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Universal Security Instruments Reports Second-Quarter Results

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OWINGS MILLS, Md., Nov. 19, 2018 /PRNewswire/ -- Universal Security Instruments, Inc. (AMEX:UUU) today announced results for its fiscal second quarter ended September 30, 2018.

For the three months ended September 30, 2018, sales rose approximately 26% to $4,526,252 compared to sales of $3,582,816 for the same period last year.   The Company reported a net loss of $121,324, or $0.05 per basic and diluted share, compared to a net loss of $167,925 or $0.07 per basic and diluted share for the same period last year. 

For the six months ended September 30, 2018, sales rose approximately 24% to $8,572,248 versus $6,901,053 for the same period last year.  The Company reported a net loss of $560,157, or $0.24 per basic and diluted share, compared to a net loss of $711,588 or $0.31, per basic and diluted share for the corresponding 2017 period.

"We are very pleased that our trend of higher sales has continued for the last four quarters and we are anticipating this favorable trend will continue moving forward. We are also gratified that the Company reported operating income for both the three-month and six-month periods. While our Hong Kong Joint Venture continues to experience weaker sales, we are working with our Chinese partners to reduce the Joint Venture's losses.  The new tariffs imposed by the Trump administration affect our ground fault circuit interrupters, carbon monoxide alarms and photoelectric alarms which are manufactured in the Peoples Republic of China. We are currently developing marketing and sales strategies to reduce the impact of these tariff increases on our customers," 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 40-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

September 30,


2018


2017

Sales

$4,526,252


$3,582,816

Net loss

(121,324)


(167,925)

Loss per share:




        Basic and diluted

$      (0.05)


$     (0.07)

Weighted average number of common shares outstanding:

         Basic and diluted

 

2,312,887


 

2,312,887


 

Six Months Ended September 30,


2018


2017

Sales

$  8,572,248


$ 6,901,053

Net loss

(560,157)


(711,588)

Loss per share:




        Basic and diluted

$         (0.24)


$        (0.31)

 

Weighted average number of common shares outstanding:

         Basic and diluted

2,312,887


2,312,887

                   

CONDENSED CONSOLIDATED BALANCE SHEETS – (UNAUDITED)



ASSETS



September 30,


2018


2017

Cash

$      13,067


$    257,637

Accounts receivable and amount due from factor

2,880,142


2,284,565

Inventory

6,673,098


5,851,393

Prepaid expenses

263,265


291,476

TOTAL CURRENT ASSETS

9,829,572


8,685,071





INVESTMENT IN HONG KONG JOINT VENTURE

9,025,865


10,638,820

PROPERTY,  EQUIPMENT, AND INTANGIBLE ASSET – NET

79,179


109,123

OTHER ASSETS

4,000


4,000

TOTAL ASSETS

$18,938,616


$19,437,014





LIABILITIES AND SHAREHOLDERS' EQUITY








Line of credit - factor

$ 1,546,847


$1,046,749

Accounts payable

5,544,959


4,488,308

Accrued liabilities

142,245


127,183

TOTAL CURRENT LIABILITIES

7,234,051


5,662,240





COMMITMENTS AND CONTINGENCIES

-


-





SHAREHOLDERS' EQUITY




   Common stock, $.01 par value per share; authorized 20,000,000

   shares; issued and outstanding 2,312,887 at September 30, 2018 and

   2017 

23,129


23,129

Additional paid-in capital

12,885,841


12,885,841

(Accumulated Deficit) Retained earnings

(1,859,037)


251,842

Accumulated other comprehensive income

654,632


613,962

TOTAL SHAREHOLDERS' EQUITY

11,704,565


13,774,774

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$18,938,616


$19,437,014

 

Contact:  Harvey Grossblatt, CEO   
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
or
Don Hunt, Jeff Lambert
Lambert, Edwards & Associates, Inc.
616-233-0500

Cision View original content:http://www.prnewswire.com/news-releases/universal-security-instruments-reports-second-quarter-results-300752934.html

SOURCE Universal Security Instruments, Inc.

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