CLEVELAND, OH / ACCESSWIRE / May 15, 2024 / Mace Security International (OTCQB:MACE) today announced its first quarter 2024 financial results for the period ended March 31, 2024.
The Company's net sales for the first quarter of 2024 were $1,357,000, down (18%) versus the like period in 2023. The decrease vs prior year is mostly the result of a continuing slowdown in retail impulse purchases seen in 2023 due to inflation concerns across all sectors and paring back of inventory at several retailers. The decline vs prior year was partially alleviated in Q1, 2024 with an 84% growth in e-commerce sales compared with Q1, 2023.
Mace reported a gross profit rate for Q1 2024 of 33% vs 25% for the same quarter in 2023. The gross margins improved due to a favorable channel mix and higher plant efficiencies. SG&A expense were $1,068,000. When adjusted for non-recurring legal and financing cost, expenses related primarily to the ongoing strategic alternatives project, and expenses related primarily to transition payroll/temporary labor costs associated with the Company optimizing its headcount and non-cash stock compensation costs were $940,000 in the first quarter 2024 or $76,000 (7%) lower than the comparable SG&A expense in the first quarter of 2023 of $1,016,000. Adjusted EBITDA for Q1, 2024 was a loss of ($488,000) vs a loss of ($550,000) in the same period 2023.
Sanjay Singh, Chairman and CEO commented, "The first quarter, which is our seasonally lowest, saw a continuation of depressed revenues exacerbated by a major retail customer temporarily suspending new orders in order to address some internal issues. While there was some offset from improved ecommerce sales, as new initiatives are continuing to gain traction, it was not enough to prevent an overall revenue decline. Also encouraging was that efforts to improve manufacturing efficiencies began to kick in and aided an improvement in gross profit margins despite the lower volume. Looking forward we continue to see signs that our ecommerce efforts are bearing fruit and are encouraged by early indications from retail that order rates are expected to pick up. We continue to pare costs wherever possible to help weather the current revenue drought."
"As a result of new marketing efforts, optimization, and the launch of the s2 Pepper Launcher in Q2, Mace.com experienced a 27% sequential increase in daily average web sessions in Q1, 2024 vs the same period last year. The Company also experienced a 24% year over year increase in daily average web sessions so far in Q2,2024. Revenues on Mace.com have seen a 34% increase through the first 44 days of the quarter when compared with the same time period in Q1, 2024. The Company achieved these results while reducing traditional ad spend by over 50% to reallocate dollars and drive sales efficiencies. "
First Quarter 2023 Financial Highlights
First Quarter 2024 Operational Highlights
Investor Day Update
The Company will not be conducting a first quarter 2024 earnings conference call. Instead, the Company has provided a more robust update on this earnings release and will be updating its recent April 30th, 2024 Investor Day presentation within the next 60 days. Questions on the Q1, 2024 results can be directed to InvestorRelations@mace.com.
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; and (k) the impact of inflation and the ability of the Company to pass on rising prices to its customers. 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.
In this press release, the Company's financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. Management believes that presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company's core operating results and comparison of operating results across reporting periods. Management also uses non-GAAP financial measures to establish budgets and to manage the Company's business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached schedule.
Contact:
Investor Relations
InvestorRelations@mace.com
SOURCE: MACE SECURITY INTERNATIONAL INC
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