Mace Security International (MACE) 6 Apr 212020 Q4 Earnings call transcript

Company Profile

Participants

Mike Weisbarth	CFO
Sanjay Singh	Executive Chairman
Gary Medved	President and CEO
Vijay Marolia	Regal Point Capital
Ken Fell	Fell Capital Management
Andrew Shapiro	Lawndale Capital Management

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Mace Security International Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today to Mr. Weisbarth. Mike Mr. may you begin. Weisbarth, Mike

Mike Weisbarth

you, good everyone. and Thank morning, Rein,

Officer presentation Sanjay call Executive year LD as our conference Joining materials, visit including Executive the find the full statements report you is relations, President MACE. week. Singh, as where well last Micro mace.com/investor Chief the Medved, me on and additional Gary XXXX, for today our the our December can from quarter Please XX, with Chairman; and in financial of OTCQX along fourth

will on from to for Before unknown, fourth statements financial periods the like comment the to, cause this statements in expectations anticipated, known Mace's expected adversely domestic factors actual Mace's to quarter will including, will materially international resources are are conference Such results used or to any during are differ could XXXX capital results. statements I now It our proceeding, management's point supply projected our conference future to turn uncertainties, estimated, intended to and over Gary materially will disruptions call, and I'd statements. and the currently forward-looking could out and or and result, opinions risks, conditions, limited limited operational call possession call. as to chains. there of that economic affect not Such but performance. and constitute during continue, subject certain expressed the to, in likely call the similar is words statements intended such on information certain and are management. to or based forward-looking expressions identify information are When during and that phrases

Gary Medved

dedicated and It's of all uncertainties all results XXXX. Thank the work we Good for response all us. joining hard fourth our occurred year, very the associates. a produced our pleased of Mike. of Mace direct morning, last you of for you, of am I quarter Thank the the with that everyone. Considering reflection

on to and COVID-XX, As of chain of remaining due all continue the health through work some supply disruptions remains safety employees. to we focus primary our our

into our and our in we Our line the through OTCQX We're increasing with from We promoting quarter had keenly our on on where brand release product to portfolio. along e-commerce we press presence organic reflect products business have adding positioned retail mortar and continued recovery brick growth. top expanding firmly retailers already direct-to-consumer the sold results. a extensions. benefited and our our our and line We record focused new and are continued are sales where for extending major our the and reach retailers growth, and as filing remain foot traffic our focused continued within of well fourth efforts retailers growth to established platform

consecutive Our digital sales the for achieved fourth triple-digit quarter. growth

that heightened are sites expansion marked reach. Last of e-commerce in for increase United expanding distribution overall that an into year. Our XXXX, see in XX% just by of personal States X% year and the And our for events year. We represented our one current several safety. sales was of the concern continuing awareness total sales

over on focused performance. now providing financial offering are the seek details the comforting attain consumers behind family empowerment, individual safety the products safety. the We and the community turn and to call discuss Mike through I'll to to

Mike Weisbarth

quarter with three net XX, our as well sales product XX% increased XXXX, that an million, net Gary. months by sales December sales in new or sales increase of $X.XX fourth fourth period adjustment. Fourth profit from had line SG&A same the and inventory year. This net offset the direct-to-consumer to the extensions. our of physical XXXX improved retail a same compared you, of labor improved Gross in partially These XX% sales Thank during $XXX,XXX by efficiencies. was sales were due we in increased as organic increase variable volume XXXX. profit period million net increase performance-related was commissions, to general quarter attributable or the Gross $XXX,XXX in selling, driven the new last incentives. primarily to were increased sales. the expense XX% XX% expenses with for sales growth, to $X.XX $X.XX quarter by along million XX% higher during ended administrative net and of The

for XXXX. $XXX,XXX same the was December EBITDA of quarter to for $XXX,XXX of Net $XX,XXX XX% As XXXX improved $XXX,XXX income $XX,XXX quarter the the of XX% XXXX. the and XXXX, improvement XX, of three net compared quarter was period fourth ended year-over-year. a for income result $XXX,XXX the of net versus net the quarter in Fourth months EBITDA above, sales or like XXXX, in EBITDA was by over $XXX,XXX sales. fourth of in adjusted

Now year. on to the

XX% per loss So share net for amount also per year the Net $X.X sales line sales. third million of for strengthened December to to compared during quarter full XXXX. year of balance We an $XXX,XXX the increased of cash XXXX Earnings XXXX and in The our $X.X its share December of income ended $X.X in to share increase Company over compared full the the paid XXXX or income sheet or were for million in $X.XX of improved year-end the of $XXX,XXX, XXXX. $XXX,XXX our net for XXXX off was XXXX, a as from increased net sales a loss million $X.XX XX% year per credit year-over-year. liquidity, XXXX. a $X.X million XX, for improvement

we XXXX, applied and $XXX,XXX loan for move to the as quarter priorities of call program protection and As we Paycheck business small was first of over will said, anticipate half our and back who our outlook to now XXXX. year uncertainty the being disclosed, will XXXX. through in loan I turn a administration. applying for the granted We in second from With bank. previously this to forgiveness This discuss Gary, Company and that loan environment granted the was the the obtained during due U.S. for economic the the during

