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Mace Reports Third Quarter 2018 Financial Results


  • Net sales up 21.9%; $619,000 improvement over Q3 2017
  • Gross profit of $1,498,000
  • EBITDA of $311,000
  • Adds 28 new customers in the quarter

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

The Company is pleased to announce another quarter of increased revenues with third quarter net sales of $3,447,000, a 21.9% increase over prior year third quarter. The increase was mainly driven by increased sales through our Consumer and International distribution channels. The Company also reported its second consecutive quarter of positive EBITDA of $311,000. Third quarter net income and EBITDA were lower than prior year due to one-time expenses and increased advertising and selling expenses to drive Ecommerce sales.

“We're very pleased with the sales growth we experienced in the 3rd quarter, as well as another consecutive quarter of positive EBITDA. The Company has reported positive EBITDA in five of the last six quarters. We also anticipate improved profitability moving into the fourth quarter, as selling, general and administrative expenses normalize in relation to revenues," stated John McCann, President and CEO.

“Elevating our Ecommerce platform and enhancing our presence online promises to improve overall sales,” McCann continued. “This will be a key focus leading into 2019 – clarifying our brand and product position in the marketplace, as well as offering best-in-class digital experiences that catalyze online sales. To assist, we have hired a marketing company to focus on building stronger content and messaging to grow the category.” Emphasis on sales growth through Ecommerce extends to the Company’s own website, as well as numerous partners sites and platforms, all of which continue to improve.

Third Quarter/Nine Months 2018 Financial Highlights - Compared to 2017

  • Net sales up 21.9% for quarter; $619,000 improvement over 2017, up 22.8% year-to-date
  • Gross profit up 15.9% for quarter; $205,000 improvement over 2017, up 24.2% year-to-date
  • Positive EBITDA of $311,000 reported for the quarter; $40,000 below 2017, $31,000 year-to-date improvement
Select Consolidated Financial Results, Third Quarter Ended September 30, 2018 and 2017
(in thousands):
For the Three Months Ended
Sept. 30,  

% of

  Sept. 30,  

% of

2018     2017     $ Chg
Net sales $ 3,447 100.0 % $ 2,828 100.0 % 619
Gross profit 1,498 43.5 % 1,293 45.7 % 205
Selling, general, and administrative expenses 1,149 33.3 % 942 33.3 % 207
Operating income 299 8.7 % 302 10.7 % (3 )
Net income 206 6.0 % 196 6.9 % 10
EBITDA 311 9.0 % 351 12.4 % (40 )

Third Quarter 2018 Operational Highlights

The Company continued to grow revenues and gross profit. Although the Company is pleased with the improvement, there are a number of initiatives that took place which will help the Company continue these positive trends in revenue and gross profits. These initiatives included the upgrade of its Ecommerce and EDI platforms to support continued sales growth efficiently and cost effectively. In addition, the Company hired Paul Hughes as Executive Vice President. Hughes, whose hire was announced on Nov 8th, has a strong track record of innovative approaches to revenue generation and leveraging emerging technologies to support business growth. He comes to the Company with extensive experience refining Ecommerce and multi-channel sales, including leadership positions at Guardian 8 Holdings and Taser International. His most recent position with the Arizona Commerce Authority helped to quadruple business opportunities in the territory under his management.

"Paul’s background in the security industry and military service, as well as his ability to efficiently and effectively activate brand and Ecommerce demand generation strategies makes him a valuable addition to our team,” stated McCann. “Our goal has always been to be the thought leader and best in class source for personal protection products. Paul will help us achieve this goal in new ways that take our Company into its next era of growth.”

Investor Information

Mace® will conduct a conference call on Tuesday, November 13, 2018 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended September 30, 2018. The participant conference call number is (877) 719-8065, conference ID: 3772047. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Tuesday, November 13, 2018 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)

September 30,
ASSETS 2018 December 31,
(unaudited) 2017
Current assets:
Cash and cash equivalents $ 84 $ 662
Short-term investments 257 251
Accounts receivable, net 2,152 1,622
Inventories 2,142 2,317
Notes receivable and other current assets   1,112   1,143
Total current assets 5,747 5,995
Property and equipment, net 778 781


877 771
Intangible assets, net 3,010 3,211
Notes receivable and other assets   676   906
Total other assets   4,563   4,888
Total assets $ 11,088 $ 11,664
Current liabilities:
Current portion of long-term debt $ 245 $ 427
Accounts payable 477 457
Income taxes payable 55 62
Accrued expenses and other current liabilities   342   633
Total current liabilities 1,119 1,579
Long-term debt, net of current portion 531 678
Other liabilities   -   2
Total liabilities   1,650   2,259
Total stockholders’ equity   9,438   9,405
Total liabilities and stockholders’ equity $ 11,088 $ 11,664
Mace Security International, Inc.
Consolidated Statements of Operations
Three Months Ended September 30, 2018 and 2017

(Amounts in thousands)

2018 2017
Net sales $ 3,447 $ 2,828
Cost of goods sold   1,949     1,535  
Gross profit 1,498 1,293
Selling, general, and administrative expenses 1,149 942
Depreciation   50     49  
Operating income 299 302
Interest expense (5 ) (12 )
Interest income 17 17
Loss on short-term investments (6 ) -
Amortization of intangible assets (67 ) (111 )
Loss on disposal of property and equipment   (32 )   -  
Income from continuing operations before income tax provision 206 196
Income tax provision   -     -  
Income from continuing operations 206 196
Loss from discontinued operations, net of tax of $0   -     -  
Net income $ 206   $ 196  
EBITDA $ 311   $ 351  
Mace Security International, Inc.
Consolidated Statements of Operations
Nine Months Ended September 30, 2018 and 2017

(Amounts in thousands)

2018 2017
Net sales $ 8,653 $ 7,048
Cost of goods sold   4,952     4,068  
Gross profit 3,701 2,980
Selling, general, and administrative expenses 3,447 2,773
Depreciation   147     139  
Operating income 107 68
Interest expense (33 ) (30 )
Interest income 67 71
Gain (loss) on short-term investments 5 (11 )
Amortization of intangible assets (201 ) (111 )
Loss on disposal of property and equipment   (32 )   -  
Loss from continuing operations before income tax provision (87 ) (13 )
Income tax provision   -     -  
Loss from continuing operations (87 ) (13 )
Loss from discontinued operations, net of tax of $0   -     (22 )
Net loss $ (87 ) $ (35 )
EBITDA $ 227   $ 196  

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