Universal Security Instruments Reports Third-Quarter Results

Rhea-AI Summary

Universal Security Instruments (NYSE AMEX: UUU) reported a strong fiscal third quarter ending December 31, 2020, with sales rising by approximately 59% to $5.12 million compared to $3.22 million in the previous year. The company posted a net income of $78,318, a significant turnaround from a net loss of $1.01 million during the same period in 2019. For the nine months, sales increased by around 30% to $14.52 million, with net income at $725,181, recovering from a loss of $2.32 million the previous year. The company expanded its 450-store test to 1,350 stores and is awaiting the status of its PPP loan forgiveness application.

Positive

• Sales increased by 59% to $5.12 million in Q3 2020.
• Net income of $78,318 compared to a net loss of $1.01 million in Q3 2019.
• Year-to-date sales grew by approximately 30% to $14.52 million.
• Net income for nine months at $725,181, recovering from a loss of $2.32 million last year.
• Expansion of the store test from 450 to 1,350 locations.

Negative

• Total assets decreased from $16.46 million in 2019 to $7.54 million in 2020.
• Significant increase in accumulated deficit from $4.97 million to $7.74 million year-over-year.

OWINGS MILLS, Md., Feb. 9, 2021 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced results for its fiscal third quarter and nine months ended December 31, 2020.

For the three months ended December 31, 2020, sales increased approximately 59% to $5,124,750 compared to sales of $3,223,678 for the same period last year.   The Company reported net income of $78,318 or $0.03 per basic and diluted share, compared to a net loss of $1,011,833 or $0.44 per basic and diluted share for the same period last year. 

For the nine months ended December 31, 2020, sales increased approximately 30% to $14,522,813 versus $11,189,238 for the same period last year.  The Company reported net income of $725,181, or $0.31 per basic and diluted share, compared to a net loss of $2,321,601 or $1.00, per basic and diluted share for the corresponding 2019 period.

"We were pleased that our sales continued to increase and that our operations continued to be profitable. The 450-store test, which we mentioned in our last press release, has been completed and now has been expanded to 1,350 stores.  We have applied for loan forgiveness of our PPP loan and should know the status in the next several months," said Harvey Grossblatt President and CEO.

UNIVERSAL SECURITY INSTRUMENTS, INC. is an importer 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 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

Contact:  Harvey Grossblatt, CEO   
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
or
Tyler Deur
Lambert & Co.
616-233-0500

UNIVERSAL SECURITY INSTRUMENTS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED)
	Three Months Ended December 31,
	2020	2019
Sales	$5,124,750	$3,223,678
Net income (loss)	78,318	(1,011,833)
Income (loss) per share:
Basic and diluted	$      0.03	$     (0.44)
Weighted average number of common shares outstanding:            Basic and diluted	2,312,887	2,312,887

                                        

	Nine Months Ended December 31,
		2020	2019
Sales		$    14,522,813	$    11,189,238
Net income (loss)		725,181	(2,321,601)
Income (loss) per share:
Basic and diluted		$               0.31	$             (1.00)
Weighted average number of common shares outstanding:            Basic and diluted		2,312,887	2,312,887

 

CONDENSED CONSOLIDATED BALANCE SHEETS – (UNAUDITED)
ASSETS
	December 31,
	2020		2019
Cash and cash equivalents	$    580,904		$    177,337
Accounts receivable and amount due from factor	3,463,933		2,129,755
Inventory	3,039,779		6,563,829
Prepaid expenses	178,518		145,711
TOTAL CURRENT ASSETS	7,263,134		9,016,632
INVESTMENT IN HONG KONG JOINT VENTURE	-		7,004,447
PROPERTY,  EQUIPMENT, AND INTANGIBLE ASSET – NET	270,962		436,559
OTHER ASSETS	4,000		4,000
TOTAL ASSETS	$ 7,538,096		$16,461,638
LIABILITIES AND SHAREHOLDERS' EQUITY
Line of credit – factor	$             -		$1,344,661
Note payable - bank	221,400
Short-term portion of operating lease liability	167,926		155,564
Accounts payable	569,161		6,031,074
Accrued liabilities	281,175		452,367
TOTAL CURRENT LIABILITIES	1,239,662		7,983,666
NOTE PAYABLE – Eyston Company Ltd.	1,081,440
LONG-TERM PORTION OF OPERATING LEASE LIABILITY	43,600		211,528
	1,125,040		211,528
COMMITMENTS AND CONTINGENCIES	-		-
SHAREHOLDERS' EQUITY
Common stock, $.01 par value per share; authorized 20,000,000    shares; issued and outstanding 2,312,887 at December 31, 2020 and    2019	23,129		23,129
Additional paid-in capital	12,885,841		12,885,841
Accumulated Deficit	(7,735,576)		(4,968,467)
Accumulated other comprehensive income	-		325,941
TOTAL SHAREHOLDERS' EQUITY	5,173,394		8,266,444
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 7,538,096		$16,461,638

 

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SOURCE Universal Security Instruments, Inc.

FAQ

What are the latest sales figures for Universal Security Instruments (UUU)?

In the fiscal third quarter ended December 31, 2020, Universal Security Instruments reported sales of $5.12 million, a 59% increase year-over-year.

How did Universal Security Instruments (UUU) perform in net income for the third quarter?

For the third quarter, Universal Security Instruments achieved a net income of $78,318, a significant improvement from a net loss of $1.01 million the previous year.

What is the year-to-date sales growth for Universal Security Instruments (UUU)?

For the nine months ended December 31, 2020, Universal Security Instruments reported sales of $14.52 million, reflecting a 30% growth compared to the same period in 2019.

What changes did Universal Security Instruments (UUU) make to their store testing program?

Universal Security Instruments expanded its store test from 450 locations to 1,350 stores.

What is the status of Universal Security Instruments' (UUU) PPP loan forgiveness application?

The company has applied for loan forgiveness for its PPP loan and expects to know the status in the coming months.