Universal Security Instruments Reports First-Quarter Results
OWINGS MILLS, Md., Aug. 19, 2019 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fiscal quarter ended June 30, 2019.
The Company reported sales rose approximately 7.3% to $4,343,291 for the quarter ended June 30, 2019, versus $4,045,996 for the comparable period of last year. The Company reported a net loss of $608,954, or $0.26 per basic and diluted share, compared to a net loss of $438,833, or $0.19 per basic and diluted share, for the same period last year.
"The primary reason for the higher loss was an increase in Joint Venture loss and higher interest expense in the amount of $148,482. Additionally, the Company's gross margins were lower compared to the comparable quarter due to the impact of tariffs," 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 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, 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 OPERATIONS |
|||
(UNAUDITED) |
|||
Three Months Ended June 30, |
|||
2019 |
2018 |
||
Sales |
$4,343,291 |
$4,045,996 |
|
Net loss: |
(608,954) |
(438,833) |
|
Net loss per share – basic and diluted |
(0.26) |
(0.19) |
|
Weighted average number of common shares outstanding: Basic and diluted |
2,312,887 |
2,312,887 |
|
CONSOLIDATED BALANCE SHEETS |
|||
(UNAUDITED) |
|||
ASSETS |
|||
June 30, 2019 |
June 30, 2018 |
||
Cash |
$223,598 |
$77,072 |
|
Accounts receivable and amount due from factor |
2,493,998 |
2,551,794 |
|
Inventory |
7,487,800 |
5,863,773 |
|
Prepaid expense |
130,163 |
223,856 |
|
TOTAL CURRENT ASSETS |
10,335,559 |
8,716,495 |
|
INVESTMENT IN HONG KONG JOINT VENTURE |
7,923,355 |
9,390,105 |
|
PROPERTY, EQUIPMENT AND INTANGIBLE ASSET– NET |
518,425 |
86,625 |
|
OTHER ASSETS |
4,000 |
4,000 |
|
TOTAL ASSETS |
$18,781,339 |
$18,197,225 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Line of credit – factor |
$1,695,381 |
$1,204,399 |
|
Short-term portion of lease obligation |
162,906 |
- |
|
Accounts payable and accrued expenses |
6,016,987 |
4,946,391 |
|
Accrued liabilities |
506,945 |
120,702 |
|
TOTAL CURRENT LIABILITIES |
8,382,219 |
6,271,492 |
|
LONG TERM LEASE OBLIGATION |
283,784 |
- |
|
SHAREHOLDERS' EQUITY: |
|||
Common stock, $.01 par value per share; authorized |
23,129 |
23,129 |
|
Additional paid-in capital |
12,885,841 |
12,885,841 |
|
Accumulated Deficit |
(3,255,820) |
(1,737,713) |
|
Accumulated other comprehensive (loss) income |
462,186 |
754,476 |
|
TOTAL SHAREHOLDERS' EQUITY |
10,115,336 |
11,925,733 |
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$18,781,339 |
$18,197,225 |
|
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
SOURCE Universal Security Instruments, Inc.
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