OWINGS MILLS, Md., Feb. 20, 2018 /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, 2017.
For the three months ended December 31,
2017, the Company reported an increase in sales of 11.9% to
$3,555,431 compared to sales of
$3,177,632 for the same period last
year. The Company reported a net loss of $1,014,796, or $0.44 per basic and diluted share, compared to a
net loss of $549,806 or $0.24 per basic and diluted share for the same
period last year.
For the nine months ended December 31,
2017, sales were $10,456,484
versus $10,569,944 for the same
period last year, a 1.1% decrease. The Company reported a net
loss of $1,726,384, or $0.75 per basic and diluted share, compared to a
net loss of $1,003,551 or
$0.43, per basic and diluted share
for the corresponding 2016 period.
"The Company's third fiscal quarter results were primarily
impacted by (i) lower gross margins, due to higher sales to the
electrical distribution trade, which typically has lower margins
than sales to the retail trade, (ii) higher selling, general and
administrative expense, due to higher insurance premiums, and
(iii), an increase of $307,000 in our
portion of the Hong Kong Joint Venture loss compared to same
quarter last year. The nine month results were
primarily impacted by (i) higher insurance premiums of $245,000, (ii) an increase in interest expense of
$92,000, and (iii) an increase in our
portion of the Hong Kong Joint Venture loss, which increased by
$339,000 compared to the same period
last year. In January
2018, the Company introduced a new line of Ground Fault
Circuit Interrupters and we expect sales of these devices to
increase significantly during 2018 helping the Company return to
profitability," 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
UNIVERSAL SECURITY
INSTRUMENTS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED)
|
|
|
Three Months
Ended December 31,
|
|
2017
|
2016
|
Sales
|
$3,555,431
|
$3,177,632
|
Net loss
|
(1,014,796)
|
(549,806)
|
Loss per
share:
|
|
|
Basic and
diluted
|
$
(0.44)
|
$
(0.24)
|
|
|
|
Weighted average
number of common shares outstanding:
Basic and diluted
|
2,312,887
|
2,312,887
|
|
|
|
Nine Months
Ended
December
31,
|
|
2017
|
2016
|
Sales
|
$10,456,484
|
$10,569,944
|
Net loss
|
(1,726,384)
|
(1,003,551)
|
Loss per
share:
|
|
|
Basic and
diluted
|
$
(0.75)
|
$
(0.43)
|
|
|
|
Weighted average
number of common shares outstanding:
Basic and diluted
|
2,312,887
|
2,312,887
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS – (UNAUDITED)
|
|
ASSETS
|
|
|
December
31,
|
|
2017
|
2016
|
Cash
|
$
52,525
|
$
155,826
|
Accounts receivable
and amount due from factor
|
2,487,335
|
1,531,427
|
Inventory
|
5,552,737
|
5,561,469
|
Prepaid
expenses
|
179,266
|
200,780
|
TOTAL CURRENT
ASSETS
|
8,271,863
|
7,449,502
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
10,083,608
|
10,610,725
|
PROPERTY,
EQUIPMENT, AND INTANGIBLE ASSET – NET
|
101,419
|
116,834
|
OTHER
ASSETS
|
4,000
|
4,000
|
TOTAL
ASSETS
|
$18,460,890
|
$18,181,061
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Line of credit -
factor
|
$
1,381,226
|
$
693,766
|
Accounts
payable
|
4,084,027
|
2,536,773
|
Accrued
liabilities
|
114,166
|
116,818
|
TOTAL CURRENT
LIABILITIES
|
5,579,419
|
3,347,357
|
|
|
|
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 2017 and 2016
|
23,129
|
23,129
|
Additional paid-in
capital
|
12,885,841
|
12,885,841
|
(Accumulated Deficit)
Retained earnings
|
(762,954)
|
1,446,989
|
Accumulated other
comprehensive income
|
735,455
|
477,745
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
12,881,471
|
14,833,704
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$18,460,890
|
$18,181,061
|
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SOURCE Universal Security Instruments, Inc.