Universal Security Instruments Reports Fourth-Quarter and Year-End Results
OWINGS MILLS, Md., June 26, 2012 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fourth quarter and fiscal year ended March 31, 2012.
Universal reported a fourth quarter net loss of $(261,154), or $(0.11) per basic and diluted share, on sales of $3,609,589. These totals compare to net income of $247,993, or $0.10 per basic and diluted share, on sales of $3,378,294 for the comparable period of the previous year.
For the 12 months ended March 31, 2012, sales were $13,304,602 versus $13,249,604 for the same period last year. The Company reported a net loss of $(503,288), or $(0.21) per basic and diluted share, versus net income of $817,781, or $0.34 per basic and diluted share, for the same period last year.
"Despite maintaining steady sales levels, the fiscal year ended March 31, 2012 was clearly a disappointment. The primary reason for our reduced fourth quarter and year end results was lower Joint Venture earnings, which were down approximately $491,000 for the fourth quarter and $1,190,000 for the year. The primary reason for the decline in Joint Venture earnings was lower sales to non-affiliated customers in Europe. At the recent International Hardware Show in Las Vegas, the Company introduced, for the first time, its full line of New Generation products. These products were extremely well received. We remain optimistic that your Company can experience significant sales and earnings growth in fiscal 2013 from the introduction of these products, and we continue to invest heavily to support them," said Harvey Grossblatt, CEO.
In reference to the 2011 Stock Repurchase Plan approved by the Board of Directors, Mr. Grossblatt announced that the Company had acquired 63,138 shares of its common stock through the date of this press release at an average purchase price of $5.40 per share. Under the plan, the Company may acquire an additional 38,862 shares. At March 31, 2012, the book value of a share of common stock was $11.23.
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 a 43 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 STATEMENT OF INCOME |
||
| (UNAUDITED) |
||
| Three Months Ended March 31, |
||
| 2012 |
2011 |
|
| Sales |
$3,609,589 |
$3,378,294 |
| Net (loss) income |
(261,154) |
247,993 |
| Net (loss) income per share – basic |
(0.11) |
0.10 |
| Net (loss) income per share – diluted |
(0.11) |
0.10 |
| Weighted average number of common shares outstanding Basic Diluted |
2,346,342 2,346,342 |
2,387,887 2,396,830 |
| (AUDITED) |
||
| Twelve Months Ended March 31, |
||
| 2012 |
2011 |
|
| Sales |
$13,304,602 |
$13,249,604 |
| Net (loss) income |
(503,288) |
817,781 |
| Net (loss) income per share – basic |
(0.21) |
0.34 |
| Net (loss) income per share – diluted |
(0.21) |
0.34 |
| Weighted average number of common shares outstanding Basic Diluted |
2,374,952 2,374,952 |
2,387,887 2,395,766 |
| CONSOLIDATED BALANCE SHEET |
||
| ASSETS |
||
| March 31, |
||
| 2012 |
2011 |
|
| Cash, cash equivalents and investments |
$ 3,186,274 |
$ 6,728,593 |
| Accounts receivable and amount due from factor |
2,601,582 |
2,216,635 |
| Inventory |
5,398,540 |
3,534,011 |
| Prepaid expenses |
599,876 |
519,356 |
| TOTAL CURRENT ASSETS |
11,786,272 |
12,998,595 |
| INVESTMENT IN HONG KONG JOINT VENTURE |
13,083,493 |
13,149,614 |
| PROPERTY, PLANT AND EQUIPMENT – NET |
176,144 |
203,440 |
| DEFERRED TAX ASSET AND OTHER ASSETS |
2,519,897 |
2,132,129 |
| TOTAL ASSETS |
$27,565,806 |
$28,483,778 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||
| Accounts payable and accrued expenses |
$ 1,122,954 |
$ 1,247,494 |
| Accrued liabilities |
170,811 |
210,998 |
| TOTAL CURRENT LIABILITIES |
1,293,765 |
1,458,492 |
| LONG TERM OBLIGATION |
25,000 |
25,000 |
| SHAREHOLDERS' EQUITY |
||
| Common stock, $.01 par value per share; 20,000,000 authorized and 2,336,354 shares outstanding at March 31, 2012; and 2,387,887 shares issued and outstanding at March 31, 2011 |
23,364 |
23,879 |
| Additional paid-in capital |
12,885,756 |
13,135,198 |
| Retained earnings |
13,337,921 |
13,841,209 |
| TOTAL SHAREHOLDERS' EQUITY |
26,247,041 |
27,000,286 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$27,565,806 |
$28,483,778 |
SOURCE Universal Security Instruments, Inc.
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