Mace Security International, Inc., (OTCPINK: MACE) today
announced audited financial results (all amounts in thousands) for
the fourth quarter and year ended December 31, 2014, reflecting a
$924 and $1,475 improvement in income from continuing operations
compared to prior year for the fourth quarter, and year ended
December 31, respectively.
"In 2014 we continued our efforts to evolve the company into the
premier brand in safety and security. The Mace® Brand name
continues to dominate the marketplace as we successfully extended
our brand offerings in both the tactical and consumer divisions,”
said John J. McCann, President and CEO of Mace.
Financial Results, Fourth Quarter Ended
December 31, 2014 and 2013
Net revenues for the fourth quarter of 2014 totaled $2,091, as
compared to prior year fourth quarter revenues of $2,099, a slight
decrease of approximately $8.
Gross profit for the fourth quarter totaled $807 compared to
$714, an increase of $93 or 13% on margins of 38.6% and 34%,
respectively. The increase in gross profit can be attributed to a
$73 or 26% decrease in labor and a $52 or 67% reduction in
inventory related costs.
Selling, general, and administrative expenses for the fourth
quarter ended December 31, 2014 and 2013 were $1,164 and $1,902,
respectively, a $738 or 38.9% expense reduction. This decrease is
mainly attributed to a $205 reduction in salaries, legal, insurance
and professional expenses and $533 in one-time non-recurring
charges in 2013.
Loss from continuing operations for the fourth quarter ended
December 31, 2014 was $387, as compared to a loss from continuing
operations of $1,311 in the fourth quarter of 2013, a $924 or 70.5%
improvement.
Net loss for the quarter ended December 31, 2014 was $393, as
compared to net income of $613 for the same period last year. The
$1,006 decrease in net income is mainly attributed to a $2,340 gain
on the sale of the Mace Central Station in 2013, reported as income
from discontinued operations.
Financial Results, Year Ended December
31, 2014 and 2013
Net revenues for the year ended December 31, 2014 totaled
$7,794, as compared to prior year net revenues of $8,018, a
decrease of $224 or 2.8%. The decrease in net revenues is primarily
attributed to a $233 or 39.5% decline in Non-Aerosol products, and
a $105 or 29.8% decline in TG Guard product sales. Offsetting these
declines was a $68 or 48% increase in our Take Down® Brand of
products, which is supplied to law enforcement and security
personnel, and a $36 or 0.7% increase in Aerosol product sales.
Gross profit for the years ended December 31, 2014 and 2013 was
$2,855 and $3,087, respectfully. The $232 or 7.5% decrease in gross
profit is mainly attributed to a decrease in sales and lower
margins on Surveillance Products.
Selling, general and administrative expenses for the years ended
December 31, 2014 and 2013 totaled $4,849 and $6,336, respectively,
a decrease of $1,487 or 23.5%. The decrease can be attributed to a
$426 decrease in legal, professional, and audit fees; and $454
attributed to reduced staff, facility costs, and insurance
premiums. Prior year SG&A included approximately $700 in
one-time charges related to severance, relocation of manufacturing
to Cleveland, and the write off of capitalized insurance premiums
that were not repeated in 2014. Offsetting the reductions in
SG&A expenses listed above was a $118 increase in marketing and
advertising expenses.
Loss from continuing operations for the year ended December 31,
2014 was $2,106, as compared to a loss from continuing operations
of $3,581 in 2013. The $1,475 or 41.2% improvement is mainly
attributed to the elimination of one-time expenses incurred in
2013, and an overall decrease in SG&A expenses as mentioned
above.
Income from discontinued operations for the year ended December
31, 2014 was $402, as compared to income from discontinued
operations of $1,560 in 2013. The income in 2014 is attributed to
an adjustment on the selling price of the Mace Central Station
business. The $1,560 in income from discontinued operations in 2013
is mainly attributed to a gain on the sale of the Mace Central
Station.
Net loss for the year ended December 31, 2014 was $1,704 as
compared to a net loss of $2,021 for the same period last year, an
improvement of $317 or 15.7%.
Conference Call
Mace® will conduct a conference call on Wednesday, March
11, 2015 at 2:00 PM EDT, 11:00 AM PDT to discuss its financial
results for the quarter and year ended December 31, 2014, provide
an update on the business, and respond to questions. The
participant conference call number is (877) 719-8065, conference
ID: 3887318. A full set of the consolidated financial statements
and report of independent certified public accountants is available
on the Mace website. Presentation materials for the conference call
will be available Wednesday, March 11, on Mace’s website under
Investor Relations, Shareholder Transcripts & Presentations.
