Mace® Reports Unaudited Financial Results for the Third Quarter Ended September 30, 2014

CLEVELAND--(BUSINESS WIRE)--Mace Security International, Inc. (OTCPINK: MACE) today announced unaudited financial results for the third quarter ended September 30, 2014.

Financial Results, Third Quarter Ended September 30, 2014 and 2013

• Net sales for the third quarter of 2014 experienced a 13% increase, compared to third quarter 2013.
• Operating loss for the third quarter of 2014 decreased 75%, compared to third quarter 2013.
• Net loss for the third quarter of 2014 was $ (0.01) per share, both basic and diluted, compared to a net loss of $ (0.02) per share, both basic and diluted in the same quarter a year ago, an $820,000 or $0.01 per share improvement.
• EBITDA for the third quarter of 2014 was a loss of $291,000, compared to a loss of $1,063,000 for the third quarter of 2013, a $772,000 improvement for the quarter.
• EBITDA, adjusted for one time charges for the third quarter of 2014 was a loss of $135,000, compared to an adjusted EBITDA of $470,000 for the third quarter of 2013.

“Sales for the third quarter of 2014 improved from prior year third quarter and are significantly higher than second and first quarter of 2014 with 21% and 31% sales increases, respectfully. Sales through our Consumer channel for the third quarter were up 52% over prior year third quarter sales and almost equaled this year’s first and second quarter sales combined. The increase in sales through our Consumer channel is a result of sales to new customers and existing customers expanding their breadth of our products,” stated John McCann, President and CEO of Mace Security International.

Conference Call
Mace will conduct a conference call on Wednesday, November 5, 2014 at 4:15 PM EST, 1:15 PM PST to discuss its financial results for the quarter and nine months ended September 30, 2014, provide an update on the business, and respond to questions. The participant conference call number is [phone], conference ID: 29566453. Presentation materials for the conference call will be available Wednesday, November 5, on Mace’s website under Investor Relations, Shareholder Transcripts & Presentations. There will also be access to a digital recording of the teleconference by calling [phone] and entering the conference ID: 29566453. This will be available from two hours following the teleconference until December 6, 2014.

A full set of the Company’s Consolidated Financial Statements can be accessed through its website: http://corp.mace.com/investor-relations/annual-reports

About Mace^® Brand
Mace Security International, Inc. (OTCPINK: MACE) is the manufacturer of personal defense products and markets such products and electronic surveillance products under the well known brand name Mace^®. www.mace.com.

Certain statements and information included in this press release constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this press release, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “projected,” “intend to” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.

Mace Security International, Inc. Condensed Consolidated Balance Sheets  (Amounts in thousands)
ASSETS	September 30, 2014		December 31, 2013
Current assets:	(Unaudited)
Cash and cash equivalents	$	370	$	4,923
Restricted cash		101		127
Short-term investments		5,873		2,597
Accounts receivable, net		1,451		1,732
Inventories, net		1,831		1,578
Prepaid expenses and other current assets		1,274		1,419
Total current assets		10,900		12,376
Property and equipment, net		573		565
Other intangible assets, net		685		685
Other assets		1,215		1,148
Total assets	$	13,373	$	14,774
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	472	$	392
Income taxes payable		59		62
Accrued expenses and other current liabilities		989		1,086
Total current liabilities		1,520		1,540
Long-term debt, net of current portion		1,205		1,106
Other liabilities		-		230
Total stockholders’ equity		10,648		11,898
Total liabilities and stockholders’ equity	$	13,373	$	14,774

Mace Security International, Inc. Condensed Consolidated Statements of Operations Three Months Ended September 30, 2014 and 2013 (Unaudited) (Amounts in thousands)
	2014			2013
Net sales	$	2,203		$	1,951
Cost of goods sold		1,316			1,313
Gross profit		887			638
Selling, general, and administrative expenses		1,095			1,590
Depreciation		40			43
Operating loss		(248	)		(995	)
Interest expense		(58	)		(54	)
Interest income		64			15
Gain on sale of short-term investments		10			18
Note write down		(100	)		-
Other income (expense)		7			(1	)
Loss from continuing operations before income tax provision		(325	)		(1,017	)
Income tax provision		-			-
Loss from continuing operations		(325	)		(1,017	)
Loss from discontinued operations, net of tax of $0		-			(128	)
Net loss	$	(325	)	$	(1,145	)

Mace Security International, Inc. Condensed Consolidated Statements of Operations Nine Months Ended September 30, 2014 and 2013 (Unaudited) (Amounts in thousands)
	2014			2013
Net sales	$	5,703		$	5,919
Cost of goods sold		3,655			3,546
Gross profit		2,048			2,373
Selling, general, and administrative expenses		3,685			4,434
Depreciation		127			119
Operating loss		(1,764	)		(2,180	)
Interest expense		(171	)		(166	)
Interest income		174			41
Gain on sale of short-term investments		134			37
Note write down		(100	)		-
Other income		8			(2	)
Loss from continuing operations before income tax provision		(1,719	)		(2,270	)
Income tax provision		-			-
Loss from continuing operations		(1,719	)		(2,270	)
Income (loss) from discontinued operations, net of tax of $0		408			(364	)
Net loss	$	(1,311	)	$	(2,634	)