard to achieve this goal”. Stated John McCann President and CEO

Letter from the Chairman

A letter from the Chairman of the Board, Chuck Gehrisch, and Vice Chairman, Sanjay Singh to Shareholders can be accessed by visiting Mace.com, Investor Relations: http://corp.mace.com/investor-relations/shareholder-transcripts-presentations/

Investor Information

Mace® will conduct a conference call on Tuesday, August 7, 2018 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended June 30, 2018. The participant conference call number is (877) 719-8065, conference ID: 5099795. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Tuesday,

August 7, on Mace’s website under Investor Relations, Shareholder Transcripts & Presentations http://corp.mace.com/investor-relations/shareholder-transcripts-presentations/ A 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 designs and manufactures consumer and tactical products for personal defense, security and surveillance under its world-renowned Mace® Brand – the original trusted brand of pepper spray products and Vigilant® Brand alarms, the world-wide leader and number one recognized brand in personal alarms. The Company also offers aerosol defense sprays and tactical products for law enforcement and security professionals worldwide through its Mace® and Take Down® brands. For more information, please visit www.mace.com.

 

Contact:

John J. McCann

President and Chief Executive Officer

440-424-5322

press@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,

2018

(unaudited)

  December 31, 2017
Current assets:
Cash and cash equivalents $      182 $           662
Short-term investments 262 251
Accounts receivable, net            1,720            1,622
Inventories, net            2,497            2,317
Notes receivable and other current assets 878 1,143
Total current assets            5,539          5,995
Property and equipment, net              806 781
 

Goodwill

             877 771
Intangible assets, net            3,077            3,211
Notes receivable and other assets 764              906
Total other assets            4,718          4,888
Total assets $     11,063 $       11,664

 

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt $     567 $              427
Accounts payable              309 457
Income taxes payable                55 62
Accrued expenses and other current liabilities 357 633
Total current liabilities          1,288          1,579
Long-term debt, net of current portion              581 678
Other liabilities 2
Total liabilities 1,869 2,259
Total stockholders’ equity        9,194 9,405
       Total liabilities and stockholders’ equity $     11,063 $        11,664

 

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Three Months Ended June 30, 2018 and 2017

(Unaudited)

(Amounts in thousands)

 

 

2018   2017
Net sales $       2,843 $     2,510
Cost of revenue          1,627 1,497
Gross profit 1,216        1,013
Selling, general, and administrative expenses        1,085 866
Depreciation          48 50
Operating income      83        97
Interest expense              (13) (12)
Interest income 29 25
Gain on short-term investments 9
Amortization of intangible assets (67)
Income from continuing operations before income tax provision 41 110
Income tax provision                –
Income from continuing operations 41              110
Loss from discontinued operations, net of tax of $0 (23)
Net income $     41 $ 87
EBITDA $ 140 $ 124

  

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Six Months Ended June 30, 2018 and 2017

(Unaudited)

(Amounts in thousands)

 

 

2018   2017
Net sales $       5,207 $     4,220
Cost of revenue          3,003 2,533
Gross profit 2,204        1,687
Selling, general, and administrative expenses        2,298 1,831
Depreciation          97 90
Operating loss      (191)        (234)
Interest expense              (28) (18)
Interest income 49 54
Gain on short-term investments 11 (11)
Amortization of intangible assets (134)
Loss from continuing operations before income tax provision (293) (209)
Income tax provision                –
Loss from continuing operations (293)              (209)
Loss from discontinued operations, net of tax of $0 (22)
Net loss $   (293) $ (231)
EBITDA $       (83) $   (177)

 


August 3rd, 2018

Mace® Security International, Inc. Launches New Website

CLEVELAND, Ohio (August 2, 2018) – Mace® Brand, the #1 brand in safety and security, has launched a new website. The site includes updates that will help customers get the information they need faster.

Customers can now easily find a dealer near them, use a smart search to help with ease of use on site, and read educational blogs on safety and security. If you’re unsure of what product might be best for your lifestyle or daily activities, the new product selector will help narrow it down for you.

“We are excited to launch this new site,” says Executive Vice President of eCommerce for Mace Brand David Happe. “We really focused on ensuring that the new site is designed to meet our business goals and to provide the best user experience for our customers to ensure they get the products that will help them best.”

Mace Brand partnered with marketing agency Gray Loon Marketing Group, experts in digital marketing, to ensure that the site functions flawlessly and provides the best user design and flow. The site tells the brand story in a fresh way and provides users with the information they need.

“It’s amazing working with such a big brand name like Mace Brand,” says co-owner of Gray Loon Marketing Group, Brita Turbyfill. “We’re proud to partner with a company that saves lives by providing practical safety and security solutions.”

To see the new website, visit Mace.com.

Mace Brand Pepper Sprays are a less-lethal self-defense alternative for anyone 18 years of age or over, and can be purchased at leading retailers and independent dealers across the country. Our 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.

Mace Brand product solutions are available at fine retailers and online across the globe including Dick’s Sporting Goods, Wal-Mart Stores, Ace Hardware, Autozone, Amazon and Mace.com.

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
press@mace.com