OWINGS MILLS, Md., Aug. 19,
2020 /PRNewswire/ -- Universal Security Instruments,
Inc. (NYSE Amex: UUU) today announced results for its fiscal
quarter ended June 30, 2020.
The Company reported that sales declined approximately 32.3% to
$2,940,768 for the quarter ended
June 30, 2020, versus $4,343,291 for the comparable period of last
year. The Company reported a net loss of $78,982, or $0.03
per basic and diluted share, compared to a net loss of $608,954, or $0.26
per basic and diluted share, for the same period last year.
"The Company's sales were lower than the comparable quarter in
the prior year due to the COVID-19 pandemic that has caused many of
our customers to reduce their purchases since many had to close
their operations for varying lengths of time. The Company reported
a net loss of $78,892 which was
substantially less than the loss of $608,954 for the comparable quarter last year.
The main reasons for the decrease in operating loss were increased
margins on sales, decreased tariffs, lower interest cost, and
elimination of losses arising from our 50% interest in the Hong
Kong Joint Venture that was sold effective March 31, 2020. The Company has received orders
in the September quarter which we expect will increase our sales
over the comparable September 2019
quarter, which had sales of $3,622,269, and we expect will improve our
operating results," said Harvey
Grossblatt - President and CEO.
UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based
manufacturer and distributor of safety and security devices.
Founded in 1969, the Company has an over 50-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, currency fluctuations, the impact of current and future laws
and governmental regulations affecting us 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
June 30,
|
|
2020
|
2019
|
Sales
|
$2,940,768
|
$4,343,291
|
|
|
|
Net loss:
|
(78,982)
|
(608,954)
|
Net loss per
share – basic and diluted
|
(0.03)
|
(0.26)
|
Weighted average
number of common shares outstanding:
Basic and
diluted
|
2,312,887
|
2,312,887
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
ASSETS
|
|
|
|
June 30,
2020
|
|
June 30,
2019
|
Cash
|
$278,234
|
|
$223,598
|
Accounts receivable
and amount due from factor
|
1,849,881
|
|
2,493,998
|
Inventory
|
4,620,029
|
|
7,487,800
|
Prepaid
expense
|
151,436
|
|
130,163
|
|
|
|
|
TOTAL CURRENT
ASSETS
|
6,899,580
|
|
10,335,559
|
INVESTMENT IN HONG
KONG JOINT VENTURE
|
-
|
|
7,923,355
|
PROPERTY, EQUIPMENT
AND INTANGIBLE ASSETS–NET
|
354,098
|
|
518,425
|
OTHER
ASSETS
|
4,000
|
|
4,000
|
TOTAL
ASSETS
|
$7,257,678
|
|
$18,781,339
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Line of credit –
factor
|
$777,685
|
|
$1,695,381
|
Note payable -
bank
|
221,400
|
|
-
|
Short-term portion of
operating lease liability
|
161,655
|
|
162,906
|
Accounts payable and
accrued expenses
|
302,683
|
|
6,016,987
|
Accrued
liabilities
|
214,440
|
|
506,945
|
TOTAL CURRENT
LIABILITIES
|
1,677,863
|
|
8,382,219
|
NOTE PAYABLE – Eyston
Company Ltd.
|
1,081,440
|
|
-
|
LONG TERM OPERATING
LEASE LIABILITY
|
129,144
|
|
283,784
|
TOTAL LONG-TERM
LIABILITIES
|
1,210,584
|
|
283,784
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
Common stock,
$.01 par value per share; authorized
20,000,000
shares; issued and outstanding 2,312,887
at June 30, 2020 and
2019
|
23,129
|
|
23,129
|
Additional paid-in
capital
|
12,885,841
|
|
12,885,841
|
Accumulated
Deficit
|
(8,539,739)
|
|
(3,255,820)
|
Accumulated other
comprehensive income
|
-
|
|
462,186
|
TOTAL SHAREHOLDERS'
EQUITY
|
4,369,231
|
|
10,115,336
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$7,257,678
|
|
$18,781,339
|
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
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content:http://www.prnewswire.com/news-releases/universal-security-instruments-reports-first-quarter-results-301114910.html
SOURCE Universal Security Instruments, Inc.