Mace(R) Security International, a Global Leader in Personal Self-Defense Sprays, Announces 4Q23 Financial Results

CLEVELAND, OH / ACCESSWIRE / April 1, 2024 / Mace Security International (OTCQB:MACE) today announced its fourth quarter and year-to-date 2023 financial results for the periods ended December 31, 2023.

The Company's net sales for the fourth quarter were $1,683,000, down 21% versus the like period in 2022. The decrease vs prior year is mostly the result of a continuing slowdown in retail impulse purchases seen in the last two years due to inflation concerns across all sectors, as well as inventory adjustments at several retailers and base business segment. The decline vs prior year was partially alleviated in Q4, 2023 with 52% growth in e-commerce platform sales compared with Q4, 2022. Net sales when compared to Q3, 23 were up 12%.

Mace reported a gross profit rate for the quarter of 22% vs 33%, or $325,000 lower than the prior year for the same quarter last year due to lower revenues, customer mix and inventory shrink. Increasing component and freight costs and the impact of lower sales were partially offset by price increases and lower manufacturing overhead. SG&A expense of $1,107,000 when adjusted for non-recurring legal and financing cost, expenses related primarily to the ongoing strategic alternatives project, and non-cash stock compensation costs was $942,000 in the fourth quarter 2023, compared with similarly adjusted SG&A expense in the fourth quarter of 2022 of $945,000. Adjusted EBITDA for the quarter was a loss of ($533,000) compared with a loss of ($194,000) in the same period 2022.

Sanjay Singh, Chairman and CEO commented, "The fourth quarter was a tough quarter for the Company. The decline in revenues in the quarter was due primarily to two customers that accounted for most of the decrease. E-commerce revenues continue to increase and is very much the Company's white horse now. Although sales are lower quarter over quarter, retail sales are stabilizing. There are six new ventures that are expected to bring in new revenues in 2024. Gross profit margins were lower than our usual 45% rate. One of the factors was fixed cost leverage. Since then, the Company reduced costs and has improved manufacturing efficiencies by 246 basis points when compared to Q4, 2023. The Company raised $300,000 in Q1, 2024 from the Board to help fund the new sales initiatives while cash is tight."