Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Tad Anderson

News Feed Item

Mace Security International, Inc. Reports Financial Results for the Three and Nine Months Ended September 30, 2012

Mace Security International, Inc. (OTC PINK: MACE) today announced financial results for the three and nine months ended September 30, 2012.

“Mace saw a 30+% increase in revenues from personal defense and law enforcement operations,” said John J. McCann, CEO and President. “We also experienced 10+% sales growth in our wholesale security monitoring operation which now serves more than 75,000 customers.”

To be better positioned for profitability in 2013, the firm also undertook a series of long-term cost cutting initiatives that will continue through the 4th quarter and into 2013. Specifically, the company experienced a one-time charge of ($500,000) in discontinued operations related to its car wash operations and approximately ($370,000) toward one-time severance, legal and moving expenses necessary to transform Mace’s future footprint and structure.

“To become the nation’s recognized leader in security, safety and protection, Mace is reallocating resources to products, marketing and sales,” McCann explained. “Over the next couple months we expect to announce new product initiatives, licensing partnerships and marketing campaigns that will enhance the value of the Mace brand.”

2012 Third Quarter and Current Highlights

  • Relocated corporate headquarters from Horsham, PA to Solon, OH, resulting in annual savings of at least $400,000. (October)
  • Moved distribution of electronic surveillance equipment from Texas to existing Vermont location; saving $100,000 in annual facility and personnel costs. (August)
  • Merged Mace Personal Defense, Inc. (personal defense and law enforcement aerosol) and Mace Security Products, Inc. (electronic surveillance equipment) into one entity called Mace Personal Defense & Security, Inc. (November)
  • Effective with the Corporate relocation, Carl R. Smith was hired as Senior VP of Finance and appointed Treasurer and Corporate Secretary by the Board of Directors. He replaced Gregory M. Krzemien, CFO, Treasurer, and Corporate Secretary. Mr. Smith was the Chief Financial Officer, Treasurer, and Secretary of Saeco USA, Inc., a privately owned company that distributes and markets coffee brewing appliances. Mr. Smith also served as VP of Operations for Saeco and held accounting positions with Sifco Industries and Mr. Coffee. (November)
  • Effective with the Corporate relocation, Eric Lewis was hired as Corporate Controller; he replaced Steve R. Rolle. Mr. Lewis was the Internal Audit Manager for LKQ Corporation, a remanufacturer, retailer, and distributor of aftermarket auto and truck parts. Mr. Lewis also served as Vice-President, Treasurer, and Controller for Europower, Inc. a distributor of hydraulic hoses and fittings. (November)
  • Centralized storage of files and records for additional cost savings. (November)

Financial Results, Three Months Ended September 30, 2012 and 2011

Revenues were approximately $3.4 million and $3.5 million for the three months ended September 30, 2012 and 2011, respectively.

 
September 30, 2012
Personal Defense & Aerosol Operations:       $1.82 million           54%
Wholesale Security Monitoring Operation: $1.07 million 32%
Electronic Surveillance Equipment Operation: $490,000 14%
 

September 30, 2011

Personal Defense & Aerosol Operations: $1.39 million 40%
Wholesale Security Monitoring Operation: $1.06 million 30%
Electronic Surveillance Equipment Operation*: $1.06 million 30%
 
*Includes $108,000 from high-end digital and machine vision cameras and professional imaging components operation (IVS) that was sold on October 21, 2011.
 

Overall revenues within the security segment decreased $128,000, or 3.6%, in 2012 compared to 2011. This decrease is mainly attributed to a $568,000, or 53.7%, decrease in sales from electronic surveillance equipment operations offset by a $429,000, or 30.8%, increase in personal defense and law enforcement operations, and a slight increase of $10,000 or 0.9% in wholesale security monitoring operation.

The decrease in surveillance equipment revenues is attributed to competition from Asian manufacturers, loss of a key customer, and the sale of IVS. Personal defense and law enforcement operations saw significant increased sales through consumer and international channels and a slight increase in the sporting goods channel. Revenues increased marginally in the wholesale security monitoring division.

 

Sales By Channel-Personal Defense and Law Enforcement

    September 30, 2012   September 30, 2011   % Increase
Consumer   $643,000   $357,000   80+
International   $135,000   $49,000   178+
Sporting Goods   $782,000   $750,000   4+
     

Loss from continuing operations for the third quarter of 2012 was approximately $(700,000), or $(0.01) per share, compared to a loss from continuing operations of $(1.9) million, or $(0.04) per share, in the third quarter of 2011. The improvement is attributed to decreases in selling, general and administration (“SG&A”) expenses of $891,000, or 32%, and an increase in gross profit of $251,000, or approximately 23%.

