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Mace Security International (OTCQB:MACE) announced delays in filing its Q3 2024 financial statements, expecting completion by December 30, 2024. Preliminary Q3 results show net sales of $1,411,000, down 6% year-over-year due to losing two major retail customers. Gross profit rate declined to 23.1% from 30% in 2023, despite 29% reduction in manufacturing costs. Operating loss was ($635,000) compared to ($644,000) in Q3 2023. Cash position decreased to $1,000, with $1,209,000 drawn from credit line. SG&A expenses were $961,000, including non-recurring costs related to merger agreement and transition expenses.
Mace Security International (OTCQB:MACE) ha annunciato ritardi nella presentazione dei propri bilanci finanziari del terzo trimestre 2024, prevedendo di completare il tutto entro il 30 dicembre 2024. I risultati preliminari del terzo trimestre mostrano vendite nette di 1.411.000 dollari, in calo del 6% rispetto all’anno precedente a causa della perdita di due importanti clienti al dettaglio. Il tasso di profitto lordo è sceso al 23,1% rispetto al 30% del 2023, nonostante una riduzione dei costi di produzione del 29%. La perdita operativa è stata di ($635.000) rispetto a ($644.000) nel terzo trimestre 2023. La posizione di liquidità è diminuita a $1.000, con $1.209.000 prelevati dalla linea di credito. Le spese SG&A sono state di $961.000, includendo costi non ricorrenti legati all’accordo di fusione e spese di transizione.
Mace Security International (OTCQB:MACE) anunció retrasos en la presentación de sus estados financieros del tercer trimestre 2024, esperando completar la tarea para el 30 de diciembre de 2024. Los resultados preliminares del tercer trimestre muestran ventas netas de 1.411.000 dólares, una disminución del 6% interanual debido a la pérdida de dos importantes clientes minoristas. La tasa de ganancia bruta disminuyó al 23,1% desde el 30% en 2023, a pesar de una reducción del 29% en los costos de fabricación. La pérdida operativa fue de ($635.000) en comparación con ($644.000) en el tercer trimestre de 2023. La posición de efectivo disminuyó a $1.000, con $1.209.000 retirados de la línea de crédito. Los gastos SG&A fueron de $961.000, incluyendo costos no recurrentes relacionados con el acuerdo de fusión y gastos de transición.
Mace Security International (OTCQB:MACE)는 2024년 3분기 재무제표 제출 지연을 발표하며 2024년 12월 30일까지 완료할 것으로 예상하고 있습니다. 3분기 예비 결과에 따르면 순매출은 1,411,000달러로, 2대 주요 소매 고객을 잃으면서 전년 대비 6% 감소했습니다. 총 이익률은 2023년 30%에서 23.1%로 감소했으며, 제조 비용은 29% 감소했습니다. 운영 손실은 2023년 3분기 ($644,000)와 비교하여 ($635,000)였습니다. 현금 잔고는 $1,000로 감소했으며, 신용 한도에서 $1,209,000이 인출되었습니다. SG&A 비용은 $961,000이며, 합병 계약 및 전환 비용과 관련된 비재 recurring 비용이 포함되어 있습니다.
Mace Security International (OTCQB:MACE) a annoncé des retards dans le dépôt de ses états financiers du troisième trimestre 2024, s’attendant à une finalisation d’ici le 30 décembre 2024. Les résultats préliminaires du troisième trimestre montrent des ventes nettes de 1.411.000 dollars, soit une baisse de 6% par rapport à l’année précédente en raison de la perte de deux clients de détail majeurs. Le taux de bénéfice brut a chuté à 23,1% contre 30% en 2023, malgré une réduction de 29% des coûts de fabrication. La perte d’exploitation s’est élevée à ($635.000) contre ($644.000) au troisième trimestre 2023. La position de liquidités a diminué à 1.000 $, avec un retrait de 1.209.000 $ de la ligne de crédit. Les dépenses SG&A se sont élevées à 961.000 $, y compris les coûts non récurrents liés à l’accord de fusion et aux frais de transition.
