Universal Security Instruments Reports First-Quarter Results
OWINGS MILLS, Md., Aug. 20, 2018 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fiscal quarter ended June 30, 2018.
The Company reported sales rose approximately 22% to $4,045,996 for the quarter ended June 30, 2018 versus $3,318,237 for the comparable period of last year. The Company reported a net loss of $438,833, or $0.19 per basic and diluted share, compared to a net loss of $543,663 or $0.24 per basic and diluted share, for the same period last year.
"Our pattern of higher sales has continued into the June quarter and we are anticipating this trend to continue. We do not know, at this time, what affect, if any, the new tariffs imposed by the Trump Administration on Chinese products will have on the Company. To date, only our ground fault circuit interrupters, which constitute only a small portion of our sales, have been included in products subject to the new tariffs, and the next group of tariffs are expected to be announced at the end of September. We are monitoring the tariff situation and once the final list is issued we will determine the strategies to follow," said Harvey Grossblatt, President and CEO.
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 48-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 STATEMENTS OF OPERATIONS
(UNAUDITED)
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Three Months Ended June 30,
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2018 2017
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Sales $4,045,996 $3,318,237
Net loss: (438,833) (543,663)
Net loss per share - basic and diluted (0.19) (0.24)
Weighted average number of common shares outstanding: 2,312,887 2,312,887
Basic and diluted
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
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ASSETS
June 30, 2018 June 30, 2017
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Cash $77,072 $246,508
Accounts receivable and amount due from factor 2,551,794 2,572,396
Inventory 5,863,773 4,424,193
Prepaid expense 223,856 519,882
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TOTAL CURRENT ASSETS 8,716,495 7,762,979
INVESTMENT IN HONG KONG JOINT VENTURE 9,390,105 10,526,794
PROPERTY, EQUIPMENT AND INTANGIBLE ASSET- NET 86,625 114,974
OTHER ASSETS 4,000 4,000
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TOTAL ASSETS $18,197,225 $18,408,747
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LIABILITIES AND SHAREHOLDERS' EQUITY
Line of credit - factor $1,204,399 $1,727,836
Accounts payable and accrued expenses 4,946,391 2,729,271
Accrued liabilities 120,702 110,978
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TOTAL CURRENT LIABILITIES 6,271,492 4,568,085
LONG TERM OBLIGATION - -
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value per share; authorized 23,129
20,000,000 shares; issued and outstanding 2,312,887 23,129
at June 30, 2018 and 2017
Additional paid-in capital 12,885,841 12,885,841
(Accumulated Deficit) Retained earnings (1,737,713) 419,767
Accumulated other comprehensive income 754,476 511,925
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TOTAL SHAREHOLDERS' EQUITY 11,925,733 13,840,662
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $18,197,225 $18,408,747
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SOURCE Universal Security Instruments, Inc.
