Universal Security Instruments Reports First-Quarter Results
OWINGS MILLS, Md., Aug. 20, 2014 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today reported results for its first fiscal quarter ended June 30, 2014.
Universal reported sales of $2,514,385 for the quarter ended June 30, 2014 versus $3,005,669 for the comparable period of last year. The Company reported a net loss of $742,849, or $0.32 per basic and diluted share, compared to a net loss of $19,530 or $0.01 per basic and diluted share, for the same period last year. The major reasons for the change were lower joint venture earnings of $284,568, an income tax benefit of $169,066 and lower sales during the current fiscal period.
The Company was not able to file its 10Q due to its Hong Kong Joint Venture inability to complete their financials and we expect to file the 10Q later this week.
"The Company believes with the completion of its new sealed product line later this fiscal year it will return to profitability. Additionally we believe that our Joint Venture will be profitable for this fiscal year," said Harvey Grossblatt, Universal 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. |
||
| CONSOLIDATED STATEMENTS OF OPERATIONS |
||
| (UNAUDITED) |
||
| Three Months Ended June 30, |
||
| 2014 |
2013 |
|
| Sales |
$2,514,385 |
$3,005,669 |
| Net loss: |
$( 742,849) |
$(19,530) |
| Net loss per share – basic |
$(0.32) |
$(0.01) |
| Net loss per share – diluted |
$(0.32) |
$(0.01) |
| Weighted average number of common shares outstanding: |
||
| Basic |
2,312,887 |
2,287,887 |
| Diluted |
2,312,887 |
2,287,887 |
| CONSOLIDATED BALANCE SHEETS |
||
| (UNAUDITED) |
||
| ASSETS |
||
| June 30, 2014 |
June 30, 2013 |
|
| Cash |
$2,957,497 |
$1,488,034 |
| Accounts receivable and amount due from factor |
1,607,728 |
2,880,664 |
| Inventory |
3,530,159 |
5,002,976 |
| Prepaid expenses |
345,040 |
637,207 |
| TOTAL CURRENT ASSETS |
8,440,424 |
10,008,881 |
| INVESTMENT IN HONG KONG JOINT VENTURE |
14,125,751 |
14,998,034 |
| PROPERTY, PLANT AND EQUIPMENT – NET |
210,495 |
222,552 |
| OTHER ASSETS AND DEFERRED TAX ASSET |
38,134 |
2,518,035 |
| TOTAL ASSETS |
$22,814,804 |
$27,747,502 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||
| Accounts payable and accrued expenses |
$779,797 |
$723,971 |
| Accrued liabilities |
224,433 |
142,502 |
| TOTAL CURRENT LIABILITIES |
1,004,230 |
866,473 |
| LONG TERM OBLIGATION |
25,000 |
25,000 |
| SHAREHOLDERS' EQUITY: |
||
| Common stock, $.01 par value per share; authorized |
23,129 |
22,879 |
| Additional paid-in capital |
12,885,841 |
12,771,490 |
| Retained earnings |
7,692,267 |
12,865,830 |
| Equity in Comprehensive Income of Joint Venture |
1,184,337 |
1,195,830 |
| TOTAL SHAREHOLDERS' EQUITY |
21,785,574 |
26,856,029 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$22,814,804 |
$27,747,502 |
SOURCE Universal Security Instruments, Inc.
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