Mace Reports Fourth Quarter and Full-Year 2017 Financial Results

March 28, 2018

Net sales up 10.3% for the year, $929k improvement over 2016
Operating income of $94,000 for the year, $283,000 improvement
over 2016
EBITDA of $270,000 for the year, $323,000 improvement over 2016
Adds 112 new accounts in 2017
Strategic acquisitions expand revenues

CLEVELAND–(BUSINESS WIRE)–#financialresults–Mace Security International Inc. (OTCQX: MACE) today released audited
financial results for the year ended December 31, 2017.

The Company is pleased to announce another year of growth in 2017. The
Company has grown its top line sales through organic growth and
strategic acquisitions during the past year while managing spending and
operations to turn a profit at the same time. The Company in 2017 added
112 new accounts across all channels of commerce.

The acquisitions contributed in part to the Company finishing the year
with $270,000 in positive EBITDA. Outgoing Chairman Richard Barone
stated: “The work which was started over five years ago is paying
off for the investors and the Company. Although we are pleased with the
results we do see bigger and better things for the Company in the
future.”

The Company additionally launched several new products and repositioned
its self to compete in the ever evolving retail environment by
implementing the following:

Company added key staff to help it compete effectively in the growing
e-commerce channel
Added several new products in 2017
Streamlined operations to serve its customers effectively and
efficiently
Made investments in advertising and branding to promote and protect
the trademarks and the Company’s brands

The Company acknowledges and thanks former Board members Dan Perella and
Carl Grassi for their contributions and hard work over the past several
years with helping place the foundation for future success.

Fourth Quarter/ Full-Year 2017 Financial
Highlights – Compared to 2016

Net sales up 31.1% for quarter; up 10.3% year-to-date
Gross profit up 64.9% for quarter; up 19.5% year-to-date
EBITDA of $74,000 reported for the quarter; $270,000 year-to-date

Select Consolidated Financial Results, Fourth Quarter Ended December 31, 2017 and 2016
(in thousands):
For the Three Months Ended
Dec 31,	% of	Dec 31,	% of
2017	Sales	2016	Sales	$ Chg
Net sales	$	2,935	100.0	%	$	2,238	100.0	%	697
Gross profit	1,423	48.5	%	863	38.6	%	560
Selling, general, and administrative expenses	1,348	45.9	%	947	42.3	%	401
Operating income (loss)	26	0.9	%	(123	)	(5.5	%)	149
Net income (loss)	(30	)	(1.0	%)	120	5.4	%	150
EBITDA	74	2.5	%	(103	)	(3.8	%)	177

Fourth Quarter / Full Year 2017 Operational
Highlights

The Company, by expanding its revenue base with the 2017 acquisitions of
Washington Laboratories and Vigilant, was able to grow revenues by 10.3%
despite a cyclical downturn in international sales and sluggish sales in
the sporting goods channel in 2017. The acquisition of Washington
Laboratories added stable top line growth. The increased production
volume and automation derived from this acquisition increased overall
profitability by lowering per unit costs. The Vigilant acquisition, and
addition of David Happe to the Mace team, provided the Company with an
instant vibrant e-commerce presence both domestically and
internationally as well as the expertise to manage and grow this
critical segment. “Mace was the perfect partner for me as they
have the brand, the infrastructure and the tools to raise the ceiling on
my goals and abilities,” stated David Happe.

Conference Call

Mace® will conduct a conference call on Thursday, March 29, 2018
at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational
performance for the quarter and full-year ended December 31, 2017. The
participant conference call number is (877) 719-8065, conference ID:
7699986. A full set of the consolidated financial statements are
available on www.Mace.com.
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 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® and Take Down®
brands, and Vigilant® Brand alarms which is the world-wide
leader and number one recognized brand in personal alarms.

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.

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)
	December 31,	December 31,
ASSETS	2017	2016
Current assets:
Cash and cash equivalents	$	662	$	970
Restricted cash	–	60
Short-term investments	251	1,794
Accounts receivable, net	1,622	1,655
Inventories, net	2,317	1,568
Notes receivable and other current assets	1,143	952
Total current assets	5,995	6,999
Property and equipment, net	781	714
Goodwill	771	–
Intangible assets, net	3,211	685
Notes receivable and other assets	906	1,184
Total other assets	4,888	1,869
Total assets	$	11,664	$	9,582
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	427	$	–
Accounts payable	457	194
Income taxes payable	62	60
Accrued expenses and other current liabilities	633	518
Total current liabilities	1,579	772
Long-term debt, net of current portion	678	–
Other liabilities	2	4
Total liabilities	2,259	776
Total stockholders’ equity	9,405	8,806
Total liabilities and stockholders’ equity	$	11,664	$	9,582

Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended December 31, 2017 and 2016
(Amounts in thousands)
2017	2016
Net sales	$	2,935	$	2,238
Cost of revenue	1,512	1,375
Gross profit	1,423	863
Selling, general, and administrative expenses	1,348	947
Depreciation	49	39
Operating income (loss)	26	(123	)
Interest expense	(15	)	(13	)
Interest income	25	34
Loss on sale of short-term investments	(1	)	(15	)
Amortization of intangible assets	(63	)	–
Other expense, net	–	(4	)
Loss from continuing operations before income tax provision	(28	)	(121	)
Income tax (benefit) provision	2	(19	)
Loss from continuing operations	(30	)	(102	)
Income from discontinued operations, net of tax	–	222
Net income (loss)	$	(30	)	$	120

Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Twelve Months Ended December 31, 2017 and 2016
(Audited)
(Amounts in thousands)
2017	2016
Net sales	$	9,983	$	9,054
Cost of revenue	5,580	5,369
Gross profit	4,403	3,685
Selling, general, and administrative expenses	4,121	3,719
Depreciation	188	155
Operating income (loss)	94	(189	)
Interest expense	(45	)	(48	)
Interest income	96	136
Loss on sale of short-term investments	(12	)	(15	)
Amortization of intangible assets	(174	)	–
Other expense, net	–	(4	)
Income (loss) from continuing operations before income tax provision	(41	)	(120	)
Income tax (benefit) provision	2	(19	)
Loss from continuing operations	(43	)	(101	)
Income (loss) from discontinued operations, net of tax	(22	)	351
Net income (loss)	$	(65	)	$	250