Mace Reports Second Quarter 2016 Financial Results

  • Positive net income, up 170%
  • Positive adjusted EBITDA of $101,000 reported for the quarter
  • Adds 46 new accounts in 2016

CLEVELAND–(BUSINESS WIRE)–$MACE–Mace Security International Inc. (OTCPINK: MACE) today announced
unaudited financial results for the second quarter and six-month period
ended June 30, 2016.

“Positive momentum continues as the company has grown revenues, its
customer base, and has expanded the brand both domestically and
internationally,” said Richard Barone, chairman. “As evidenced by our
year-to-date results, we remain on track to deliver sustainable,
profitable growth for investors in the near term.”

Second Quarter/Six Months 2016 Financial
Highlights

  • Net revenue up 7.1% for quarter; up 21.4% year-to-date
  • Gross profit up 0.2% for quarter; up 19.2% year-to-date
  • Key channels of distribution (sporting goods & consumer) net revenues
    up 10.8% for the quarter; up 15.1% year-to-date
  • International net revenues up 24.4% for the quarter; up 119.4%
    year-to-date
  • Selling, general and administrative expenses down 3.1% for the
    quarter, 6.5% year to date
  • Net income of $41,000 reported for the quarter
  • Adjusted EBITDA of $101,000 reported for the quarter

Select Consolidated Financial Results, Second Quarter Ended June 30,
2016 and 2015

(in thousands):

  For the Three Months Ended

June 30,
2016

 

% of
Sales

 

June 30,
2015

 

% of
Sales

   
$ Chg % Chg
Net revenue $ 2,031 100.0 % $ 1,896 100.0 % 135 7.1 %
 
Gross profit 839 41.3 % 837 44.1 % 2 .2 %
 
Selling, general, and administrative expenses 860 42.3 % 920 48.5 % 60 -6.5 %
 
Operating loss (60 ) -3.0 % (118 ) -6.2 % 58 -49.2 %
 
Net income (loss) 41 2.0 % (59 ) -3.1 % 100 -169.5 %
 

Second Quarter 2016 Operational Highlights

Similar to the prior quarters, the company added 21 new customer
accounts in the second quarter, including 7 in the “tactical” market.
The company continues to grow and expand the brand through strategic
distribution and product placement. , “We are just beginning to take
full advantage of the power of the Mace Brand. Everything we do at Mace
Security International is to elevate the brand and increase our customer
base world-wide,” said Mace President and CEO John J. McCann.

McCann noted that the company will have three new Mace-branded products
in the marketplace before year end, all defense spray products, and
include a new pepper gun and two new personal models: Mace Carabiner and
Mace Clutch models. “New products like these are just another example of
our commitment to keeping people safe,” he said.

Conference Call

Mace® will conduct a conference call on Tuesday, August 9, 2016
at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational
performance for the quarter ended June 30, 2016. The participant
conference call number is (877) 719-8065, conference ID: 63132408. A
full set of the consolidated financial statements are available on the
Mace website. Presentation materials for the conference call will be
available Monday, August 8, on Mace’s website under Investor Relations,
Shareholder Transcripts & Presentations. A digital recording of the
teleconference will be available on the Mace website within 24 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 has
spent more than 40 years designing and manufacturing consumer and
tactical products for personal defense, security and surveillance under
its world-renowned Mace® Brand – the original trusted brand
of pepper spray products. The company also offers aerosol defense sprays
and tactical products for law enforcement and security professionals
worldwide through its Mace® and Take Down®
brands.

Mace Security International distributes and supports Mace®
Brand products and services through mass-market retailers, wholesale
distributors, independent dealers, e-commerce marketers and installation
service providers. 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,

2016

December 31,
2015

Current assets: (Unaudited)
Cash and cash equivalents $ 338 $ 446
Restricted cash 60 60
Short-term investments 2,126 2,142
Accounts receivable, net 1,575 1,562
Inventories, net 1,776 1,601
Prepaid expenses and other current assets 869 779
Assets held for sale, net   275   430
Total current assets 7,019 7,020
 
Plant and equipment, net 704 522
 
Other intangible assets 685 685
Other assets   868   1,034
Total assets $ 9,276 $ 9,261
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 329 $ 222
Income taxes payable 59 61
Accrued expenses and other current liabilities   547   695
Total current liabilities 935 978
   
Other liabilities   51  
   
Total stockholders’ equity   8,290   8,283
Total liabilities and stockholders’ equity $ 9,276 $ 9,261
 

Mace Security International, Inc.
Condensed
Consolidated Statements of Operations

Three Months
Ended June 30, 2016 and 2015

(Unaudited)
(Amounts
in thousands)

   
2016 2015
 
Net revenue $ 2,031 $ 1,896
Cost of revenue   1,192     1,059  
 
Gross profit 839 837
 
Selling, general, and administrative expenses 860 920
Depreciation   39     35  
 
Operating loss (60 ) (118 )
 
Interest expense (12 )
Interest income 35 69
Loss on sale of short-term investments (3 )
Other income       (9 )
 
Loss from continuing operations before income tax provision (37 ) (61 )
 
Income tax provision        
 
Loss from continuing operations (37 ) (61 )
 
Income from discontinued operations, net of tax   78     2  
 
Net income (loss) $ 41   $ (59 )
 

Mace Security International, Inc.
Condensed
Consolidated Statements of Operations

Six Months Ended
June 30, 2016 and 2015

(Unaudited)
(Amounts
in thousands)

   
2016 2015
 
Net revenue $ 4,110 $ 3,385
Cost of revenue   2,454     1,996  
 
Gross profit 1,656 1,389
 
Selling, general, and administrative expenses 1,832 1,891
Depreciation   76     71  
 
Operating loss (252 ) (573 )
 
Interest expense (23 ) (25 )
Interest income 72 94
Loss on sale of short-term investments (16 )
Other income       312  
 
Loss from continuing operations before income tax provision (203 ) (208 )
 
Income tax provision        
 
Loss from continuing operations (203 ) (208 )
 
Income (loss) from discontinued operations, net of tax   84     (34 )
 
Net loss $ (119 ) $ (242 )
 

Contacts

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