CLEVELAND--(BUSINESS WIRE)--Mace Security International Inc. (OTCQX: MACE) today released unaudited financial results for the quarter ended March 31, 2017.
First Quarter 2017 Financial Highlights
Revenue for the first quarter of 2017 was $1,710, a decline of $369 or 17.7%. The relative decline stemmed from particularly strong international shipments in 2016 and softer sales through Sporting and Consumer distribution channels in the first quarter of 2017. “The Company remains positive regarding its ability to deliver strong full-year revenue growth, driven by opportunities in our Consumer channel, continued growth in new accounts, and sales to Washington Labs customers,” said Mace President and CEO John J. McCann. While gross profit margins remained strong and operating expenses were stable, the effect of lower revenue was reflected in an operating loss of $331. The Company anticipates returning to operating profitability in the second quarter and for the full year. At March 31, 2017 the Company’s balance sheet stayed strong, with $1,101 in cash and short term investments, $4,419 in net working capital, and $1,000 in seller notes related to the Washington Labs acquisition as the only debt.
|Select Consolidated Financial Results, First Quarter Ended March 31, 2017 and 2016|
|Selling, general, and administrative expenses||964||56.4||%||972||46.8||%||(8||)|
First Quarter 2017 Operational Highlights
The Company closed on the Washington Laboratories business acquisition at the end of the first quarter, moved and integrated their production equipment and began shipping product to the newly acquired customers. “Thanks to a well executed integration plan, Washington Laboratories was purchased on March 22, 2017 and we were able to produce and ship product out of the Mace facility in the first quarter,” said Mr. McCann. In an effort to continue to pursue all available strategic opportunities, the Company recently hired investment banking firm Carleton McKenna & Company. “I believe the latest acquisition went exceedingly well and has reinforced the company’s position as a dynamic player in the personal defense and security segment.” added Mr. McCann.
Mace® will conduct a conference call on Wednesday, May 17, 2017 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended March 31, 2017. The participant conference call number is (877) 719-8065, conference ID: 23774538. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Wednesday, May 17, 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, manufacturing, and distributing consumer and tactical products for personal defense and security 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.
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. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. 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. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.
|Mace Security International, Inc.|
|Condensed Consolidated Balance Sheets|
(Amounts in thousands)
|Cash and cash equivalents||$||436||$||970|
|Accounts receivable, net||1,458||1,655|
|Prepaid expenses and other current assets||796||952|
|Total current assets||5,316||6,999|
|Plant and equipment, net||867||714|
|Other intangible assets||685||685|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Current portion of long-term debt||$||181||$||-|
|Income taxes payable||60||60|
|Accrued expenses and other current liabilities||373||518|
|Total current liabilities||897||772|
|Long-term debt, net of current portion||819||-|
|Accrued expenses and other current liabilities||3||4|
|Total stockholders’ equity||8,939||8,806|
|Total liabilities and stockholders’ equity||$||10,658||$||9,582|
|Mace Security International, Inc.|
|Condensed Consolidated Statements of Operations|
|Three Months Ended March 31, 2017 and 2016|
(Amounts in thousands)
|Three Months Ended March 31,|
|Cost of revenue||1,036||1,262|
|Selling, general, and administrative expenses||964||972|
|Loss on sale of short-term investments||(12||)||-|
|Loss from continuing operations before income tax provision||(319||)||(166||)|
|Income tax provision||-||-|
|Loss from continuing operations||(319||)||(166||)|
|Income from discontinued operations, net of tax||-||5|