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Mace Reports Second Quarter 2017 Financial Results
“The strategic acquisition, which the company closed at the end of the first quarter, along with organic growth drove the net sales increases in the second quarter,” said Richard Barone, chairman.“Additionally the company saw an increase in gross profit in the second quarter as well as year to date in 2017.”
Second Quarter/Six Months 2017 Financial Highlights
- Net sales up 23.6% for quarter; up 2.7% year-to-date
- Gross profit up 20.7% for quarter; up 1.9% year-to-date
- Consumer distribution channel net sales up 15.2% for the quarter; up 2.9% year-to-date
- International net sales up 59.1% for the quarter; down 15.7% year-to-date
- Net income of $87,000 reported for the quarter
- EBITDA of $124,000 reported for the quarter
Select Consolidated Financial Results, Second Quarter Ended June 30, 2017 and 2016 (in thousands): For the Three Months Ended
June 30,
% of
June 30,
% of
2017
Sales
2016
Sales
$ Chg
% Chg
Net sales $ 2,510 100.0 % $ 2,031 100.0 % 479 23.6 % Gross profit 1,013 40.4 % 839 41.3 % 174 20.7 % Selling, general, and administrative expenses 866 34.5 % 860 42.3 % (6 ) 0.7 % Operating income (loss) 97 3.9 % (60 ) -3.0 % 157 Net income 87 3.5 % 41 2.0 % 46 Second Quarter 2017 Operational Highlights
“The company, continuing to expand its dominant Brand presence in the market place, added 16 new customer accounts in the second quarter. A significant portion of the revenue increase in the second quarter can be attributed to the strategic and accretive acquisition which the company closed at the end of the first quarter,” stated Mace President and CEO John J. McCann.
McCann noted that the company will continue to work on new products, promotions and distribution opportunities in the back half of 2017.
Conference Call
Mace® will conduct a conference call on Friday, August 11, 2017 at 2:00 PM EDT, 11:00 AM PDT to discuss its financial and operational performance for the quarter ended June 30, 2017. The participant conference call number is (877) 719-8065, conference ID: 69268772. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Friday, August 11, 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 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.
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)
June 30, December 31, ASSETS 2017 2016 Current assets: (Unaudited) Cash and cash equivalents $ 568 $ 970 Restricted cash - 60 Short-term investments 606 1,794 Accounts receivable, net 1,796 1,655 Inventories, net 1,751 1,568 Prepaid expenses and other current assets 917 952 Total current assets 5,638 6,999 Plant and equipment, net 840 714 Goodwill
2,641 - Other intangible assets 685 685 Other assets 1,018 1,184 Total assets $ 10,822 $ 9,582 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt $ 183 $ - Accounts payable 281 194 Income taxes payable 60 60 Accrued expenses and other current liabilities 470 518 Total current liabilities 994 772 Long-term debt, net of current portion 773 - Other liabilities 3 4 Total liabilities 1,770 776 Total stockholders’ equity 9,052 8,806 Total liabilities and stockholders’ equity $ 10,822 $ 9,582 Mace Security International, Inc. Condensed Consolidated Statements of Operations Three Months Ended June 30, 2017 and 2016 (Unaudited) (Amounts in thousands)
2017 2016 Net sales $ 2,510 $ 2,031 Cost of revenue 1,497 1,192 Gross profit 1,013 839 Selling, general, and administrative expenses 866 860 Depreciation 50 39 Operating income (loss) 97 (60 ) Interest expense (12 ) (12 ) Interest income 25 35 Income (loss) from continuing operations before income tax provision 110 (37 ) Income tax provision - - Income (loss) from continuing operations 110 (37 ) Income (loss) from discontinued operations, net of tax (23 ) 78 Net income $ 87 $ 41 Mace Security International, Inc. Condensed Consolidated Statements of Operations Six Months Ended June 30, 2017 and 2016 (Unaudited) (Amounts in thousands)
2017 2016 Net sales $ 4,220 $ 4,110 Cost of revenue 2,533 2,454 Gross profit 1,687 1,656 Selling, general, and administrative expenses 1,831 1,832 Depreciation 90 76 Operating loss (234 ) (252 ) Interest expense (18 ) (23 ) Interest income 54 72 Loss on sale of short-term investments (11 ) - Loss from continuing operations before income tax provision (209 ) (203 ) Income tax provision - - Loss from continuing operations (209 ) (203 ) Income (loss) from discontinued operations, net of tax (22 ) 84 Net loss $ (231 ) $ (119 )
ContactsMace Security International Inc.
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John J. McCann, President and Chief Executive Officer, 440-424-5322
[email protected]
- Net sales , up 24%
- Positive net income , up 112%
- Positive EBITDA of $124,000 reported for the quarter
- Adds 16 new accounts in the quarter
CLEVELAND–(BUSINESS WIRE)–Mace Security International Inc. (OTCQX: MACE) today announced unaudited
financial results for the second quarter and six-month period ended June
30, 2017.
“The strategic acquisition, which the company closed at the end of
the first quarter, along with organic growth drove the net sales
increases in the second quarter,” said Richard Barone,
chairman.“Additionally the company saw an increase in gross profit in
the second quarter as well as year to date in 2017.”
