UNIVERSAL SECURITY INSTRUMENTS INC - FORM 10-Q - EX-99.1 - PRESS RELEASE - November 14, 2011

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10-Q - QUARTERLY REPORT ON FORM 10-Q - UNIVERSAL SECURITY INSTRUMENTS INCv238977_10q.htm
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EX-32.1 - CERTIFICATION - UNIVERSAL SECURITY INSTRUMENTS INCv238977_ex32-1.htm
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Exhibit 99.1
 
For Immediate Release
Contact:  Harvey Grossblatt, CEO
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
or
Don Hunt, Jeff Lambert
Lambert, Edwards & Associates, Inc.
616-233-0500
 
 
Universal Security Instruments Reports Second-Quarter Results

OWINGS MILLS, MD. November 9, 2011: Universal Security Instruments, Inc. (NYSE AMEX: UUU) today announced its results for the second quarter ended September 30, 2011.
 
For the three months ended September 30, 2011, the Company reported a net loss of $309,941, or $0.13 per basic and diluted share, on net sales of $3,307,514, compared to net income of $268,376, or $0.11 per basic and diluted share, on net sales of $3,714,378 for the same period last year.

For the six months ended September 30, 2011, sales were $6,508,816 versus $7,395,799 for the same period last year. The Company reported a net loss of $309,360, or $0.13 per basic and diluted share, compared to net income of $550,243, or $0.23 per basic and diluted share.

“The loss for the quarter was primarily due to three reasons. First, the Company incurred approximately $100,000 of non-recurring air freight and associated costs to deliver our new Carbon Monoxide alarms to Canada. Second, the Company incurred approximately $94,000 in tax expense associated with receipt of dividends from our Joint Venture. Finally, our Joint Venture had lower earnings due to lower sales to non-affiliated customers during the European summer sales season,” said Harvey Grossblatt, CEO of Universal.

The Company reported that it has purchased 11,000 shares of stock under its recently announced Stock Repurchase Plan.  The book value of the Company at September 30, 2011 was $11.17.
 
UNIVERSAL SECURITY INSTRUMENTS, INC. is a U.S.-based manufacturer (through its Hong Kong Joint Venture) and distributor of safety and security devices. Founded in 1969, the Company has an over 40-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.

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"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, our Hong Kong Joint Venture's respective ability to maintain operating profitability, currency fluctuations, the impact of current and future laws and governmental regulations affecting us and our Hong Kong Joint Venture 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.

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Universal/Page 2
UNIVERSAL SECURITY INSTRUMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

   
Three Months Ended September 30,
  
    
2011
    
2010
  
Sales
   $ 3,307,514     $ 3,714,378  
Net (loss) income
     (309,941 )     268,376  
(Loss) income per share:
                
Basic
     (0.13 )     0.11  
Diluted
     (0.13 )     0.11  
Weighted average number of common shares outstanding:
                
Basic
     2,387,887       2,387,887  
Diluted
     2,387,887       2,394,750  

CONSOLIDATED STATEMENTS OF OPERATIONS

   
Six Months Ended September 30,
  
    
2011
    
2010
  
Sales
   $ 6,508,816     $ 7,395,799  
Net (loss) income
     (309,360 )     550,243  
(Loss) income per share:
                
Basic
     (0.13 )     0.23  
Diluted
     (0.13 )     0.23  
Weighted average number of common shares outstanding:
                
Basic
     2,387,887       2,387,887  
Diluted
     2,387,887       2,395,043  

CONSOLIDATED BALANCE SHEETS
   
September 30, 2011
    
March 31, 2011
  
ASSETS
            
Cash and investments
   $ 4,689,459     $ 6,728,593  
Accounts receivable and amount due from factor
     2,613,718       2,216,635  
Inventory
     4,987,278       3,534,011  
Prepaid expenses
     493,356       519,356  
TOTAL CURRENT ASSETS
     12,783,811       12,998,595  
                 
INVESTMENT IN HONG KONG JOINT VENTURE
     13,003,839       13,149,614  
PROPERTY, PLANT AND EQUIPMENT – NET
     271,673       292,874  
OTHER ASSETS AND DEFERRED TAX ASSET
     2,076,847       2,042,695  
TOTAL ASSETS
   $ 28,136,170     $ 28,483,778  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Accounts payable and accrued expenses
   $ 1,160,672     $ 1,247,494  
Accrued liabilities
     259,572       210,998  
TOTAL CURRENT LIABILITIES
     1,420,244       1,458,492  
                 
LONG TERM OBLIGATION
     25,000       25,000  
                 
SHAREHOLDERS’ EQUITY:
                
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,387,887 at September 30, 2011 and March 31, 2011
     23,879       23,879  
Additional paid-in capital
     13,135,198       13,135,198  
Retained earnings
     13,531,849       13,841,209  
TOTAL SHAREHOLDERS’ EQUITY
     26,690,926       27,000,286  
                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 28,136,170     $ 28,483,778  
 
 
 
 

UNIVERSAL SECURITY INSTRUMENTS INC Reports