UNIVERSAL SECURITY INSTRUMENTS INC - FORM 10-K - EX-99.1 - June 23, 2010

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10-K - UNIVERSAL SECURITY INSTRUMENTS INCv188826_10k.htm
EX-23.2 - UNIVERSAL SECURITY INSTRUMENTS INCv188826_ex23-2.htm
EX-32.1 - UNIVERSAL SECURITY INSTRUMENTS INCv188826_ex32-1.htm
EX-31.2 - UNIVERSAL SECURITY INSTRUMENTS INCv188826_ex31-2.htm
EX-31.1 - UNIVERSAL SECURITY INSTRUMENTS INCv188826_ex31-1.htm
EX-23.1 - UNIVERSAL SECURITY INSTRUMENTS INCv188826_ex23-1.htm

EXHIBIT 99.1
  
 
For Immediate Release
Contact:  Harvey Grossblatt, President
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 Fourth-Quarter and Year-End Results

OWINGS MILLS, Md. June 23, 2010 - Universal Security Instruments, Inc. (NYSE Amex: UUU) today announced results for its fourth quarter and fiscal year ended March 31, 2010.

Universal reported fourth quarter net income of $468,223, or $0.20 per basic and diluted share, on sales of $6,301,918.  This compares to net income of $78,150, or $0.03 per basic and diluted share, on sales of $5,928,367 for the comparable period of the previous year.  Included in last year’s results was income from discontinued operations of $41,767.  

For the 12 months ended March 31, 2010, sales were $26,439,118 versus $26,097,596 for the same period last year.  The Company reported net earnings of $2,268,048 or $0.95 per basic and diluted share versus net income of $4,865,357 or $1.97 per basic and $1.96 per diluted share for the same period last year.  Included in the March 31, 2009 results was a gain of $3,423,021 from discontinued operations.  The Company’s book value at March 31, 2010 has increased to $10.96 per share versus $9.95 per share at March 31, 2009.

“We are very pleased with the Company’s performance during the past fiscal year, particularly in light of the challenges the economy has created. Included in our results is approximately $500,000 of research and development expenses, which we expended for new product development, and we expect to spend another $400,000-$600,000 in this fiscal year to complete the development and testing of our new product line,” said Harvey Grossblatt, Chairman and CEO of Universal.

Universal previewed approximately 25 new products in May at the International Hardware Show in Las Vegas and received very positive feedback from our customers. Initial deliveries of several of these products should begin in the September time frame.
 
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 a 41 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.

"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 and 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.

— more –

11407 CRONHILL DRIVE, SUITE A • OWINGS MILLS, MARYLAND 21117, USA
 (410) 363-3000  •  www.universalsecurity.com

 
 
 

Universal/Page 2
UNIVERSAL SECURITY INSTRUMENTS, INC.
CONSOLIDATED STATEMENT OF INCOME
   
(UNAUDITED)
  
   
Three Months Ended March 31,
  
   
2010
    
2009
  
Sales
   $ 6,301,918     $ 5,928,367  
Net income from continuing operations
     468,223       36,383  
Income per share from continuing operations:
                
Basic
     0.20       0.02  
Diluted
     0.20       0.02  
Gain from discontinued operations
     -       41,767  
Gain per share from discontinued operations:
                
Basic
     -       0.02  
Diluted
     -       0.02  
Net income
     468,223       78,150  
Net income per share – basic
     0.20       0.03  
Net income per share – diluted
     0.20       0.03  
Weighted average number of common shares outstanding
                
Basic
     2,387,887       2,421,755  
Diluted
     2,398,927       2,423,323  

   
(AUDITED)
  
   
Twelve Months Ended March 31,
  
   
2010
    
2009
  
Sales
   $ 26,439,118     $ 26,097,596  
Net income from continuing operations
     2,268,048       1,442,336  
Income per share from continuing operations:
                
Basic
     0.95       0.58  
Diluted
     0.95       0.58  
Gain from discontinued operations
     -       3,423,021  
Gain per share from discontinued operations:
                
Basic
     -       1.39  
Diluted
     -       1.38  
Net income
     2,268,048       4,865,357  
Net income per share – basic
     0.95       1.97  
Net income per share – diluted
     0.95       1.96  
Weighted average number of common shares outstanding
                
Basic
     2,387,887       2,466,983  
Diluted
     2,398,300       2,471,807  
CONSOLIDATED BALANCE SHEET
 
 
March 31,
  
   
2010
    
2009
  
ASSETS
            
Cash, cash equivalents and investments
   $ 6,255,521     $ 284,030  
Accounts receivable and amount due from factor
     4,374,224       5,076,217  
Inventory
     3,439,906       8,997,231  
Prepaid expenses
     351,192       255,745  
Current assets of discontinued operations
     -       202,565  
TOTAL CURRENT ASSETS
     14,420,843       14,815,788  
INVESTMENT IN HONG KONG JOINT VENTURE
     12,153,456       10,550,373  
PROPERTY, PLANT AND EQUIPMENT – NET
     199,163       251,366  
OTHER ASSETS AND DEFERRED TAX ASSET
     1,897,292       2,160,151  
TOTAL ASSETS
   $ 28,670,754     $ 27,777,678  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Accounts payable and accrued expenses
   $ 2,162,755     $ 2.761,438  
Current liabilities of discontinued operations
     -       202,565  
Accrued liabilities
     279,035       752,452  
TOTAL CURRENT LIABILITIES
     2,441,790       3,716,455  
LONG TERM OBLIGATION
     46,459       95,324  
SHAREHOLDERS’ EQUITY
                
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,387,887 and 2,408,220 shares at March 31, 2010 and March 31, 2009, respectively
     23,879       24,083  
Additional paid-in capital
     13,135,198       13,186,436  
Retained earnings
     13,023,428       10,755,380  
TOTAL SHAREHOLDERS’ EQUITY
     26,182,505       23,965,899  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 28,670,754     $ 27,777,678  

 
 
 

UNIVERSAL SECURITY INSTRUMENTS INC Reports