Universal Security Instruments Reports Second-Quarter Results

OWINGS MILLS, Md., Nov. 18, 2021 /PRNewswire/ -- Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced results for its fiscal second quarter and six months ended September 30, 2021. 

For the three months ended September 30, 2021, sales decreased approximately 18% to $5,272,223 compared to sales of $6,457,295 for the same period last year.   The Company reported net income of $107,696, or $0.05 per basic and diluted share, compared to net income of $725,845 or $0.31 per basic and diluted share for the same period last year. 

For the six months ended September 30, 2021, sales increased approximately 6% to $9,940,221 versus $9,398,063 for the same period last year.  The Company reported net income of $122,337, or $0.05 per basic and diluted share, compared to net income of $646,863 or $0.28, per basic and diluted share for the corresponding 2020 period.

"Included in the prior year's second quarter results were sales to a large national retailer that the Company was able to deliver when that retailer could not obtain inventory due to delays caused by the pandemic.  Excluding those sales, our sales for the second quarter of the fiscal year ended September 30, 2021 rose by $1,930,645 or approximately 58% from the comparable quarter of the prior year. Our sales continue to be impacted by supply chain disruptions in obtaining raw materials, ocean freight containers, and by port congestion in Long Beach, California. Our lower net income for the current year's six-month period despite higher sales is due to increased freight and customs charges. We are working with our suppliers and customers to mitigate these delay and cost increases," 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 52-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. 

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"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.

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UNIVERSAL SECURITY INSTRUMENTS, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)



Three Months Ended
September 30,


2021

2020

Sales

$5,272,223

$6,457,295

Net income

107,696

725,845

Earnings per share:



        Basic and diluted

$      0.05

$     0.31




Weighted average number of common shares outstanding:

         Basic and diluted

 

2,312,887

 

2,312,887






Six Months Ended September 30,


2021

2020

Sales

$  9,940,221

$ 9,398,063

Net income

122,337

646,863

Earnings per share:



        Basic and diluted

$           0.05

$          0.28




Weighted average number of common shares outstanding:

         Basic and diluted

 

2,312,887

2,312,887

 

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)


ASSETS



Sept. 30, 2021

Sept. 30, 2020

Cash

$168,570

$    146,393




Accounts receivable and amount due from factor

3,882,455

4,623,882

Inventory

4,966,226

3,460,325

Prepaid expense

529,196

162,057




TOTAL CURRENT ASSETS

9,546,447

8,392,657




PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS–NET

139,987

312,531

OTHER ASSETS

4,000

4,000

TOTAL ASSETS

$9,690,434

$8,709,188


LIABILITIES AND SHAREHOLDERS' EQUITY






Line of credit – factor

$2,413,447

$1,158,796

Note payable – Eyston Company Ltd.

1,081,440


Note payable - bank

-

221,400

Short-term portion of operating lease liability

87,908

173,625

Accounts payable

1,071,670

560,103

Accrued liabilities

197,076

340,964

TOTAL CURRENT LIABILITIES

4,851,541

2,454,888

NOTE PAYABLE – Eyston Company Ltd.

-

1,081,440

LONG TERM PORTION OF OPERATING LEASE LIABILITY

-

77,784

TOTAL LONG-TERM LIABILITIES

-

1,159,224




SHAREHOLDERS' EQUITY:



     Common stock, $.01 par value per share; authorized 
     
20,000,000 shares; issued and outstanding 2,312,887 at September 30,
2021 and 2020

23,129

23,129

Additional paid-in capital

12,885,841

12,885,841

Accumulated Deficit

(8,070,077)

(7,813,894)

Accumulated other comprehensive income

-

-

TOTAL SHAREHOLDERS' EQUITY

4,838,893

5,095,076

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$9,690,434

$8,709,188

 

Contact:  Harvey Grossblatt, CEO   
Universal Security Instruments, Inc.
(410) 363-3000, Ext. 224
or
Zachary Mizener
Lambert & Co.
(315) 529-2348

 

Cision View original content:https://www.prnewswire.com/news-releases/universal-security-instruments-reports-second-quarter-results-301428585.html

SOURCE Universal Security Instruments, Inc.

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