Universal Security Instruments Reports First-Quarter Results

OWINGS MILLS, Md., Aug. 21, 2017 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fiscal quarter ended June 30, 2017.

The Company reported sales of $3,318,237 for the quarter ended June 30, 2017 versus $3,178,607 for the comparable period of last year.  The Company reported a net loss of $543,663, or $0.24 per basic and diluted share, compared to a net loss of $389,679 or $0.17 per basic and diluted share, for the same period last year.

"The primary reason for the increase in operating loss was lower gross margins during the quarter resulting from more aggressive pricing to drive sales for the balance of the fiscal year.  With anticipated increased sales of our new sealed product, Management expects that our financial results should improve," said 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 an over 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, 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.                                       

UNIVERSAL SECURITY INSTRUMENTS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended June 30,
	2017		2016
Sales	$3,318,237		$3,178,607
Net loss:	(543,663)		(389,679)
Net loss per share – basic and diluted	(0.24)		(0.17)
Weighted average number of common shares outstanding:        Basic and diluted	2,312,887		2,312,887
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
ASSETS
	June 30, 2017		June 30, 2016
Cash	$246,508		$175,753
Funds held by factor	-		161,305
Accounts receivable and amount due from factor	2,572,396		2,066,670
Inventory	4,424,193		4,506,545
Prepaid expense	519,882		436,980
TOTAL CURRENT ASSETS	7,762,979		7,347,253
INVESTMENT IN HONG KONG JOINT VENTURE	10,526,794		11,399,694
PROPERTY, EQUIPMENT AND INTANGIBLE ASSET– NET	114,974		130,757
OTHER ASSETS	4,000		6,000
TOTAL ASSETS	$18,408,747		$18,883,704
LIABILITIES AND SHAREHOLDERS' EQUITY
Line of credit - factor	$1,727,836		$               -
Accounts payable and accrued expenses	2,729,271		2,953,905
Accrued liabilities	110,978		114,466
TOTAL CURRENT LIABILITIES	4,568,085		3,068,371
LONG TERM OBLIGATION	-		-
SHAREHOLDERS' EQUITY:
Common stock, $.01 par value per share; authorized 20,000,000     shares; issued and outstanding 2,312,887 at June 30, 2017 and     2016	23,129		23,129
Additional paid-in capital	12,885,841		12,885,841
Retained earnings	419,767		2,060,861
Accumulated other comprehensive income	511,925		845,502
TOTAL SHAREHOLDERS' EQUITY	13,840,662		15,815,333
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$18,408,747		$18,883,704

 

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SOURCE Universal Security Instruments, Inc.

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