2014

Universal Security Instruments Reports Third-Quarter Results

OWINGS MILLS, Md., Feb. 13, 2013 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced earnings for its third fiscal quarter ended December 31, 2012.

For the three months ended December 31, 2012, net sales were $4,753,736 as compared to net sales of $3,186,197 for the three months ended December 31, 2011, a 49% increase.  The Company reported net income of $23,257, or $0.01 per basic and diluted share for the 2012 period, compared to net income of $67,226, or $0.03 per basic and diluted share, for the same period last year.  Included in the quarter's result was a $300,000 valuation reserve for deferred taxes.

For the nine months ended December 31, 2012, net sales were $11,269,901 versus $9,695,013 for the 2011 period. The Company reported a net loss of $557,534, or $0.24 per basic and diluted share for the nine months ended December 31, 2012, compared to net loss of $242,134, or $0.10 per basic and diluted share, for the same period last year.  The primary reason for the increased loss was a $300,000 valuation reserve for deferred taxes.

"We are pleased with the sales growth achieved this quarter, primarily from our New Gen products, and with the Company's return to profitability in the third fiscal quarter.  Also, our Hong Kong Joint Venture's net sales and net income grew during the third fiscal quarter; both sequentially and from the comparable quarter," said Harvey Grossblatt, CEO of Universal.

The Company further reported that it has purchased 12,000 shares of stock under its Stock Repurchase Plan. The total buyback to date is 87,128 shares at an average price of $5.17. The company's book value was $11.12 at December 31, 2012, compared to $11.26 at December 31, 2011.

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 December 31,


2012

2011

Sales

$ 4,753,736

$ 3,186,197

Net  income

23,257

67,226

Income per share:

         Basic

 

0.01

 

0.03

         Diluted

0.01

0.03

Weighted average number of common shares outstanding:

         Basic

 

2,310,672

 

2,377,211

         Diluted

2,314,338

2,383,093

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS


    Nine Months Ended December 31,


2012

2011

Sales

$ 11,269,901

$   9,695,013

Net (loss)

(557,534)

(242,134)

(Loss) per share:

         Basic        

(0.24)

(0.10)

         Diluted

(0.24)

(0.10)

Weighted average number of common shares outstanding:

         Basic        

2,317,315

2,384,315

         Diluted

2,317,315

2,384,315

 

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS



December 31, 2012

December 31, 2011

Cash and investments

$   2,544,011

$  4,728,238

Accounts receivable and amount due from factor

2,461,472

2,200,490

Inventory

4,901,441

4,928,140

Prepaid expenses

430,210

481,429

TOTAL CURRENT ASSETS

10,337,134

12,338,297




INVESTMENT IN HONG KONG JOINT VENTURE

13,481,034

13,256,930

PROPERTY, PLANT AND EQUIPMENT – NET

236,152

263,834

OTHER ASSETS AND DEFERRED TAX ASSET - NET

2,387,081

2,194,901

TOTAL ASSETS

$26,441,401

$28,053,962




LIABILITIES AND SHAREHOLDERS' EQUITY



Accounts payable and accrued expenses

$     670,053

$   1,223,034

Accrued liabilities

161,610

153,940

TOTAL CURRENT LIABILITIES

831,663

1,376,974




LONG TERM OBLIGATION

25,000

25,000




SHAREHOLDERS' EQUITY:



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

      shares; issued and outstanding 2,300,759 and 2,366,848 at       December 31, 2012 and December 31, 2011, respectively

 

 

23,008

 

 

23,668

Additional paid-in capital

12,781,343

13,029,245

Retained earnings

12,780,387

13,599,075

TOTAL SHAREHOLDERS' EQUITY

25,584,738

26,651,988




TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$26,441,401

$28,053,962

 

SOURCE Universal Security Instruments, Inc.



RELATED LINKS
http://www.universalsecurity.com

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