Gary Medved

Mike. Thanks

I allow will open We expanding for our get and queue. to the lines gross to in If this At additional all are open Rein, stop profit question and limit our introducing try have ask retailers, our on new product strategy you concentrating top through across we'll questions. a we would one growth structure. leveraging line to to landing one back to the the existing questions. for time, to I needs participate. chance to and themselves line margins expand colleague follow-up please each focused with everyone new platforms. cost existing various time, our lines to reach on products driving expand retailers, We're and DTC

Operator

[Operator from Marolia. comes you. question Your Instructions] first Thank Vijay

Your is line open.

Vijay Marolia

congratulations. Guys,

in You place? the hit park. kind guys buyback of repurchase any the Is ball out share program, there of share program

Gary Medved

time, We're the continued Not not Vijay. producing at for and just on that's results, on our focusing this immediate future. the docket

Vijay Marolia

you're Keep doing, there. what guys. complaints doing No

Operator

from Fell. Your Ken next question comes

open. Your line is

Ken Fell

quarter and there? great interested Congratulations accepted about the great really How new to a in product. looks it's on the And have a in Question marketplace? being was stun gun a how your year. on been sales nice be unit

Gary Medved

doing well. It's quite

that LD As last Conference at we the week you know, mentioned probably launched. we Micro

because managers and as placement or our to we going soon ready we're launching products. Going out we're as can resets. as them not for or mace.com website for have wait platform to Simply forward, our new category there category use get reviews

getting peer now on What is -- became we our this mace.com. it's can into I top-selling you available it's time, tell exclusively numbers at launched website, it one since products on So it, our of without right okay.

extension. on noticed in our that introduced personal this triple-action We've received well point. may So, And website launched sprays at it's last the the have you very we product both been Neon line few the pocket pepper and our days, sizes. a over

we last data different, new that doing week at to launch goal. So collect this as utilizing is once we mentioned the the and again, mace.com pure from something and conference,

or with when from a buyer the brick-and-mortar we share action sit So have have that we them wouldn't data because with manager we demographics retailer. now down normally sales we a the can retail, or a that category

have looking it. now, But is stun what and more well we're we're the right excited looking -- but do on doing about the drawing us. So, just to board for we very on gun

Ken Fell

a guns Great. Stun that. exciting. cities sale states? or the That's any on maybe restrictions various follow-up One the of to there in very Is

Gary Medved

is -- sold a devices lot be where not be states There's Recently, every York, devices Stun like to they're New you in do XX. York -- spray, all allowed some to could couple couldn't. have sold. state, of be in passed whereas Yes. you pepper are a that sell which could allowed so that before There regulations. it New

guidelines So don't of there. a allow regulations states we restrictions, work the the the handful within devices that Stun we lot. breadth all There's the that of only take small of out

do what can. we we So

Operator

Your Steven comes next from Charlie. question

open. is Your line

Unidentified Analyst

towards working on plans the any uplisting have you NASDAQ? Do an to

Gary Medved

Steven. on touched LD at We week the last conference, this

this. I think like that I'll put it

it's the time on we've We at radar, when shared okay? is that our look something already take right. And it. want a that to think I it's publicly

thought think we quarters Our can stream trend, that there Mike a get XXXX. do focus an And as forward on Prove okay? touched we that that to together personal touched prove the in continue a solid safety number been -- -- a lot back-to-back our category on has our everything I've of message going results. personal actual with of that devices to in-house that there's results, out nonlethal out. good I and

main -- areas. focus our our So that is those are

to pillars terms and of Our one I in growth in-house operational financial say, strong then and three of four growth, efficiencies pillar so forth. pillars should

right, those time this entertain time neck-deep focused no But that the with it's change on NASDAQ. in think we're the there's when staying right possible is And now, a items. when uplisting So, it. that I on for radar or on an we'll associated timing is

Unidentified Analyst

the know SEC. first of think And but that you with the there's plan Do I on would number to requirements, is Okay. doing one a I steps soon? file quarterly of

Gary Medved

there. it NASDAQ we've future, Again, before radar, that a probably immediate to up that out that the we that is number that doing quarters anticipate uplisting something of do closer about. talked than for in is since probably We on trying don't but the it's our want obviously

So SEC going for we'll postings or But future, filings. when with everybody right that immediate we're stay know. happens, the to now, certainly let the

