ACCESS Newswire
31 Jul 2020, 17:38 GMT+10
CLEVELAND, OH / ACCESSWIRE / July 31, 2020 / Mace Security International (OTCQX:MACE) today announced second quarter 2020 financial results for the quarter ended June 30, 2020.
The Company's net sales for the second quarter were $3,400,000, up 16% versus prior year. The increase reflects organic growth across our retail and e-commerce channels, addition of new customers across core channel segments as well as product line extensions at existing retailers. Net sales across the consumer and e-commerce channels were up $867,000 even when offset by decreases in Sporting Goods and International channels of $239,000 due to store closures and product availability related to COVID-19.
The Company reported a gross margin rate for the quarter of 41%, up 1000 bp from the same time last year. SG&A expenses were $841,000 or 25% of net sales, compared with $1,400,000 or 48% in 2Q 2019, reflecting non-recurring charges last year. Working capital turns were 4.7 on an annualized basis.
President and CEO Gary Medved commented: 'Our business exhibited increasing strength as the quarter progressed despite a few challenges created by COVID-19. The company's renewed focus on Mace® Brand, product lineup, and digital awareness allowed us to capitalize on the accelerated shift to consumer personal safety products, as well as online spending brought on by the pandemic. Between our branded website and online marketplaces, total digital sales increased triple digits on a percentage basis in the second quarter driven by existing customers and a dramatic increase in new customer acquisition.'
'The pace accelerated as the quarter progressed. Meanwhile, the strong relationships we have forged with our key retail partners helped us weather a severe slowdown in April and early May due to reduced traffic and store closures. The country's lockdown restrictions began to ease midway through the second quarter, when we experienced a significant pick up in weekly sell-through at retail. Given the circumstances, we are pleased with our recent performance and encouraged as this momentum has carried into July and future months. Orders across retail and digital segments have increased in the past two months at a triple-digit percentage rate over the same period in 2019. Though uncertainty remains about the ultimate impact COVID-19 will have on the personal safety products industry, I am confident that our newly refined business model and strengthening balance sheet have Mace® Brand well positioned going forward.'
Sanjay Singh, Executive Chairman, commented: 'We raised the bar within the company on self-accountability and meeting commitments to our employees, customers and stakeholders. The entire team stepped up, from customer service to those who ship the products amidst challenging supply chain issues and a burgeoning backlog.'
'Orders in April were the lowest the company has seen in a very long time but bounced back as businesses opened up in mid-May. The results of our awareness campaign also drove meaningful digital sales. The company is on a solid footing now as we focus our efforts on executing all the initiatives that were launched this year. Balance sheet strength and operations excellence continue to be our areas of focus. I am very proud and inspired by our team's ability to rise to the occasion. The focus on continuous improvement company-wide will continue in 3Q as we continue to ship a sizeable backlog. Gary and his team did a tremendous job this quarter.'
Second Quarter 2020 Financial Highlights
Second Quarter 2020 Operational Highlights
YTD 2020 Operational Highlights
Conference Call
Mace® will conduct a conference call on Tuesday August 4th, 2020 at 11 AM EDT, 8 AM PDT to discuss its financial and operational performance for the quarter.
Participant Toll-Free Dial-In Number: (833) 360-0862; Conference ID 9602639
A full set of the consolidated financial statements and accompanying slide presentation are available on www.Mace.com. A digital recording of the conference call will be available for replay two hours after the call's completion. The date ranges the recording will be available are listed below. To access the recording, use the dial-in number listed below and the conference ID 9602639
Encore dial-in number: 855-859-2056 (or internationally on 404-537-3406)
Encore dates: Will be available 2 hours after the call and will expire midnight on October 3, 2020
About Mace Security International, Inc.
Mace Security International Inc. is a globally recognized leader in personal safety products. Based in Cleveland, Ohio, the Company has spent more than 30 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand - the original trusted brand of pepper spray products. The Company's other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand personal alarms. The Company also offers aerosol defense sprays for law enforcement and security professionals worldwide through its Take Down® Brand.
Mace Security International distributes and supports its products and services through mass-market retailers, wholesale distributors, independent dealers, e-commerce channels and through its website, www.Mace.com. For more information, please visit www.mace.com.
Forward-Looking Statements
Certain statements and information included in this press release constitute 'forward-looking statements' within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases 'will likely result,' 'are expected to,' 'will continue,' 'is anticipated,' 'estimate,' 'projected,' 'intend to' or similar expressions are intended to identify 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.
Mace Security International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands)
Mace Security International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands)
Mace Security International, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share information)
Mace Security International, Inc. and Subsidiaries
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
(Amounts in thousands)
Mace Security International, Inc. and Subsidiaries
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
(Unaudited)
(Amounts in thousands)
In this press release, the Company's financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company's business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached schedules.
Contacts:
Gary Medved
President and Chief Executive Officer
[email protected]
SOURCE: MACE SECURITY INTERNATIONAL INC
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