Mace Reports Fourth Quarter and Full-Year 2015 Operating Results
Mace Reports Fourth Quarter and Full-Year 2015 Operating Results
- Net revenue increase of 17.9% for the quarter; 13.8% for full year
- Gross profits in fourth quarter increased 8.0%; up 19.2% for full year
- Operating loss improved 14.9%; 38.5% year over year
- Company expects to report full financial statements in May 2016 upon completion of year-end audit
CLEVELAND – April 18, 2016 – Mace Security International Inc. (OTCPINK: MACE) today announced operating financial results for the fourth quarter and twelve-month period ended December 31, 2015. (Note: Mace will release full year-end financial statements upon the resolution of a valuation issue related to certain non-operating assets. The company anticipates releasing its audited financial statements in May 2016. As a result, the company’s stock listing on the OTC PINK Market will have a notation indicating the company is delinquent in reporting its financial results until its year-end financial statements are completed and filed.)
“2015 was a terrific year for Mace as we drove significant top-line growth and margin expansion that has continued into the first quarter of 2016,” said John McCann, president and chief executive officer. “Our ability to generate steadily increasing global demand for our iconic defense sprays was key to our success in 2015. Likewise, through smart product line extensions and new product launches, we were able to increase our presence with existing customers, as well as grow our market presence in 2015.”
Fourth Quarter/Full Year 2015 Highlights
- Key channels of distribution (sporting goods & consumer) net revenues up 8.6% for the quarter; and 16.9% year-to-date. Strong performance by key partners including Dick’s Sporting Goods, Cabela’s, Big 5 Sporting Goods, Amazon, Auto Zone, Lowe’s, and Meijer contributed to the increase.
- Tactical distribution channel net revenues were up 25.1% for the quarter; and 129.8% year-to-date; 28 new agencies added for the year.
- Company added distribution of its products at 17 new accounts for the quarter; and 83 year-to-date.
- Selling, general and administrative expenses flat for the quarter, down 7.8% year to date.
- Fourth quarter operating loss from continuing operations included an $88,000 non-recurring severance expense related to the departure of a senior executive.
- Merlin Partners, LP – the company’s largest shareholder – further increased its holdings in Mace by exercising 1,178,929 warrants in December 2015.
- During the fourth quarter of 2015, three directors who did not previously own Mace shares each initiated positions in the company.
Select Consolidated Financial Results, Fourth Quarter and Year Ended December 31, 2015 and 2014 (in thousands):
|
For the Three Months Ended |
|||||||||||
|
Dec 31, |
% of Sales |
Dec 31, |
% of Sales |
||||||||
|
2015 |
2014 |
$ Chg |
% Chg |
||||||||
| Net revenue |
$ 2,051 |
100.0% |
$ 1,740 |
100.0% |
311 |
17.9% |
|||||
| Gross profit |
726 |
35.4% |
672 |
38.6% |
54 |
8.0% |
|||||
| Selling, general, and administrative expenses |
1,022 |
49.8% |
1,024 |
58.9% |
-2 |
-0.2% |
|||||
| Operating loss from continuing operations |
(330) |
-16.1% |
(388) |
-22.3% |
-58 |
-14.9% |
|||||
|
For the Twelve Months Ended |
||||||||||||||
|
Dec 31, |
% of Sales |
Dec 31, |
% of Sales |
|||||||||||
|
2015 |
2014 |
$ Chg |
% Chg |
|||||||||||
| Net revenue |
$ 7,145 |
100.0% |
$ 6,280 |
100.0% |
865 |
13.8% |
||||||||
| Gross profit |
2,755 |
38.6% |
2,312 |
36.8% |
443 |
19.2% |
||||||||
| Selling, general, and administrative expenses |
3,838 |
53.7% |
4,162 |
66.3% |
-324 |
-7.8% |
||||||||
| Operating loss from continuing operations | (1,223) |
-17.1% |
(1,988) |
-31.7% |
-765 |
-38.5% |
||||||||
Mace also announced today that, as part of its ongoing strategic planning process, the Company decided to exit its electronic surveillance equipment business during the fourth quarter of 2015. “Given the aggressive expansion of our core products portfolio, our surveillance operations no longer aligns with our long-term growth strategy,” said McCann.
The results of the Surveillance operations will be included in “Discontinued Operations” during the divestiture process. The company will not comment or speculate on the potential timing or terms of a transaction involving the Surveillance operations.
Conference Call
Mace® will conduct a conference call on Tuesday, April 19, 2016 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended December 31, 2015. The participant conference call number is (877) 719-8065, conference ID: 93040427. Presentation materials for the conference call will be available Monday, April 18, 2016 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 products 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® Take Down® brand.
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.
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