Mace Reports Second Quarter 2016 Financial Results

• Positive net income, up 170%
• Positive adjusted EBITDA of $101,000 reported for the quarter
• Adds 46 new accounts in 2016

CLEVELAND--(BUSINESS WIRE)--Mace Security International Inc. (OTCPINK: MACE) today announced unaudited financial results for the second quarter and six-month period ended June 30, 2016.

“Positive momentum continues as the company has grown revenues, its customer base, and has expanded the brand both domestically and internationally,” said Richard Barone, chairman. “As evidenced by our year-to-date results, we remain on track to deliver sustainable, profitable growth for investors in the near term.”

Second Quarter/Six Months 2016 Financial Highlights

• Net revenue up 7.1% for quarter; up 21.4% year-to-date
• Gross profit up 0.2% for quarter; up 19.2% year-to-date
• Key channels of distribution (sporting goods & consumer) net revenues up 10.8% for the quarter; up 15.1% year-to-date
• International net revenues up 24.4% for the quarter; up 119.4% year-to-date
• Selling, general and administrative expenses down 3.1% for the quarter, 6.5% year to date
• Net income of $41,000 reported for the quarter
• Adjusted EBITDA of $101,000 reported for the quarter

Select Consolidated Financial Results, Second Quarter Ended June 30, 2016 and 2015

(in thousands):

	For the Three Months Ended
	June 30, 2016			% of Sales		June 30, 2015			% of Sales
											$ Chg	% Chg
Net revenue	$	2,031		100.0	%	$	1,896		100.0	%	135	7.1	%
Gross profit		839		41.3	%		837		44.1	%	2	.2	%
Selling, general, and administrative expenses		860		42.3	%		920		48.5	%	60	-6.5	%
Operating loss		(60	)	-3.0	%		(118	)	-6.2	%	58	-49.2	%
Net income (loss)		41		2.0	%		(59	)	-3.1	%	100	-169.5	%

Second Quarter 2016 Operational Highlights

Similar to the prior quarters, the company added 21 new customer accounts in the second quarter, including 7 in the “tactical” market. The company continues to grow and expand the brand through strategic distribution and product placement. , “We are just beginning to take full advantage of the power of the Mace Brand. Everything we do at Mace Security International is to elevate the brand and increase our customer base world-wide,” said Mace President and CEO John J. McCann.

McCann noted that the company will have three new Mace-branded products in the marketplace before year end, all defense spray products, and include a new pepper gun and two new personal models: Mace Carabiner and Mace Clutch models. “New products like these are just another example of our commitment to keeping people safe,” he said.

Conference Call

Mace® will conduct a conference call on Tuesday, August 9, 2016 at 11:00 AM EDT, 8:00 AM PDT to discuss its financial and operational performance for the quarter ended June 30, 2016. The participant conference call number is [phone], conference ID: 63132408. A full set of the consolidated financial statements are available on the Mace website. Presentation materials for the conference call will be available Monday, August 8, on Mace’s website under Investor Relations, Shareholder Transcripts & Presentations. A digital recording of the teleconference will be available on the Mace website within 24 hours of the teleconference.

About Mace Security International, Inc.

Mace Security International Inc. is a globally recognized leader in personal safety and security. Based in Cleveland, Ohio, the company has spent more than 40 years designing and manufacturing consumer and tactical products for personal defense, security and surveillance under its world-renowned Mace^® Brand – the original trusted brand of pepper spray products. The company also offers aerosol defense sprays and tactical products for law enforcement and security professionals worldwide through its Mace^® and Take Down^® brands.

Mace Security International distributes and supports Mace^® Brand products and services through mass-market retailers, wholesale distributors, independent dealers, e-commerce marketers and installation service providers. For more information, please visit www.mace.com.

Forward-Looking Statements

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	June 30, 2016		December 31, 2015
Current assets:	(Unaudited)
Cash and cash equivalents	$	338	$	446
Restricted cash		60		60
Short-term investments		2,126		2,142
Accounts receivable, net		1,575		1,562
Inventories, net		1,776		1,601
Prepaid expenses and other current assets		869		779
Assets held for sale, net		275		430
Total current assets		7,019		7,020
Plant and equipment, net		704		522
Other intangible assets		685		685
Other assets		868		1,034
Total assets	$	9,276	$	9,261
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	329	$	222
Income taxes payable		59		61
Accrued expenses and other current liabilities		547		695
Total current liabilities		935		978
Other liabilities		51		-
Total stockholders’ equity		8,290		8,283
Total liabilities and stockholders’ equity	$	9,276	$	9,261

Mace Security International, Inc. Condensed Consolidated Statements of Operations Three Months Ended June 30, 2016 and 2015 (Unaudited) (Amounts in thousands)
	2016			2015
Net revenue	$	2,031		$	1,896
Cost of revenue		1,192			1,059
Gross profit		839			837
Selling, general, and administrative expenses		860			920
Depreciation		39			35
Operating loss		(60	)		(118	)
Interest expense		(12	)		-
Interest income		35			69
Loss on sale of short-term investments		-			(3	)
Other income		-			(9	)
Loss from continuing operations before income tax provision		(37	)		(61	)
Income tax provision		-			-
Loss from continuing operations		(37	)		(61	)
Income from discontinued operations, net of tax		78			2
Net income (loss)	$	41		$	(59	)

Mace Security International, Inc. Condensed Consolidated Statements of Operations Six Months Ended June 30, 2016 and 2015 (Unaudited) (Amounts in thousands)
	2016			2015
Net revenue	$	4,110		$	3,385
Cost of revenue		2,454			1,996
Gross profit		1,656			1,389
Selling, general, and administrative expenses		1,832			1,891
Depreciation		76			71
Operating loss		(252	)		(573	)
Interest expense		(23	)		(25	)
Interest income		72			94
Loss on sale of short-term investments		-			(16	)
Other income		-			312
Loss from continuing operations before income tax provision		(203	)		(208	)
Income tax provision		-			-
Loss from continuing operations		(203	)		(208	)
Income (loss) from discontinued operations, net of tax		84			(34	)
Net loss	$	(119	)	$	(242	)