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Universal Security Instruments Reports First-Quarter Results

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Universal Security Instruments Reports First-Quarter Results

PR Newswire

OWINGS MILLS, Md., Aug. 20, 2018 /PRNewswire/ -- Universal Security Instruments, Inc. (AMEX:UUU) today announced results for its fiscal quarter ended June 30, 2018.

The Company reported sales rose approximately 22% to $4,045,996 for the quarter ended June 30, 2018 versus $3,318,237 for the comparable period of last year.  The Company reported a net loss of $438,833, or $0.19 per basic and diluted share, compared to a net loss of $543,663 or $0.24 per basic and diluted share, for the same period last year.

"Our pattern of higher sales has continued into the June quarter and we are anticipating this trend to continue. We do not know, at this time, what affect, if any, the new tariffs imposed by the Trump Administration on Chinese products will have on the Company.  To date, only our ground fault circuit interrupters, which constitute only a small portion of our sales, have been included in products subject to the new tariffs, and the next group of tariffs are expected to be announced at the end of September.  We are monitoring the tariff situation and once the final list is issued  we will determine the strategies to follow," said Harvey Grossblatt, President and CEO.

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 an over 48-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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)



Three Months Ended June 30,


2018


2017

Sales

$4,045,996


$3,318,237





Net loss:

(438,833)


(543,663)

       Net loss per share – basic and diluted    

(0.19)


(0.24)









Weighted average number of common shares outstanding:

       Basic and diluted

2,312,887


2,312,887

 

 

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


ASSETS



June 30, 2018


June 30, 2017

Cash

$77,072


$246,508





Accounts receivable and amount due from factor

2,551,794


2,572,396

Inventory

5,863,773


4,424,193

Prepaid expense

223,856


519,882





TOTAL CURRENT ASSETS

8,716,495


7,762,979





INVESTMENT IN HONG KONG JOINT VENTURE

9,390,105


10,526,794

PROPERTY, EQUIPMENT AND INTANGIBLE ASSET– NET

86,625


114,974

OTHER ASSETS

4,000


4,000

TOTAL ASSETS

$18,197,225


$18,408,747



LIABILITIES AND SHAREHOLDERS' EQUITY








Line of credit - factor

$1,204,399


$1,727,836

Accounts payable and accrued expenses

4,946,391


2,729,271

Accrued liabilities

120,702


110,978

TOTAL CURRENT LIABILITIES

6,271,492


4,568,085

 

LONG TERM OBLIGATION

 

-


 

-

 

SHAREHOLDERS' EQUITY:




       Common stock, $.01 par value per share; authorized

       20,000,000 shares; issued and outstanding 2,312,887 
       at June 30, 2018 and 2017 

23,129


 

23,129

Additional paid-in capital

12,885,841


12,885,841

(Accumulated Deficit) Retained earnings

(1,737,713)


419,767

Accumulated other comprehensive income

754,476


511,925

TOTAL SHAREHOLDERS' EQUITY

11,925,733


13,840,662

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$18,197,225


$18,408,747

 

 

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SOURCE Universal Security Instruments, Inc.

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