Universal Security Instruments Reports Third-Quarter Results

OWINGS MILLS, Md., Feb. 20, 2024 (GLOBE NEWSWIRE) — Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced results for its fiscal third quarter and nine months ended December 31, 2023.

For the three months ended December 31, 2023, sales decreased 19.2% to $4,654,978 compared to sales of $5,758,661 for the same period last year. The Company reported net income of $102,176, or $0.04 per basic and diluted share, compared to net income of $341,312 or $0.15 per basic and diluted share for the same period last year.

For the nine months ended December 31, 2023, sales decreased 7.3% to $15,071,204 versus $16,251,106 for the same period last year. The Company reported net income of $80,881, or $0.03 per basic and diluted share, compared to net income of $435,776 or $0.19, per basic and diluted share for the corresponding 2022 period.

“The primary reason for the sales decreases during the three and nine-month periods ended December 31, 2023, was supply chain difficulties in getting sufficient product to cover orders during our third fiscal quarter.” 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 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.

“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 STATEMENTS OF OPERATIONS
(UNAUDITED)
 
  Three Months Ended December 31,
    2023       2022  
Sales $ 4,654,978     $ 5,758,661  
Net income   102,176       341,312  
Earnings per share:    
Basic and diluted $ 0.04     $ 0.15  
               
Weighted average number of common shares outstanding:              
Basic and diluted   2,312,887       2,312,887  
  Nine Months Ended December 31,
    2023       2021  
Sales $ 15,071,204     $ 16,251,106  
Net income   80,881       435,776  
Earnings per share:    
Basic and diluted $ 0.03     $ 0.19  
               
Weighted average number of common shares outstanding:              
Basic and diluted   2,312,887       2,312,887  
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
   
ASSETS  
  Dec. 31, 2023   Dec. 31, 2022
Cash $ 39,178     $ 200,155  
               
Accounts receivable and amount due from factor   3,353,127       3,991,415  
Inventory   4,880,508       4,437,580  
Prepaid expense   399,318       313,277  
     
TOTAL CURRENT ASSETS   8,672,131       8,942,427  
     
PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS–NET   231,823       395,278  
OTHER ASSETS         4,000  
TOTAL ASSETS $ 8,903,954     $ 9,341,705  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY    
     
Line of credit – factor $ 1,121,064     $ 2,471,236  
Note payable – Eyston Company Ltd.         181,440  
Short-term portion of operating lease liability   156,851       149,408  
Accounts payable   1,878,990       1,061,517  
Accrued liabilities   254,062       193,783  
TOTAL CURRENT LIABILITIES   3,410,967       4,057,384  
               
LONG TERM PORTION OF OPERATING LEASE LIABILITY   53,289       210,139  
TOTAL LONG-TERM LIABILITIES   53,289       210,139  
COMMITMENTS AND CONTINGENCIES          
               
SHAREHOLDERS’ EQUITY:              
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,312,887 at December 31, 2023 and 2022   23,129       23,129  
Additional paid-in capital   12,885,841       12,885,841  
Accumulated Deficit   (7,469,272 )     (7,834,788 )
     
TOTAL SHAREHOLDERS’ EQUITY   5,439,698       5,074,182  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 8,903,954     $ 9,341,705  


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