Universal Security Instruments Reports First-Quarter Results
Rhea-AI Summary
Universal Security Instruments (NYSE Amex: UUU) reported its fiscal quarter results ended June 30, 2024. The company experienced a significant decline in sales, dropping from $6,698,771 in the previous year to $4,598,516 this quarter. UUU also reported a net loss of $442,206, or $(0.19) per basic and diluted share, compared to a net income of $165,130, or $0.07 per share, in the same period last year.
CEO Harvey Grossblatt attributed the lower sales to supply chain delays in obtaining components for security products. Additionally, gross margins were reduced due to higher ocean freight and component costs. Universal Security Instruments, founded in 1969, is a distributor of safety and security devices, specializing in smoke, fire, and carbon monoxide alarms.
Positive
- Over 55-year heritage in developing innovative safety and security devices
- Continued operation and reporting of financial results despite challenges
Negative
- Sales decreased by 31.4% from $6,698,771 to $4,598,516 year-over-year
- Net loss of $442,206 compared to net income of $165,130 in the previous year
- Earnings per share dropped from $0.07 to $(0.19)
- Supply chain delays affecting component availability for security products
- Reduced gross margins due to higher ocean freight and component costs
News Market Reaction – UUU
On the day this news was published, UUU declined 11.53%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
OWINGS MILLS, Md., Aug. 19, 2024 (GLOBE NEWSWIRE) -- Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fiscal quarter ended June 30, 2024.
The Company reported sales of
Harvey Grossblatt - President and CEO said: “Sales were lower due to supply chain delays in obtaining components for the Company’s security products, and gross margins were reduced in the June quarter by higher ocean freight and component costs.”
UNIVERSAL SECURITY INSTRUMENTS, INC. is a distributor of safety and security devices. Founded in 1969, the Company has an over 55-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.
Contact: Harvey Grossblatt, CEO
Universal Security Instruments, Inc.
(410) 363-3000, Ext. 224
or
Zachary Mizener
Lambert & Co.
(315) 529-2348
"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, 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 STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended June 30, | ||||||
| 2024 | 2023 | |||||
| Sales | $ | 4,598,516 | $ | 6,698,771 | ||
| Net (Loss) Income: | (442,206 | ) | 165,130 | |||
| Net (Loss) Income per share – basic and diluted | (0.19 | ) | 0.07 | |||
| Weighted average number of common shares outstanding: | ||||||
| Basic and diluted | 2,312,887 | 2,312,887 | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| ASSETS | |||||||
| June 30, 2024 | June 30, 2023 | ||||||
| Cash | $ | 321,539 | $ | 240,817 | |||
| Accounts receivable and amount due from factor | 2,955,164 | 4,670,947 | |||||
| Inventory | 5,106,588 | 2,878,373 | |||||
| Prepaid expense | 132,241 | 280,594 | |||||
| TOTAL CURRENT ASSETS | 8,515,532 | 8,070,731 | |||||
| PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS–NET | 149,925 | 313,550 | |||||
| TOTAL ASSETS | $ | 8,665,457 | $ | 8,384,281 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Line of credit – factor | $ | 2,223,419 | $ | 1,370,299 | |||
| Short-term portion of operating lease liability | 132,659 | 153,095 | |||||
| Accounts payable | 1,526,605 | 831,915 | |||||
| Accrued liabilities | 261,953 | 372,366 | |||||
| TOTAL CURRENT LIABILITIES | 4,144,636 | 2,727,675 | |||||
| LONG-TERM OPERATING LEASE LIABILITY | - | 132,659 | |||||
| TOTAL LONG-TERM LIABILITIES | - | 132,659 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
| Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,312,887 at June 30, 2024 and 2023 | 23,129 | 23,129 | |||||
| Additional paid-in capital | 12,885,841 | 12,885,841 | |||||
| Accumulated Deficit | (8,388,149 | ) | (7,385,023 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 4,520,821 | 5,523,947 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 8,665,457 | $ | 8,384,281 | |||
