Mace Security International, Inc. (MACE)

Mace Reports Insider Stock Purchases and Announces Virtual Investor Day Date
06/02/2020 2:45:00 PM

CLEVELAND, OH / ACCESSWIRE / June 2, 2020 / Mace Security International Inc. (OTCQX:MACE) is pleased to announce that President and CEO Gary Medved has purchased 450,000 shares of MACE common stock.

Additionally, board member Denis Amato acquired 100,000 MACE common shares and board member Hussien Shousher acquired 425,812 shares.

All the insider share transactions were of existing outstanding shares, and no new shares were issued, preventing any dilution to MACE equity holders.

Medved commented: "I am pleased with the direction the company has taken over the last 15 months, including lowering our breakeven point through disciplined SG&A spending, customer acceptance of our refreshed product line, and the resulting strong EBIDTA generation. I believe our company represents a good investment, as these recent stock purchases demonstrate."

Virtual Investor Day

MACE today also announces details for its annual Virtual Investor Day to be hosted Thursday, July 2, 2020. The Investor Day Presentation begins at 10:30 am EDT and concludes at 11:30 am EDT. A live question and answer session will be included in the Investor Day session.

Mace's Investor Day 2020 will feature an overview of the company, a discussion of business performance and strategy, and a showcase of current products, branding, and eCommerce initiatives. Speakers include Gary Medved, President and CEO, and Sanjay Singh, Executive Chairman.

To attend the Virtual Investor Day please use the following address:

www.malone-media.com/mace and enter the password pepper20.

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 Companies other leading brands include Tornado® Brand stun guns and pepper spray, and Vigilant® Brand 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

$MACE

Maybe if they had numbers like this it would justify a move.

Third Quarter 2020 Financial Highlights

Net sales increased $2,310,000 or 94% versus prior year, primarily driven by organic growth, addition of new customers both in retail and e-commerce segments and new product line extensions at retailers
Gross profit for the third quarter increased by $1,016,000 or 108% over the same period in the prior year, driven primarily by increased sales volume, labor efficiencies, and higher margin digital sales.
SG&A expenses increased by $177,000 to $1,183,000 for the quarter, or 25% of net sales, driven primarily by higher variable sales commissions and performance-related incentives
Net income increased by $843,000
Cash and cash equivalents increased to $549,000 as of September 30, 2020, an increase of $242,000 over the $307,000 on hand on December 31, 2019. Working capital increased by $1,860,000 compared to December 31, 2019. The company paid off its loan in the amount of $600,000 on September 30, 2020.
Adjusted EBITDA for the quarter was $889,000 (1.4 cents per share on an undiluted basis for the quarter)

MACE making another investor presentation next week. Glad they're continuing to get the word out. I like the commentary in today's PR. With the recent dramatic improvement in revenues and earnings...a management team that has not only engineered a fantastic turnaround in the numbers but also does an impressive job with press releases, conference calls, investor conferences, etc...and a name brand that everyone recognizes...MACE sure feels like a company that should be trading at a significantly higher valuation. Wish we'd see 1 or more insiders step up and do some more buying. Because the stock seems like a real bargain in the .30's. Maybe dead money for awhile, but I'll keep accumulating. Can see this one getting hot and spiking up to $1+ in the coming months.

Today's management comments-

Gary Medved, CEO & President of Mace® Security International, states "after a very strong 3rd quarter we're excited to present our story of growth, as well as our strategy going forward. Personal safety is on the minds of many consumers and we're extremely proud of having the #1 brand name in this space, as well as the best products in the world."

Sanjay Singh, Executive Chairman, added "Our focus for the near term includes sharpening our on-time deliveries and landing new retailers. The awareness campaigns anchor our future growth as does our focus on providing empowerment to customers through new products and product line extensions. We are excited to share the future potential of Mace® Brand as an investment opportunity."

Went over a bit more and all makes sense,
-Supply issues lead them to load up on supplies to avoid this in the future (smart with inflation as well) resulting in lower profit this quarter I believe
-We've optimized our production operations, which resulted in additional costs during the quarter.
- digital sales continued to strengthen with an increase of more than 90% over the first quarter of 2020
-logistics issues as well as severe winter weather impeded net sales growth by an estimated 15% for the first quarter of 2021.

For CC today at 11am ET. Should be a good listen.

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 at midnight on June 6, 2021 at 11:59PM.

The Company's net sales for the first quarter of 2020 increased 2.9% over the same period in 2019, with net income in the first quarter of 2020 reported of $120,000. EBIDTA for the first quarter of 2020 was $240,000.

President and CEO Gary Medved commented: "We are pleased that the Company's performance in the first quarter reflects the improvements made over the past 15 months, including customer acceptance of our product line refresh and introduction of full product continuum. These improvements led to increased consumer sales, disciplined SG&A spending, and the resulting strong EBIDTA generation. I am very proud of our associates who helped Mace remain open for business throughout the COVID-19 Health emergency that began in the quarter, and allowed us to provide Mace ® Brand products to essential law enforcement customers as well as provide personal safety and protection to all our customers.'

Medved continued: "While Mace does not make future earnings projections and certainly would not attempt to do so in the face of current Covid -19 uncertainties, we, like most consumer-oriented businesses, expect to see pressure on revenues in the 2nd quarter as our customers continue to adjust to the current emergency."

First Quarter 2020 Financial Highlights

SG&A expenses declined by $937,000 to $881,000 for the quarter, or 31.6% of gross sales, driven primarily by lower spending on salaries and benefits, reduced legal and professional expenses, and a non-recurring acceleration of stock compensation expense that occurred in the first quarter of 2019.

Gross profit for the first quarter increased $41,000, or 3.9% over the same period in the period year, driven primarily by increased sales volume, while gross profit percentage stayed relatively flat at 38.7% this quarter vs. 38.3% in the three months ended March 31, 2019.

Cash and cash equivalents increased to $383,000 at March 31, 2020, an increase of $76,000 over the $307,000 on hand at December 31, 2019.