CLEVELAND, OH / ACCESSWIRE / November 14, 2024 / Mace Security International (OTCQB:MACE) today announced its September 30, 2024 Unaudited Financial Statements and Notes and 2024 Q3 OTCQB Quarterly Report cannot be filed within the prescribed date because the Company requires additional time to prepare its financial statements and quarterly reports. The Company anticipates filing these two reports before the end of the cure period under the OTCQB Standards on December 30, 2024. The Company presents its preliminary third quarter 2024 financial results for the period ended September 30, 2024.
Third Quarter 2024 Preliminary Data
The Company's net sales for the third quarter of 2024 were $1,411,000, down (6%) versus the like period in 2023. The decrease vs prior year is mostly the result of the impact of the loss of two larger retail customers in 2024, partially offset by nominal increases in sales in certain market segments.
Gross profit rate is estimated to be 23.1% in Q3 2024 and was 30% 2023. The modifications implemented to the Company's operational cost structure in 2023 led to an approximate 29% reduction in four-wall manufacturing costs in Q3 2024 on a quarter-over-quarter basis. This gross margin improvement was offset by the impact of volume leverage in the plant and inflationary increases in component costs.
SG&A expense are approximately $961,000 in Q3 2024. When adjusted for non-recurring legal expenses related primarily to the ongoing strategic alternatives project and resulting recently announced merger agreement and financing costs of $72,000, and expenses related primarily to transition payroll/temporary labor costs associated with the Company optimizing its headcount of $96,000, and non-cash stock compensation costs of $28,000, SG&A expense are approximately $765,000 in the third quarter 2024 or about $348,000 (6%) lower than adjusted SG&A expense in the second quarter of 2023 of $813,000.
Operating loss is expected to be ($635,000) in the third quarter of 2024, compared with operating loss of ($644,000) for the same quarter in 2023.
Cash and cash equivalents decreased to $1,000 as of September 30, 2024, a decrease of $238,000 over the $239,000 on hand on December 31, 2023. $1,209,000 was drawn against the Company's $2,000,000 bank line of credit at September 30, 2024.
About Mace Security International, Inc.
Mace® Security International, Inc. (MACE) is a globally recognized leader in personal safety and security. Based in Cleveland, Ohio, the Company has spent more than 40 years designing and manufacturing consumer and tactical products for personal defense and security under its world-renowned Mace® Brand - the original trusted brand of defense spray products. The Company also offers aerosol defense sprays and tactical products for law enforcement and security professionals worldwide through its Mace® Take Down® brand, KUROS!® Brand personal safety products, Vigilant® Brand alarms, and Tornado® Brand pepper spray and stun guns. MACE® distributes and supports Mace® Brand products through mass market retailers, wholesale distributors, independent dealers, Amazon.com, Mace.com, and other channels. For more information, visit www.mace.com.
Forward-Looking Statements
Certain statements and information included in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "projected," "intend to" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to several known and unknown risks and uncertainties that may cause our actual results, trends, performance or achievements, or industry trends and results, to differ materially from the future results, trends, performance, or achievements expressed or implied by such forward-looking statements. Those risks and uncertainties may include, but are not limited to, (a) general economic and business conditions, including the impact of the COVID-19 pandemic and other possible pandemics and similar outbreaks; (b) competition; (c) potential changes in customer spending; (d) acceptance of our product offerings and designs; (e) the variability of consumer spending resulting from changes in domestic economic activity; (f) a highly promotional retail environment; (g) any significant variations between actual amounts and the amounts estimated for those matters identified as our critical accounting estimates, as well as other significant accounting estimates made in the preparation of our financial statements; (h) the impact of current and potential hostilities in various parts of the world, including but not limited to the war which resulted from Russia's invasion of Ukraine, as well as other geopolitical or public health concerns; (i) the impact of international supply chain disruptions and delays; (j) the impact on the Company of changes in U.S. Federal and State income tax regulations; (k) the impact of inflation and the ability of the Company to pass on rising prices to its customers and (l) the ability of the Company to close the Agreement and Plan of Merger dated October 12, 2024. You are urged to consider all such factors. Because of the uncertainty inherent in such forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. Mace Security International, Inc. assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.
Contact:
Investor Relations
InvestorRelations@mace.com
SOURCE: Mace Security International, Inc.
View the original press release on accesswire.com