Discontinued operations are comprised of the Company’s car wash operations. The results of these operations are shown as discontinued operations for financial reporting purposes. These operations generated a loss of approximately $(504,000), or $(0.01) per share, and $(262,000), or $(0.01) per share, for the three months ended September 30, 2012 and 2011 respectfully. The $(504,000) loss in the third quarter of 2012, included expenses associated with a Lease Assignment and Release Agreement on one of the remaining car wash and lube facilities; and accrued expenses to further monitor and test two car wash locations.

Net loss for the three months ended September 30, 2012 was approximately $(1.2) million, or $(0.02) per share, compared to a net loss of approximately $(2.1) million, or $(0.05) per share, for the three months ended September 30, 2011. Weighted average shares for computing loss per share for the three months ending September 30, 2012 and 2011 were 58,946,441 and 43,571,698 respectively.

Financial Results, Nine Months Ended September 30, 2012 and 2011

Revenues were approximately $9.8 million and $10.6 million for the nine months ended September 30, 2012 and 2011, respectively.

 
September 30, 2012
Personal Defense & Aerosol Operations:       $4.9 million           50%
Wholesale Security Monitoring Operation: $3.2 million 33%
Electronic Surveillance Equipment Operation: $1.7 million 17%
 
September 30, 2011
Personal Defense & Aerosol Operations: $3.7 million 35%
Wholesale Security Monitoring Operation: $2.9 million 28%
Electronic Surveillance Equipment Operation*: $3.0 million 28%
 
*Includes $1 million from high-end digital and machine vision cameras and professional imaging components operation (IVS) that was sold on October 21, 2011.
 

Overall revenues, within the security segment, decreased $797,000 or 7.5%, in 2012 compared to 2011. This decrease is mainly attributed to a $2.3 million, or 57%, decrease in sales from electronic surveillance equipment operations offset by a $1.2 million, or 32%, increase in personal defense and law enforcement aerosol operation, and an increase of $340,000, or 12%, in wholesale security monitoring operation, which includes the acquisition of a monitoring center TCCI, on March 31, 2011.

 

Sales By Channel

    September 30, 2012   September 30, 2011   % Increase
Consumer   $1.5 million   $1.05 million   44
International   $465,000   $196,000   137
Sporting Goods   $2.1 million  

1.72 million

  22
     

Loss from continuing operations for the nine months ended September 30, 2012 was approximately $(1.9) million, or $(0.03) per share, compared to a loss from continuing operations of $(4.1) million, or $(0.17) per share, in the nine months ended September 30, 2011. The improvement is attributed to decreases in selling, general and administration (“SG&A”) expenses of $1.8 million, or 26%, and an increase in gross profit of $189,000, or approximately 5%.

Discontinued operations are comprised of the Company’s car wash operations. The results for these operations are shown as discontinued operations for financial reporting purposes. These operations generated a loss of approximately $(576,000), or $(0.03) per share, for the nine months ended September 30, 2012 and a loss of $(296,000), or $(0.17) per share for the nine months ended September 30, 2011. Current year to date loss includes a cash payment of $275,000 and the transfer of certain inventories and equipment having an approximate book value of $70,000 as consideration to the landlord for the early release of the contractual lease agreement.

Net loss for the nine months ended September 30, 2012 was approximately $(2.5) million, or $(0.03) per share, compared to a net loss of approximately $(4.4) million, or $(0.17) per share, for the nine months ended September 30, 2011. Weighted average shares for computing loss per share for the nine months ending September 30, 2012 and 2011 were 58,946,441 and 25,116,345 respectively.

The Company’s net book value was $15.1 million, or $0.26, at September 30, 2012. Mace had $18.5 million in total assets, including $5.9 million of cash and short-term investments at September 30, 2012.

Conference Call
Mace will conduct a conference call on Wednesday, December 12, 2012 at 11 a.m. EST, 8 a.m. PST. The participant conference call number is (877) 719-8065, conference ID: 80882238. A digital recording of the teleconference can be accessed by calling (855) 859-2056 and entering conference ID: 80882238. The recording will available beginning two hours following the conclusion of the teleconference until January 12, 2013.

