CLEVELAND, OH / ACCESSWIRE / April 1, 2024 / Mace Security International (OTCQB:MACE) today announced its fourth quarter and year-to-date 2023 financial results for the periods ended December 31, 2023.
The Company's net sales for the fourth quarter were $1,683,000, down 21% versus the like period in 2022. The decrease vs prior year is mostly the result of a continuing slowdown in retail impulse purchases seen in the last two years due to inflation concerns across all sectors, as well as inventory adjustments at several retailers and base business segment. The decline vs prior year was partially alleviated in Q4, 2023 with 52% growth in e-commerce platform sales compared with Q4, 2022. Net sales when compared to Q3, 23 were up 12%.
Mace reported a gross profit rate for the quarter of 22% vs 33%, or $325,000 lower than the prior year for the same quarter last year due to lower revenues, customer mix and inventory shrink. Increasing component and freight costs and the impact of lower sales were partially offset by price increases and lower manufacturing overhead. SG&A expense of $1,107,000 when adjusted for non-recurring legal and financing cost, expenses related primarily to the ongoing strategic alternatives project, and non-cash stock compensation costs was $942,000 in the fourth quarter 2023, compared with similarly adjusted SG&A expense in the fourth quarter of 2022 of $945,000. Adjusted EBITDA for the quarter was a loss of ($533,000) compared with a loss of ($194,000) in the same period 2022.
Sanjay Singh, Chairman and CEO commented, "The fourth quarter was a tough quarter for the Company. The decline in revenues in the quarter was due primarily to two customers that accounted for most of the decrease. E-commerce revenues continue to increase and is very much the Company's white horse now. Although sales are lower quarter over quarter, retail sales are stabilizing. There are six new ventures that are expected to bring in new revenues in 2024. Gross profit margins were lower than our usual 45% rate. One of the factors was fixed cost leverage. Since then, the Company reduced costs and has improved manufacturing efficiencies by 246 basis points when compared to Q4, 2023. The Company raised $300,000 in Q1, 2024 from the Board to help fund the new sales initiatives while cash is tight."
Fourth Quarter 2023 Financial Highlights
Fourth Quarter 2023 Operational Highlights
Year-to-Date December 2023 Financial Highlights
Virtual Investor Day
The Company will not be conducting a fourth quarter 2023 earnings conference call. Instead, the Company will be conducting a virtual Investor Day to be held later this month, the Company's first one since July 2, 2020. The presentations will provide an in-depth overview of Mace Security International's business, growth strategy, and financial outlook. Sanjay Singh, Chairman and CEO, Kunal Mehta, Head of Digital Strategy, will present a comprehensive overview of strategic initiatives and financial growth drivers. More details and registration information will be announced shortly. There will be an opportunity for Q&A after the Investor Day presentations. The Company has posted a letter from the Chairman and CEO to the Company's shareholders in lieu of an earnings conference call. The letter includes a review of the financial performance of the Company. Please go to www.corp.mace.com/Financial Reports and Filings to read the letter.
About Mace Security International, Inc.
Mace® Security International, Inc. (MACE) is a globally recognized leader in personal safety and security. Based in Cleveland, Ohio, the Company has spent more than 40 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand - the original trusted brand of defense spray products. The Company also offers aerosol defense sprays and tactical products for law enforcement and security professionals worldwide through its Mace® Take Down® brand, KUROS!® Brand personal safety products, Vigilant® Brand alarms, and Tornado® Brand pepper spray and stun guns. MACE® distributes and supports Mace® Brand products through mass market retailers, wholesale distributors, independent dealers, Amazon.com, Mace.com, and other channels. For more information, 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, 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 Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to several known and unknown risks and uncertainties that may cause our actual results, trends, performance or achievements, or industry trends and results, to differ materially from the future results, trends, performance, or achievements expressed or implied by such forward-looking statements. Those risks and uncertainties may include, but are not limited to, (a) general economic and business conditions, including the impact of the COVID-19 pandemic and other possible pandemics and similar outbreaks; (b) competition; (c) potential changes in customer spending; (d) acceptance of our product offerings and designs; (e) the variability of consumer spending resulting from changes in domestic economic activity; (f) a highly promotional retail environment; (g) any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates, as well as other significant accounting estimates made in the preparation of our financial statements; (h) the impact of current and potential hostilities in various parts of the world, including but not limited to the war which resulted from Russia's invasion of Ukraine, as well as other geopolitical or public health concerns; (i) the impact of international supply chain disruptions and delays; (j) the impact on the Company of changes in U.S. Federal and State income tax regulations; and (k) the impact of inflation and the ability of the Company to pass on rising prices to its customers. You are urged to consider all such factors. Because of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. Mace Security International, Inc. assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
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 schedule.
Contact:
Investor Relations
InvestorRelations@mace.com
SOURCE: MACE SECURITY INTERNATIONAL INC
source : webdisclosure.com