Mace(R) Security International, a Global Leader in Personal Self-Defense Sprays, Announces 1Q24 Financial Results

CLEVELAND, OH / ACCESSWIRE / May 15, 2024 / Mace Security International (OTCQB:MACE) today announced its first quarter 2024 financial results for the period ended March 31, 2024.

The Company's net sales for the first quarter of 2024 were $1,357,000, down (18%) versus the like period in 2023. The decrease vs prior year is mostly the result of a continuing slowdown in retail impulse purchases seen in 2023 due to inflation concerns across all sectors and paring back of inventory at several retailers. The decline vs prior year was partially alleviated in Q1, 2024 with an 84% growth in e-commerce sales compared with Q1, 2023.

Mace reported a gross profit rate for Q1 2024 of 33% vs 25% for the same quarter in 2023. The gross margins improved due to a favorable channel mix and higher plant efficiencies. SG&A expense were $1,068,000. When adjusted for non-recurring legal and financing cost, expenses related primarily to the ongoing strategic alternatives project, and expenses related primarily to transition payroll/temporary labor costs associated with the Company optimizing its headcount and non-cash stock compensation costs were $940,000 in the first quarter 2024 or $76,000 (7%) lower than the comparable SG&A expense in the first quarter of 2023 of $1,016,000. Adjusted EBITDA for Q1, 2024 was a loss of ($488,000) vs a loss of ($550,000) in the same period 2023.

Sanjay Singh, Chairman and CEO commented, "The first quarter, which is our seasonally lowest, saw a continuation of depressed revenues exacerbated by a major retail customer temporarily suspending new orders in order to address some internal issues. While there was some offset from improved ecommerce sales, as new initiatives are continuing to gain traction, it was not enough to prevent an overall revenue decline. Also encouraging was that efforts to improve manufacturing efficiencies began to kick in and aided an improvement in gross profit margins despite the lower volume. Looking forward we continue to see signs that our ecommerce efforts are bearing fruit and are encouraged by early indications from retail that order rates are expected to pick up. We continue to pare costs wherever possible to help weather the current revenue drought."