MACE Mace Security International Inc (QB)

Mace Security International, Inc. (OTCPINK: MACE) today announced unaudited financial results for the third quarter ended September 30, 2014.

Financial Results, Third Quarter Ended September 30, 2014 and 2013

• Net sales for the third quarter of 2014 experienced a 13% increase, compared to third quarter 2013.
• Operating loss for the third quarter of 2014 decreased 75%, compared to third quarter 2013.
• Net loss for the third quarter of 2014 was $ (0.01) per share, both basic and diluted, compared to a net loss of $ (0.02) per share, both basic and diluted in the same quarter a year ago, an $820,000 or $0.01 per share improvement.
• EBITDA for the third quarter of 2014 was a loss of $291,000, compared to a loss of $1,063,000 for the third quarter of 2013, a $772,000 improvement for the quarter.
• EBITDA, adjusted for one time charges for the third quarter of 2014 was a loss of $135,000, compared to an adjusted EBITDA of $470,000 for the third quarter of 2013.

“Sales for the third quarter of 2014 improved from prior year third quarter and are significantly higher than second and first quarter of 2014 with 21% and 31% sales increases, respectfully. Sales through our Consumer channel for the third quarter were up 52% over prior year third quarter sales and almost equaled this year’s first and second quarter sales combined. The increase in sales through our Consumer channel is a result of sales to new customers and existing customers expanding their breadth of our products,” stated John McCann, President and CEO of Mace Security International.

Conference CallMace will conduct a conference call on Wednesday, November 5, 2014 at 4:15 PM EST, 1:15 PM PST to discuss its financial results for the quarter and nine months ended September 30, 2014, provide an update on the business, and respond to questions. The participant conference call number is (877) 719-8065, conference ID: 29566453. Presentation materials for the conference call will be available Wednesday, November 5, 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: 29566453. This will be available from two hours following the teleconference until December 6, 2014.

A full set of the Company’s Consolidated Financial Statements can be accessed through its website: http://corp.mace.com/investor-relations/annual-reports

About Mace® BrandMace 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.

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

September 30,2014

December 31,2013

Current assets: (Unaudited) Cash and cash equivalents $ 370 $ 4,923 Restricted cash 101 127 Short-term investments 5,873 2,597 Accounts receivable, net 1,451 1,732 Inventories, net 1,831 1,578 Prepaid expenses and other current assets   1,274   1,419 Total current assets 10,900 12,376   Property and equipment, net 573 565 Other intangible assets, net 685 685 Other assets   1,215   1,148 Total assets $ 13,373 $ 14,774     LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities: Accounts payable $ 472 $ 392 Income taxes payable 59 62 Accrued expenses and other current liabilities   989   1,086 Total current liabilities 1,520 1,540

Long-term debt, net of current portion

1,205

1,106

Other liabilities - 230 Total stockholders’ equity   10,648   11,898   Total liabilities and stockholders’ equity $ 13,373 $ 14,774    

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Three Months Ended September 30, 2014 and 2013

(Unaudited)

(Amounts in thousands)

            2014 2013   Net sales $ 2,203 $ 1,951 Cost of goods sold   1,316     1,313     Gross profit 887 638   Selling, general, and administrative expenses 1,095 1,590 Depreciation   40     43     Operating loss (248 ) (995 )   Interest expense (58 ) (54 ) Interest income 64 15 Gain on sale of short-term investments 10 18 Note write down (100 ) - Other income (expense)   7     (1 )   Loss from continuing operations before income tax provision (325 ) (1,017 )   Income tax provision   -     -     Loss from continuing operations (325 ) (1,017 )   Loss from discontinued operations, net of tax of $0   -     (128 )   Net loss $ (325 ) $ (1,145 )    

Mace Security International, Inc.

Condensed Consolidated Statements of Operations

Nine Months Ended September 30, 2014 and 2013

(Unaudited)

(Amounts in thousands)

            2014 2013   Net sales $ 5,703 $ 5,919 Cost of goods sold   3,655     3,546     Gross profit 2,048 2,373   Selling, general, and administrative expenses 3,685 4,434 Depreciation   127     119     Operating loss (1,764 ) (2,180 )   Interest expense (171 ) (166 ) Interest income 174 41 Gain on sale of short-term investments 134 37 Note write down (100 ) - Other income   8     (2 )   Loss from continuing operations before income tax provision (1,719 ) (2,270 )   Income tax provision   -     -     Loss from continuing operations (1,719 ) (2,270 )   Income (loss) from discontinued operations, net of tax of $0   408     (364 )   Net loss $ (1,311 ) $ (2,634 )  

Mace Security International, Inc.John J. McCann, 440-424-5322President and Chief Executive Officerjohn@mace.com