OWINGS MILLS, Md., Aug. 12 /PRNewswire-FirstCall/ -- Universal
Security Instruments, Inc. (NYSE Amex: UUU) today announced results
for its fiscal first quarter ended June 30, 2009. The Owings Mills,
MD-based designer and marketer of safety and security equipment
reported its net income rose for the quarter to $611,465, or $0.25
per basic and diluted share, from $403,480, or $0.16 per basic and
diluted share, for the comparable quarter last year. Sales for its
first quarter were $5,914,905 compared to $6,192,801 for last year.
Results for the first quarter of 2009 include an increase in the
Company's Hong Kong Joint Venture earnings of $428,335. Included in
this increase is the recognition by the Company of a $246,180 gain
on intercompany sales of inventory from prior periods which, in
accordance with GAAP, may only be recognized as income upon sales
by the Company to customers, and a gain on currency holdings of
$117,050. Included in last year's results was a charge of $53,659
from discontinued operations. "We are cautiously optimistic that
the housing market has turned the corner and demand for our USI
Electric line of products has stabilized at lower levels. At the
same time, we continue to increase market share in the retail
segment of our operation. We are very pleased with the results from
our first quarter, especially during this difficult and challenging
operating environment. We also have been highly focused on
strengthening our balance sheet, while aggressively pursuing new
opportunities," said CEO, Harvey Grossblatt. 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 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
http://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. UNIVERSAL SECURITY INSTRUMENTS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended
June 30, --------------------------- 2009 2008 ---- ---- Sales
$5,914,905 $6,192,801 Net income from continuing operations 611,465
457,139 Income per share from continuing operations: Basic 0.25
0.18 Diluted 0.25 0.18 Loss from discontinued operations - (53,659)
Loss per share from discontinued operations: Basic (0.00) (0.02)
Diluted (0.00) (0.02) Net income: $611,465 $403,480 Net income per
share - basic $0.25 $0.16 Net income per share - diluted $0.25
$0.16 Weighted average number of common shares outstanding: Basic
2,417,338 2,487,867 Diluted 2,422,379 2,487,867 CONSOLIDATED
BALANCE SHEETS ASSETS June 30, 2009 March 31, 2009 -------------
-------------- Cash $934,820 $284,030 Accounts receivable and
amount due from factor 4,704,299 5,076,217 Inventory 7,407,697
8,997,231 Prepaid expenses 252,059 255,745 Assets held for sale
69,988 202,565 ------ ------- TOTAL CURRENT ASSETS 13,368,863
14,815,788 INVESTMENT IN HONG KONG JOINT VENTURE 11,271,479
10,550,373 PROPERTY, PLANT AND EQUIPMENT - NET 240,148 251,366
OTHER ASSETS AND DEFERRED TAX ASSET 2,208,392 2,160,151 ---------
--------- TOTAL ASSETS $27,088,882 $27,777,678 ===========
=========== LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable
and accrued expenses $1,900,734 $2,761,438 Accrued liabilities
536,125 752,452 Liabilities held for sale 69,988 202,565 ------
------- TOTAL CURRENT LIABILITIES 2,506,847 3,716,455 LONG TERM
OBLIGATION 96,034 95,324 SHAREHOLDERS' EQUITY: Common stock, $.01
par value per share; authorized 20,000,000 shares; issued and
outstanding 2,387,887 at June 30, 2009 and 2,408,220 at March 31,
2009 23,879 24,083 Additional paid-in capital 13,096,862 13,186,436
Retained earnings 11,365,260 10,755,380 ---------- ---------- TOTAL
SHAREHOLDERS' EQUITY 24,486,001 23,965,899 ---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $27,088,882 $27,777,678
=========== =========== DATASOURCE: Universal Security Instruments,
Inc. CONTACT: Harvey Grossblatt, President of Universal Security
Instruments, Inc., +1-410-363-3000, Ext. 224; Don Hunt or Jeff
Lambert of Lambert, Edwards & Associates, Inc., +1-616-233-0500
Web Site: http://www.universalsecurity.com/
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