OWINGS MILLS, Md., Feb. 17, 2015 /PRNewswire/ -- Universal Security
Instruments, Inc. (NYSE Amex: UUU) today announced its results for
the third quarter ended December 31,
2014.
For the three months ended December 31,
2014, the Company reported a net loss of $999,734, or $0.43
per basic and diluted share, on net sales of $2,371,016, compared to a net loss of
$367,191, or $0.16 per basic and diluted share, on net sales
of $3,738,914 for the same period
last year. The primary reason for the increase in the
Company's net loss was lower sales caused by the delay in the
introduction of the Company's new sealed battery alarm
products.
For the nine months ended December 31,
2014, sales were $7,109,344
versus $9,940,194 for the same period
last year. The Company reported a net loss of $2,696,795 or $1.17
per basic and diluted share, compared to a net loss of $2,945,939, or $1.29 per basic and diluted share. The
primary reason for the increase in the Company's net loss was lower
sales caused by the delay in the introduction of the Company's new
sealed battery alarm products. Included in the nine month
results ending December 31, 2013, was
a non-cash charge of $2,310,835 to
provide an allowance against the Company's deferred tax asset.
Harvey Grossblatt, CEO, said "The
primary reason for our lower sales was the delay in the
introduction of our new 10-year sealed battery products. We
started delivering two sealed carbon monoxide detectors to
retailers in October 2014. In late December, we received
approvals for three more models, but because of slower production
at our Joint Venture during January and February, and due to the
Chinese New Year celebrations and
West Coast port delays, we anticipate having only a limited number
of units for sale during the fourth quarter ending March 31, 2015. We expect two more models
to be approved by the end of March, 2015 and the final four
photoelectric models to be approved during the second half of our
fiscal year ending March 31, 2016.
We anticipate that our Joint Venture and the Company should
return to profitability following the completion of our sealed
product line."
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 an
over 40-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.
UNIVERSAL SECURITY
INSTRUMENTS, INC.
CONSOLIDATED
STATEMENT OF INCOME
(UNAUDITED)
|
|
|
Three Months Ended
December 31,
|
|
2014
|
2013
|
Sales
|
$2,371,016
|
$3,738,914
|
Net loss
|
(999,734)
|
(367,191)
|
Loss per
share:
|
|
|
Basic
|
(0.43)
|
(0.16)
|
Diluted
|
(0.43)
|
(0.16)
|
Weighted average
number of common shares outstanding:
|
|
|
Basic
|
2,312,887
|
2,287,887
|
Diluted
|
2,312,887
|
2,287,887
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Nine Months Ended
December 31,
|
|
2014
|
2013
|
Sales
|
$7,109,344
|
$9,940,194
|
Net loss
|
(2,696,795)
|
(2,945,939)
|
Loss per
share:
|
|
|
Basic
|
(1.17)
|
(1.29)
|
Diluted
|
(1.17)
|
(1.29)
|
Weighted average
number of common shares outstanding:
|
|
|
Basic
|
2,312,887
|
2,287,887
|
Diluted
|
2,312,887
|
2,287,887
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
ASSETS
|
|
|
December 31,
2014
|
March 31,
2014
|
|
|
|
Cash and
investments
|
$ 1,382,027
|
$ 2,050,993
|
Accounts receivable
and amount due from factor
|
1,531,986
|
2,289,122
|
Inventory
|
3,707,674
|
4,194,213
|
Prepaid
expenses
|
233,777
|
406,012
|
TOTAL CURRENT
ASSETS
|
6,855,464
|
8,940,340
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
13,823,447
|
14,144,069
|
PROPERTY, PLANT AND
EQUIPMENT – NET
|
187,237
|
222,232
|
OTHER ASSETS AND
DEFERRED TAX ASSET
|
38,134
|
38,134
|
TOTAL
ASSETS
|
$20,904,282
|
$23,344,775
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Accounts payable and
accrued expenses
|
$ 802,603
|
$ 634,995
|
Accrued
liabilities
|
224,413
|
150,566
|
TOTAL CURRENT
LIABILITIES
|
1,027,016
|
785,561
|
|
|
|
LONG TERM
OBLIGATION
|
25,000
|
25,000
|
SHAREHOLDERS'
EQUITY
|
|
|
Common
stock, $.01 par value per share; authorized 20,000,000
shares;
issued and outstanding 2,312,887 at December 31, 2014
and
March
31, 2014
|
23,129
|
23,129
|
Additional paid-in
capital
|
12,885,841
|
12,885,841
|
Retained
earnings
|
5,738,321
|
8,435,116
|
Accumulated other
comprehensive income
|
1,204,975
|
1,190,128
|
TOTAL SHAREHOLDERS'
EQUITY
|
19,852,266
|
22,534,214
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$20,904,282
|
$23,344,775
|
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SOURCE Universal Security Instruments, Inc.