Welcome!

News Feed Item

Mace® Reports Consolidated Financial Statements and Report of Independent Certified Public Accountants, December 31, 2013 and 2012

Mace Security International Inc., (OTCPINK: MACE) today announced audited financial results for the fourth quarter and year ended December 31, 2013 and unaudited results for the first quarter ended March 31, 2014. Fourth quarter and year end audited results were delayed due to the Company’s decision to save significant audit fees by having the audit commence in mid March.

Financial Results, Fourth Quarter Ended December 31, 2013 and 2012

Net revenues for the fourth quarter of 2013 totaled $2,099, as compared to prior year fourth quarter revenues of $2,146, a decrease of approximately $47 or 2.2%. The decrease is mainly attributed to a $40 decrease in shipments of TG Guard product.

Gross profit for the fourth quarter totaled $714 compared to $802, a decrease of $88 or 11%. The decrease in gross profit can be attributed to the decrease in sales, one time severance costs of manufacturing and warehouse personnel, and higher fourth quarter labor incurred with the overlap of manufacturing and distribution labor during the transition from Bennington, VT to Cleveland, OH.

Selling, general, and administrative expenses for the fourth quarter ended December 31, 2013 and 2012 were $1,902 and $1,779, respectfully. The $123 or 6.9% increase is mainly attributed to $449 in one-time non-recurring charges in 2013.

Loss from continuing operations for the fourth quarter ended December 31, 2013 was $1,311, as compared to a loss from continuing operations of $1,240 in the fourth quarter of 2012. The $71 or 5.7% increased loss is mainly attributed to the decrease in gross profits and increase in selling, general and administrative expenses as mentioned above, offset by a $126 decrease in depreciation expense.

Net income for the quarter ended December 31, 2013 was $613, as compared to a net loss of $1,506 for the same period last year. The $2,119 improvement is mainly attributed to a gain on the sale of the Mace Central Station of $2,340.

"In 2013, we continued our cost cutting efforts, which began in 2012, by further consolidating operations and reducing staff. Our Corporate Headquarters, manufacturing, and distribution operations are now under one roof; reducing costs and positioning the company for growth. We sold the Mace Central Station business in December 2013, eliminating negative cash flow and providing The Company with cash to continue our efforts to grow the Mace® Brand. Given our current strong cash position, our belief in the exceptional value of the Mace® Brand and our commitment to enhance shareholder value, we feel it is an appropriate time to consider a variety of strategic alternatives,” said John J. McCann, President and CEO of Mace.

Financial Results, Year Ended December 31, 2013 and 2012

Net revenues for the year ended December 31, 2013 totaled $8,018, as compared to prior year net revenues of $8,690, a decrease of $672 or 7.7%. The decrease in net revenues is primarily attributed to a $663 decrease in Surveillance Product net revenues.

Gross profit for the years ended December 31, 2013 and 2012 was $3,087 and $3,482, respectfully. The $395 or 11.3% decrease in gross profit is mainly attributed to the decrease in sales, and one-time expenses for severance and other move related expenses.

Selling, general and administrative expenses for the years ended December 31, 2013 and 2012 totaled $6,336 and $6,127, respectfully, an increase of $209 or 3.4%. Both years included significant one-time expenses for severance and relocation.

Loss from continuing operations for the year ended December 31, 2013 was $3,581, as compared to a loss from continuing operations of $3,170 in 2012. The $411 or 13% increased loss is mainly attributed to the decrease in gross profits on lower net revenues and increased selling, general and administrative expenses as mentioned above, offset by a $129 decrease in depreciation expense.

Net loss for the year ended December 31, 2013 was $2,021, as compared to a net loss of $4,023 for the same period last year. The $2,002 improvement is mainly attributed to a gain on the sale of the Mace Central Station business, included in the $1,560 income from discontinued operations compared to an $853 loss from discontinued operations for the year ending December 31, 2012.

“With all the challenges facing the company during the year, we were still able to achieve a lot with more to achieve. We as a management team feel good about the future prospects of the company as we continue to position Mace® as the number one brand in safety and security,” said John J. McCann, President and CEO of Mace.

Financial Results, First Quarter Ended March 31, 2014 and 2013

Net revenues for the first quarter of 2014 totaled $1,682, as compared to prior year first quarter revenues of $2,192, a decrease of $510 or 23.3%. The decrease is mainly attributed to year on year timing of sales to some of our larger customers sold through our Consumer and Sporting channels, and the overall impact the harsh winter had at retail nationwide.

Gross profit for the first quarter totaled $563 compared to $981, a decrease of $418 or 42.6%. The decrease in gross profit can be attributed to the decrease in sales, unfavorable overhead variances due to timing of expenditures, and lower production.

Selling, general, and administrative expenses for the first quarter ended March 31, 2014 and 2013 were $1,405 and $1,460, respectfully. The $55 or 3.8% decrease is mainly attributed to a $186 decrease in legal, professional and audit fees offset by a $73 increase in non-cash stock option expense and increased advertising expenditures.

Loss from continuing operations for the first quarter ended March 31, 2014 was $791, as compared to a loss from continuing operations of $564 in the first quarter of 2013. The $227 or 40.2% increased loss is mainly attributed to the decrease in gross profits mentioned above, offset by lower selling, general and administrative expenses and a $104 increase in other income.

Net loss for the quarter ended March 31, 2014 was $794, as compared to a net loss of $649 for the same period last year.

“We as an organization are disappointed in the slow start to 2014, but we remain steadfast in moving the company closer to profitability. The weather throughout the nation forced our retail partners to lose many shopping days which had a negative impact on our sales but we did experience some positives in the first quarter– the Hardware and Tactical division performed well. We also recorded sales in the quarter to several school systems through our secure my campus initiative- www.securemycampus.com” – stated John McCann President and CEO of Mace Security International.