Second Quarter/Six Months 2017 Financial
Highlights
- Net sales up 23.6% for quarter; up 2.7% year-to-date
- Gross profit up 20.7% for quarter; up 1.9% year-to-date
-
Consumer distribution channel net sales up 15.2% for the quarter; up
2.9% year-to-date -
International net sales up 59.1% for the quarter; down 15.7%
year-to-date - Net income of $87,000 reported for the quarter
- EBITDA of $124,000 reported for the quarter
|
Select Consolidated Financial Results, Second Quarter Ended June 30, 2017 and 2016 |
|||||||||||||||||
| (in thousands): | |||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||
|
June 30, |
% of |
June 30, |
% of |
||||||||||||||
|
2017 |
Sales |
2016 |
Sales |
$ Chg |
% Chg |
||||||||||||
| Net sales | $ 2,510 | 100.0 | % | $ 2,031 | 100.0 | % | 479 | 23.6 | % | ||||||||
| Gross profit | 1,013 | 40.4 | % | 839 | 41.3 | % | 174 | 20.7 | % | ||||||||
| Selling, general, and administrative expenses | 866 | 34.5 | % | 860 | 42.3 | % | (6 | ) | 0.7 | % | |||||||
| Operating income (loss) | 97 | 3.9 | % | (60 | ) | -3.0 | % | 157 | |||||||||
| Net income | 87 | 3.5 | % | 41 | 2.0 | % | 46 | ||||||||||
Second Quarter 2017 Operational Highlights
“The company, continuing to expand its dominant Brand presence in the
market place, added 16 new customer accounts in the second quarter. A
significant portion of the revenue increase in the second quarter can be
attributed to the strategic and accretive acquisition which the company
closed at the end of the first quarter,” stated Mace President and CEO
John J. McCann.
McCann noted that the company will continue to work on new products,
promotions and distribution opportunities in the back half of 2017.
Conference Call
Mace® will conduct a conference call on Friday, August 11, 2017
at 2:00 PM EDT, 11:00 AM PDT to discuss its financial and operational
performance for the quarter ended June 30, 2017. The participant
conference call number is (877) 719-8065, conference ID: 69268772. A
full set of the consolidated financial statements are available on the
Mace website. Presentation materials for the conference call will be
available Friday, August 11, 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 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.
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) |
||||||
| June 30, | December 31, | |||||
| ASSETS | 2017 | 2016 | ||||
| Current assets: | (Unaudited) | |||||
| Cash and cash equivalents | $ | 568 | $ | 970 | ||
| Restricted cash | – | 60 | ||||
| Short-term investments | 606 | 1,794 | ||||
| Accounts receivable, net | 1,796 | 1,655 | ||||
| Inventories, net | 1,751 | 1,568 | ||||
| Prepaid expenses and other current assets | 917 | 952 | ||||
| Total current assets | 5,638 | 6,999 | ||||
| Plant and equipment, net | 840 | 714 | ||||
|
Goodwill |
2,641 | – | ||||
| Other intangible assets | 685 | 685 | ||||
| Other assets | 1,018 | 1,184 | ||||
| Total assets | $ | 10,822 | $ | 9,582 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Current portion of long-term debt | $ | 183 | $ | – | ||
| Accounts payable | 281 | 194 | ||||
| Income taxes payable | 60 | 60 | ||||
| Accrued expenses and other current liabilities | 470 | 518 | ||||
| Total current liabilities | 994 | 772 | ||||
| Long-term debt, net of current portion | 773 | – | ||||
| Other liabilities | 3 | 4 | ||||
| Total liabilities | 1,770 | 776 | ||||
| Total stockholders’ equity | 9,052 | 8,806 | ||||
| Total liabilities and stockholders’ equity | $ | 10,822 | $ | 9,582 | ||
| Mace Security International, Inc. | |||||||||
| Condensed Consolidated Statements of Operations | |||||||||
| Three Months Ended June 30, 2017 and 2016 | |||||||||
| (Unaudited) | |||||||||
|
(Amounts in thousands) |
|||||||||
| 2017 | 2016 | ||||||||
| Net sales | $ | 2,510 | $ | 2,031 | |||||
| Cost of revenue | 1,497 | 1,192 | |||||||
| Gross profit | 1,013 | 839 | |||||||
| Selling, general, and administrative expenses | 866 | 860 | |||||||
| Depreciation | 50 | 39 | |||||||
| Operating income (loss) | 97 | (60 | ) | ||||||
| Interest expense | (12 | ) | (12 | ) | |||||
| Interest income | 25 | 35 | |||||||
| Income (loss) from continuing operations before income tax provision | 110 | (37 | ) | ||||||
| Income tax provision | – | – | |||||||
| Income (loss) from continuing operations | 110 | (37 | ) | ||||||
| Income (loss) from discontinued operations, net of tax | (23 | ) | 78 | ||||||
| Net income | $ | 87 | $ | 41 | |||||
| Mace Security International, Inc. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| Six Months Ended June 30, 2017 and 2016 | ||||||||
| (Unaudited) | ||||||||
|
(Amounts in thousands) |
||||||||
| 2017 | 2016 | |||||||
| Net sales | $ | 4,220 | $ | 4,110 | ||||
| Cost of revenue | 2,533 | 2,454 | ||||||
| Gross profit | 1,687 | 1,656 | ||||||
| Selling, general, and administrative expenses | 1,831 | 1,832 | ||||||
| Depreciation | 90 | 76 | ||||||
| Operating loss | (234 | ) | (252 | ) | ||||
| Interest expense | (18 | ) | (23 | ) | ||||
| Interest income | 54 | 72 | ||||||
| Loss on sale of short-term investments | (11 | ) | – | |||||
| Loss from continuing operations before income tax provision | (209 | ) | (203 | ) | ||||
| Income tax provision | – | – | ||||||
| Loss from continuing operations | (209 | ) | (203 | ) | ||||
| Income (loss) from discontinued operations, net of tax | (22 | ) | 84 | |||||
| Net loss | $ | (231 | ) | $ | (119 | ) | ||
Contacts
Mace Security International Inc.
John J. McCann, President and
Chief Executive Officer, 440-424-5322
[email protected]
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