Exhibit 99.1
Mace Security International Reports Financial Results for the First
Nine Months and Third Quarter of 2004 Including a 627% Increase in
Electronic Surveillance Products Revenue
MOUNT LAUREL, N.J.--(BUSINESS WIRE)--Nov. 15, 2004--Mace Security
International, Inc. ("Mace" or "the Company") (Nasdaq:MACE), a
manufacturer of electronic surveillance and personal defense products,
and an owner and operator of car and truck wash facilities, today
announced financial results. For the third quarter, revenues from the
Electronic Surveillance Products Division rose 627%, from $836,000 in
2003 to $6.1 million in 2004. For the nine months ended September 30,
revenues from this division increased 393%, from $1.75 million in 2003
to $8.62 million in 2004.
Financial Results - First Nine Months of 2004 compared to First
Nine Months of 2003
Total revenues for the nine months ended September 30, 2004 were
$41.9 million compared to $36.8 million for the first nine months of
2003. The increase in revenues over last year was principally due to
the increase in revenues from the Electronic Surveillance Products
Division. Revenues from the Security Products Segment rose from $3.9
million in the first nine months of 2003 to $10.7 million in the first
nine months of 2004, an increase of $6.8 million, or 176%. Included in
the 2004 Security Products Segment revenue is $4.5 million of revenue
generated from operations we acquired on July 1, 2004.
Revenues from the Car and Truck Wash Segment decreased by $1.7
million in the first nine months of 2004 compared to the same period
of 2003, primarily as a result of the closing or divesting of five car
wash facilities during 2003 and 2004, and lower volumes in our
Northeast, Florida, and Texas regions. The volume-related decrease in
car wash revenue was partially offset by a 4.3% increase in average
wash and detail revenue per car, from $14.45 in the first nine months
of 2003 to $15.07 in 2004.
Gross profit as a percentage of revenues was 26.9% for the first
nine months of 2004 compared to 27.2% for the first nine months of
2003. The gross profit percentage for 2004 was comprised of 29% for
the Security Products Segment and 26% for the Car and Truck Wash
Segment, while the 2003 gross profit percentage was comprised of 43%
for the Security Products Segment and 25% for the Car and Truck Wash
Segment.
Selling, general and administrative ("SG&A") expenses for the
first nine months of 2004 increased by $1.8 million over the same
period in 2003 primarily due to the expansion of the Electronic
Surveillance Products Division, which added $1.6 million (including
$857,000 from the previously mentioned acquired operations, $105,000
of which were transition costs related to the acquisition.) The
increases were in the areas of marketing and selling and
administrative personnel costs as staff was added to handle planned
growth. In the second quarter of 2003 we fully wrote down, by
$351,000, assets at one of our Arizona car care locations that we
determined to be impaired.
Operating income for the first nine months of 2004 was $1.13
million compared to $1.38 million in the first nine months of 2003.
The decrease in operating income was principally the result of the
above-mentioned volume-related decrease in revenues in the Car and
Truck Wash Segment, and the increased SG&A costs in the Electronic
Surveillance Products Division, partially offset by increased gross
profit generated by the Security Products Segment and the impact of
the 2003 impairment charge noted above.
Results of operations were a net loss of $26,000, or $0.00 per
share, and net income of $72,000, or $0.01 per share, for 2004 and
2003, respectively.
Financial Results - Third Quarter of 2004 compared to Third
Quarter of 2003
Total revenues for the three months ended September 30, 2004 were
$16.6 million compared to $11.9 million for the same period of 2003.
The increase in revenues over last year was primarily due to an
increase in revenues from the Electronic Surveillance Products
Division. Revenues from the Security Products Segment rose from $1.6
million in the third quarter of 2003 to $6.9 million in the third
quarter of 2004, an increase of $5.3 million or 327%. Included in the
Security Products Segment revenue is $4.5 million of revenue generated
from operations we acquired on July 1, 2004. Revenues from the
Security Products Segment accounted for 41.2% of the Company's total
revenue for the third quarter of 2004, as compared to 13.5% for same
quarter of 2003.
Revenues from the Car and Truck Wash Segment decreased by $501,000
in the third quarter of 2004 as compared to the same period of 2003,
primarily as a result of the closing or divesting of four car wash
facilities during 2003 and 2004, and lower volumes in our Northeast,
Florida and Texas regions. The volume-related decrease in car wash
revenue was partially offset by a 6.9% increase in average wash and
detail revenue per car, from $14.59 in the third quarter of 2003 to
$15.59 in the third quarter of 2004.
Gross profit as a percentage of revenues was 25.0% for the third
quarter of 2004 compared to 24.8% for the same period of 2003. The
gross profit percentage for 2004 was comprised of 25% for the Security
Products Segment and 25% for the Car and Truck Wash Segment, while the
2003 gross profit percentage was comprised of 43% for the Security
Products Segment and 22% for the Car and Truck Wash Segment.
SG&A expenses for the third quarter of 2004 increased by $1.3
million compared to the same period in 2003, primarily due to the
expansion of the Electronic Surveillance Products Division (including
$857,000 from the previously mentioned acquired operations, $105,000
of which were transition costs.)
