MACE SECURITY INTERNATIONAL INC - 10-Q Quarterly Report

Back to GetFilings.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTER ENDED MARCH 31, 2003

COMMISSION FILE NO. 0-22810

MACE SECURITY INTERNATIONAL, INC.

(Exact name of Registrant as specified in its charter)

DELAWARE
(State or other jurisdiction of
incorporation or organization)

03-0311630
(I.R.S. Employer
Identification No.)

1000 Crawford Place, Suite 400, Mt. Laurel, NJ 08054
(Address of Principal Executive Offices)

Registrant’s Telephone No., including area code: (856) 778-2300

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock:

As of May 7, 2003, there were 12,402,034 Shares of Registrant’s Common Stock, par value $.01 per share, outstanding.

Mace Security International, Inc.

Form 10-Q
Quarter Ended March 31, 2003

Contents

			Page

PART I	FINANCIAL INFORMATION

	Item 1	Financial Statements	2

		Consolidated Balance Sheets - March 31, 2003 (Unaudited) and December 31, 2002	2

		Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2003 and 2002 (Restated)	4

		Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2003 (Unaudited)	5

		Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2003 and 2002 (Restated)	6

		Notes to Consolidated Financial Statements (Unaudited)	7

	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

	Item 3	Quantitative and Qualitative Disclosures about Market Risk	24

	Item 4	Controls and Procedures	24

PART II	OTHER INFORMATION

	Item 1	Legal Proceedings	25

	Item 2	Not applicable	—

	Item 3	Not applicable	—

	Item 4	Not applicable	—

	Item 5	Other Information	25

	Item 6	Exhibits and Reports on Form 8-K	25

SIGNATURES

PART I
FINANCIAL INFORMATION

Item 1.

Financial Statements

Mace Security International, Inc.

Consolidated Balance Sheets

(In thousands except share information)

	March 31, 2003			December 31, 2002

	(Unaudited)

ASSETS
Current assets:
Cash and cash equivalents	$	5,461		$	6,189
Accounts receivable, less allowance for doubtful accounts of $206 and $198 in 2003 and 2002, respectively		1,029			772
Inventories		3,336			2,675
Deferred income taxes		227			230
Prepaid expenses and other current assets		1,722			1,968

Total current assets		11,775			11,834
Property and equipment:
Land		31,804			31,804
Buildings and leasehold improvements		35,504			35,470
Machinery and equipment		9,601			9,485
Furniture and fixtures		444			444

Total property and equipment		77,353			77,203
Accumulated depreciation and amortization		(9,562	)		(9,082	)

Total property and equipment, net of accumulated depreciation and amortization		67,791			68,121
Goodwill		13,430			13,430
Other intangible assets, net of accumulated amortization of $1,425 and $1,415 in 2003 and 2002, respectively		956			959
Deferred income taxes		1,530			1,700
Other assets		238			244

Total assets	$	95,720		$	96,288

See accompanying notes.

	March 31, 2003			December 31, 2002

	(Unaudited)

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations	$	8,755		$	8,812
Accounts payable		2,178			2,598
Income taxes payable		227			210
Deferred revenue		343			380
Accrued expenses and other current liabilities		2,167			2,044

Total current liabilities		13,670			14,044
Long-term debt, net of current portion		23,672			24,168
Capital lease obligations, net of current portion		295			332
Other liabilities		62			75
Stockholders’ equity:
Preferred stock, $.01 par value:
Authorized shares - 10,000,000
Issued and outstanding shares - none		—			—
Common stock, $.01 par value:
Authorized shares - 100,000,000
Issued and outstanding shares of 12,412,034 and 12,407,655 in 2003 and 2002, respectively		124			124
Additional paid-in capital		69,720			69,710
Accumulated deficit		(11,823	)		(12,165	)

Total stockholders’ equity		58,021			57,669

Total liabilities and stockholders’ equity	$	95,720		$	96,288

See accompanying notes.

Mace Security International, Inc.

Consolidated Statements of Operations
(Unaudited)

(In thousands except share information)

	Three Months Ended March 31,

	2003			2002

					(Restated)
Revenues:
Car wash and detailing services	$	9,545		$	9,966
Lube and other automotive services		1,021			1,035
Fuel and merchandise sales		920			695
Security product sales		1,115			—
Operating agreements		—			60

		12,601			11,756
Cost of revenues:
Car wash and detailing services		6,705			6,526
Lube and other automotive services		777			789
Fuel and merchandise sales		795			601
Security product sales		654			—

		8,931			7,916
Selling, general and administrative expenses		2,210			1,793
Depreciation and amortization		485			472

Operating income		975			1,575
Interest expense, net		(522	)		(563	)
Other income		82			66

Income before income taxes		535			1,078
Income tax expense		193			388

Income before cumulative effect of a change in accounting principle		342			690
Cumulative effect of a change in accounting principle, net of tax benefit of $2,188		—			(5,733	)

Net income (loss)	$	342		$	(5,043	)

Per share of common stock (basic and diluted):
Income before cumulative effect of a change in accounting principle	$	0.03		$	0.05
Cumulative effect of a change in accounting principle, net of tax		—			(0.45	)

Net income (loss)	$	0.03		$	(0.40	)

Weighted average shares outstanding:
Basic		12,410,279			12,693,377

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents