OWINGS MILLS, Md., Feb. 19, 2020 /PRNewswire/ -- Universal
Security Instruments, Inc. (NYSE AMEX: UUU) today announced results
for its fiscal third quarter and nine months ended December 31, 2019.
For the three months ended December 31,
2019, sales declined approximately 28% to $3,223,678 compared to sales of $4,491,862 for the same period last
year. The Company reported a net loss of $1,011,833, or $0.44 per basic and diluted share, compared to a
net loss of $516,993 or $0.22 per basic and diluted share for the same
period last year.
For the nine months ended December 31,
2019, sales declined approximately 14% to $11,189,238 versus $13,064,110 for the same period last year. The
Company reported a net loss of $2,321,601, or $1.00 per basic and diluted share, compared to a
net loss of $1,077,150 or
$0.47, per basic and diluted share
for the corresponding 2018 period.
"Our sales and net loss for the third quarter and nine months
were disappointing primarily due to lower Puerto Rico rebuilding sales caused by a delay
in FEMA funding and the increased cost of certain of our products
manufactured in China due to
tariffs. Universal is very pleased to announce that it has
received approval for the new UL 217 8th Edition smoke
and combination alarms which we believe are the first 10 year
sealed battery models to be approved. We anticipate sales from
these products to start later this fiscal year," 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 December 31,
|
|
2019
|
|
2018
|
Sales
|
$3,223,678
|
|
$4,491,862
|
Net loss
|
(1,011,833)
|
|
(516,993)
|
Loss per
share:
|
|
|
|
Basic and
diluted
|
$
(0.44)
|
|
$
(0.22)
|
Weighted average
number of common shares outstanding:
Basic and diluted
|
2,312,887
|
|
2,312,887
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
December 31,
|
|
2019
|
|
2018
|
Sales
|
$11,189,238
|
|
$
13,064,110
|
Net loss
|
(2,321,601)
|
|
(1,077,150)
|
Loss per
share:
|
|
|
|
Basic and
diluted
|
$
(1.00)
|
|
$
(0.47)
|
Weighted average
number of common shares outstanding:
Basic and diluted
|
2,312,887
|
|
2,312,887
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS – (UNAUDITED)
|
|
ASSETS
|
|
|
December
31,
|
|
2019
|
|
2018
|
Cash
|
$
177,337
|
|
$
144,348
|
Accounts receivable
and amount due from factor
|
2,129,755
|
|
3,062,826
|
Inventory
|
6,563,829
|
|
7,244,161
|
Prepaid
expenses
|
145,711
|
|
203,480
|
TOTAL CURRENT
ASSETS
|
9,016,632
|
|
10,654,815
|
|
|
|
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
7,004,447
|
|
8,611,079
|
PROPERTY,
EQUIPMENT, AND INTANGIBLE ASSET – NET
|
436,559
|
|
76,420
|
OTHER
ASSETS
|
4,000
|
|
4,000
|
TOTAL
ASSETS
|
$16,461,638
|
|
$19,346,314
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Line of credit –
factor
|
$
1,344,661
|
|
$1,527,712
|
Short-term lease
asset liability
|
155,564
|
|
-
|
Accounts
payable
|
6,031,074
|
|
6,637,095
|
Accrued
liabilities
|
452,367
|
|
153,320
|
TOTAL CURRENT
LIABILITIES
|
7,983,666
|
|
8,318,127
|
|
|
|
|
LONG-TERM LEASE ASSET
LIABILITY
|
211,528
|
|
-
|
COMMITMENTS AND
CONTINGENCIES
|
-
|
|
-
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common
stock, $.01 par value per share; authorized 20,000,000
shares;
issued and outstanding 2,312,887 at December 31, 2019
and
2018
|
23,129
|
|
23,129
|
Additional paid-in
capital
|
12,885,841
|
|
12,885,841
|
Accumulated
Deficit
|
(4,968,467)
|
|
(2,376,030)
|
Accumulated other
comprehensive income
|
325,941
|
|
495,247
|
TOTAL SHAREHOLDERS'
EQUITY
|
8,266,444
|
|
11,028,187
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$16,461,638
|
|
$19,346,314
|
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-third-quarter-results-301007118.html
SOURCE Universal Security Instruments, Inc.