OWINGS MILLS, Md., Nov. 11 /PRNewswire-FirstCall/ -- Universal
Security Instruments, Inc. (NYSE Amex: UUU) today announced its
earnings for the second quarter ended September 30, 2009. For the
three months ended September 30, 2009, the Company reported net
income of $924,870, or $0.39 per basic and diluted share, on net
sales of $7,900,805, compared to net income of $4,091,214, or $1.64
per basic and diluted share, on net sales of $8,381,379 for the
same period last year. Included in the prior year's results was a
gain of $3,434,913 from discontinued Canadian operations. Income
from continuing operations rose 41% to $924,870 from $656,301 in
the comparable quarter of last year, as a result of higher earnings
from the Hong Kong Joint Venture. For the six months ended
September 30, 2009, sales were $13,815,710 versus $14,574,180 for
the same period last year. The Company reported net income of
$1,536,335, or $0.64 per basic and diluted share, compared to net
income of $4,494,694, or $1.81 per basic and diluted share.
Included in the results of the prior-year period was a gain from
discontinued Canadian operation of $3,381,254. Income from
continuing operations rose 38% to $1,536,335 from $1,113,440 in the
comparable period of last year, as a result of higher earnings from
the Hong Kong Joint Venture. The Company's book value at September
30, 2009 rose to $10.64 from $9.59 at September 30, 2008. "We are
pleased with the results of our September quarter, which included
approximately $130,000 of engineering expense related to new
product development. We are aggressively continuing to develop new
products and expect several of these to be ready for sale in the
March/April timeframe. We believe these products have the potential
to significantly increase sales during our next fiscal year. The
housing market appears to have stabilized at lower activity levels,
and we are continuing to strengthen our balance sheet to increase
our cash position during this challenging operational environment,"
said CEO Harvey Grossblatt 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 a 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 http://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 and 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 STATEMENTS OF INCOME ---------------------------------
(UNAUDITED) Three Months Ended September 30,
-------------------------------- 2009 2008 ---- ---- Sales
$7,900,805 $8,381,379 Net income from continuing operations 924,870
656,301 Income per share from continuing operations: Basic 0.39
0.26 Diluted 0.39 0.26 Gain from discontinued operations -
3,434,913 Gain per share from discontinued operations: Basic - 1.38
Diluted - 1.38 Net income: 924,870 4,091,214 Net income per share -
basic 0.39 1.64 Net income per share - diluted 0.39 1.64 Weighted
average number of common shares outstanding: Basic 2,387,887
2,486,176 Diluted 2,394,014 2,486,176 CONSOLIDATED STATEMENTS OF
INCOME --------------------------------- Six Months Ended September
30, ------------------------------ 2009 2008 ---- ---- Sales
$13,815,710 $14,574,180 Net income from continuing operations
1,536,335 1,113,440 Income per share from continuing operations:
Basic 0.64 0.45 Diluted 0.64 0.45 Gain from discontinued operations
- 3,381,254 Gain per share from discontinued operations: Basic -
1.36 Diluted - 1.36 Net income: 1,536,335 4,494,694 Net income per
share - basic 0.64 1.81 Net income per share - diluted 0.64 1.81
Weighted average number of common shares outstanding: Basic
2,390,100 2,487,017 Diluted 2,395,724 2,487,017 CONSOLIDATED
BALANCE SHEETS --------------------------- ASSETS September 30,
2009 March 31, 2009 ------------------ -------------- Cash
$5,983,540 $284,030 Accounts receivable and amount due from factor
5,345,313 5,076,217 Inventory 6,002,488 8,997,231 Prepaid expenses
373,848 255,745 Current assets of discontinued operations - 202,565
------- ------- TOTAL CURRENT ASSETS 17,705,189 14,815,788
INVESTMENT IN HONG KONG JOINT VENTURE 11,818,324 10,550,373
PROPERTY, PLANT AND EQUIPMENT - NET 227,534 251,366 OTHER ASSETS
AND DEFERRED TAX ASSET 2,184,405 2,160,151 --------- ---------
TOTAL ASSETS $31,935,452 $27,777,678 =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY Note payable - factor
$3,416,135 $- Accounts payable and accrued expenses 2,389,666
2,761,438 Accrued liabilities 616,330 752,452 Current liabilities
of discontinued operations - 202,565 ------ ------- TOTAL CURRENT
LIABILITIES 6,422,131 3,716,455 LONG TERM OBLIGATION 96,748 95,324
SHAREHOLDERS' EQUITY: Common stock, $.01 par value per share;
authorized 20,000,000 shares; issued and outstanding 2,387,887 and
2,408,220 at September 30, 2009 and March 31, 2009 23,879 24,083
Additional paid-in capital 13,100,979 13,186,436 Retained earnings
12,291,715 10,755,380 ---------- ---------- TOTAL SHAREHOLDERS'
EQUITY 25,416,573 23,965,899 ---------- ---------- TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY $31,935,452 $27,777,678
=========== =========== DATASOURCE: Universal Security Instruments,
Inc. CONTACT: Harvey Grossblatt, President, Universal Security
Instruments, Inc., +1-410-363-3000, Ext. 224; or Don Hunt, Jeff
Lambert, both of Lambert, Edwards & Associates, Inc.,
+1-616-233-0500 Web Site: http://www.universalsecurity.com/
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