Universal Security Instruments Reports First-Quarter Results

Rhea-AI Summary

Universal Security Instruments, Inc. (UUU) reported a 32.3% decline in sales to $2,940,768 for the quarter ended June 30, 2020, compared to $4,343,291 last year. The company incurred a net loss of $78,982 or $0.03 per share, markedly improved from a loss of $608,954 or $0.26 per share in the same period of 2019. Key factors for this performance included increased sales margins and reduced tariffs. The company expects orders in Q3 to enhance sales compared to $3,622,269 from September 2019.

Positive

• Net loss decreased from $608,954 to $78,982, showing improved financial performance.
• Increased sales margins contributed positively despite the decline in sales.

Negative

• Sales declined 32.3% compared to the prior year's quarter.
• Total assets decreased significantly from $18,781,339 in June 2019 to $7,257,678 in June 2020.

OWINGS MILLS, Md., Aug. 19, 2020 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fiscal quarter ended June 30, 2020.

The Company reported that sales declined approximately 32.3% to $2,940,768 for the quarter ended June 30, 2020, versus $4,343,291 for the comparable period of last year.  The Company reported a net loss of $78,982, or $0.03 per basic and diluted share, compared to a net loss of $608,954, or $0.26 per basic and diluted share, for the same period last year.

"The Company's sales were lower than the comparable quarter in the prior year due to the COVID-19 pandemic that has caused many of our customers to reduce their purchases since many had to close their operations for varying lengths of time. The Company reported a net loss of $78,892 which was substantially less than the loss of $608,954 for the comparable quarter last year. The main reasons for the decrease in operating loss were increased margins on sales, decreased tariffs, lower interest cost, and elimination of losses arising from our 50% interest in the Hong Kong Joint Venture that was sold effective March 31, 2020. The Company has received orders in the September quarter which we expect will increase our sales over the comparable September 2019 quarter, which had sales of $3,622,269, and we expect will improve our operating results," said Harvey Grossblatt - President and CEO.

UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based manufacturer and distributor of safety and security devices. Founded in 1969, the Company has an over 50-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 affecting us 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 June 30,
	2020	2019
Sales	$2,940,768	$4,343,291
Net loss:	(78,982)	(608,954)
Net loss per share – basic and diluted	(0.03)	(0.26)
Weighted average number of common shares outstanding:        Basic and diluted	2,312,887	2,312,887

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
	June 30, 2020		June 30, 2019
Cash	$278,234		$223,598
Accounts receivable and amount due from factor	1,849,881		2,493,998
Inventory	4,620,029		7,487,800
Prepaid expense	151,436		130,163
TOTAL CURRENT ASSETS	6,899,580		10,335,559
INVESTMENT IN HONG KONG JOINT VENTURE	-		7,923,355
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS–NET	354,098		518,425
OTHER ASSETS	4,000		4,000
TOTAL ASSETS	$7,257,678		$18,781,339
LIABILITIES AND SHAREHOLDERS' EQUITY
Line of credit – factor	$777,685		$1,695,381
Note payable - bank	221,400		-
Short-term portion of operating lease liability	161,655		162,906
Accounts payable and accrued expenses	302,683		6,016,987
Accrued liabilities	214,440		506,945
TOTAL CURRENT LIABILITIES	1,677,863		8,382,219
NOTE PAYABLE – Eyston Company Ltd.	1,081,440		-
LONG TERM OPERATING LEASE LIABILITY	129,144		283,784
TOTAL LONG-TERM LIABILITIES	1,210,584		283,784
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value per share; authorized        20,000,000 shares; issued and outstanding 2,312,887         at June 30, 2020 and 2019	23,129		23,129
Additional paid-in capital	12,885,841		12,885,841
Accumulated Deficit	(8,539,739)		(3,255,820)
Accumulated other comprehensive income	-		462,186
TOTAL SHAREHOLDERS' EQUITY	4,369,231		10,115,336
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$7,257,678		$18,781,339

 

Contact:  Harvey Grossblatt, CEO   
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
or
Don Hunt, Jeff Lambert
Lambert, Edwards & Associates, Inc.
616-233-0500

View original content:http://www.prnewswire.com/news-releases/universal-security-instruments-reports-first-quarter-results-301114910.html

SOURCE Universal Security Instruments, Inc.

FAQ

What were the sales figures for Universal Security Instruments (UUU) for Q1 2020?

The sales for Universal Security Instruments (UUU) were approximately $2,940,768 for the quarter ended June 30, 2020.

How did the net loss of Universal Security Instruments (UUU) change in Q1 2020 compared to Q1 2019?

The net loss for Universal Security Instruments (UUU) decreased from $608,954 in Q1 2019 to $78,982 in Q1 2020.

What reasons did Universal Security Instruments (UUU) provide for the decline in sales?

The company attributed the decline in sales to the COVID-19 pandemic, which led many customers to reduce their purchases due to operational closures.

What future sales expectations did Universal Security Instruments (UUU) indicate?

The company expects orders in the September quarter to increase sales over the comparable September 2019 quarter, which had sales of $3,622,269.