Operator

[Operator next Instructions] Your Shapiro. from Andrew comes question

open. is line Your

Andrew Shapiro

the where potential have Have of of -- I your a channels And a you brand? providing is opportunities are on to as Mace view for few greatest us Which growth? time. come for back and well, back untapped course, the the few, do best sales out,

Gary Medved

development the online, early terms a category that's seismic more changes do months. And for the a in of Since XXXX, starting if we've year think last back ever this in to before, a more ask some since foothold a I the online. information strong XX in content last days, over product online here to ordering job ordering much changes digital, making seen shift took for better these then additional embrace In country, really things we channels. XXXX started made you digital all than forth. anybody this and of providing really of we And growth, and code so

So in retail there because And to be retailers that, we think are where out goes retail But gets a lot strong have a counter of landed but with heat I that I brick-and-mortar lot strong book. more exists. to our opportunity it digitally speaking, in and be saying has a without of huge a attention. to map list there, focus to have hit we're some retailers

QX be that early three As we to Meet retailers how the to possible LD last the site or reviews, six We've agreed product managers. buyers in of the we're they derek.com have the yesterday, bring months second at another to a we late We category to with just going Micro the addition in meet does in category next LD you the XXXX. as -- with for two Zoom. got detail mostly first continue to got this either us over week to conference, ship see new to, announced year. storefront online at learned to mentioned last starting week do

is lot not And to there's and unturned. stone of that's when be a do lot going supporting leaving of lot in you I'm both. to our a where dedication, digital of to to a focus work look of a to both, everything. that you, channels. is ton So then products at strong retail brick-and-mortar, there's going growth, lie we're the behind our new and energy, There's but not again then Andrew, of pillars any resources,

Sanjay Singh

Okay.

plan what add we to would add what in pandemic I just the especially that, in mentioned, Gary to so what the and addition in discovered global And the months, XX seeing just is the to in we years. be have last are will momentum. that is what couple channel, patterns. of omni-channel. not change buying And that's The It's one our it's next focus for board and across the

Andrew Shapiro

think, on site. of the rolling I strategy, maybe integrated first this, introduction smart out products your and you're with that And the

roll the expanded up it what you rolled introduced the to products the or out action just Neon bricks the and of those about that action like long matter bricks you've work? how So triple it into mortars it? retailers? in Is Is then colors, packaging, the of various mortars Neon timing the for the stun stun, triple -- digital is at first your rollout the quarters be then seasonality months a placement? be what's in the in Neon other would channels? Action And seeing does How and Triple of and the And and that time? your of

Gary Medved

deep that started a September. go this into summer brick-and-mortar Their rollouts, the each from has calendar Andrew, different planogram and or resets August retail will are review our also their the And Yes, own like okay? on other. it already year, category calendar, itself

something's meeting in. manager for tell to So terms rate, a of with. time ranking we It product, else's in can retailers and new volume okay, got in correlate website, that present to to volume, there. have decision, they that ours to all with whoever them unit we're data, the got what just these a something like of the in products vacate buyer, of are, hook you conversion go our show you visitors get out category launch to I and would is come when we come somebody dollar means sales that our is to website we number to this any on Their can

as every going we'd They of process it. as is much next retailer spring to it. There's So like we say, to to go year, a we're that have see that selling through.

to give them updates. continue We

think data. then I the on

the Dan and Perella keeping managers. Director phenomenal category contact buyers with sales in all here, a Our job does us,

volume feeding This the seeing. sales now. whatever So information and okay, is keeping and he's constantly we're is what them, unit to of abreast them it

information So by hopefully, time. them, shown they've decision already them and time got we them to first with have than rather of it the wealth make for meeting just our to review then an easier a for it's

of and further doing for show opportunity be process. an always a brick-and-mortar we're couple is that and could to we prototypes like a and the It's to now see So drip them reaching point, a them on it ongoing just be in on process retail basis. to stay at out made going with it be zoom first. a And and to to constantly items, it, them of call retailers new I'll them to and it get information

our is. thinking where Here's

we're the three date. six and months prototypes ago. innovations it They'll heard just up ago. to weeks. the rendering few them in months Here's here about keep They next They saw see bringing

that So going that's our filled process. to products. out got convinced pipeline strongly just And keep going keep to I'm it's and producing new pay We forward.

