Universal Security Instruments Announces its Fourth-Quarter and Year-End Results

Rhea-AI Summary

Universal Security Instruments (UUU) reported its financial results for Q4 and fiscal year ending March 31, 2021. Q4 sales fell by $616,448 (17.1%) to $2,997,338, resulting in a net loss of $456,838 or $0.19 per share. Conversely, for the year, sales rose by $2,717,127 (18.4%) to $17,520,151, with net income of $268,343 or $0.12 per share. Challenges included supply chain issues affecting inventory and shipping. The company noted improvements in early fiscal 2022.

Positive

• Yearly sales increased by $2,717,127 (18.4%) to $17,520,151.
• Returned to profitability with a net income of $268,343 for the fiscal year.
• Improved net loss in Q4 compared to the previous year ($456,838 vs. $3,492,290).

Negative

• Q4 sales declined by $616,448 (17.1%) to $2,997,338.
• Ongoing supply chain challenges affected inventory and shipping in Q4.

OWINGS MILLS, Md., July 8, 2021 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced its financial results for the fourth quarter and its fiscal year ended March 31, 2021.

The Company reported:

• For the fourth quarter ended March 31, 2021, sales decreased $616,448 (17.1%) to $2,997,338 from $3,613,786 from the comparable period last year. The Company reported a net loss of $456,838, or $0.19 per basic and diluted share compared to a net loss of $3,492,290, or $1.51 per basic and diluted share for the comparable period of the previous year.
• For the 12 months ended March 31, 2021, sales increased $2,717,127 (18.4%) to $17,520,151 versus $14,803,024 for the fiscal year ended March 31, 2020. The Company reported net income of $268,343, or $0.12 per basic and diluted share, versus a net loss of $5,813,891 or $2.51 per basic and diluted share, for the same period last year.

Harvey Grossblatt, President and Chief Executive Officer said, "We are pleased that the Company returned to profitability for the fiscal year ended March 31, 2021 despite our fiscal fourth quarter being negatively impacted by severe supply chain challenges, including a global shortage of shipping containers, and congestion at West Coast port facilities, which impacted our ability to receive inventory and ship orders.  These challenges have improved somewhat during the fiscal first quarter of our fiscal year ending March 31, 2022, and the Company was able to start shipping backorders to our customers.   Our previous year-end results included a charge of $2,472,620 from the previously reported sale of our 50% interest in the Hong Kong Joint Venture, as well as our share of the Hong Kong Joint Venture's net loss in the amount $1,369,655."

11407 CRONHILL DRIVE, SUITE A • OWINGS MILLS, MARYLAND 21117, USA
(410) 363-3000  •  www.universalsecurity.com

UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based distributor of safety and security devices. Founded in 1969, the Company has a 48-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, currency fluctuations, the impact of current and future laws and governmental regulations, 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 March 31,
	2021	2020
Net sales	$2,997,338	$3,613,786
Net loss	(456,838)	(3,492,290)
Net loss per share – basic and diluted	(0.19)	(1.51)
Weighted average number of common shares outstanding          Basic and diluted	2,312,887	2,312,887
	Fiscal Year Ended March 31,
	2021	2020
Net sales	$17,520,151	$14,803,024
Net income (loss)	268,343	(5,813,891)
Net income (loss) per share – basic and diluted	0.12	(2.51)
Weighted average number of common shares outstanding          Basic and diluted	2,312,887	2,312,887
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
	March 31,
	2021	2020
Cash	$    160,604	$    93,794
Accounts receivable and amount due from factor	2,583,463	2,446,533
Inventory	4,181,193	5,123,959
Prepaid expenses	336,699	113,145
TOTAL CURRENT ASSETS	7,261,959	7,777,431
PROPERTY AND EQUIPMENT – NET	184,678	346,477
OTHER ASSETS	48,717	53,189
TOTAL ASSETS	$ 7,495,354	$8,177,097
LIABILITIES AND SHAREHOLDERS' EQUITY
Line of credit - factor	$ 18,904	$   1,561,665
Short-term portion of operating lease liability	171,122	158,578
Accounts payable– Trade	509,561	505,904
Accounts payable – Eyston Company Ltd.	755,148	266,409
Accrued liabilities	242,623	225,377
TOTAL CURRENT LIABILITIES	1,697,358	2,717,933
ACCOUNTS PAYABLE – Eyston Company Ltd. - noncurrent	1,081,440	839,831
LONG-TERM PORTION OF OPERATING LEASE LIABILITY	-	171,120
TOTAL LONG-TERM LIABILITIES	1,081,440	1,010,951
COMMITMENTS AND CONTINGENCIES	-	-
SHAREHOLDERS' EQUITY
Common stock, $.01 par value per share; 20,000,000 authorized, 2,312,887 shares outstanding at March 31, 2021 and 2020	23,129	23,129
Additional paid-in capital	12,885,841	12,885,841
(Accumulated Deficit)	(8,192,414)	(8,460,757)
TOTAL SHAREHOLDERS' EQUITY	4,716,556	4,448,213
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,495,354	$8,177,097

 

Contact:  Harvey Grossblatt, President   
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
Or
Zachary Mizener
Lambert & Co.
(616) 233-0500

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SOURCE Universal Security Instruments, Inc.

FAQ

What were Universal Security Instruments' Q4 results for UUU?

In Q4, Universal Security Instruments (UUU) reported sales of $2,997,338, down 17.1% from the previous year, with a net loss of $456,838.

How did UUU perform in the fiscal year ending March 31, 2021?

For the fiscal year, Universal Security Instruments (UUU) achieved sales of $17,520,151, an increase of 18.4%, and a net income of $268,343.

What challenges did UUU face in Q4 2021?

Universal Security Instruments (UUU) faced supply chain challenges, including a global shortage of shipping containers and port congestion, impacting inventory and shipping.

What is the net income for UUU for the fiscal year 2021?

The net income for Universal Security Instruments (UUU) for the fiscal year ending March 31, 2021, was $268,343.