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

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OWINGS MILLS, Md., July 15, 2019 /PRNewswire/ -- Universal Security Instruments, Inc. (AMEX:UUU) today announced its financial results for the fourth quarter and its fiscal year ended March 31, 2019.

The Company reported the following for its fourth quarter and fiscal year ended March 31, 2019:

  • For the fourth quarter ended March 31, 2019, sales increased $107,225 (2.4%) to $4,523,930 from $4,416,705 from the comparable period last year. USI reported a net loss of $270,836, or $0.12 per basic and diluted share compared to a net loss of $535,926, or $0.23 per basic and diluted share for the comparable period of the previous year.
  • For the 12 months ended March 31, 2019, sales increased $2,714,851 (18.3%) to $17,588,040 versus $14,873,189 for the same period last year. The Company reported a net loss of $1,347,986, or $0.58 per basic and diluted share, versus a net loss of $2,262,310 or $0.98 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 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 2020."

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.

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"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,


2019

2018

Net sales

$4,523,930

$4,416,705

Net loss

(270,836)

(535,926)

Net loss per share – basic and diluted

(0.12)

(0.23)




Weighted average number of common shares outstanding

         Basic and diluted

 

2,312,887

 

2,312,887

                                            


(AUDITED)


Fiscal Year Ended March 31,


2019

2018

Net sales

$17,588,040

$14,873,189

Net loss  

(1,347,986)

(2,262,310)

Net loss per share – basic and diluted

(0.58)

(0.98)




Weighted average number of common shares outstanding

         Basic and diluted

 

2,312,887

 

2,312,887

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS


ASSETS



March 31,




2019

2018

Cash

$     374,472

$    128,161

Accounts receivable and amount due from factor

3,015,412

2,884,798

Inventory

6,852,305

5,491,892

Prepaid expenses

145,190

278,100

TOTAL CURRENT ASSETS

10,387,379

8,782,951




INVESTMENT IN HONG KONG JOINT VENTURE

8,441,889

10,023,275

PROPERTY AND EQUIPMENT – NET

19,998

35,585

OTHER ASSETS

57,660

62,132

TOTAL ASSETS

$18,906,926

$18,903,943




LIABILITIES AND SHAREHOLDERS' EQUITY






Line of credit - factor

$ 1,851,591

$   1,611,154

Accounts payable – Hong Kong Joint Venture

4,962,023

3,838,627

Accounts payable– Trade

616,444

 

494,253

 

Accrued liabilities

603,008

206,573

TOTAL CURRENT LIABILITIES

8,033,066

6,150,607







SHAREHOLDERS' EQUITY



Common stock, $.01 par value per share; 20,000,000 authorized, 2,312,887 shares outstanding at March 31, 2019 and 2018

 

23,129

 

23,129

Additional paid-in capital

12,885,841

12,885,841

(Accumulated Deficit) Retained earnings

(2,646,866)

(1,298,880)

Accumulated other comprehensive income

611,756

1,143,246

TOTAL SHAREHOLDERS' EQUITY

10,873,860

12,753,336

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$18,906,926

$18,903,943

 

Contact:  Harvey Grossblatt, President   
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-announces-its-fourth-quarter-and-year-end-results-300885057.html

SOURCE Universal Security Instruments, Inc.

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