Mace Reports Financial Results for the First Quarter Ended March 31, 2012
Mace Security International, Inc. ("Mace" or the “Company”) (OTCQB: MACE) today announced financial results for the first quarter ended March 31, 2012.
2012 First Quarter and Current Highlights
- Mace completed the sale of a car wash facility located in Arlington, Texas on February 29, 2012 for a sales price of $2.1 million. The Company netted $1.57 million in cash proceeds from the sale, after closing costs and related mortgage debt. With the sale, the Company nears its exit of the car wash business. Mace currently operates only two car wash facilities, one of which is under an agreement of sale.
- Mace announced the appointment of Michael Kallio as Director of Business Development of Mace Central Station (“Mace CS”), the Company’s wholesale central monitoring station located in Anaheim, California. Mr. Kallio has over 26 years of experience in the security monitoring industry.
John J. McCann, President and CEO of Mace, stated, “The first quarter of 2012 was one of our most successful and promising quarters in recent history. We continued the momentum that was started during the fourth quarter of 2011 and were able to achieve significant sales growth, especially in our personal defense division. With the revenue growth we experienced, combined with certain operating management changes and our continued focus on overhead reductions and operating efficiencies, I believe we have positioned the Company for continued improvements in operating results and we are getting closer to being profitable.”
Mr. McCann added, “It really is an exciting time at Mace. Our operations have stabilized, and we continue to strengthen the recognition and value of our Mace brand name with our dedicated Mace team focused on continued growth through internal sales and a continued search for accretive acquisition candidates.”
Financial Results, First Quarter of 2012 Compared to First Quarter of 2011
Total revenues for the first quarter ended March 31, 2012 were $3.4 million, as compared to $3.6 million for the same period in 2011. Despite a significant increase in revenues in our personal defense operation of $551,000, or 49%, and an increase in revenues within our wholesale monitoring division of approximately $259,000, or 31%, with the March 2011 acquisition of The Command Center, Inc. (“TCCI”), overall revenues declined largely as a result of the absence of $515,000 of sales from IVS, our high-end digital and machine vision camera operation which was sold in October 2011. Our professional and consumer direct home and small business electronic surveillance division also experienced a reduction in sales of $455,000 due to several factors, including the impact on sales of increased competition, direct sales by Asian manufacturers, the loss of a large customer, a reduction in spending by many of our customers due to the poor economy, and a decision by management to focus on consumer direct home and small business product sales versus high-end professional market products. As noted above, our personal defense operations experienced an increase in sales of approximately 49%, from 2011 to 2012, with a 44% increase in the sale of our aerosol defense products, a 34% increase in our wireless home security system and other non-aerosol products, and a 289% increase in our TG Guard systems.
Loss from continuing operations for the first quarter of 2012 was approximately $(514,000), or $(0.01) per share, compared to a loss from continuing operations of $(1.2) million, or $(0.08) per share, in the first quarter of 2011. Despite the previously noted reduction of revenues, the decrease in operating loss from continuing operations was attributable to several factors, including: management’s focus on improving gross profit margins from 35% in the first quarter ended March 31, 2011 to 39% in the same period of 2012 through enhanced pricing, reduced costs of products, and the reduction in sales from IVS which provided a significantly lower gross profit margin; a decrease in selling, general, and administrative expenses of approximately $521,000, or 24%; and a decrease in net interest expense of approximately $64,000.
Mace Security International, Inc.
Gregory Krzemien, 267-317-4009
Chief Financial Officer
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