Mace(R) Security International, a Global Leader in Personal Self-Defense Sprays, Announces 3Q23 Financial Results

CLEVELAND, OH / ACCESSWIRE / November 14, 2023 / Mace Security International (OTCQB:MACE) today announced its third quarter and year-to-date 2023 financial results for the periods ended September 30, 2023.

The Company's net sales for the third quarter were $1,497,000, down 40% versus the like period in 2022. The quarterly year-over-year decrease is mostly the result of a slowdown in discretionary purchases and paring back of inventory at several retailers. The decline was partially alleviated by a 43% increase in sales in the third quarter on the Company's e-commerce platforms driven by recent social unrest.

Mace reported a gross profit rate for the quarter of 30.0% vs 38.4% for the same quarter last year, and 24.7% in Q1, 2023. Lower sales, component price increases, and lower fixed overhead leverage due to lower production efficiencies have led to a decrease in gross margin. During the third quarter, the Company focused on converting inventory to readily marketable finished goods resulting in a modest increase in inventory. While sales are lower now, the Company expects its customers to purchase at normal levels in the coming quarters. Adjusted SG&A expenses, net of transition, non-recurring legal and professional and non-cash costs decreased to $813,000 in the third quarter 2023, compared with $893,000 in the third quarter 2022, and $1,016,000 in Q1, 2023. The adjusted EBITDA for the quarter was a loss of ($318,000) vs income of $124,000 in the same period 2022 and a loss of ($550,000) in Q1, 2023.

Sanjay Singh, Chairman and CEO commented, "The sales momentum slowed quite a bit in the third quarter across the retail and base business segments. The channel feedback suggests that the moderation in sales has been driven by consumer pressures and paring back of inventory. Social unrest drove an increase in revenues of 43% on our e-commerce platform which is the most significant driver of revenue growth right now."

"The Company changed its focus to bringing in new business from new products and new customers. There are several initiatives in play that will augment organic sales and elevate Mace Brand's financial performance. The company landed two new regional retailers in Q4, 2023 and will be introducing three new personal safety products, two of which are targeted in new channels and one of which is targeted for a consumer who shops at Best Buy. Our new training line of business launched on September 1^st with leads for online and in-person training coming in daily. We are also planning on executing a new digital marketing strategy to drive higher engagement and revenues on our mace.com site. Two new major retailers are considering test runs of our products in early spring. Our overall focus-to-execute on new ventures is critical as the organic business is much lower than expected. The Company secured a new line of credit in October which along with the capital raised earlier in the quarter will aid new venture initiatives ."