Mace Reports Second Quarter 2017 Financial Results

  • 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--()--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
john@mace.com

Release Summary

Mace Reports Second Quarter 2017 Financial Results

Contacts

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