Andrew Shapiro

your product expanded the you it lot that share gaining makes Is is when get hook in when Is or is feel you're Mace Or looks. it the goes these it market something Do comes out, comes competitor getting aisle out? Well, a bigger? in being that out? suit the product a sense. comes certainly you of and

Gary Medved

in points non category. alarms, want the I Well, really and presentation to I of all grow as pepper me slopping anybody -- spray, been that years our Whether larger, want we it's that I devices, I'm hit for to on the commercial. get if interested these who's our our calls spend product intra-State a the to to want not two knows our listening

somebody we personal we that to nothing in has but can if it a that -- hanging competitor an to better has for with there retail will next need item us if to right point, can non it Now that do or serve they're safety, us.

anybody would overall it replace the the So one. then -- that, the that the a cannibalize retail of back goal add, to not on brick-and-mortar replacing to us I number our our Mace be I side if competitor. is to to our product, expand products, And product, goal going on want is footprint

It's see line retail we're that is where we're customer-centric in we And not here. keeping thinking We're mind them the that's come mind, product It keeping this same. it's forward, to said, being the user. are it's because consumer that end that the different. or different. extensions So And value adds just to in. new, strongly things wants going doing the

Some and today, it. looking of about excited the we're is than there what's out different stuff at we're

again. all So it sits

Andrew Shapiro

sense, just makes twist make on goals I sense. want question it. to that strategy guess your slight on Yes, lean I one your just

to better? with and competitors? you this been continuing. words, aisle have it gaining you've growth You've go in -- in that expanded reporting? swapping has that products have curious the I'm Or been far new is, year, that to Have been What growth want you had the reported? and/or it's great been on your with present you own growth been In this have what it, but so know has experienced other you selling share that has has already

Gary Medved

I I more for of a extensions, number the retailers being to at one line think that look that, and them, indicator our of it are okay? in major will be and added, it new couple week. Micro clip had strip at Product point its well last and We mentioned if items go doing stores. extremely expanding they're one I almost with X,XXX conference LD

for okay? you. doing with of game. in the well. products doing the in is is mind price the our Then marked very So strip auto set, And come that in that keep is click that not did product continually Those planogram well. existing an its story in They at the are

Andrew Shapiro

you for So is aisle the least at now? expanded for

Gary Medved

retailer, taking in They're of anything items and summer. this adding two adding there, presence in more a nice national out. items. automotive a we've not And They're they're is a Yes. couple later got

I us makes of like go say, Andrew, category for is and the hey, where, number the it said, to to to at here out point, items. So goal X build sense some got you

have And years destination environment that anybody that's in, That's something You strongly year personal build a that everything people category. say today. I and been these personal or represents the probably a It last how is note. calls critical me safety, into focus. this let's believe has heard the the is us ultimate two told on nonlethal safety for

its innovation with forward. brand the of a role So key Mace play that I brand recognition going going in history and to think is

Andrew Shapiro

addition folks well. as the other in Andrew, for Yes,

I think, And months. the And the and of one in of believe industry initiatives. to certainly other to don't it's change don't awareness has overall, the personal bigger. going raise again, -- our we in goals innovation with last the personal safety wallet safety got standards also XX our -- increased I and think so the we is

we're yes, wallets we new are seeing getting So bigger. some seeing penetration, also the but

Operator

Reyes. Your question from Ray next comes

open. is line Your

Unidentified Analyst

Congratulations great product. follow quarter. new question on on the last just I that to on to wanted the

Let's gun, just the take stun for example.

from discussed other potential Amazon? the So retail. brick-and-mortar as to What for time line time website about your channels such going online the you for line

Gary Medved

-- let's Amazon second. for a cheer other Well,

they're present They of period which be partners, we're to brick-and-mortar product to typically and Dot-com add coming see is like period. as giving to that we're they the products test other.com opportunity. to that the kind a these well new Our and and retailers. dotcom going in ones will a adding they got words partners just a want sell, months. opportunity test us products couple hate here how It's adding with strong have the is a presence, of well

them and seller content they to they they them, a down and essentially they question, going we your or our got control post everything. vendor they're want can best So component. pricing Coming on products if the central, the get sell central Then everything. do and sell a and central back

that bidding be forward. the point want that's and product keep our strategy phase, to at especially what going more So all control and can, war feed ourselves. to We so not with disciplined, Central, introduction mace.com. going statistics retail mace.com, be those our so year and The the brick a you're into launch all brick-and-mortar two price we the food or keep to new pricing, going is get to channels, stores. the buyers forward going Seller and product the is to the their new the different mortar.com Seller a continually And gathering much product we strategy can products to data to deliberate and going see for performance where Central, and over forth, approach margin in first to the we to

I lot we and nature. things can the of a said, and as data the the advantage planogram brick-and-mortar only a simply there's increase because revenue. one-time get quicker dot-com that than in some meantime, take the process So a of But year we here, resets valuable and can

Unidentified Analyst

Right. Right.

to page, of presence your that now, on Because only I expect your Now of know or with particularly you do situation when seller Amazon, at you bottom right how and in the in. it's you category forward, would controlled competitor, the that items Amazon, the change, go be by dominated terms page is two you want have going primarily the right? into one

