OWINGS MILLS, Md., Nov. 19, 2019 /PRNewswire/ -- Universal Security
Instruments, Inc. (NYSE AMEX: UUU) today announced results for its
fiscal second quarter and six months ended September 30, 2019.
For the three months ended September 30,
2019, sales declined approximately 20% to $3,622,269 compared to sales of $4,526,252 for the same period last
year. The Company reported a net loss of $700,814, or $0.30
per basic and diluted share, compared to a net loss of $121,324 or $0.05
per basic and diluted share for the same period last
year.
For the six months ended September 30,
2019, sales declined approximately 7% to $7,965,560 versus $8,572,248 for the same period last year.
The Company reported a net loss of $1,309,768, or $0.57 per basic and diluted share, compared to a
net loss of $560,157 or $0.24, per basic and diluted share for the
corresponding 2018 period.
"The decrease in sales for the quarter ending September 30, 2019, was caused primarily by
tariffs imposed on Chinese products and the delay of FEMA funds
distributed for Hurricane Reconstruction efforts for Puerto
Rico. Also, our gross margins were lower in the quarter due
to the 25% tariff on some of our products. Additionally, our Hong
Kong Joint Venture continues to be negatively impacted by low
European sales which increased our share of the Joint Ventures loss
to approximately $375,000 and
$750,000 for the three- and six-month
periods," said Harvey Grossblatt
President and CEO.
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
September
30,
|
|
2019
|
2018
|
|
Sales
|
$
3,622,269
|
$
4,526,252
|
|
Net loss
|
(700,814)
|
(121,324)
|
|
Loss per
share:
|
|
|
|
Basic and
diluted
|
$
(0.30)
|
$
(0.05)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic and
diluted
|
2,312,887
|
2,312,887
|
|
|
|
Six Months Ended
September 30,
|
|
2019
|
2018
|
|
Sales
|
$
7,965,560
|
$
8,572,248
|
|
Net loss
|
(1,309,768)
|
(560,157)
|
|
Loss per
share:
|
|
|
|
Basic and
diluted
|
$
(0.57)
|
$
(0.24)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic and
diluted
|
2,312,887
|
2,312,887
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS – (UNAUDITED)
|
|
|
ASSETS
|
|
|
September
30,
|
|
2019
|
|
2018
|
|
Cash
|
$
39,558
|
|
$
13,067
|
|
Accounts receivable
and amount due from factor
|
2,074,662
|
|
2,880,142
|
|
Inventory
|
7,051,113
|
|
6,673,098
|
|
Prepaid
expenses
|
127,764
|
|
263,265
|
|
TOTAL CURRENT
ASSETS
|
9,293,097
|
|
9,829,572
|
|
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
7,404,145
|
|
9,025,865
|
|
PROPERTY,
EQUIPMENT, AND INTANGIBLE ASSET – NET
|
476,851
|
|
79,179
|
|
OTHER
ASSETS
|
4,000
|
|
4,000
|
|
TOTAL
ASSETS
|
$
17,178,093
|
|
$
18,938,616
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Line of credit –
factor
|
$
1,185,277
|
|
$
1,546,847
|
|
Short-term lease
asset liability
|
140,776
|
|
-
|
|
Accounts
payable
|
5,815,763
|
|
5,544,959
|
|
Accrued
liabilities
|
503,913
|
|
142,245
|
|
TOTAL CURRENT
LIABILITIES
|
7,645,729
|
|
7,234,051
|
|
|
|
|
|
LONG-TERM LEASE ASSET
LIABILITY
|
263,224
|
|
-
|
|
COMMITMENTS AND
CONTINGENCIES
|
-
|
|
-
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Common
stock, $.01 par value per share; authorized 20,000,000
shares;
issued and outstanding 2,312,887 at September 30, 2019
and
2018
|
23,129
|
|
23,129
|
|
Additional paid-in
capital
|
12,885,841
|
|
12,885,841
|
|
Accumulated
Deficit
|
(3,956,634)
|
|
(1,859,037)
|
|
Accumulated other
comprehensive income
|
316,804
|
|
654,632
|
|
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
9,269,140
|
|
11,704,565
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
17,178,093
|
|
$
18,938,616
|
Contact: Harvey Grossblatt,
CEO
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
or
Don Hunt, Jeff Lambert
Lambert, Edwards & Associates, Inc.
616-233-0500
View original
content:http://www.prnewswire.com/news-releases/universal-security-instruments-reports-second-quarter-results-300961327.html
SOURCE Universal Security Instruments, Inc.