Operating income for the third quarter of 2004 was a loss of
$2,000 compared to income of $116,000 in the same quarter of 2003. The
decrease in operating income was the result of the volume-related
decrease in revenues in the Car and Truck Wash Segment and the
increased SG&A costs in the Electronic Surveillance Products Division,
partially offset by increased gross profit generated by the Security
Products Segment and improvement in the gross profit percentage in the
Car and Truck Wash Segment.
Results of operations for the third quarter of 2004 were a net
loss of $229,000, or $(0.02) per share, compared to the 2003 net loss
of $182,000, or $(0.01) per share.
The Company's net book value was $68.5 million or $4.81 per share
at September 30, 2004. In addition, Mace had $107 million in total
assets, including $12 million of cash and cash equivalents at
September 30, 2004.
Mace Security International, Inc. is a manufacturer of electronic
surveillance and personal defense products, and an owner and operator
of car and truck wash facilities. Additional information about Mace is
available at www.mace.com.
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, dilution to shareholders, limited capital resources, the
effects of weather on the demand for car care services, the effects of
rapid growth on the Company and the ability of management to
effectively respond to that growth, our ability to achieve operating
synergies, our ability to compete against established competitors,
regulatory matters, the effects of competition, and our ability to
obtain additional financing. Such factors could materially adversely
affect the Company's financial performance and could cause the
Company's actual results for future periods to differ materially from
any opinions or statements expressed within this press release.
Additional discussion of factors that could cause actual results to
differ materially from management's projections, forecasts, estimates
and expectations are contained in the Company's SEC filings, including
its S-3 registration statements, Form 10-K for 2002, Form 10-K for
2003, Form 10-Q for the quarter ended March 31, 2003, Form 10-Q for
the quarter ended June 30, 2003, Form 10-Q for the quarter ended
September 30, 2003, Form 10-Q for the quarter ended March 31, 2004,
Form 10-Q for the quarter ended June 30, 2004, and Form 10-Q for the
quarter ended September 30, 2004 . This press release should be read
in conjunction with the financial statements and notes contained in
the Company's annual report on Form 10-K and the Company's quarterly
reports on Form 10-Q.
TABLES FOLLOW
Mace Security International, Inc.
Consolidated Statements of Operations
(In thousands, except share information)
(Unaudited)
Nine Months Ended September 30,
-----------------------------------
2004 2003 (1)
----------------- -----------------
Revenues
Car wash and detailing services $ 25,374 $ 27,080
Lube and other automotive
services 2,719 3,133
Fuel and merchandise sales 3,098 2,723
Security products sales 10,737 3,889
----------------- -----------------
41,928 36,825
Cost of revenues
Car wash and detailing services 18,199 19,806
Lube and other automotive
services 2,084 2,402
Fuel and merchandise sales 2,701 2,387
Security products sales 7,650 2,214
----------------- -----------------
30,634 26,809
Selling, general and
administrative expenses 8,628 6,823
Depreciation and amortization 1,533 1,462
Asset impairment charge - 351
----------------- -----------------
Operating income 1,133 1,380
Interest expense, net (1,376) (1,476)
Other income 202 210
----------------- -----------------
(Loss) income before income taxes (41) 114
Income tax (benefit) expense (15) 42
----------------- -----------------
Net (loss) income $ (26) $ 72
================= =================
Per share of common stock (basic
and diluted):
Net (loss) income $ (0.00) $ 0.01
================= =================
Weighted average shares
outstanding
Basic 13,386,621 12,409,747
Diluted 13,386,621 12,422,952
(1) Certain amounts have been reclassified in 2003 to conform to the
2004 presentation
Mace Security International, Inc.
Consolidated Statements of Operations
(In thousands, except share information)
(Unaudited)
Three Months Ended September 30,
-----------------------------------
2004 2003 (1)
----------------- -----------------
Revenues
Car wash and detailing services $ 7,898 $ 8,276
Lube and other automotive
services 894 1,089
Fuel and merchandise sales 997 925
Security products sales 6,858 1,607
----------------- -----------------
16,647 11,897
Cost of revenues
Car wash and detailing services 5,786 6,396
Lube and other automotive
services 677 815
Fuel and merchandise sales 875 823
Security products sales 5,152 914
----------------- -----------------
12,490 8,948
Selling, general and
administrative expenses 3,620 2,346
Depreciation and amortization 539 487
----------------- -----------------
Operating (loss) income (2) 116
Interest expense, net (447) (443)
Other income 91 43
----------------- -----------------
Loss before income taxes (358) (284)
Income tax benefit (129) (102)
----------------- -----------------
Net loss $ (229) $ (182)
================= =================
Per share of common stock (basic
and diluted):
Net loss $ (0.02) $ (0.01)
================= =================
Weighted average shares
outstanding
Basic 14,213,656 12,412,189
Diluted 14,213,656 12,412,189
(1) Certain amounts have been reclassified in 2003 to conform to the
2004 presentation
CONTACT: Mace Security International, Inc., Mount Laurel
Eduardo Nieves, Jr., 856-778-2300
www.mace.com