Gary Medved

us not Amazon but quite that's much have performance, and in Amazon, our monitor vendor the the it's essentially the performance than much, we at the our past. quite Well, look topic a just of a Amazon, That consumer. better seller, whatever of a on our okay, a into doing at And at you or that and to much, you often being POS to we in Amazon, bit. sure can't you bit. just go you central go from terms tell said, or we're how product, changed hears up page I'm just category from today be

to the there. out us put a heavy we a and feedback seller that and get as and opportunity item under give promoted So central everything reviews new will it

as for strategy a have We well. that different

going So I us. help overall, it's to think

powerful leveraging get than and quicker. past. of marketplace. we're greater the that back products launch others branding in recognition a all have, get overall, weight think the a I we way lot much that in new makes to have in we're brand going again, carry don't And that to to The the continues

Unidentified Analyst

Okay.

gun Now your product? how stun TASER'S to does compared

Gary Medved

are is TASER, of different the brand, which with electrodes. Those type wires the a Well, product. it's completely a

Unidentified Analyst

but have It's gun combo. stun stun product did a as No, like gun now they a well. flashlight

Gary Medved

too to compare not I'm with that. familiar the Yes. two. enough Not

As guns, out the when one. that okay, you stun know, put Stun we carries even Mace are only we a line There of whole multiple guns have.

So I'd to see comparison. have it

Unidentified Analyst

was Because it I seems TASER's like due not long well out. diligence was this website, and that stuff sold it doing on and all ago,

the it's popular -- And one item. -- there's gun average so high-power -- just spray you clearly, because a It's distance assuming bear that, I then a your is that well? stun think further a the there finally, than question humans the a against And I'm is power on in I could the markets. as self that distance good is new product higher comparable. have the with defense get given

Gary Medved

damage go We and that The human much range, a don't close one. pressure being. some recommend in that number contents one, for you to under distance higher can retina it's humans. Number to different, are do

So, we be to on item beings. do on human an not promote being should used human be it on ever used nor that as

and I rate of incapacitate attacker bear use you XX think to for minutes need have that plenty don't the our spray, right? gels a an to pepper sprays

Operator

question next comes Your Marolia. from Vijay

line is Your open.

Vijay Marolia

you can last of statements couple the talking especially update, notes me Page the quick and about allowance? total the the a XX sentences valuation NOL, of give about

Mike Weisbarth

I our out near that yes, utilization to layered -- don't are and is any these And future be these as we guess NOLs have of that business there we continue bygone pretax Thanks. Vijay, in those of the grow it's years. in timing them able this. generated take that we obviously, our the Yes. expiring foresee to and of were a our Yes, I'll NOLs we'll income. utilize

Vijay Marolia

What's of the NOL Perfect. Okay. current the total what? value is

Mike Weisbarth

little million. over $XX A

Operator

Your comes Steven from question Charlie. next

is open. line Your

Unidentified Analyst

issue pepper issue? sold So a Is that been check out noticed times. Strobe demand the I've website with a of a out, has supply LED things I speaking every gun sold day, but don't your number or that of

Gary Medved

Well, And we of way inventory, purchases, on of mace.com alignment. don't will the certain when of that okay, here building, first website, for the any a inventory mean just our we means all, have doesn't we okay? units because position plant, that allocate number that of the at

anytime products product of safety, stock. too that months soon. refreshing we're clearly, is rolling units going by Unfortunately, get have on for demand mind in looking valve components we cleared of been up in. QX. that a have question, keeping here. be they'll The out in minutes chain we created, products, on We So the ago, probably it. and those at the in in away a units. cans, that cans the now, itself the overall because been the gun it's so we're the two-pronged a demand shift it came that. The personal late, on impacted didn't and there And end thing just just tough huge this the -- has supply constantly happen use came you components seismic mentioned The we not bigger disruptions QX, consumer. get badging nine our supply, in to through been these but of there's going that it's some the as of Sanjay the there's now top believe to few think has now. technology go a the we going awareness that thinking block pedal-to-the-metal the last And of been the But between month right in on One for now to

that weather of retailers across increasing that And the and to related, caused demand all retailers look forward -- then of and shut at the COVID lot were some it's orders. a back. back with you in Texas going when because then driving a supply that's they And huge down board. came few So whether demand the chain and weeks even disruptions,

that contributed there's about big a events there that. out demand so, to have mistake there. no make are And myriad But

the and we Ponzi the and out hiccup are together website. any For so. that see supply chain or week to products in looking we you and you here But getting what on speak the see, the forward would is in remedies our as all next alleviated why

Unidentified Analyst

good. putting thought look sounds can laser on Have cheap it about It intimidating? a that you very

Gary Medved

comment. No

Operator

comes next Our Brad Chao. question from

line Your open. is

Unidentified Analyst

and congratulations, now just best can feel the do for Because fourth Mace? expanding that color plan like I'm an I have the right like on now, Gary market. guys on, some amazing quarter. in you team, volume things any you the -- you the like investment give the community curious like secret kept have guys we Michael,

