Mace Security International Expects to Report
Positive Financial Results For the First Quarter 2001 - 12%
Increase in Revenues and 80% Increase in EBITDA
Conference Call on May 11, 2001 at 11:00 AM EDT
MOUNT LAUREL, N.J., April 23 /PRNewswire Interactive News Release/ --
Mace Security International, Inc. ("Mace"), a leading provider
of car care services, today announced that it expects to report improved and
positive financial results for the first quarter ended March 31, 2001. The
Company expects to report a 12% increase in revenues and an 80% increase in
EBITDA for the first quarter of 2001 as compared to the fourth quarter of
2000.
Mace's preliminary results for the first quarter ended March 31, 2001
indicate that revenues increased 12% to approximately $12.8 million from $11.4
million in the fourth quarter ended December 31, 2000. Mace's preliminary
results also indicate that EBITDA in the first quarter of 2001 increased 80%
to approximately $1.8 million from $1.0 million in the fourth quarter of 2000.
In addition, Mace expects to report a profit in after-tax income and earnings
per share for the first quarter ended March 31, 2001. The Company's internal
growth improvements during the first quarter are expected to result in a
substantial increase in operating cash flow as compared to the prior two
quarters.
The Company's preliminary results also indicate that car wash volume
increased significantly to approximately 750,000 vehicles in the first quarter
ended March 31, 2001 compared to 661,000 vehicles in the fourth quarter of
2000, a 13.5% increase, despite continued unfavorable weather conditions.
During the first quarter of 2001, the Company's markets, on a combined basis,
experienced rain or clouds on approximately 59% of its operating days as
compared to 54% in the December 2000 quarter, according to information
gathered from the National Climatic Data Center.
"Our first quarter financial results are expected to be positive as
operating improvements at our car washes continue to show financial benefits,
despite above normal lost operating days relating to continued unfavorable
weather conditions," said Louis D. Paolino, Jr., Chairman and Chief Executive
Officer of Mace. "The fundamentals of the business continue to be very
strong, which is demonstrated by the 80% increase in EBITDA after generating
an increase of 12% in revenues during the quarter."
Mr. Paolino also said, "As compared to our results one year ago in our
March 2000 quarter, our preliminary results indicate that detailing revenue
improved by 34% and our average wash revenue per car increased by 12% or $1.45
per car from approximately $11.90 to approximately $13.35 per car. These
increases in detailing and average wash revenue per car offset the poor
weather conditions we experienced during the quarter and will add additional
profits to our bottom line. Furthermore, management believes that we are
positioned to continue increasing financial results through internal growth."
On April 19, 2001, the Company was advised by Nasdaq that its stock price
was below $1.00 for 30 consecutive days. If the Company's stock price is not
$1.00 or more for ten consecutive days on or before July 18, 2001, Nasdaq has
advised the Company that it may be delisted. The Company can and would appeal
any decision to delist its stock. The Company's book value per share as of
December 31, 2000 was $2.47 per share. In light of Mace's per share book
value and its improved and positive March quarter operating results, the
Company believes that its shares are significantly undervalued.
Estimates are based upon preliminary results and are subject to final
review.
Mace will conduct a conference call on Friday, May 11, 2001 at 11:00 AM
EDT. The conference call number is (888) 868-9083. A press release detailing
the results for the quarter will be released after the market closes on
Thursday, May 10, 2001. There will be access to a tape recording of the
teleconference by calling (877) 519-4471 and entering the reservation number
2557583. This will be available after the teleconference from 1:00 PM EDT,
Friday, May 11, 2001 through 5:00 PM EDT, Monday, May 14, 2001. In addition,
a live web cast of the conference call will be available online at
http://www.mace.com or http://www.streetevents.com through July 1, 2001.
Mace Security International, Inc. is a provider of car care services,
which owns and operates car and truck washes nationwide.
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", "intends 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,
dilution to shareholders, lack of capital, the effects of weather on the
demand for car care services, the affects of rapid growth upon the Company and
the ability of management to effectively respond to the growth, its ability to
achieve operating synergies, its ability to compete, regulatory matters, the
effects of competition, its ability to maintain the control of the Company's
cash business, and the ability of the Company to obtain additional financing.
Such factors could materially adversely affect the Company's financial
performance and could cause the Company's actual results for future periods to
differ materially from any opinions or statements expressed within this press
release. Additional discussion of factors that could cause actual results to
differ materially from management's projections, forecasts, estimates and
expectations are contained in the Company's SEC filings, including its S-3
registration statements and Form 10-KSB for 2000.
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