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Mace Reports First Quarter 2018 Financial Results
- Net sales up 38.2%, $654,000 improvement over 2017
- Gross profit of $988,000, $314,000 improvement over 2017
- EBITDA improvement of $79,000 over 2017
-
Adds 26 new accounts in the quarter, expanding the CompanyÔÇÖs
brand presence
CLEVELAND–(BUSINESS WIRE)–#financialresults–Mace Security International, Inc. (OTCQX: MACE) today released unaudited
financial results for the quarter ended March 31, 2018.
The Company is pleased to announce a positive first quarter with net
sales of $2,364k, a 38.2% increase over prior year first quarter. The
Company continues to grow its top line sales through organic growth and
strategic acquisitions reflecting growth in all major distribution
channels. Additionally in the quarter, the Company continued to invest
in people, advertising, and social media campaigns to drive sales and
distribution. The Company will continue to invest in the brand to
maintain its market share and brand leadership.
ÔÇ£Our growth in the first quarter reflects the value and strength of the
Mace Brand as we continue to expand the brand across product lines and
distribution channelsÔÇØ, stated Creative Director Jessica Adanich.
Lastly, our new board of directors is assisting the Company in refining
its long term strategies to insure the company and management team
optimizes its resources and prioritizes opportunities.
First Quarter 2018 Financial Highlights –
Compared to 2017
- Net sales up 38.2% for quarter; $654,000 improvement over 2017
- Gross profit up 46.6% for quarter; $314,000 improvement over 2017
-
Negative EBITDA of $223,000 reported for the quarter; $79,000
improvement over 2017
|
Select Consolidated Financial Results, First Quarter Ended March 31, 2018 and 2017 |
||||||||||
| (in thousands): | ||||||||||
| For the Three Months Ended | ||||||||||
| Mar 31, | % of | Mar 31, | % of | |||||||
| 2018 | Sales | 2017 | Sales | $ Chg | ||||||
| Net sales | $ | 2,364 | 100.0 | % | $ | 1,710 | 100.0 | % | 654 | |
| Gross profit | 988 | 41.8 | % | 674 | 39.4 | % | 314 | |||
| Selling, general, and administrative expenses | 1,213 | 51.3 | % | 964 | 56.4 | % | (249 | ) | ||
| Operating loss | (274 | ) | (11.6 | %) | (331 | ) | (19.4 | %) | 57 | |
| Net loss | (334 | ) | (14.1 | %) | (319 | ) | (18.7 | %) | (15 | ) |
| EBITDA | (223 | ) | (9.4 | %) | (302 | ) | (17.7 | %) | 79 | |
First Quarter 2018 Operational Highlights
The Company maintained its leadership position with consumers as it
continued to add new less lethal products including personal alarms,
pepper spray models, and product combo kits. The Company, through
organic growth, expanded its retail presences by adding 26 new accounts,
and continued its e-commerce and international expansion efforts. ÔÇ£Mace,
through investments and focus, is expanding its e-commerce presence and
continues its efforts to strengthen brand and consumer awareness through
social media campaignsÔÇØ stated John McCann, President and CEO.
Investor Information
The Company would like to direct investors to www.Mace.com
for a full set of the consolidated financial statements, OTCQX Quarterly
report, and first quarter 2018 investor presentation. Although the
Company is not planning to conduct its usual quarterly conference call
after release of the first quarterÔÇÖs earnings, the Company will
communicate its strategy and future plans with investors through
conference calls, social media, and investor conferences starting with
the LD Micro Invitational on June 4th, 2018. The Company will
communicate future investor calls via press releases and social media.
The Company will continue to provide information via the OTC marketplace
as usual. The Company plans on attending the LD Micro Invitational
investor conference in Bel Air, California from June 4th to 6th,
2018. The Company will present on June 4th at 1:00 PM. For
more information about the conference please visit: https://www.ldmicro.com/events
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
ÔÇô 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.
Forward-Looking Statements
Certain statements and information included in this press release
constitute ÔÇ£forward-looking statementsÔÇØ within the meaning of the
Federal Private Securities Litigation Reform Act of 1995. When used in
this press release, the words or phrases ÔÇ£will likely result,ÔÇØ ÔÇ£are
expected to,ÔÇØ ÔÇ£will continue,ÔÇØ ÔÇ£is anticipated,ÔÇØ ÔÇ£estimate,ÔÇØ
ÔÇ£projected,ÔÇØ ÔÇ£intend toÔÇØ or similar expressions are intended to identify
ÔÇ£forward-looking statementsÔÇØ 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) |
||||
| March 31, | ||||
| ASSETS | 2018 | December 31, | ||
| (unaudited) | 2017 | |||
| Current assets: | ||||
| Cash and cash equivalents | $ | 208 | $ | 662 |
| Short-term investments | 253 | 251 | ||
| Accounts receivable, net | 1,422 | 1,622 | ||
| Inventories, net | 2,586 | 2,317 | ||
| Notes receivable and other current assets | 1,051 | 1,143 | ||
| Total current assets | 5,520 | 5,995 | ||
| Property and equipment, net | 804 | 781 | ||
|
Goodwill |
817 | 771 | ||
| Intangible assets, net | 3,144 | 3,211 | ||
| Notes receivable and other assets | 874 | 906 | ||
| Total other assets | 4,835 | 4,888 | ||
| Total assets | $ | 11,159 | $ | 11,664 |
| LIABILITIES AND STOCKHOLDERSÔÇÖ EQUITY | ||||
| Current liabilities: | ||||
| Current portion of long-term debt | $ | 630 | $ | 427 |
| Accounts payable | 362 | 457 | ||
| Income taxes payable | 57 | 62 | ||
| Accrued expenses and other current liabilities | 362 | 633 | ||
| Total current liabilities | 1,411 | 1,579 | ||
| Long-term debt, net of current portion | 630 | 678 | ||
| Other liabilities | 1 | 2 | ||
| Total liabilities | 2,042 | 2,259 | ||
| Total stockholdersÔÇÖ equity | 9,117 | 9,405 | ||
| Total liabilities and stockholdersÔÇÖ equity | $ | 11,159 | $ | 11,664 |
| Mace Security International, Inc. | ||||||
| Condensed Consolidated Statements of Operations | ||||||
| Three Months Ended March 31, 2018 and 2017 | ||||||
| (Unaudited) | ||||||
|
(Amounts in thousands) |
||||||
| 2018 | 2017 | |||||
| Net sales | $ | 2,364 | $ | 1,710 | ||
| Cost of revenue | 1,376 | 1,036 | ||||
| Gross profit | 988 | 674 | ||||
| Selling, general, and administrative expenses | 1,213 | 964 | ||||
| Depreciation | 49 | 41 | ||||
| Operating loss | (274 | ) | (331 | ) | ||
| Interest expense | (15 | ) | (5 | ) | ||
| Interest income | 20 | 29 | ||||
| Gain (loss) on sale of short-term investments | 2 | (12 | ) | |||
| Amortization of intangible assets | (67 | ) | – | |||
| Loss before income tax provision | (334 | ) | (319 | ) | ||
| Income tax provision | – | – | ||||
| Net loss | $ | (334 | ) | $ | (319 | ) |
Contacts
Mace Security International, Inc.
John J. McCann
President and
Chief Executive Officer
[email protected]