Gary Medved

Expanding volume? the

Unidentified Analyst

whatnot? conferences doing or or talking funds more more Yes, maybe

Gary Medved

events with IR more results it's there. community. touches earnings as to one It's but we will. conference six investment and time our the investment this in it determined if haven't mid-May, conferences the -- community felt that keep in the More every and well this almost been and conferences, us between exciting is as than our we did Well, we We year, in five year. want coming one past, nine to you in been weeks, like the make everybody, for out schedule have five final the news fresh done the more to and the yet, on five that's website before next and calls the pointing day

Any any and number time did we takes And if call, these answer, move that is earnings same now, be this the can to of are these amount will good is to what you last when right conferences the can doing then the we each for felt number. we're because I year. one we we just can the bigger held of listed We year is At questions conferences -- answer. can going a people fair around was in as think virtual questions also. same going addition, veil five imagine, and can. So the be in-person we to answer a And hit isn't the thing. and prep

map So that's kind of like our road now. right

Unidentified Analyst

sure. schedule out you what, Well, last know huge. And that coming month was

I think that, going visibility for really provide people. that's to some

I huge do. step think I forward, a that really was guys.

Operator

Andrew question next Shapiro. Your comes from

Andrew Shapiro

The I number, NOL. to quarter tax gross use on tax think had XX tax pretax you is last follow-ups, NOL A right off, And million I when you tax now you few an shield-able first that the over answer $XX million? the NOL, gave the be your income it. $XX clear want to million of amount is Vijay just Mike, affecting because

Mike Weisbarth

just where Absolutely, tax disclose of because into would and that we $XX translate the cash going I savings it savings. Vijay was Andrew, and potential but with that's million thought NOL, what to did

Andrew Shapiro

-- but tax rate if valuation rises, amount the when the corporate the rises. tax rate Yes, and

wondering what shield it. I So was the pretax income

So over it's $XX million.

that's So underneath clarification, my from you eye. I that watchful -- just wanted advantage if

Mike Weisbarth

No.

Andrew Shapiro

and I'm Next in you it had the presentation orders for it at slide is on -- on past. or JAS you that on your sure the time no there's yet that. XX question would of trying what ongoing But the slide and DMA. incoming of to at you LD was is like right, what spike a called good calendar X this like, call bottom. is, your the today's opportunity Micro, orders? look know just was year-over-year says had don't on is it QX because right to that this define best XXXX horizon? is? far Slide pattern, inbound more it XX the also and I seems not Where part? you I This far XXX% Gary which the is And I had could, watch But I'm orders, traditional for slowdown, order the slide. which an call, understand your It's in end, the DMA if importantly, to if

Gary Medved

got I Oh, I it. in got front it me. of

clarification some on give me Let this.

down traditional what DMA to labeled all, is XX-day DMA slowdown the this a two at that's the QX in are and is. and QX, out into and third QX, okay? protests QX of higher go and two, moving of QX product QX, So quarter. as we then it's that the in First or and with XX social box number lock Number season right, fourth apply in retailers QX That reference So is typically QX bringing typically back-to-school is quarter slowdown. taking okay? out average, yellow back

we shipments. quarter fourth not see wants end mostly slowdown nobody see orders start is -- then the the be This holding retailers incoming the in obviously, these of because, to holidays, -- we are at to roll the now inventory we And year. a remember, So orders. and past as but brick-and-mortar

of the It first the scheduled see December. of second which end, up weeks the December happen the half the again typically starts you pickup maybe So for year. at three us, deliveries for of are those picking because

mentioned. of So that I kind is what

Andrew Shapiro

XXX% the fourth Not is prior what XXX% versus the year? of end seeing we're up that right at that quarter

Gary Medved

said, this So zero So the orders we zero at it is be what so will zero last then average in is okay? XX/XX. this X is pattern numbers, chart represents started the incoming line our So here. zero, months, zero our what our January one year, XX-day from I to and quarter moving incoming normal -- line set XX of and where now QX you is that one in okay? And line were order start, is on for average okay, goes this the typical that typically averaging, a I that year,

judge So to that. I'm just on going everything

box. a like Andrew, you when what do, full is to that have So look plus you see yellow at XXX%,

Andrew Shapiro

yellow XX%, on XX% Sure. quarter, that at year average higher. prior We're higher to it That full than Box is substantially for XX%, looking prior higher. what primarily maybe is

Gary Medved

truer in social pretty that's how as into you're on look gives reality, look, of it and to and much box you you not to number, we'd have thing protest, peak going you yellow dollars, always often lockdowns a right? is, like And okay? look what Box of one lock-down week that social as like okay, absence the average that's that's So of protest. -- this first yellow is, going So if think that at

to that Now okay. point,

QX, last blocks, year, forth. goal QX QX to, of absolute and because they road numbers those yellow so they'll in Our slower may be year, be than higher is this down than the QX but year, next QX

Andrew Shapiro

are -- So you, to trying -- I'm just to to sorry get orders the interrupt to or the I'm something. that year resolution

revenues in of So some XX% that When this QX is not other it, at to these if for so just look ships, the indication these they're XX% are orders. when? visually, booked quarter, until words, we orders, as They're this call closed?

