Exhibit 99.1
For Immediate Release | |
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 |
Universal Security Instruments Reports Second-Quarter Results
OWINGS MILLS, MD. November 11, 2009: Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced its earnings for the second quarter ended September 30, 2009.
For the three months ended September 30, 2009, the Company reported net income of $924,870, or $0.39 per basic and diluted share, on net sales of $7,900,805, compared to net income of $4,091,214, or $1.64 per basic and diluted share, on net sales of $8,381,379 for the same period last year. Included in the prior year's results was a gain of $3,434,913 from discontinued Canadian operations. Income from continuing operations rose 41% to $924,870 from $656,301 in the comparable quarter of last year, as a result of higher earnings from the Hong Kong Joint Venture.
For the six months ended September 30, 2009, sales were $13,815,710 versus $14,574,180 for the same period last year. The Company reported net income of $1,536,335, or $0.64 per basic and diluted share, compared to net income of $4,494,694, or $1.81 per basic and diluted share. Included in the results of the prior-year period was a gain from discontinued Canadian operation of $3,381,254. Income from continuing operations rose 38% to $1,536,335 from $1,113,440 in the comparable period of last year, as a result of higher earnings from the Hong Kong Joint Venture. The Company’s book value at September 30, 2009 rose to $10.64 from $9.59 at September 30, 2008.
“We are pleased with the results of our September quarter, which included approximately $130,000 of engineering expense related to new product development. We are aggressively continuing to develop new products and expect several of these to be ready for sale in the March/April timeframe. We believe these products have the potential to significantly increase sales during our next fiscal year. The housing market appears to have stabilized at lower activity levels, and we are continuing to strengthen our balance sheet to increase our cash position during this challenging operational environment,” said CEO Harvey Grossblatt
UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based manufacturer (through its Hong Kong Joint Venture) and distributor of safety and security devices. Founded in 1969, the Company has a 40-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, our and our Hong Kong Joint Venture's respective ability to maintain operating profitability, currency fluctuations, the impact of current and future laws and governmental regulations affecting us and our Hong Kong Joint Venture 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.
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UNIVERSAL SECURITY INSTRUMENTS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended September 30, | ||||||||
2009 | 2008 | |||||||
Sales | $ | 7,900,805 | $ | 8,381,379 | ||||
Net income from continuing operations | 924,870 | 656,301 | ||||||
Income per share from continuing operations: | ||||||||
Basic | 0.39 | 0.26 | ||||||
Diluted | 0.39 | 0.26 | ||||||
Gain from discontinued operations | - | 3,434,913 | ||||||
Gain per share from discontinued operations: | ||||||||
Basic | - | 1.38 | ||||||
Diluted | - | 1.38 | ||||||
Net income: | 924,870 | 4,091,214 | ||||||
Net income per share – basic | 0.39 | 1.64 | ||||||
Net income per share – diluted | 0.39 | 1.64 | ||||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 2,387,887 | 2,486,176 | ||||||
Diluted | 2,394,014 | 2,486,176 |
CONSOLIDATED STATEMENTS OF INCOME
Six Months Ended September 30, | ||||||||
2009 | 2008 | |||||||
Sales | $ | 13,815,710 | $ | 14,574,180 | ||||
Net income from continuing operations | 1,536,335 | 1,113,440 | ||||||
Income per share from continuing operations: | ||||||||
Basic | 0.64 | 0.45 | ||||||
Diluted | 0.64 | 0.45 | ||||||
Gain from discontinued operations | - | 3,381,254 | ||||||
Gain per share from discontinued operations: | ||||||||
Basic | - | 1.36 | ||||||
Diluted | - | 1.36 | ||||||
Net income: | 1,536,335 | 4,494,694 | ||||||
Net income per share – basic | 0.64 | 1.81 | ||||||
Net income per share – diluted | 0.64 | 1.81 | ||||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 2,390,100 | 2,487,017 | ||||||
Diluted | 2,395,724 | 2,487,017 |
CONSOLIDATED BALANCE SHEETS
September 30, 2009 | March 31, 2009 | |||||||
ASSETS | ||||||||
Cash | $ | 5,983,540 | $ | 284,030 | ||||
Accounts receivable and amount due from factor | 5,345,313 | 5,076,217 | ||||||
Inventory | 6,002,488 | 8,997,231 | ||||||
Prepaid expenses | 373,848 | 255,745 | ||||||
Current assets of discontinued operations | - | 202,565 | ||||||
TOTAL CURRENT ASSETS | 17,705,189 | 14,815,788 | ||||||
INVESTMENT IN HONG KONG JOINT VENTURE | 11,818,324 | 10,550,373 | ||||||
PROPERTY, PLANT AND EQUIPMENT – NET | 227,534 | 251,366 | ||||||
OTHER ASSETS AND DEFERRED TAX ASSET | 2,184,405 | 2,160,151 | ||||||
TOTAL ASSETS | $ | 31,935,452 | $ | 27,777,678 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Note payable - factor | $ | 3,416,135 | $ | - | ||||
Accounts payable and accrued expenses | 2,389,666 | 2,761,438 | ||||||
Accrued liabilities | 616,330 | 752,452 | ||||||
Current liabilities of discontinued operations | - | 202,565 | ||||||
TOTAL CURRENT LIABILITIES | 6,422,131 | 3,716,455 | ||||||
LONG TERM OBLIGATION | 96,748 | 95,324 | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,387,887 and 2,408,220 at September 30, 2009 and March 31, 2009 | 23,879 | 24,083 | ||||||
Additional paid-in capital | 13,100,979 | 13,186,436 | ||||||
Retained earnings | 12,291,715 | 10,755,380 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 25,416,573 | 23,965,899 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 31,935,452 | $ | 27,777,678 |