Universal Security Instruments Reports Fourth-Quarter and Year-End Results

Jun 23, 2010, 08:00 ET from Universal Security Instruments, Inc.

OWINGS MILLS, Md., June 23 /PRNewswire-FirstCall/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fourth quarter and fiscal year ended March 31, 2010.

Universal reported fourth quarter net income of $468,223, or $0.20 per basic and diluted share, on sales of $6,301,918.  This compares to net income of $78,150, or $0.03 per basic and diluted share, on sales of $5,928,367 for the comparable period of the previous year.  Included in last year's results was income from discontinued operations of $41,767.  

For the 12 months ended March 31, 2010, sales were $26,439,118 versus $26,097,596 for the same period last year.  The Company reported net earnings of $2,268,048 or $0.95 per basic and diluted share versus net income of $4,865,357 or $1.97 per basic and $1.96 per diluted share for the same period last year.  Included in the March 31, 2009 results was a gain of $3,423,021 from discontinued operations.  The Company's book value at March 31, 2010 has increased to $10.96 per share versus $9.95 per share at March 31, 2009.

"We are very pleased with the Company's performance during the past fiscal year, particularly in light of the challenges the economy has created. Included in our results is approximately $500,000 of research and development expenses, which we expended for new product development, and we expect to spend another $400,000-$600,000 in this fiscal year to complete the development and testing of our new product line," said Harvey Grossblatt, Chairman and CEO of Universal.

Universal previewed approximately 25 new products in May at the International Hardware Show in Las Vegas and received very positive feedback from our customers. Initial deliveries of several of these products should begin in the September time frame.

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 41 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 and 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 STATEMENT OF INCOME

(UNAUDITED)

Three Months Ended March 31,

2010

2009

Sales

$6,301,918

$5,928,367

Net income from continuing operations

468,223

36,383

Income per share from continuing operations:

   Basic

   Diluted

0.20

0.20

0.02

0.02

Gain from discontinued operations

-

41,767

Gain per share from discontinued operations:

        Basic

        Diluted

-

-

0.02

0.02

Net income

468,223

78,150

Net income per share – basic

0.20

0.03

Net income per share – diluted

0.20

0.03

Weighted average number of common shares outstanding

   Basic

   Diluted

2,387,887

2,398,927

2,421,755

2,423,323

(AUDITED)

Twelve Months Ended March 31,

2010

2009

Sales

$26,439,118

$26,097,596

Net income from continuing operations

2,268,048

1,442,336

Income per share from continuing operations:

   Basic

   Diluted

0.95

0.95

0.58

0.58

Gain from discontinued operations

-

3,423,021

Gain per share from discontinued operations:

        Basic

        Diluted

-

-

1.39

1.38

Net income

2,268,048

4,865,357

Net income per share – basic

0.95

1.97

Net income per share – diluted

0.95

1.96

Weighted average number of common shares outstanding

   Basic

   Diluted

2,387,887

2,398,300

2,466,983

2,471,807

CONSOLIDATED BALANCE SHEET

ASSETS

March 31,

2010

2009

Cash, cash equivalents and investments

$    6,255,521

$      284,030

Accounts receivable and amount due from factor

4,374,224

5,076,217

Inventory

3,439,906

8,997,231

Prepaid expenses

351,192

255,745

Current assets of discontinued operations

              -

202,565

TOTAL CURRENT ASSETS

14,420,843

14,815,788

INVESTMENT IN HONG KONG JOINT VENTURE

12,153,456

10,550,373

PROPERTY, PLANT AND EQUIPMENT – NET

199,163

251,366

OTHER ASSETS AND DEFERRED TAX ASSET

1,897,292

2,160,151

TOTAL ASSETS

$28,670,754

$27,777,678

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable and accrued expenses

$  2,162,755

$  2,761,438

Current liabilities of discontinued operations

-

202,565

Accrued liabilities

279,035

752,452

TOTAL CURRENT LIABILITIES

2,441,790

3,716,455

LONG TERM OBLIGATION

46,459

95,324

SHAREHOLDERS' EQUITY

Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,387,887 and 2,408,220 shares at March 31, 2010 and March 31, 2009, respectively

23,879

24,083

Additional paid-in capital

13,135,198

13,186,436

Retained earnings

13,023,428

10,755,380

TOTAL SHAREHOLDERS' EQUITY

26,182,505

23,965,899

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$28,670,754

$27,777,678

SOURCE Universal Security Instruments, Inc.



RELATED LINKS

http://www.universalsecurity.com