Gary Medved

I you want. can't say that, as you can what decipher

Andrew Shapiro

can of you timing. me like But kind tell the

have how cycle you match especially book end you shipping revenue to these right your is come long in, orders at don't there, these orders? correct? ship, until the So And

Gary Medved

a XX. We We they've orders could can out have are that been three-month period. in laid have shipped orders that April over in coming until coming

orders have five coming to shipping days. in. We three It's

folks put will lay some orders. in they'll So late, in

the next to looking for here. than want Shipments next I advice at are in. our that what That's and shipments, are kind two quarter, you're these different why out point orders Here's incoming quarters. Those okay? of not all get

Okay?

Andrew Shapiro

yes, -- on. And the thing right. All other go

Gary Medved

going just critical keep to was orders. to us incoming to to going I is say, this machine the

Okay the shared dispel data with it, the a okay, all lot to I have I this than that's for critical point team more of this that this just executive They down the see presentation that every conference. week.

Sanjay Singh

online Andrew, your in bigger online others the in, orders, out When on ship clarity e-commerce hours, are being These piece the owners. are These of come but typically, e-commerce talked a for a call, over for XX Gary and same-day pie. just shift about smaller right? they the in orders orders. they are

would that as the that way a of cause shift pie the in a also. in also the grows, looks the shift that will -- cause value backlog is will that shippable. It moving a So cause average XX-day significant

One care grows know, that. went so just capacity it all months a ship so fast. on, of Just for backlog. in you you have sizable because that clarification. didn't a Well, so got just been we And to so year has there ago, taken your dramatic shift the the had as that it

Andrew Shapiro

the is, this that's priorities, then think, slide, Michael a following of helpful. No, I definition. your if one And quite

If of say do increased EBITDA mean by could cash -- conversion cash conversion, you you help EBITDA when to to what minimum XX%, by please? a you

Mike Weisbarth

the want that. that And to okay? we're do we EBITDA converting it's Basically, at to that cash, strong number not rate doing that

EBITDA we're XX% and we're of we And minimum. that so cash, number the amount converting is over increase saying X to by want what

in a that's what means. nutshell, So it

If XX% right you cash, cash you someone the see we to would okay? that the you especially our where not look by increase EBITDA now. of see converting EBITDA, goal from like at and we're conversion you is surmise, our first a the financials And is minimum doing, to are thing,

Andrew Shapiro

great. company that would this be be Well, that would Yes. substantial cash some for

Mike Weisbarth

one. know I yes, well, why got we Well,

is Okay. And right remember, flows cash on debt, to finance how year gets or it from take back to ago, growth our this operating is going one so and here. and not done goal

that happen. So see. in-house it's to that keep that have there and the that involved making there Especially that and parties prudent here we are feel out to for all in

Andrew Shapiro

Right.

turns. in quarter of fourth the was terms last one this steps was buildup noticed doing of a capital there of that, working higher the I So in of things

to when further some fourth and wanted norm sense. in that just current Michael? do to makes forward? be supply quarter, Now But you stuff, constraints the the is the I light we just working Where some if you level making are of improvement, going terms finish the think expect capital you see know will

Mike Weisbarth

cash thing I think are, in there. the we're as biggest excited improvement out about that's capital conversion. sitting right we have the working on Andy, a okay? balance from standpoint, terms cash bringing probably there sheet extremely the that biggest thing in more the not the of they And is So think I

a have new We director operations. of

control time. inventory getting more inventory, see lot in tighter the coming right don't quantity, don't at the we And on product, right a the have of the we control. right right out We component,

been we That And not writing in lot it want be As liquidating off do were was you years. we a in know, unused sold. I and inventories to prior repeat of purchased just could that. have ever XXXX, that --

So side the purchasing type I improvements. operational think

have have EBITDA initiatives converting to We we cash. a to we drive help a then -- underway, and of number now GT

are finance forward three together all give going us growth. going those to cash working to think greater much things of I position

Sanjay Singh

sheet, to add when where directions, was particular or you're -- unfavorable, it's to what lined points would I balance just any say, And quarter give can I favorable you that I is at looking both you're just calculations look on When going time add up end. right? difficult would skewed I in some you at

about So on that's turn the down we're mentioned. receivables, collections Gary here why driving obviously, the of focused, the as weeds and

payment exact all And everybody terms, the comes I sometimes the into customers because mix mean same right? et realities, equal. has cetera. Not just customer even that's are play just not

going the period what and it of are sales those specifically to sales So that depends made. on time are

in end month inflate can balances. quarter You or the deflate

Andrew Shapiro

Exactly.

