OWINGS MILLS, Md., Nov. 19, 2014 /PRNewswire/ -- Universal
Security Instruments, Inc. (NYSE AMEX: UUU) today announced results
for its fiscal second quarter ended September 30, 2014.
For the three months ended September 30,
2014, the Company reported a net loss of $954,212, or $0.41
per basic and diluted share, on net sales of $2,223,943, compared to a net loss of
$2,559,218 or $1.12 per basic and diluted share, on net sales
of $3,195,611 for the same period
last year. Included in the results for the quarter ended
September 30, 2013 was a non-cash
charge of $2,479,901 to provide an
allowance against the Company's deferred tax asset.
For the six months ended September 30,
2014, sales were $4,738,328
versus $6,201,280 for the same period
last year. The Company reported a net loss of $1,697,061, or $0.73 per basic and diluted share, compared to a
net loss of $2,578,748 or
$1.13, per basic and diluted share.
Included in the prior years' six months results was the non-cash
charge of $2,310,835 as an allowance
against the deferred tax asset.
"The primary reason for lower sales in both the first and second
fiscal quarters was due to delays in the introduction of our new
10-year sealed battery products. The Company began shipping
two new 10-year sealed carbon monoxide alarms in October 2014, and expects to receive independent
testing laboratory certification for several additional models of
10-year sealed ionization smoke alarms later this
month. Sales of the additional models are expected to
begin in January 2015. The
certifications for the balance of our new product line of 10-year
sealed battery and AC/DC photoelectric and combination smoke and
carbon monoxide alarms should be completed during the first half of
2015.
Additionally we have been advised by a large national home
center that they are going to start to carry our 4 in 1 combination
smoke, carbon monoxide and natural gas alarm chain wide starting in
December 2014.
Our Joint venture also had lower sales and earnings in both the
first and second quarters. We anticipate that with the
introduction of our complete line of sealed products the Joint
Venture will return to profitability." said Harvey Grossblatt,
CEO of Universal.
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.
UNIVERSAL SECURITY
INSTRUMENTS, INC.
|
CONSOLIDATED
STATEMENT OF INCOME
|
(UNAUDITED)
|
|
|
|
Three Months Ended
September,
|
|
2014
|
2013
|
Sales
|
$2,223,943
|
$3,195,611
|
Net (loss)
|
(954,212)
|
(2,559,218)
|
(Loss) income per
share:
|
|
|
Basic
|
$(0.41)
|
$(1.12)
|
Diluted
|
$(0.41)
|
$(1.12)
|
Weighted average
number of common shares outstanding:
|
|
|
Basic
|
2,312,887
|
2,287,887
|
Diluted
|
2,312,887
|
2,287,887
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
Six Months Ended
September 30,
|
|
2014
|
2013
|
Sales
|
$ 4,738,328
|
$ 6,201,280
|
Net (loss)
|
(1,697,061)
|
(2,578,748)
|
(Loss) income per
share:
|
|
|
Basic
|
$(0.73)
|
$(1.13)
|
Diluted
|
$(0.73)
|
$(1.13)
|
Weighted average
number of common shares outstanding:
|
|
|
Basic
|
2,312,887
|
2,287,887
|
Diluted
|
2,312,887
|
2,287,887
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
ASSETS
|
|
|
September
30,
|
|
2014
|
2013
|
Cash and
investments
|
$ 2,788,927
|
$ 1,017,402
|
Accounts receivable
and amount due from factor
|
1,620,317
|
2,280,261
|
Inventory
|
2,841,982
|
6,043,640
|
Prepaid
expenses
|
382,137
|
361,757
|
TOTAL CURRENT
ASSETS
|
7,633,363
|
9,703,060
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
14,080,131
|
15,010,284
|
PROPERTY, PLANT AND
EQUIPMENT – NET
|
198,760
|
212,371
|
OTHER ASSETS AND
DEFERRED TAX ASSET
|
38,134
|
38,134
|
TOTAL
ASSETS
|
$21,950,388
|
$24,963,849
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$ 778,295
|
$ 426,434
|
Accrued
liabilities
|
292,250
|
155,862
|
TOTAL CURRENT
LIABILITIES
|
1,070,545
|
582,296
|
|
|
|
LONG TERM
OBLIGATION
|
25,000
|
25,000
|
SHAREHOLDERS'
EQUITY
|
|
|
Common
stock, $.01 par value per share; authorized 20,000,000
shares;
issued and outstanding 2,287,887 and 2,312,759 at September 30,
2013 and
2012,
respectively
|
23,129
|
22,879
|
Additional paid-in
capital
|
12,885,841
|
12,793,724
|
Retained
earnings
|
6,738,055
|
10,306,612
|
Accumulated other
comprehensive income
|
1,207,818
|
1,233,338
|
TOTAL SHAREHOLDERS'
EQUITY
|
20,854,843
|
24,356,553
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$21,950,388
|
$24,963,849
|
SOURCE Universal Security Instruments, Inc.