Aug 7, 2018 SOURCE: BusinessWire

Mace Reports Second Quarter 2018 Financial Results

Mace Security International, Inc. (OTCQX: MACE) today released unaudited financial results for the quarter ended June 30, 2018.

The Company is pleased to announce another positive quarter with second quarter net sales of $2,843,000, a 13.3% increase over prior year second quarter. The Company, following a first quarter of 38% increased revenues, continued to grow revenues, gross profit margins, and EBITDA. Second quarter 2018 EBITDA increased $363,000 on a 20.3% or $479,000 increase in revenues over the first quarter. The increases in revenues came from the consumer products segments and the successful integration of the Company’s two recent acquisitions. The Company is continuing its efforts to increase profits by implementing efficiencies in production and realigning its go to market strategy.

Second Quarter/Six Months 2018 Financial Highlights - Compared to 2017

Net sales up 13.3% for quarter; $333,000 improvement over 2017, up 23.4% year-to-date
Gross profit up 20.0% for quarter; $203,000 improvement over 2017, up 30.6% year-to-date
Positive EBITDA of $140,000 reported for the quarter; $16,000 improvement over 2017, $94,000 year-to-date improvement


Select Consolidated Financial Results, Second Quarter Ended June 30, 2018 and 2017
(in thousands):

	For the Three Months Ended
	June 30,		% of Sales		June 30,		% of Sales
	2018		% of Sales		2017		% of Sales		$ Chg
Net sales	$	2,843	100.0	%	$	2,510	100.0	%	333

Gross profit		1,216	42.8	%		1,013	40.4	%	203

Selling, general, and administrative expenses		1,085	38.2	%		866	34.5	%	(219	)

Operating income		83	2.9	%		97	3.9	%	(14	)

Net income		41	1.4	%		110	4.4	%	(69	)

EBITDA		140	4.9	%		124	4.9	%	16

Second Quarter 2018 Operational Highlights

The Company continued to show growth and improvements in revenues, gross profit and EBITDA. The 200 basis point improvement in gross margin was significant and is a combination of increased efficiencies, a good mix of product sales, and distribution. Although the Company is pleased with the improvements, there are a number of initiatives underway which will help the Company achieve greater heights and profitability in the near future. “Our goal as a company has always been to be the thought leader and best in class organization for personal protection products. We will continue to work hard to achieve this goal,” Stated John McCann President and CEO.

Letter from the Chairman

A letter from the Chairman of the Board, Chuck Gehrisch, and Vice Chairman, Sanjay Singh to Shareholders can be accessed by visiting Mace.com, Investor Relations: http://corp.mace.com/investor-relations/shareholder-transcripts-presentations/

Investor Information

Mace® will conduct a conference call on Tuesday, August 7, 2018 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended June 30, 2018. The participant conference call number is (877) 719-8065, conference ID: 5099795. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Tuesday, August 7, on Mace’s website under Investor Relations, Shareholder Transcripts & Presentations http://corp.mace.com/investor-relations/shareholder-transcripts-presentations/ A recording of the teleconference will be available on the Mace website within 48 hours of the teleconference.

About Mace Security International, Inc.

Mace Security International Inc. is a globally recognized leader in personal safety and security. Based in Cleveland, Ohio, the Company designs and manufactures consumer and tactical products for personal defense, security and surveillance under its world-renowned Mace® Brand – the original trusted brand of pepper spray products and Vigilant® Brand alarms, the world-wide leader and number one recognized brand in personal alarms. The Company also offers aerosol defense sprays and tactical products for law enforcement and security professionals worldwide through its Mace® and Take Down® brands. For more information, please visit www.mace.com.

Forward-Looking Statements

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	June 30,		December 31,
	2018		2017
	(unaudited)
Current assets:
Cash and cash equivalents	$	182	$	662
Short-term investments		262		251
Accounts receivable, net		1,720		1,622
Inventories, net		2,497		2,317
Notes receivable and other current assets		878		1,143
Total current assets		5,539		5,995

Property and equipment, net		806		781
Goodwill		877		771
Intangible assets, net		3,077		3,211
Notes receivable and other assets		764		906
Total other assets		4,718		4,888
Total assets	$	11,063	$	11,664

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Current portion of long-term debt	$	567	$	427
Accounts payable		309		457
Income taxes payable		55		62
Accrued expenses and other current liabilities		357		633
Total current liabilities		1,288		1,579

Long-term debt, net of current portion		581		678
Other liabilities		-		2
Total liabilities		1,869		2,259
Total stockholders’ equity		9,194		9,405
Total liabilities and stockholders’ equity	$	11,063	$	11,664


Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended June 30, 2018 and 2017
(Unaudited)
(Amounts in thousands)

	2018			2017

Net sales	$	2,843		$	2,510
Cost of revenue		1,627			1,497

Gross profit		1,216			1,013

Selling, general, and administrative expenses		1,085			866
Depreciation		48			50

Operating income		83			97

Interest expense		(13	)		(12	)
Interest income		29			25
Gain on short-term investments		9			-
Amortization of intangible assets		(67	)		-

Income from continuing operations before income tax provision		41			110

Income tax provision		-			-

Income from continuing operations		41			110

Loss from discontinued operations, net of tax of $0		-			(23	)
Net income	$	41		$	87
EBITDA	$	140		$	124


Mace Security International, Inc.
Condensed Consolidated Statements of Operations
Six Months Ended June 30, 2018 and 2017
(Unaudited)
(Amounts in thousands)

	2018			2017

Net sales	$	5,207		$	4,220
Cost of revenue		3,003			2,533

Gross profit		2,204			1,687

Selling, general, and administrative expenses		2,298			1,831
Depreciation		97			90

Operating loss		(191	)		(234	)

Interest expense		(28	)		(18	)
Interest income		49			54
Gain on short-term investments		11			(11	)
Amortization of intangible assets		(134	)		-

Loss from continuing operations before income tax provision		(293	)		(209	)

Income tax provision		-			-

Loss from continuing operations		(293	)		(209	)

Loss from discontinued operations, net of tax of $0		-			(22	)
Net loss	$	(293	)	$	(231	)
EBITDA	$	(83	)	$	(177	)