Company Website: http://www.mace.com
SOLON, Ohio -- (Business Wire)

Mace Security International, Inc. ("Mace" or the “Company”) (Pink Sheets: MACE) today announced unaudited results for the three months ended and year ended December 31, 2012. Fourth quarter 2012 revenues were $3.2 million compared to $3.3 million for the same period in 2011. The fourth quarter revenues were slightly below the prior year due to a $285,000 decline in electronic surveillance products which was offset by $194,000 increase in personal defense and aerosol products and a nominal increase in revenue from our wholesale security and monitoring business. Net loss from continuing operations for the fourth quarter was $1.3 million or $0.02 per share compared to a net loss from continuing operations of $0.4 million or $0.01 per share, in the prior year quarter.

Revenues for the year ended December 31, 2012 were $13.0 million compared to $13.9 million, a decrease of $0.9 million or 6.5% versus prior year revenues. Net loss from continuing operations for the year was $3.3 million or $0.06 per share, a $1.2 million or 26.7% improvement over the prior year loss from continuing operations of $4.5 million or $0.13 per share.

John McCann, President and CEO of Mace, commented “The fourth quarter results reflect significant investments and one-time charges as Mace positions itself for the future. We made investments in research, product development, and brand identification which will pay dividends for the brand. The Company also incurred legal fees connected to regulatory issues with the United States EPA. Mace also incurred additional one-time charges related to the consolidation of operations which negatively impacted the fourth quarter but positioned Mace to run a leaner more efficient operation in the future”. Mr. McCann added “results at this point are still unaudited as Mace decided to save significant dollars by conducting the audit later in the year.”

Fourth Quarter 2012Highlights

• Closed the corporate office in Horsham, PA and an office in Walnut Creek, CA further reducing facility and payroll costs already recognized with the closures and consolidation of the Texas and Florida operations.
• Successful sales efforts to place product at two major consumer outlets contributed to an overall 12% increase in Pepper Spray sales for the quarter.
• Hired Troy Bruce as Director of Sales for Mace CSSS, Inc, our wholesale security and monitoring company. Mr. Bruce has an extensive background in the security industry including positions with Honeywell, ADI and ADT, and knowledge of wholesale distribution channels that should augment the company’s marketing strategy.
• Merged Mace Personal Defense, Inc. into Mace Security Products, Inc. and changed the name to Mace Personal Defense & Security, Inc.

Financial Results, Fourth Quarter Ending December 31, 2012 and 2011

Revenues for the fourth quarter were approximately $3.2 million and $3.3 million for the quarter ended December 31, 2012 and 2011, respectively. Revenues from our personal defense and law enforcement aerosol products were $1.8 million, up $0.2 million or 12.5% above last year’s fourth quarter. Revenues from our electronic surveillance products were $0.4 million, down $0.2 million or 33.3% below prior year’s fourth quarter and wholesale security and monitoring revenues were $1.06 million compared to $1.05 last year. Mr. McCann stated “our core business of monitoring and personal defense continued to grow and we are pleased with the results. We are continuing to work with our key customers in both divisions”. Gross profits for the fourth quarter ending December 31, 2012 and 2011 were $1.1 and $1.3 million, respectfully. Operating loss for the fourth quarter increased approximately $0.9 million to $1.3 million compared to the prior year fourth quarter operating loss of $0.4 million. The increase in fourth quarter operating loss is mainly attributed to one-time expenses related to severance and transition costs associated with the closure of the Horsham, PA corporate offices and increases in marketing and product development costs of approximately $600,000.

Net loss (including discontinued operations) for the fourth quarter ended December 31, 2012 was approximately $1.5 million compared to a net loss of approximately $0.7 million, for the fourth quarter ended December 31, 2011.

Financial Results, Year Ended December 31, 2012 and 2011

Revenues for the year ended were approximately $13.0 million and $13.9 million for the years ended December 31, 2012 and 2011, respectively. Revenues from our personal defense and law enforcement aerosol products were $6.7 million, up $1.3 million or 24.1% above last year. Revenues from our electronic surveillance products were $2.0 million, down $2.5 million or 55.6% below prior year and wholesale security and monitoring revenues were $4.3 million compared to $3.9 million last year.

Mr. McCann stated “to streamline our growth strategy, we divested the IVS business and discontinued many products relative to our electronic security products, allowing us to intensify our efforts going-forward on our more profitable product offerings. We also adjusted our costs relative to our sales in security products, investing in marketing to improve our brand with an eye toward improved results. With regard to Personal Defense, we achieved the following: new distribution, organic growth, and better placement and sell through. With regard to our wholesale security and monitoring business, our increase in revenues is due to organic growth with current customers, addition of small dealers, and expanded product offerings to both new and current customers.”

Gross profits for the year ending December 31, 2012 and 2011 were $4.9 for both years. Profit margin dollars remained constant and gross profit margins increased 2.3 percentage points on an overall decrease in sales of approximately $0.9 million. Mr. McCann stated “although overall sales declined due to a significant decrease in electronic surveillance products, profit dollars remained constant due to the significant increase in Pepper Spray sales which have a higher Margin.” Operating loss for the year decreased approximately $1.3 million or 30.2% to $3.0 million compared to a prior year operating loss of $4.3 million. The increase in operating profits for the year is mainly attributed to the consolidation of operations, staffing reductions, and a decrease in expenses for being a non-reporting entity. Mr. McCann stated “we are pleased with our cost cutting efforts but we still need to do more. We grew our core and cut expenses, which is not an easy task in such a short period of time”.

Net loss for the year ended December 31, 2012 was approximately $4.0 million, or $0.07 loss per share, compared to a net loss of approximately $5.1 million, or $0.15 loss per share, for the year ended December 31, 2011. Weighted average shares for computing loss per share for the years ending December 31, 2012 and 2011 were 58,946,441 and 33,643,384 respectfully.

Outlook

Mace President and CEO, John McCann concluded “We finished the year by investing in the brand and positioning Mace for growth. The first quarter looks to be impressive for our core business; Mace branded pepper spray. Sales through all distribution channels were up approximately 7% over last year with sales through the Consumer channel increasing by 28%. This sales increase is attributed to increases at key retailers including Ace Hardware, Auto Zone, Sears, K Mart and several other retailers. The Company continues to focus on this channel as it offers the best opportunity for Mace to grow its brand name and reach its consumers. Lastly, the Company is focused on profitability and our goal to continue to work smart and achieve profitability in the near term”.

Conference Call

Mace will conduct a conference call on Monday, April 22, 2013 at 1:00 PM EDT, 10:00 AM PDT. The participant conference call number is (877) 719-8065, conference ID: 49606914. There will also be access to a digital recording of the teleconference by calling (855) 859-2056 or (800) 585-8367 and entering the conference ID: 49606914. This will be available from two hours following the teleconference until May 6, 2013.

About Mace

Mace Security International, Inc. (Pink Sheets: MACE) is the manufacturer of personal defense and electronic surveillance products marketed under the famous brand name Mace®, and is the owner and operator of a wholesale central monitoring station. Mace’s web site is www.mace.com.

Contacts:

Mace Security International, Inc.
John McCann, President and Chief Executive Officer, 440-424-5322
john@mace.com

Source: Mace Security International, Inc.