Mace Security International (OTCQB:MACE) hat Verzögerungen bei der Einreichung seiner Finanzberichte für das dritte Quartal 2024 bekannt gegeben und erwartet die Fertigstellung bis zum 30. Dezember 2024. Die vorläufigen Ergebnisse für das dritte Quartal zeigen Nettoverkäufe von 1.411.000 Dollar, was einem Rückgang von 6% im Jahresvergleich aufgrund des Verlusts von zwei großen Einzelhandelskunden entspricht. Die Bruttogewinnquote sank von 30% im Jahr 2023 auf 23,1%, trotz einer Reduzierung der Herstellungskosten um 29%. Der Betriebsverlust betrug ($635.000) im Vergleich zu ($644.000) im dritten Quartal 2023. Die Liquiditätsposition sank auf $1.000, wobei $1.209.000 von der Kreditlinie abgerufen wurden. Die SG&A-Ausgaben betrugen $961.000, einschließlich nicht wiederkehrender Kosten im Zusammenhang mit dem Fusionsvertrag und Übergangskosten.
Positive
- 29% reduction in manufacturing costs year-over-year
- Slight improvement in operating loss from ($644,000) to ($635,000)
Negative
- 6% decrease in net sales year-over-year
- Gross profit rate declined from 30% to 23.1%
- Loss of two major retail customers
- Cash position critically low at $1,000
- High credit line utilization at $1,209,000
- Delayed financial filing raising compliance concerns
CLEVELAND, OH / ACCESSWIRE / November 14, 2024 / Mace Security International (OTCQB:MACE) today announced its September 30, 2024 Unaudited Financial Statements and Notes and 2024 Q3 OTCQB Quarterly Report cannot be filed within the prescribed date because the Company requires additional time to prepare its financial statements and quarterly reports. The Company anticipates filing these two reports before the end of the cure period under the OTCQB Standards on December 30, 2024. The Company presents its preliminary third quarter 2024 financial results for the period ended September 30, 2024.
Third Quarter 2024 Preliminary Data
The Company’s net sales for the third quarter of 2024 were $1,411,000, down (6%) versus the like period in 2023. The decrease vs prior year is mostly the result of the impact of the loss of two larger retail customers in 2024, partially offset by nominal increases in sales in certain market segments.
Gross profit rate is estimated to be 23.1% in Q3 2024 and was 30% 2023. The modifications implemented to the Company’s operational cost structure in 2023 led to an approximate 29% reduction in four-wall manufacturing costs in Q3 2024 on a quarter-over-quarter basis. This gross margin improvement was offset by the impact of volume leverage in the plant and inflationary increases in component costs.
SG&A expense are approximately $961,000 in Q3 2024. When adjusted for non-recurring legal expenses related primarily to the ongoing strategic alternatives project and resulting recently announced merger agreement and financing costs of $72,000, and expenses related primarily to transition payroll/temporary labor costs associated with the Company optimizing its headcount of $96,000, and non-cash stock compensation costs of $28,000, SG&A expense are approximately $765,000 in the third quarter 2024 or about $348,000 (6%) lower than adjusted SG&A expense in the second quarter of 2023 of $813,000.
Operating loss is expected to be ($635,000) in the third quarter of 2024, compared with operating loss of ($644,000) for the same quarter in 2023.
Cash and cash equivalents decreased to $1,000 as of September 30, 2024, a decrease of $238,000 over the $239,000 on hand on December 31, 2023. $1,209,000 was drawn against the Company’s $2,000,000 bank line of credit at September 30, 2024.
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; (k) the impact of inflation and the ability of the Company to pass on rising prices to its customers and (l) the ability of the Company to close the Agreement and Plan of Merger dated October 12, 2024. 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.
Contact:
Investor Relations
InvestorRelations@mace.com
SOURCE: Mace Security International, Inc.
View the original press release on accesswire.com
FAQ
What caused MACE’s Q3 2024 sales decline?
MACE’s Q3 2024 sales declined 6% primarily due to the loss of two larger retail customers, partially offset by nominal increases in certain market segments.
What is MACE’s current cash position as of September 30, 2024?
MACE’s cash position decreased to $1,000 as of September 30, 2024, down from $239,000 on December 31, 2023.
When will MACE file its delayed Q3 2024 financial reports?
MACE expects to file its Q3 2024 financial statements and quarterly reports by December 30, 2024, within the OTCQB Standards cure period.
What is MACE’s current credit line utilization?
As of September 30, 2024, MACE had drawn $1,209,000 against its $2,000,000 bank line of credit.
