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Universal Security Instruments Announces its Fourth-Quarter and Year-End Results

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Universal Security Instruments Announces its Fourth-Quarter and Year-End Results

PR Newswire

OWINGS MILLS, Md., July 16, 2018 /PRNewswire/ -- Universal Security Instruments, Inc. (AMEX:UUU) today announced its financial results for the 4th quarter and its fiscal year ended March 31, 2018.

The Company reported the following for its fourth quarter and fiscal year ended March 31, 2018:

  • For the fourth quarter ended March 31, 2018, sales increased approximately 26% to $4,416,705 from $3,513,484 from the comparable period last year. USI reported a net loss of $535,926, or $0.23 per basic and diluted share compared to a net loss of $1,055,351, or $0.45 per basic and diluted share for the comparable period of the previous year.
  • For the 12 months ended March 31, 2018, sales increased 5.6% to $14,873,189 versus $14,083,428 for the same period last year.  The Company reported a net loss of $2,262,310, or $0.98 per basic and diluted share, versus a net loss of $2,058,902, or $0.89 per basic and diluted share, for the same period last year. 

Harvey Grossblatt, President and Chief Executive Officer said, "We are starting to see improvement in our domestic operations with the 26% sales increase in the fourth quarter.  However, our Hong Kong Joint Venture continues to lose money and we have decided to close our Nan'an factory and move the production into our Fujian factory. The Nan'an facility has been listed for sale or lease. We have also added new retail customers and expect the improving sales trend to continue throughout fiscal 2019."

11407 CRONHILL DRIVE, SUITE A • OWINGS MILLS, MARYLAND 21117, USA
 (410) 363-3000  •  www.universalsecurity.com

UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based manufacturer (through its Hong Kong Joint Venture) and distributor of safety and security devices. Founded in 1969, the Company has a 47 year heritage of developing innovative and easy-to-install products, including smoke, fire and carbon monoxide alarms. For more information on Universal Security Instruments, visit our website at www.universalsecurity.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain matters discussed in this news release may constitute forward-looking statements within the meaning of the federal securities laws that inherently include certain risks and uncertainties.  Actual results could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, among other items, our Hong Kong Joint Venture's respective ability to maintain operating profitability, currency fluctuations, the impact of current and future laws and governmental regulations affecting us and our Hong Kong Joint Venture and other factors which may be identified from time to time in our Securities and Exchange Commission filings and other public announcements.  We do not undertake and specifically disclaim any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements.  We will revise our outlook from time to time and frequently will not disclose such revisions publicly.

    

UNIVERSAL SECURITY INSTRUMENTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




(UNAUDITED)


Three Months Ended March 31,


2018

2017

Net sales

$4,416,705

$3,513,484

Net loss

(535,926)

(1,055,351)

Net loss per share – basic and diluted

(0.23)

(0.45)




Weighted average number of common shares outstanding

         Basic and diluted

 

2,312,887

 

2,312,887











(AUDITED)


Fiscal Year Ended March 31,


2018

2017

Net sales

$14,873,189

$14,083,428

Net loss  

(2,262,310)

(2,058,902)

Net loss per share – basic and diluted

(0.98)

(0.89)




Weighted average number of common shares outstanding

         Basic and diluted

 

2,312,887

 

2,312,887

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS



ASSETS



March 31,


2018

2017

Cash

$     128,161

$    262,355

Accounts receivable and amount due from factor

2,884,798

2,257,152

Inventory

5,491,892

4,700,104

Prepaid expenses

278,100

491,928

TOTAL CURRENT ASSETS

8,782,951

7,711,539




INVESTMENT IN HONG KONG JOINT VENTURE

10,023,275

10,562,837

PROPERTY AND EQUIPMENT – NET

35,585

46,293

OTHER ASSETS

62,132

66,604

TOTAL ASSETS

$18,903,943

$18,387,273




LIABILITIES AND SHAREHOLDERS' EQUITY






Line of credit - factor

$ 1,611,154

$   2,264,125

Accounts payable – Hong Kong Joint Venture

3,838,627

1,206,731

Accounts payable– Trade

494,253

525,638

Accrued liabilities

206,573

158,521

TOTAL CURRENT LIABILITIES

6,150,607

4,155,015







SHAREHOLDERS' EQUITY



Common stock, $.01 par value per share; 20,000,000 authorized, 2,312,887
shares outstanding at March 31, 2018 and 2017

 

23,129

 

23,129

Additional paid-in capital

12,885,841

12,885,841

(Accumulated Deficit) Retained earnings

(1,298,880)

963,430

Accumulated other comprehensive income

1,143,246

359,858

TOTAL SHAREHOLDERS' EQUITY

12,753,336

14,232,258

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$18,903,943

$18,387,273

 

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SOURCE Universal Security Instruments, Inc.

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