MRO Magazine

Mace Reports Second Quarter 2015 Financial Results


August 7, 2015
By Business Wire News

CLEVELAND

Mace Security International Inc., (OTCPINK: MACE) today announced unaudited financial results (amounts in thousands) for the second quarter ended June 30, 2015.

Second Quarter 2015 Financial Highlights Compared to Prior Year:

  • Net revenue increased 23%.
  • Gross profit increased 63%.
  • Key channels of distribution (sporting goods & consumer) net revenues improved 64%.
  • General and administrative expenses decreased 25%.
  • Net income improved 69% resulting in a nominal net loss for the quarter of $59 or $0.00 EPS.

“The second quarter results should prove to be another step towards our goal of achieving profitability in the near future.” stated Richard Barone, Chairman of the Board of Mace.

     
Select Consolidated Financial Results, Second Quarter Ended June 30, 2015 and 2014
(in thousands):
 
For the Three Months Ended
June 30,    

% of
Sales

    June 30,    

% of
Sales

     
2015 2014 $ Chg % Chg
Net revenue $ 2,241 100.0 % $ 1,817 100.0 % 424 23.3 %
Gross profit 974 43.5 % 598 32.9 % 376 62.9 %
Selling, general, and administrative expenses 1 ,062 47.4 % 1,185 65.2 % 123 -10.4 %
Operating loss (126 ) -5.6 % (630 ) -34.7 % 504 80.0 %
Net loss (59 ) -2.6 % (192 ) -10.6 % 133 69.3 %
 

“Mace® experienced consecutive quarters of net revenue, gross profit, and net income growth compared to last year. Net revenue, gross profit, and net income for the year represent improvements of 16.2%, 41.7%, and 75.5% respectively. As I mentioned after the first quarter, we expect continued quarterly improvements as we increase revenues of our core Mace® branded products and our new products.” said John J. McCann, President and CEO of Mace.

Conference Call

Mace® will conduct a conference call on Monday, August 10, 2015 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial results for the quarter ended June 30, 2015, provide an update on the business, and respond to questions. The participant conference call number is (877) 719-8065, conference ID: 8293740. A full set of the consolidated financial statements is available on the Mace website. Presentation materials for the conference call will be available Monday, August 10, 2015 on Mace’s website under Investor Relations, Shareholder Transcripts & Presentations. There will also be access to a digital recording of the teleconference by calling (855) 859-2056 and entering the conference ID: 8293740. This recording will be available for the period commencing two hours following the teleconference and ending October 9, 2015.

ABOUT THE COMPANY:

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® 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. Mace® Brand products are manufactured in the U.S. For more information, please visit www.mace.com.

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)

 
ASSETSJune 30,December 31,
20152014
Current assets: (Unaudited)
Cash and cash equivalents$ 165 $ 359
Restricted cash 60 60
Short-term investments 2,869 5,848
Accounts receivable, net 1,608 1,352
Inventories, net 2,462 1,783
Prepaid expenses and other current assets   1,077   1,303
Total current assets 8,241 10,705
 
Plant and equipment, net 588 585
 
Other intangible assets 685 685
Other assets   836   1,054
Total assets $ 10,350 $ 13,029
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt $ $ 1,241
Accounts payable 679 481
Income taxes payable 59 60
Accrued expenses and other current liabilities   856   961
Total current liabilities 1,594 2,743
   
Total stockholders’ equity   8,756   10,286
Total liabilities and stockholders’ equity $ 10,350 $ 13,029
 
           
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended June 30, 2015 and 2014
(Unaudited)

(Amounts in thousands)

 
20152014
 
Net revenue $ 2,241 $ 1,817
Cost of revenue   1,267     1,219  
 
Gross profit 974 598
 
Selling, general, and administrative expenses 1,062 1,185
Depreciation   38     43  
 
Operating loss (126 ) (630 )
 
Interest expense (57 )
Interest income 69 63
Gain (loss) on sale of short-term investments (3 ) 20
Other loss   (9 )    
 
Loss from continuing operations before income tax provision (69 ) (604 )
 
Income tax provision       (1 )
 
Loss from continuing operations (69 ) (603 )
 
Income from discontinued operations, net of tax   10     411  
 
Net loss $ (59 ) $ (192 )
 
           
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Six Months Ended June 30, 2015 and 2014
(Unaudited)

(Amounts in thousands)

 
20152014
 
Net revenue $ 4,066 $ 3,500
Cost of revenue   2,241     2,339  
 
Gross profit 1,645 1,161
 
Selling, general, and administrative expenses 2,196 2,590
Depreciation   76     87  
 
Operating loss (627 ) (1,516 )
 
Interest expense (25 ) (112 )
Interest income 94 110
Gain (loss) on sale of short-term investments (16 ) 124
Other income   312      
 
Loss from continuing operations before income tax provision (262 ) (1,394 )
 
Income tax provision        
 
Loss from continuing operations (262 ) (1,394 )
 
Income from discontinued operations, net of tax   20     408  
 
Net loss $ (242 ) $ (986 )
 

Mace Security International, Inc.
John J. McCann, President and Chief Executive Officer
440-424-5322
john@mace.com