OWINGS MILLS, Md., Feb. 16 /PRNewswire-FirstCall/ -- Universal
Security Instruments, Inc. (NYSE Amex: UUU) today announced its
earnings for the third quarter ended December 31, 2009. For the
three months ended December 31, 2009, the Company reported net
income of $263,490, or $0.11 per basic and diluted share, on net
sales of $6,321,490, compared to net income of $292,513, or $0.12
per basic and diluted share, on net sales of $5,595,049 for the
same period in 2008. For the nine months ended December 31, 2009,
sales were $20,137,200, versus $20,169,229 for the same period last
year. The Company reported net income of $1,799,825, or $0.75 per
basic and diluted share for the nine month period ended December
31, 2009, compared to net income of $4,787,207, or $1.93 per basic
and diluted share for the 2008 period. Included in the results of
the prior-year period was a gain from our discontinued Canadian
operation of $3,381,254. Income from continuing operations rose
28.0% to $1,799,825 in the 2009 period from $1,405,953 in the
comparable 2008 period, as a result of higher earnings from the
Hong Kong Joint Venture. The Company's book value at December 31,
2009 rose to $10.76 from $9.83 at December 31, 2008. "The majority
of the Company's new products have been submitted to UL
(Underwriters Laboratories) for testing and approval. We anticipate
that several of these products will be available starting in the
June 2010 quarter. In addition, we would like to congratulate our
Joint Venture partners for their excellent quarter," 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 December 31,
------------------------------ 2009 2008 ---- ---- Sales $6,321,490
$5,595,049 Net income: 263,490 292,513 Net income per share - basic
0.11 0.12 Net income per share - diluted 0.11 0.12 Weighted average
number of common shares outstanding: Basic 2,387,887 2,467,028
Diluted 2,395,201 2,467,028 CONSOLIDATED STATEMENTS OF INCOME
--------------------------------- (UNAUDITED) Nine Months Ended
December 31, ------------------------------ 2009 2008 ---- ----
Sales $20,137,200 $20,169,229 Net income from continuing operations
1,799,825 1,405,953 Income per share from continuing operations:
Basic 0.75 0.57 Diluted 0.75 0.57 Gain from discontinued operations
- 3,381,254 Gain per share from discontinued operations: Basic -
1.36 Diluted - 1.36 Net income: 1,799,825 4,787,207 Net income per
share - basic 0.75 1.93 Net income per share - diluted 0.75 1.93
Weighted average number of common shares outstanding: Basic
2,389,360 2,480,330 Diluted 2,395,621 2,480,330 CONSOLIDATED
BALANCE SHEETS --------------------------- ASSETS UNAUDITED
--------- UNAUDITED AUDITED --------- ------- December 31, 2009
March 31, 2009 ----------------- -------------- Cash $5,087,869
$284,030 Accounts receivable and amount due from factor 4,177,463
5,076,217 Inventory 5,497,833 8,997,231 Prepaid expenses 217,049
255,745 Current assets of discontinued operations - 202,565
----------- ----------- TOTAL CURRENT ASSETS 14,980,214 14,815,788
INVESTMENT IN HONG KONG JOINT VENTURE 12,108,352 10,550,373
PROPERTY, PLANT AND EQUIPMENT - NET 213,349 251,366 OTHER ASSETS
AND DEFERRED TAX ASSET 1,930,932 2,160,151 ----------- -----------
TOTAL ASSETS $29,232,847 $27,777,678 =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable and accrued
expenses $2,844,067 $2,761,438 Accrued liabilities 605,544 752,452
Current liabilities of discontinued operations - 202,565 ----------
---------- TOTAL CURRENT LIABILITIES 3,449,611 3,716,455 LONG TERM
OBLIGATION 97,469 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 at December 31, 2009 and March
31, 2009 23,879 24,083 Additional paid-in capital 13,106,683
13,186,436 Retained earnings 12,555,205 10,755,380 -----------
----------- TOTAL SHAREHOLDERS' EQUITY 25,685,767 23,965,899
----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$29,232,847 $27,777,678 =========== =========== DATASOURCE:
Universal Security Instruments, Inc. CONTACT: Harvey Grossblatt,
CEO, Universal Security Instruments, Inc., +1-410-363-3000, Ext.
224, Don Hunt or Jeff Lambert, both of Lambert, Edwards &
Associates, +1-616-233-0500 Web Site:
http://www.universalsecurity.com/
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