OWINGS MILLS, Md., Nov. 20, 2023 (GLOBE NEWSWIRE) -- Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced results for its fiscal second quarter and six months ended September 30, 2023.
For the three months ended September 30, 2023, sales decreased 36.5% to $3,717,455 compared to sales of $5,857,141 for the same period last year. The Company reported a net loss of $186,425, or $0.08 per basic and diluted share, compared to net income of $200,602 or $0.09 per basic and diluted share for the same period last year.
For the six months ended September 30, 2023, sales decreased 0.7% to $10,416,226 versus $10,492,445 for the same period last year. The Company reported a net loss of $21,295, or $0.01 per basic and diluted share, compared to net income of $94,464 or $0.04, per basic and diluted share for the corresponding 2022 period.
"Sales were lower this quarter due to delays in getting cargo off the pier in California and supply chain issues. Our net loss was also partially due to an additional premium expense of $148,000 in the 2023 period following an insurance audit, and lower net income for the 2023 period when compared to the 2022 period due to a Federal Employee Retention Credit of approximately $181,000 in the 2022 period which was not repeated in the 2023 period." said Harvey Grossblatt, President.
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 54-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 INCOME STATEMENTS (UNAUDITED) | |||||
| Three Months Ended September 30, | |||||
| 2023 | 2022 | ||||
| Sales | $3,717,455 | $5,857,141 | |||
| Net (loss) income | (186,425) | 200,602 | |||
| (Loss) Earnings per share: | |||||
| Basic and diluted | $(0.08) | $0.09 | |||
| Weighted average number of common shares outstanding: | |||||
| Basic and diluted | 2,312,887 | 2,312,887 | |||
| Six Months Ended September 30, | |||||
| 2023 | 2022 | ||||
| Sales | $10,416,226 | $10,492,445 | |||
| Net (loss) income | (21,295) | 94,464 | |||
| (Loss) Earnings per share: | |||||
| Basic and diluted | $(0.01) | $0.04 | |||
| Weighted average number of common shares outstanding: | |||||
| Basic and diluted | 2,312,887 | 2,312,887 | |||
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
| ASSETS | ||||||
| Sept. 30, 2023 | Sept. 30, 2022 | |||||
| Cash | $254,818 | $178,878 | ||||
| Accounts receivable and amount due from factor | 3,130,458 | 5,367,025 | ||||
| Inventory | 4,968,433 | 5,171,217 | ||||
| Prepaid expense | 365,630 | 328,188 | ||||
| TOTAL CURRENT ASSETS | 8,719,339 | 11,045,308 | ||||
| PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS-NET | 276,043 | 436,142 | ||||
| OTHER ASSETS | - | 4,000 | ||||
| TOTAL ASSETS | $8,995,382 | $11,485,450 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Line of credit - factor | $912,147 | $2,876,070 | ||||
| Note payable - Eyston Company Ltd. | - | 481,440 | ||||
| Short-term portion of operating lease liability | 154,969 | 147,593 | ||||
| Accounts payable | 1,990,116 | 2,605,544 | ||||
| Accrued liabilities | 507,563 | 393,900 | ||||
| TOTAL CURRENT LIABILITIES | 3,564,795 | 6,504,547 | ||||
| LONG TERM PORTION OF OPERATING LEASE LIABILITY | 93,065 | 248,033 | ||||
| TOTAL LONG-TERM LIABILITIES | 93,065 | 248,033 | ||||
| SHAREHOLDERS' EQUITY: | ||||||
| Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,312,887 at September 30, 2023 and 2022 | 23,129 | 23,129 | ||||
| Additional paid-in capital | 12,885,841 | 12,885,841 | ||||
| Accumulated Deficit | (7,571,448) | (8,176,100) | ||||
| TOTAL SHAREHOLDERS' EQUITY | 5,337,522 | 4,732,870 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $8,995,382 | $11,485,450 | ||||