-- going be for For there, up that like there. et new adding added you said example, something in inventory, begun? for is that? QX and would cetera, QX, you've retailers that you're When building two you'll you Or already somewhere around national your be

Sanjay Singh

our like purchased. maps anything some of are into that so be well, evolves getting goes materials as into Well, may okay, plan that scheduled, which

all into speak we plan the details it -- produced for that can't we out and what need ordered. need, is it's I is time. scheduler, at it. master Now don't what as this, in may see get one -- material necessarily time. ordered one to But doesn't in it come doesn't what of not you and to goes gets are something, accurate, when with need and the messaging know need we gets soon at it put It the so we It order I all laid

So and they're takes board. puts the across

Andrew Shapiro

doors initially two these retailers? how getting how national new And many of scale the follow? discuss you and potentially many could Can like you're

Sanjay Singh

Combined thousands, that. their -- combined, you I can thousands it's -- tell and over it's

Andrew Shapiro

doors initially? -- you're Or good then thousands be a more? and you you getting Okay. And are That's getting hear. all lot initially to could are very it their

Sanjay Singh

it Well, could but what not that of just in right up the is wind now, detail level you I know I speak initial, being. number can't I gave the

rather we -- XXX much doors retailers going work as with we're a they going got on chain because have a of everywhere would sometimes as and and doors. that with into think I lot So, attention

be So the to stand new here that's tying products innovator everybody's that -- think they recognizing shown public shift have appetite going going director the leader cultural nicely and they're in I place outstanding winning but we the together recognizing sales and taking that not power those two and are the forward. we is the and an again, or

Andrew Shapiro

and substantial you the slap again, this up products building this of Mace and to as and on growing out tying look no-name acquisition name them together channels. you're already put so this you're all innovative And Or you'd distribution and are brand the doing starting? to you brand do feel and cash through starting your when at this be building

Sanjay Singh

I have to think first. there's place a take lot of new that developments product

of again, think those and wow got I didn't categories a person's I from -- and out that. we my retailers they in lot number company, enough digital enough was the it's I off go keep multiple that In think in the forward. one you Mace rails, of that really the opportunity completely think stun just us back on pokers got Unless and that life. the ago, products, okay, terms spinning those there the is of was bringing lost we're If -- few line they're God, worth, on thing on Gels, this times, as too you've sprays, in many going multiple to fire a our I to in in heard Company and say direct-to-consumer efforts build now. alarms, touch focus. got some and busy that this track, back points to why products, Board of it's there non-legal of they product, but feel main our in right off a amount we of the the their unless And a not a And we substantial have type of -- committed going drawing Andrew, to personal me safety And items devices. the years to

Andrew Shapiro

brand. funding SG&A name lost an in you fixed the someone it whether is that this doesn't existing on Mace has XXX% into I'm the to also risk better got distribution it's into lead our of get out buy royalty channels. taking invent which have trying Mace because hell idea it's out product and but so Montana sell but and shelve existing Joe Cleveland, Mace is we the product, product brand with you with that other licensing, Well, are intimating it on interesting Inventor else that our And the of into it the you costs and you the there's internally it the again, on there, to it, than

Gary Medved

something it. look. I have We'll desk and But I right across our in across. Always do think a is And of that, again, and ideas it's an company We think this going I in I coming we what powerful a always to that everybody them saying a option. product at always plant number new hear taking and on Andrew, an option, if lot is every focused across. not this that saying, of comes we're get coming okay? I'm not that have you're we month look now get

take You want your your got to and battle put to your pick you resources. where air,

to of going that attention right and we locking it's amount I and needle, don't on focus right? We and move fixed of now, got a unless a have and lot commitment want really, derail to the resources really

Sanjay Singh

a feel that to that outside, get inside from moment, which At will But pipeline crucial comes survey if we've to our just we open done. a things PP just we personal Gary it's get consumers idea product first goal, XXXX that, want solve want. Andrew, give we to is our perspective. across Okay. our in is, Gary quarter from determined consumers allocation is truly what did an or safety, it. And our we're that have what was the add the the got to ultimate we they to of of ultimate come whether to said, of well, them right? in what the projects, resource inside terms goal what Company saying going when our of So

Gary Medved

that Rein, there, if up. you're operator? think wraps No, I it still

Operator

there's Yes, this I'm question here. further no And time.

continue. may You

Gary Medved

Okay.

joining Greatly with for going us. to forward. everyone, look your forward appreciate in you, speaking thank you we and interest Mace, So

Operator

Thank today's for call. gentlemen, Ladies this conference participating. and you concludes

You may now disconnect.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.