Universal Security Instruments Announces its Fourth-Quarter and Year-End Results
OWINGS MILLS, Md., July 16, 2018 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced its financial results for the 4(th) quarter and its fiscal year ended March 31, 2018.
The Company reported the following for its fourth quarter and fiscal year ended March 31, 2018:
-- For the fourth quarter ended March 31, 2018, sales increased
approximately 26% to $4,416,705 from $3,513,484 from the comparable
period last year. USI reported a net loss of $535,926, or $0.23 per
basic and diluted share compared to a net loss of $1,055,351, or $0.45
per basic and diluted share for the comparable period of the previous
year.
-- For the 12 months ended March 31, 2018, sales increased 5.6% to
$14,873,189 versus $14,083,428 for the same period last year. The
Company reported a net loss of $2,262,310, or $0.98 per basic and
diluted share, versus a net loss of $2,058,902, or $0.89 per basic and
diluted share, for the same period last year.
Harvey Grossblatt, President and Chief Executive Officer said, "We are starting to see improvement in our domestic operations with the 26% sales increase in the fourth quarter. However, our Hong Kong Joint Venture continues to lose money and we have decided to close our Nan'an factory and move the production into our Fujian factory. The Nan'an facility has been listed for sale or lease. We have also added new retail customers and expect the improving sales trend to continue throughout fiscal 2019."
11407 CRONHILL DRIVE, SUITE A -- OWINGS MILLS, MARYLAND 21117, USA
(410) 363-3000 -- www.universalsecurity.com
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 47 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(UNAUDITED)
Three Months Ended March
31,
-------------------------
2018 2017
---- ----
Net sales $4,416,705 $3,513,484
Net loss (535,926) (1,055,351)
Net loss per share - basic and
diluted (0.23) (0.45)
Weighted average number of common shares outstanding
Basic and diluted 2,312,887 2,312,887
(AUDITED)
Fiscal Year Ended March
31,
------------------------
2018 2017
---- ----
Net sales $14,873,189 $14,083,428
Net loss (2,262,310) (2,058,902)
Net loss per share - basic and
diluted (0.98) (0.89)
Weighted average number of common shares outstanding
Basic and diluted 2,312,887 2,312,887
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
ASSETS
March 31,
---------
2018 2017
---- ----
Cash $128,161 $262,355
Accounts receivable and amount due
from factor 2,884,798 2,257,152
Inventory 5,491,892 4,700,104
Prepaid expenses 278,100 491,928
------- -------
TOTAL CURRENT ASSETS 8,782,951 7,711,539
INVESTMENT IN HONG KONG JOINT
VENTURE 10,023,275 10,562,837
PROPERTY AND EQUIPMENT - NET 35,585 46,293
OTHER ASSETS 62,132 66,604
------ ------
TOTAL ASSETS $18,903,943 $18,387,273
=========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Line of credit - factor $1,611,154 $2,264,125
Accounts payable - Hong Kong Joint
Venture 3,838,627 1,206,731
Accounts payable- Trade 494,253 525,638
Accrued liabilities 206,573 158,521
------- -------
TOTAL CURRENT LIABILITIES 6,150,607 4,155,015
SHAREHOLDERS' EQUITY
Common stock, $.01 par value per
share; 20,000,000 authorized,
2,312,887
shares outstanding at March 31,
2018 and 2017
23,129 23,129
Additional paid-in capital 12,885,841 12,885,841
(Accumulated Deficit) Retained
earnings (1,298,880) 963,430
Accumulated other comprehensive
income 1,143,246 359,858
--------- -------
TOTAL SHAREHOLDERS' EQUITY 12,753,336 14,232,258
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $18,903,943 $18,387,273
=========== ===========
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SOURCE Universal Security Instruments, Inc.