About Mace
Mace Security International, Inc. (OTC PINK: MACE) is a manufacturer and provider of personal defense, safety, and electronic security products to consumer and business market segments under the highly recognized Mace® brand. Mace also owns and operates a UL/ETL listed central station providing remote monitoring services to the wholesale security trade. For more information, go to www.mace.com or write to Mace Security International, Inc., 29100 Aurora Road, Suite 100, Bentley Park, Solon, Ohio 44139.

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. A discussion of factors that could materially adversely affect the Company’s financial performance and cause actual results for future periods to differ materially from the statements expressed within this press release, and management's opinions, projections, forecasts, estimates and expectations are contained under the heading “Risk Factors” in Mace’s SEC filings, including its registration statements and its periodic reports on Form 10-K and Form 10-Q. This press release should also be read in conjunction with the financial statements and notes contained in Mace’s annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

 
Mace Security International, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share information)
(Unaudited)
   
Three Months Ended September 30,
  2012     2011  
 
Revenues $ 3,385 $ 3,513
Cost of revenues 2,035 2,414
   
 
Gross profit 1,350 1,099
Selling, general, and administrative expenses 1,899 2,790
Depreciation and amortization 102 135
Asset impairment of derivative - 35
   
Operating loss (651 ) (1,861 )
 
Interest expense, net (43 ) (101 )
Other (6 ) -
Gain on valuation of derivative   -     74  
Loss from continuing operations before income taxes (700 ) (1,888 )
 
Income tax benefit   -     20  
 
Loss from continuing operations (700 ) (1,868 )
 
Loss from discontinued operations, net of tax   (504 )   (262 )
 
Net loss $ (1,204 ) $ (2,130 )
 
Per share of common stock (basic and diluted):
Loss from continuing operations $ (0.01 ) $ (0.04 )
Loss from discontinued operations   (0.01 ) $ (0.01 )
Net loss $ (0.02 ) $ (0.05 )
 
Weighted average shares outstanding:
Basic and diluted 58,946,441 43,571,698
 
 
Mace Security International, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share information)
(Unaudited)
   
Nine Months Ended September 30,
  2012     2011  
 
Revenues $ 9,778 $ 10,575
Cost of revenues 6,019 7,005
   
 
Gross Profit 3,759 3,570
 
Selling, general, and administrative expenses 5,221 7,020
Depreciation and amortization 328 389
Asset impairment of derivative - 35
   
Operating loss (1,790 ) (3,874 )
 
Interest expense, net (142 ) (304 )
Other (4 ) -
Gain on valuation of derivative   -     74  
Loss from continuing operations before income taxes (1,936 ) (4,104 )
 
Income tax expense   (5 )   -  
 
Loss from continuing operations (1,941 ) (4,104 )
 
Loss from discontinued operations, net of tax   (576 )   (296 )
 
Net loss $ (2,517 ) $ (4,400 )
 
Per share of common stock (basic and diluted):
Loss from continuing operations $ (0.03 ) $ (0.17 )
Loss from discontinued operations   (0.01 )   (0.01 )
Net loss $ (0.04 ) $ (0.18 )
 
Weighted average shares outstanding:
Basic and Diluted 58,946,441 25,116,345
 
 
Mace Security International, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
   
 
September 30, December 31,
2012 2011
(unaudited) (audited)
ASSETS
 
Current Assets:
Cash and cash equivalents $ 2,801 $ 7,871
Short-term investments 3,053 -
Accounts receivable, net 1,804 1,684
Inventories, net 2,011 2,401
Other current assets 1,966 2,087
Assets held for sale 302 2,469
Total current assets 11,937 16,512
 
Property and equipment, net 1,278 1,379
 
Goodwill 2,805 2,805
 
Other intangible assets, net 1,802 1,887
 
Other assets 714 735
$ 18,536 $ 23,318
 
LIABILITIES AND EQUITY
 
Current Liabilities:
Current portion of long-term debt and capital lease obligations $ 202 $ 957
Accounts payable and accrued expenses 1,966 3,442
Other current liabilities 109 383
Liabilities related to assets held for sale - 566
Total current liabilities 2,277 5,348
 
Long-term debt and capital lease obligations, net of current portion 950 33
Other liabilities 237 380
 
Stockholders' equity 15,072 17,557
$ 18,536 $ 23,318
 

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.

@ThingsExpo Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...