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Universal Security Instruments Reports Third-Quarter Results

OWINGS MILLS, Md., Feb. 19, 2019 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced that it has filed its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2018.

For the three months ended December 31, 2018, the Company reported an increase in sales of 26.3% to $4,491,862 compared to sales of $3,555,431 for the same period last year.   The Company reported a net loss of $516,993, or $0.22 per basic and diluted share, compared to a net loss of $1,014,796 or $0.44 per basic and diluted share for the same period last year. 

For the nine months ended December 31, 2018, sales were $13,064,110 versus $10,456,484 for the same period last year, a 24.9% increase.  The Company reported a net loss of $1,077,150, or $0.47 per basic and diluted share, compared to a net loss of $1,726,384 or $0.75, per basic and diluted share for the corresponding 2017 period.

"Our results for the three and nine month periods demonstrate substantial improvement from US operations due to increased sales.  The Company's third fiscal quarter results were impacted by lower gross margins as a result of the tariffs put on Chinese made products starting in September 2018 and our inability to pass the full amount of the tariff increase to our customers." said Harvey Grossblatt CEO of Universal Security Instruments Inc.

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 40-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.

Contact:  Harvey Grossblatt, CEO   
Universal Security Instruments, Inc.
410-363-3000, Ext. 224

or

Don Hunt, Jeff Lambert
Lambert, Edwards & Associates, Inc.
616-233-0500

 

UNIVERSAL SECURITY INSTRUMENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED)




Three Months Ended

December 31,


2018

2017

Sales

$4,491,862

$3,555,431

Net loss

(516,993)

(1,014,796)

Loss per share:



        Basic and diluted

$      (0.22)

$     (0.44)

Weighted average number of common shares outstanding:

         Basic and diluted

 

2,312,887

 

2,312,887






Nine Months Ended

December 31,


2018

2017

Sales

$13,064,110

$10,456,484

Net loss

(1,077,150)

(1,726,384)

Loss per share:



        Basic and diluted

$         (0.47)

$        (0.75)

Weighted average number of common shares outstanding:

         Basic and diluted

 

2,312,887

 

2,312,887

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS – (UNAUDITED)






ASSETS




December 31,


2018


2017

Cash

$    144,348


$      52,525

Accounts receivable and amount due from factor

3,062,826


2,487,335

Inventory

7,244,161


5,552,737

Prepaid expenses

203,480


179,266

TOTAL CURRENT ASSETS

10,654,815


8,271,863





INVESTMENT IN HONG KONG JOINT VENTURE

8,611,079


10,083,608

PROPERTY,  EQUIPMENT, AND INTANGIBLE ASSET – NET

76,420


101,419

OTHER ASSETS

4,000


4,000

TOTAL ASSETS

$19,346,314


$18,460,890





LIABILITIES AND SHAREHOLDERS' EQUITY








Line of credit - factor

$ 1,527,712


$1,381,226

Accounts payable

6,637,095


4,084,027

Accrued liabilities

153,320


114,166

TOTAL CURRENT LIABILITIES

8,318,127


5,579,419





COMMITMENTS AND CONTINGENCIES

-


-





SHAREHOLDERS' EQUITY




   Common stock, $.01 par value per share; authorized 20,000,000

   shares; 2,312,887 shares issued and outstanding

  at December 31 2018 and 2017 

23,129


23,129

Additional paid-in capital

12,885,841


12,885,841

Accumulated Deficit

(2,376,030)


(762,954)

Accumulated other comprehensive income

 

495,247

 


735,455

 

TOTAL SHAREHOLDERS' EQUITY

11,028,187


12,881,471





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$19,346,314


$18,460,890

 

 


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