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Mace Announces First Quarter 2020 Financial Results


  • Net sales for the first quarter of 2020 increased to $2,791,000, or 2.9% over same period of 2019
  • Net income improved by $976,000 to $120,000 in the three months ended March 31, 2020, compared to a let loss of ($856,000) in the same period of 2019
  • EBITDA of $240,000 for the quarter vs. ($736,000) EBIDTA in the first quarter of 2019, a $976,000 improvement.


CLEVELAND, Ohio – Mace Security International Inc. (OTCQX: MACE) announces its unaudited financial results for the quarter ended March 31, 2020.

The Company’s net sales for the first quarter of 2020 increased 2.9% over the same period in 2019, with net income in the first quarter of 2020 reported of $120,000. EBIDTA for the first quarter of 2020 was $240,000.

President and CEO Gary Medved commented: “We are pleased that the Company’s performance in the first quarter reflects the improvements made over the past 15 months, including customer acceptance of our product line refresh and introduction of full product continuum. These improvements led to increased consumer sales, disciplined SG&A spending, and the resulting strong EBIDTA generation. I am very proud of our associates who helped Mace remain open for business throughout the COVID-19 Health emergency that began in the quarter, and allowed us to provide Mace ® Brand products to essential law enforcement customers as well as provide personal safety and protection to all our customers.”

Medved continued: “While Mace does not make future earnings projections and certainly would not attempt to do so in the face of current Covid -19 uncertainties, we, like most consumer oriented businesses, expect to see pressure  on revenues in the 2nd quarter as our customers continue to adjust to the current emergency.”


First Quarter 2020 Financial Highlights

  • SG&A expenses declined by $937,000 to $881,000 for the quarter, or 31.6% of gross sales, driven primarily by lower spending on salaries and benefits, reduced legal and professional expenses, and a non-recurring acceleration of stock compensation expense that occurred in the first quarter of 2019.
  • Gross profit for the first quarter increased $41,000, or 3.9% over the same period in the period year, driven primarily by increased sales volume, while gross profit percentage stayed relatively flat at 38.7% this quarter vs. 38.3% in the three months ended March 31, 2019.
  • Cash and cash equivalents increased to $383,000 at March 31, 2020, an increase of $76,000 over the $307,000 on hand at December 31, 2019.   


First   Quarter 2020 Operational Highlights 

  • The Company maintained full manufacturing and distribution activities throughout the quarter, and to date has not experienced significant supply chain disruptions due to the COVID-19 emergency.
  • Completed comprehensive nationwide consumer insight survey in the quarter, leading to focused demographic targeting, improved product design and beneficial consumer education opportunities.


Conference Call

Mace® will conduct a conference call on Tuesday May 5, 2020 at 1 PM EDT, 10 AM PDT to discuss its financial and operational performance for the quarter.

Participant Toll-Free Dial-In Number: (833) 360-0862; Conference ID 3254038

A full set of the consolidated financial statements are available on A digital recording of the conference call will be available for replay two hours after the call’s completion. The date ranges the recording will be available are listed below. To access the recording, use the dial-in number listed below and the conference ID  3254038

Encore dial-in number:  855-859-2056 (or internationally on 404-537-3406)
Encore dates: Will be available 2 hours after the call and will expire midnight on July 5, 2020

About Mace Security International, Inc.

Mace Security International Inc. is a globally recognized leader in personal safety products. Based in Cleveland, Ohio, the Company has spent more than 30 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand – the original trusted brand of pepper spray products. The Companies other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand alarms. The Company also offers aerosol defense sprays for law enforcement and security professionals worldwide through its Take Down® Brand.

Mace Security International distributes and supports its products and services through mass-market retailers, wholesale distributors, independent dealers, e-commerce channels and through its website, For more information, please visit


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 Statements of Operations
Three Months Ended March 31
(Amounts in thousands dollars)


2020   2019

Net sales           2,791            2,712
Cost of goods sold           1,710            1,672

Gross profit           1,081            1,040
Selling, general and administrative expenses              881            1,818
Amortization of intangible assets                69                 67

Operating income (loss)              131             (845)
Interest expense               (11)                (14)
Interest income                –                   4
Loss on sale of short-term investments                –                 (1)

Income (loss) before income taxes              120             (856)
Income tax provision                –                 –

Net income (loss)              120             (856)


Mace Security International, Inc.
Condensed Consolidated Balance Sheets
(Amounts in thousands)


(Unaudited) (Audited)
ASSETS  March 31, 2020  December 31, 2019
Current assets:

Cash and cash equivalents  $            383  $          307
Accounts receivable (net)                1,819             1,544
Inventories                1,662             1,591
Note receivable and other current assets                 346              446

 Total current assets  4,210  3,888
Property and equipment, Net                   529                 562
 Operating lease right-of-use asset, net             702               752
Finance lease right-of-use asset, net                   10                  11
Goodwill              1,031            1,031
Intangible assets, net              2,675           2,744
Note receivable and other non-current assets                  14                 14

Total assets  $          9,171  $      9,002
Current liabilities:
Current portion of long-term debt  $             217  $           215
Bank line of credit                600              600
 Operating and finance lease obligations – current                   215                 212
Accounts payable                 573              364
Income taxes payable                   55                 56
 Accrued expenses and other current liabilities                   329                 412

Total current liabilities                1,989             1,859
Long-term debt (net of current portion)                   229                 284
Operating and finance  lease obligations – non-current                   517                 573

Total liabilities                2,735             2,716
Stockholders’ equity:
Common stock issued and outstanding                   634                 633
Additional paid in capital            103,281         103,252
Treasury stock                    (22)                 (22)
Accumulated deficit            (97,457)          (97,577)
Total stockholders’ equity                6,436             6,286

Total liabilities and stockholders’ equity  $          9,171  $      9,002


Mace Security International, Inc.
Reconciliation of Net Income to EBITDA and Adj. EBIDTA

Three months ended March 31

(Amounts in thousands) 

                                                                                                   2020                                  2019

Net income (loss)              120             (856)
Interest expense                11                 14
Interest income                –                 (4)
Income tax expense                –                 –
Depreciation and Amortization              109               110

EBITDA              240             (736)
Severance                –               277
Non-Cash Stock Compensation Expense                30               236

Adjusted EBITDA              270             (223)


In this press release, the Company’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company’s business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached schedules.



Gary Medved

President and Chief Executive Officer