Exhibit 99.1
Mace Security International Reports Financial Results for the First Quarter of
2005, Including a 239% Increase in Security Segment Revenues
MOUNT LAUREL, N.J.--(BUSINESS WIRE)--May 10, 2005--Mace Security
International, Inc. ("Mace" or "the Company") (Nasdaq:MACE), a
manufacturer of electronic surveillance, security and personal defense
products, and an owner and operator of car and truck wash facilities,
today announced financial results for the quarter ended March 31,
2005, including a 239% increase in revenues from the Security Segment,
from approximately $1.9 million in the first quarter of 2004 to
approximately $6.4 million in the first quarter of 2005.
Financial Results
Total revenues for the quarter ended March 31, 2005 were $16.9
million compared to $12.7 million for the same period in 2004. The
increase in revenues over last year was due to an increase in revenues
from the Security Segment. Revenues from the Security Segment rose
from approximately $1.9 million in the first quarter of 2004 to
approximately $6.4 million in first quarter of 2005, an increase of
approximately $4.5 million, or 239%.
Revenues from the Car and Truck Wash Segment decreased by
$313,000, or 2.9%, in the first quarter of 2005 compared to the same
quarter in 2004, primarily as a result of an overall volume decline of
3.4%, including 2.3% due to the closing or divesting of two car wash
facilities during 2004. The volume-related decrease in car wash
revenues was partially offset by a 2.1% increase in average wash and
detail revenue per car, from $14.42 in the first quarter of 2004 to
$14.73 in the first quarter of 2005.
Gross profit as a percentage of revenues decreased to 27.2% for
the first quarter of 2005 compared to 29.0% for the same quarter in
2004. The gross profit percentage for 2005 was comprised of 28.1% for
the Security Segment and 26.6% for the Car and Truck Wash Segment,
while the 2004 percentage was comprised of 37.1% for the Security
Segment and 27.6% for the Car and Truck Wash Segment. The decrease in
gross profit percentage in the Security Segment is primarily the
result of growth in sales of advanced imaging components and video
equipment sold by Industrial Vision Source and increased sales of
monitors which typically have gross profit margins lower than other
security products, combined with an increase in sales to distributors.
Selling, general and administrative expenses for the first quarter
of 2005 increased by $1.1 million over the first quarter of 2004
primarily due to the expansion of the Security Segment. The increases
were in the areas of advertising costs, and marketing, selling and
administrative personnel costs as staff was added to handle planned
growth of the Security Segment. Additionally, corporate overhead costs
increased approximately $121,000 in the first quarter of 2005 over the
same quarter in 2004, primarily in the areas of insurance, audit and
consulting, and compensation costs.
Operating income for the first quarter of 2005 was $379,000 as
compared to $706,000 in the first quarter of 2004. The decrease in
2005 was principally the result of the volume-related decrease in
revenues in the Car and Truck Wash Segment along with the
aforementioned increase in corporate overhead. Net income was $11,000,
or $0.00 per share, and $217,000, or $0.02 per share, for the quarters
ended March 31, 2005 and 2004, respectively.
The Company's net book value was $66.5 million, or $4.36 per
share, at March 31, 2005. In addition, Mace had $101.4 million in
total assets, including $13.0 million of cash and cash equivalents at
March 31, 2005.
Mace Security International, Inc. is a manufacturer of electronic
surveillance, security 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 2004, and Form 10-Q for
the quarter ended March 31, 2005. 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.
Mace Security International, Inc.
Consolidated Statements of Income
(In thousands, except share information)
(Unaudited)
Three Months Ended
March 31,
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2005 2004
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Revenues
Car wash and detailing services $8,712 $8,910
Lube and other automotive services 791 930
Fuel and merchandise sales 983 959
Security sales 6,365 1,876
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16,851 12,675
Cost of revenues
Car wash and detailing services 6,189 6,287
Lube and other automotive services 654 705
Fuel and merchandise sales 852 826
Security sales 4,579 1,180
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12,274 8,998
Selling, general and administrative expenses 3,608 2,471
Depreciation and amortization 590 500
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Operating income 379 706
Interest expense, net (451) (479)
Other income 89 112
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Income before income taxes 17 339
Income tax expense 6 122
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Net income $11 $217
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Per share of common stock (basic and
diluted):
Net income $0.00 $0.02
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Weighted average shares outstanding
Basic 15,271,132 12,461,029
Diluted 15,655,863 12,618,837
CONTACT: Mace Security International, Inc., Mount Laurel
Eduardo Nieves, Jr., 856-778-2300