Conference Call

Mace will conduct a conference call on Wednesday, April 30, 2014 at 1:00 PM EDT, 10:00 AM PDT to discuss its 2013 fourth quarter, 2013 year end, and 2014 first quarter financial results, provide an update on the business, and respond to questions. Please submit any investor question(s) via email to [email protected] by 3:00 PM EDT on Tuesday, April 29th, 2014. All appropriate questions, timely submitted, will be read and answered during the call. Please include your name and company with your questions. The participant conference call number is (877) 719-8065, conference ID: 36962659. Presentation materials for the conference call will be available Wednesday, April 30, 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: 36962659. This will be available from two hours following the teleconference until May 30, 2014.

About Mace® Brand

Mace Security International, Inc. (OTCPINK: MACE) is the manufacturer of personal defense products and markets such products and electronic surveillance products under the well known brand name Mace®. www.mace.com.

Contact Information: Mace Security International, Inc., 4400 Carnegie Avenue, Cleveland, OH 44139. Email to: [email protected] . John J. McCann, President and Chief Executive Officer, 440-424-5322.

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 2013 2012
Current assets: (Audited) (Audited)
Cash and cash equivalents $ 4,923 $ 2,065
Restricted cash 127 440
Short-term investments 2,597 2,397
Accounts receivable, net 1,732 1,288
Inventories, net 1,578 2,121
Prepaid expenses and other current assets 1,419 1,242
Current assets of business held for sale   -   290
Total current assets 12,376 9,843
 
Plant and equipment, net 565 370
Other intangible assets, net 685 685
Other assets 1,148 1,101
Non-current assets of businesses held for sale   -   4,589
Total assets $ 14,774 $ 16,588
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities:
Current portion of long-term debt and capital lease obligations $ - $ 26
Accounts payable 392 753
Income taxes payable 62 62
Deferred revenue - 15
Accrued expenses and other current liabilities   1,086   981
Total current liabilities 1,540 1,837
 

Long-term debt and capital lease obligations, net of current portion

1,106

981

Other liabilities 230 225
Total stockholders’ equity   11,898   13,545
 
Total liabilities and stockholders’ equity $ 14,774 $ 16,588
 
   
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended December 31, 2013 and 2012
(Audited)

(Amounts in thousands)

 
2013 2012
 
Net revenues $ 2,099 $ 2,146
Cost of revenues   1,385     1,344  
 
Gross profit 714 802
 
Selling, general, and administrative expenses 1,902 1,779
Depreciation and amortization   42     168  
 
Operating loss (1,230 ) (1,145 )
 
Interest expense, net (36 ) (66 )
Other expense   (44 )   (15 )
 
Loss from continuing operations before income tax provision (1,310 ) (1,226 )
 
Income tax provision   1     14  
 
Loss from continuing operations (1,311 ) (1,240 )
 
Income (loss) from discontinued operations, net of tax   1,924     (266 )
 
Net income (loss) $ 613   $ (1,506 )
 
   
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Twelve Months Ended December 31, 2013 and 2012
(Audited)

(Amounts in thousands)

 
2013 2012
 
Net revenues $ 8,018 $ 8,690
Cost of revenues   4,931     5,208  
 
Gross profit 3,087 3,482
 
Selling, general, and administrative expenses 6,336 6,127
Depreciation and amortization   161     291  
 
Operating loss (3,410 ) (2,936 )
 
Interest expense, net (161 ) (197 )
Other expense   (9 )   (18 )
 
Loss from continuing operations before income tax provision (3,580 ) (3,151 )
 
Income tax provision   1     19  
 
Loss from continuing operations (3,581 ) (3,170 )
 
Income (loss) from discontinued operations, net of tax   1,560     (853 )
 
Net loss $ (2,021 ) $ (4,023 )
 
   
Mace Security International, Inc.
Condensed Consolidated Balance Sheets

(Amounts in thousands)

 
March 31, December 31,

       ASSETS

2014 2013
Current assets: (Unaudited) (Audited)
Cash and cash equivalents $ 1,038 $ 4,923
Restricted cash 275 127
Short-term investments 5,875 2,597
Accounts receivable, net 1,211 1,732
Inventories, net 1,823 1,578
Prepaid expenses and other current assets   1,316   1,419
Total current assets 11,538 12,376
 
Plant and equipment, net 606 565
Other intangible assets, net 685 685
Other assets   984   1,148
Total assets $ 13,813 $ 14,774
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
Current liabilities:
Accounts payable $ 397 $ 392
Income taxes payable 61 62
Accrued expenses and other current liabilities   863   1,086
Total current liabilities 1,321 1,540
 

Long-term debt and capital lease obligations, net of current portion

1,138

1,106

Other liabilities 231 230
Total stockholders’ equity   11,123   11,898
 
Total liabilities and stockholders’ equity $ 13,813 $ 14,774
 
   
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2014 and 2013
(Unaudited)

(Amounts in thousands)

 
2014 2013
 
Net revenues $ 1,682 $ 2,192
Cost of revenues   1,119     1,211  
 
Gross profit 563 981
 
Selling, general, and administrative expenses 1,405 1,460
Depreciation and amortization   44     38  
 
Operating loss (886 ) (517 )
 
Interest expense, net (8 ) (47 )
Other income   104     -  
 
Loss from continuing operations before income tax provision (790 ) (564 )
 
Income tax provision   1     -  
 
Loss from continuing operations (791 ) (564 )
 
Loss from discontinued operations, net of tax   (3 )   (85 )
 
Net loss $ (794 ) $ (649 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they responded to were some very unique security capabilities that we have," explained Mark Figley, Director of LinuxONE Offerings at IBM, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.