Mace Reports Fourth Quarter and Full-Year 2015 Operating Results

  • Net revenue increase of 17.9% for the quarter; 13.8% for full
    year
  • Gross profits in fourth quarter increased 8.0%; up 19.2% for
    full year
  • Operating loss improved 14.9%; 38.5% year over year
  • Company expects to report full financial statements in May 2016
    upon completion of year-end audit

CLEVELAND–(BUSINESS WIRE)–Mace Security International Inc. (OTCPINK: MACE) today announced
operating financial results for the fourth quarter and twelve-month
period ended December 31, 2015. (Note: Mace will release full year-end
financial statements upon the resolution of a valuation issue related to
certain non-operating assets. The company anticipates releasing its
audited financial statements in May 2016. As a result, the company’s
stock listing on the OTC PINK Market will have a notation indicating the
company is delinquent in reporting its financial results until its
year-end financial statements are completed and filed.)

“2015 was a terrific year for Mace as we drove significant top-line
growth and margin expansion that has continued into the first quarter of
2016,” said John McCann, president and chief executive officer. “Our
ability to generate steadily increasing global demand for our iconic
defense sprays was key to our success in 2015. Likewise, through smart
product line extensions and new product launches, we were able to
increase our presence with existing customers, as well as grow our
market presence in 2015.”

Fourth Quarter/Full Year 2015 Highlights

  • Key channels of distribution (sporting goods & consumer) net revenues
    up 8.6% for the quarter; and 16.9% year-to-date. Strong performance by
    key partners including Dick’s Sporting Goods, Cabela’s, Big 5 Sporting
    Goods, Amazon, Auto Zone, Lowe’s, and Meijer contributed to the
    increase.
  • Tactical distribution channel net revenues were up 25.1% for the
    quarter; and 129.8% year-to-date; 28 new agencies added for the year.
  • Company added distribution of its products at 17 new accounts for the
    quarter; and 83 year-to-date.
  • Selling, general and administrative expenses flat for the quarter,
    down 7.8% year to date.
  • Fourth quarter operating loss from continuing operations included an
    $88,000 non-recurring severance expense related to the departure of a
    senior executive.
  • Merlin Partners, LP – the company’s largest shareholder – further
    increased its holdings in Mace by exercising 1,178,929 warrants in
    December 2015.
  • During the fourth quarter of 2015, three directors who did not
    previously own Mace shares each initiated positions in the company.

Select Consolidated Financial Results, Fourth Quarter and Year Ended
December 31, 2015 and 2014 (in thousands):

    For the Three Months Ended
Dec 31,    

% of
Sales

    Dec 31,    

% of
Sales

       
2015 2014     $ Chg % Chg
Net revenue $ 2,051 100.0 % $ 1,740 100.0 % 311 17.9 %
 
Gross profit 726 35.4 % 672 38.6 % 54 8.0 %
 
Selling, general, and administrative expenses 1,022 49.8 % 1,024 58.9 % -2 -0.2 %
 
Operating loss from continuing operations (330 ) -16.1 % (388 ) -22.3 % -58 -14.9 %
 
    For the Twelve Months Ended
Dec 31,    

% of
Sales

    Dec 31,    

% of
Sales

       
2015 2014     $ Chg % Chg
Net revenue $ 7,145 100.0 % $ 6,280 100.0 % 865 13.8 %
 
Gross profit 2,755 38.6 % 2,312 36.8 % 443 19.2 %
 
Selling, general, and administrative expenses 3,838 53.7 % 4,162 66.3 % -324 -7.8 %
 
Operating loss from continuing operations (1,223 ) -17.1 % (1,988 ) -31.7 % -765 -38.5 %
 

Mace also announced today that, as part of its ongoing strategic
planning process, the Company decided to exit its electronic
surveillance equipment business during the fourth quarter of 2015.
“Given the aggressive expansion of our core products portfolio, our
surveillance operations no longer aligns with our long-term growth
strategy,” said McCann.

The results of the Surveillance operations will be included in
“Discontinued Operations” during the divestiture process. The company
will not comment or speculate on the potential timing or terms of a
transaction involving the Surveillance operations.

Conference Call

Mace® will conduct a conference call on Tuesday, April 19, 2016 at 11:00
AM EDT, 8:00 AM PDT to discuss its financial and operational performance
for the quarter ended December 31, 2015. The participant conference call
number is (877) 719-8065, conference ID: 93040427. Presentation
materials for the conference call will be available Monday, April 18,
2016 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 products 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® Take Down® brand.

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.

Contacts

Mace Security International Inc.
John J. McCann
President and
Chief Executive Officer
440-424-5322
john@mace.com