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PRESS RELEASE: Paid content from ACCESSWIRE
Press release content from ACCESSWIRE. The AP news staff was not involved in its creation.

Mace Reports Third Quarter 2019 Financial Results

October 30, 2019
Net sales for the third quarter of 2019 decreased to $2,447,000 or (29%) over same period in 2018 Net loss of ($161,000) for the quarter, which includes charges for $14,000 for severance expenses and final charges for exit of the munitions business ...
Net sales for the third quarter of 2019 decreased to $2,447,000 or (29%) over same period in 2018 Net loss of ($161,000) for the quarter, which includes charges for $14,000 for severance expenses and final charges for exit of the munitions business ...

CLEVELAND, OH / ACCESSWIRE / October 30, 2019 / Mace Security International Inc. (OTCQX:MACE) today released unaudited financial results for the quarter ended September 30, 2019.

The Company’s net sales for the third quarter decreased 29% over the same period in 2018, with net loss of ($161,000). EBIDTA for the third quarter of 2019 of was a loss of ($36,000), and adjusted EBIDTA was $9,000.

President and CEO Gary Medved commented: “We believe the Company is nearing completion of it’s resetting of operational and financial performance that began in Q1 of this year. We are pleased that our EBIDTA and adjusted EBIDTA were close to breakeven despite a reduced level of sales, which provides a foundation for future EBIDTA and profitability growth in 2020.”

Third Quarter/Year to Date 2019 Financial Highlights

Third Quarter 2019 Operational Highlights

Conference Call

Mace® will conduct a conference call on Thursday October 31, 2019 at 1 PM EDT, 10 AM PDT to discuss its financial and operational performance for the quarter.

Participant Toll-Free Dial-In Number: (877) 719-8065; Conference ID 8266357

A full set of the consolidated financial statements are available on www.Mace.com. A digital recording of the conference call will be available for replay two hours after the call’s completion. The time period that the recording will be available is listed below. To access the recording, use the dial-in number listed below and the conference ID 8266357.

Encore dial-in number: 800-585-8367 or 855-859-2056 (or internationally on 404-537-3406)

Encore dates: Will be available 2 hours after the call and will expire at 23:59 on 05 Nov 2019 .

About Mace Security International, Inc.

Mace Security International Inc. is a globally recognized leader in personal safety products. Based in Cleveland, Ohio, the Company has spent more than 30 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand - the original trusted brand of pepper spray products. The Companies other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand alarms. The Company also offers aerosol defense sprays for law enforcement and security professionals worldwide through its Take Down® Brand.

Mace Security International distributes and supports its products and services through mass-market retailers, wholesale distributors, independent dealers, e-commerce channels and through its website, www.Mace.com. 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)

(Unaudited)(Audited)

ASSETS

September 30, 2019December 31, 2018

Current assets:

Cash and cash equivalents

$386$198

Short term investments

-253

Accounts receivable

1,8232,085

Allowance for doubtful accounts

(523)(130)

Inventories

1,5691,932

Note receivable and other current assets

526642

Total current assets

3,7814,980

Property and equipment, Net

607691

Operating lease right-of-use asset, net

802-

Finance lease right-of-use asset, net

12-

Goodwill

1,031877

Intangible assets, net

2,8122,943

Note receivable and other non-current assets

1418

Total assets

$9,059$9,509

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$762$472

Operating and finance lease obligations - current

210-

Accounts payable

266443

Income taxes payable

5355

Accrued expenses and other current liabilities

469399

Total current liabilities

1,7601,369

Long-term debt

339481

Operating and finance lease obligations - non-current

626-

Total liabilities

2,7251,850

Stockholders' equity:

Common stock issued and outstanding

633631

Additional paid in capital

103,223102,927

Treasury stock

(22)(22

Accumulated deficit

(97,500)(95,877

Total stockholders' equity

6,3347,659

Total liabilities and stockholders' equity

$9,059$9,509

Mace Security International, Inc. Condensed Consolidated Statements of Operations Three Months Ended September 30 (Unaudited)

(Amounts in thousands)

20192018

Net sales

$2,447$3,447

Cost of goods sold

1,4781,949

Gross profit

9691,498

Total depreciation

4050

Selling, general and administrative expenses

9961,149

Operating income (loss)

(67)299

Interest expense

(14)(5)

Interest income

-17

Interest income (expense), net

(14)12

(Loss) on sale of short-term investments

-(6)

Amortization

(71)(67)

Other (expense)

(9)(32)

Income (Loss) before income taxes

(161)206

Income tax expense

--

Net Income (loss)

$(161)$206

Mace Security International, Inc. Condensed Consolidated Statements of Operations Nine Months Ended September 30 (Unaudited)

(Amounts in thousands)

20192018

Net sales

$8,126$8,653

Cost of goods sold

5,1304,952

Gross profit

2,9963,701

Total depreciation

124147

Selling, general and administrative expenses

4,2093,447

Operating income (loss)

(1,337)107

Interest expense

(46)(33)

Interest income

467

Interest income (expense), net

(42)34

Gain (loss) on sale of short-term investments

(1)5

Amortization

(205)(201)

Other (expense)

(38)(32)

Loss before income taxes

(1,623)(87)

Income tax expense

--

Net loss

$(1,623)$(87)

Mace Security International, Inc. EBIDTA and Adjusted EBIDTA reconciliation Three Months Ended September 30 (Unaudited)

(Amounts in thousands)

20192018

Net income (loss)

$(161)$206

Adjustments:

Interest expense

145

Interest income

-(17)

Depreciation and Amortization

111117

Income tax expense

--

EBITDA

(36)311

Severance

1416

Non-Cash Stock Compensation Expense

938

Impairment of customer receivable

--

Non-lethal munitions product line exit

15-

Deposit forfeiture/asset disposal

7-

Adjusted EBITDA

$9$365

Mace Security International, Inc. EBIDTA and Adjusted EBIDTA Reconciliation Nine Months Ended September 30 (Unaudited)

(Amounts in thousands)

20192018

Net loss

$(1,623)$(87)

Adjustments:

Interest expense

4633

Interest income

(4)(67)

Income tax expense

--

Depreciation and Amortization

329348

EBITDA

(1,252)227

Severance

314-

Non-Cash Stock Compensation Expense

251120

Impairment of customer receivable

332-

Non-lethal munition product line exit

160-

Deposit forfeiture/asset disposal

42-

Adjusted EBITDA

$(153)$347

In this press release, the Company’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company’s business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached schedules.

Contacts:

Gary Medved

President and Chief Executive Officer

Mark Barrus

SVP and Chief Financial Officer

SOURCE: MACE SECURITY INTERNATIONAL INC

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