There will also be access to a digital recording of the
teleconference by calling (855) 859-2056 and entering the
conference ID: 3887318. This will be available for the period
commencing two hours following the teleconference and ending April
12, 2015.
About Mace Security International,
Inc.
(OTCPINK: MACE) Mace® Brand Means
Security
Mace Security International, Inc., located in Cleveland, Ohio,
is a diversified manufacturer and provider of personal defense and
security products to consumer and business market segments under
the world renowned Mace® Brand.
Mace® Brand directly distributes and supports its branded
products and services through strategically targeted customer
channels that include mass market retailers, wholesale
distributors, independent dealers, e-commerce marketers, and
installation service providers.
- Personal Defense
Products: Mace® Brand is the original trusted brand of
pepper spray products for self-defense against attacks by people
and animals. Mace® Brand has over 40 years experience developing
aerosol defense spray dispensing technologies for both the consumer
and law enforcement markets around the world.
- Personal & Home Protection
Products: Mace® Brand produces portable safety solutions
for every personal and home protection need. We design and
manufacture products, which provide peace of mind for our
consumers.
- Electronic Security &
Surveillance Products: Mace® Brand has an entire line of
high quality security cameras, digital video recorders, observation
monitors and installation accessories for CCTV and IP network-based
video surveillance, as well as wireless alarm security systems for
local and remote monitoring. We design and manufacture surveillance
equipment for every need, with both analog to high definition
solutions.
- Personal Security & Safety
Wearables: Mace Wear™ is a family of products that
features innovative wearable devices related to safety, security
and overall personal well-being and is supported by strategic
partnerships between Mace Security International, Inc., and
innovative technology companies.
- Security Monitoring
Services: Mace® Brand partners with Security Partners
which owns three UL/ETL/CSAA Five Star listed central monitoring
stations throughout the USA providing full-service security &
life-safety alarm monitoring to the wholesale security trade.
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)
ASSETS
December 31,2014
December 31,2013
Current assets: (Audited) (Audited) Cash and cash equivalents $ 359
$ 4,923 Restricted cash 60 127 Short-term investments 5,848 2,597
Accounts receivable, net 1,352 1,732 Inventories, net 1,783 1,578
Prepaid expenses and other current assets 1,303 1,419
Total current assets 10,705 12,376 Plant and equipment, net
585 565 Other intangible assets 685 685 Other assets
1,054 1,148 Total assets $ 13,029 $ 14,774
LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:
Current portion of long-term debt and capital lease obligations $
1,241 $ - Accounts payable 481 392 Income taxes payable 60 62
Accrued expenses and other current liabilities 961
1,086 Total current liabilities 2,743 1,540
Long-term debt, net of current portion
-
1,106
Other liabilities - 230 Total stockholders’ equity 10,286
11,898 Total liabilities and stockholders’ equity $ 13,029 $
14,774
Mace Security International,
Inc.Condensed Consolidated Statements of
OperationsThree Months Ended December 31, 2014 and
2013(Audited)(Amounts in thousands)
2014 2013 Net revenue $ 2,091 $
2,099 Cost of revenue 1,284 1,385
Gross profit 807 714 Selling, general, and
administrative expenses 1,164 1,902 Depreciation 39
42 Operating loss (396 ) (1,230 )
Interest expense (58 ) (55 ) Interest income 66 19 Gain (loss) on
sale of short-term investments 3 (24 ) Other income (expense)
(1 ) (20 ) Loss from continuing operations
before income tax provision (386 ) (1,310 ) Income tax
provision 1 1 Loss from
continuing operations (387 ) (1,311 ) Income (loss) from
discontinued operations, net of tax (6 ) 1,924
Net income (loss) $ (393 ) $ 613
Mace Security International,
Inc.Condensed Consolidated Statements of
OperationsTwelve Months Ended December 31, 2014 and
2013(Audited)(Amounts in thousands)
2014 2013 Net revenue $ 7,794 $
8,018 Cost of revenue 4,939 4,931
Gross profit 2,855 3,087 Selling, general, and
administrative expenses 4,849 6,336 Depreciation 166
161 Operating loss (2,160 ) (3,410 )
Interest expense (229 ) (221 ) Interest income 240 60 Gain on sale
of short-term investments 137 13 Note receivable write-down (100 )
- Other income (expense) 7 (22 ) Loss
from continuing operations before income tax provision (2,105 )
(3,580 ) Income tax provision 1 1
Loss from continuing operations (2,106 ) (3,581 )
Income from discontinued operations, net of tax 402
1,560 Net loss $ (1,704 ) $ (2,021 )
Mace Security International, Inc.John J. McCann, President and
Chief Executive Officer, 440-424-5322john@mace.com
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