OWINGS MILLS, Md., Aug. 4,
2014 /PRNewswire/ -- Universal Security Instruments, Inc.
(NYSE Amex: UUU) today announced that it has filed its Annual
Report on Form 10-K for the fiscal year ended March 31, 2014 which was not timely filed due to
unforeseen delays in the completion of the financial statements of
the Company's 50%-owned Hong Kong Joint Venture. As
previously reported, the Company had received a letter from NYSE
MKT LLC (the "Exchange") stating that the delayed filing violated
Exchange rules and that unless prompt corrective action is taken,
the Company could be subject to delisting. The Company
believes that the filing of the Annual Report on Form 10-K
satisfies the Exchange's requirements for prompt corrective
action.
The Company reported the following:
- For the fourth quarter ended March 31,
2014, a net loss of $1,504,306, or $0.65 per basic and diluted share, on sales of
$2,636,933. This compares
to net income of $104,973, or
$0.04 per basic and diluted share, on
sales of $4,113,976 for the
comparable period of the previous year.
- For the 12 months ended March 31,
2014, sales decreased approximately 18% to $12,577,127 versus $15,383,877 for the same period last year. The
Company reported a net loss of $4,450,244, or $1.94 per basic and diluted share, versus a net
loss of $452,561, or $0.20 per basic and diluted share, for the same
period last year.
"For the fiscal year ending March 31,
2014 our operations were impacted by lower sales, a non-cash
charge to fully reserve our deferred tax asset in the amount
of $2,310,835, and the Company's
portion of lower joint venture earnings that decreased by
$882,774 from the prior year," said
Harvey Grossblatt, President and
Chief Executive Officer. "While sales were lower throughout
the year, we believe that our fourth quarter sales were further
adversely affected by weather which further reduced sales
to our retail and new construction customers.
Mr. Grossblatt noted that "The smoke and CO alarm markets
are moving toward ten-year sealed alarms to comply with new laws
passed in several states, including California and New
York. We previewed eleven (11) new sealed smoke and CO
alarms at the International Hardware Show in Las Vegas in May, 2014 and our customers'
responses were very positive. The first two sealed models will
be available during the September quarter and the complete line
should be available for sale before the end of our 2015 fiscal
year. We believe that with the addition of our new sealed battery
product line later this fiscal year, sales will improve and the
Company can thereafter begin to return to profitability."
UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based
manufacturer (through its Hong Kong Joint Venture) and distributor
of safety and security devices. Founded in 1969, the Company has a
43 year heritage of developing innovative and easy-to-install
products, including smoke, fire and carbon monoxide alarms. For
more information on Universal Security Instruments, visit our
website at www.universalsecurity.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Certain matters discussed in this news release
may constitute forward-looking statements within the meaning of the
federal securities laws that inherently include certain risks and
uncertainties. Actual results could differ materially from
those projected in or contemplated by the forward-looking
statements due to a number of factors, including, among other
items, our Hong Kong Joint Venture's respective ability to maintain
operating profitability, currency fluctuations, the impact of
current and future laws and governmental regulations affecting us
and our Hong Kong Joint Venture and other factors which may be
identified from time to time in our Securities and Exchange
Commission filings and other public announcements. We do not
undertake and specifically disclaim any obligation to update any
forward-looking statements to reflect occurrence of anticipated or
unanticipated events or circumstances after the date of such
statements. We will revise our outlook from time to time and
frequently will not disclose such revisions publicly.
11407 CRONHILL DRIVE, SUITE A -- OWINGS MILLS, MARYLAND 21117, USA
(410) 363-3000 -- www.universalsecurity.com
UNIVERSAL SECURITY
INSTRUMENTS, INC.
CONSOLIDATED
STATEMENT OF INCOME
|
|
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
|
2014
|
2013
|
Sales
|
$2,636,933
|
$4,113,976
|
Net (loss)
income
|
(1,504,306)
|
104,973
|
Net (loss) income per
share – basic
|
(0.65)
|
0.04
|
Net (loss) income per
share – diluted
|
(0.65)
|
0.04
|
Weighted average
number of common shares outstanding
|
|
|
Basic
|
2,296,498
|
2,292,321
|
Diluted
|
2,296,498
|
2,296,095
|
|
|
|
|
(AUDITED)
|
|
|
Twelve Months Ended
March 31,
|
|
2014
|
2013
|
Sales
|
$12,577,127
|
$15,383,877
|
Net (loss)
|
(4,450,244)
|
(452,561)
|
Net (loss) per share
– basic
|
(1.94)
|
(0.20)
|
Net (loss) per share
– diluted
|
(1.94)
|
(0.20)
|
Weighted average
number of common shares outstanding
|
|
|
Basic
|
2,290,010
|
2,311,152
|
Diluted
|
2,290,010
|
2,311,152
|
CONSOLIDATED BALANCE
SHEET
|
|
|
|
|
ASSETS
|
|
|
|
|
March 31,
|
|
2014
|
|
2013
|
Cash, cash
equivalents and investments
|
$ 2,050,993
|
|
$ 2,438,892
|
Accounts receivable
and amount due from factor
|
2,289,122
|
|
2,919,431
|
Inventory
|
4,194,213
|
|
4,341,652
|
Prepaid
expenses
|
406,012
|
|
598,686
|
TOTAL CURRENT
ASSETS
|
8,940,340
|
|
10,298,661
|
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
14,144,069
|
|
14,906,573
|
PROPERTY, PLANT AND
EQUIPMENT – NET
|
146,212
|
|
152,201
|
DEFERRED TAX ASSET
AND OTHER ASSETS
|
114,154
|
|
2,429,460
|
TOTAL
ASSETS
|
$23,344,775
|
|
$27,786,895
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$ 634,995
|
|
$ 548,388
|
Accrued
liabilities
|
150,566
|
|
179,602
|
TOTAL CURRENT
LIABILITIES
|
785,561
|
|
727,990
|
|
|
|
|
LONG TERM
OBLIGATION
|
25,000
|
|
25,000
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, $.01
par value per share; 20,000,000 authorized, 2,312,787 shares
outstanding at March 31, 2014; and 2,287,787 shares issued and
outstanding at March 31, 2013
|
23,129
|
|
22,879
|
Additional paid-in
capital
|
12,885,841
|
|
12,749,256
|
Retained
earnings
|
8,435,116
|
|
12,885,360
|
Accumulated other
comprehensive income
|
1,190,128
|
|
1,376,410
|
TOTAL SHAREHOLDERS'
EQUITY
|
22,534,214
|
|
27,033,905
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$23,344,775
|
|
$27,786,895
|
SOURCE Universal Security Instruments, Inc.