Mace Security International Reports Increases
in Revenues And Profitability for the First Quarter
2001
MOUNT LAUREL, N.J., May 10 Mace Security International,
Inc. ("Mace") , a leading provider of car care services, today
announced increases in revenues and profitability for the first quarter ended
March 31, 2001.
Revenues for the first quarter ended March 31, 2001 were $12.8 million
compared to $11.8 million for the first quarter of 2000. Mace achieved
revenue growth despite difficult weather conditions that resulted in 56% more
lost operating days in the 2001 quarter than in the same quarter of 2000.
Mace's revenue growth is the result of the Company's continued emphasis on its
revenue enhancement program of aggressively marketing various on-line and off-
line car wash services. In the first quarter of 2001, average wash revenue
per car increased 12.2% to $13.34 from $11.89 in 2000 including an increase in
detailing revenues of 33% to $2.0 million from $1.5 million in the first
quarter of 2000.
EBITDA for the quarter was 15.4% of revenues or $1.97 million, which
remained constant with the same quarter of 2000. Net income, on a fully
diluted basis, for the first quarter of 2001 was $302,000 or $.01 per share
compared to $280,000 or $.01 per share in 2000.
Compared to the most recent quarter ended December 31, 2000, revenues for
the first quarter of 2001 increased 12% to $12.8 million from $11.4 million.
Additionally, operating income increased 363%, to $1.24 million from $267,000,
and EBITDA increased 95%, to $1.97 million from $1.01 million in the December
2000 quarter.
"The fundamentals of our business continue to be very strong. Despite
losing more days to poor weather conditions, the Company increased revenues
and net income during the first quarter of 2001," said Louis D. Paolino, Jr.,
Chairman and Chief Executive Officer of Mace. "In addition, we increased our
cash position to $5.4 million, an increase of approximately $570,000 or 11.7%
during the first quarter of 2001. We were very successful in 2000 in
refinancing and terming out the majority of our short term acquisition-related
debt. We also maintained our strong balance sheet including a .37 to 1 debt-
to-total capitalization ratio and a book value of $63 million or $2.48 per
share."
Mr. Paolino added, "We are very pleased with the operating improvements
that are now being realized at our car wash locations. Robert Kramer, the
Company's Executive Vice President in charge of day-to-day operations, has
assembled a highly-experienced management team. During the last two quarters,
this management team has successfully stabilized our car wash site labor
expenses while increasing car wash volume, detailing revenue and average wash
revenue per car. Our improved financial results are a direct reflection of
our management team's commitment to the continued growth of Mace."
Conference Call Notification
Mace will conduct a conference call on Friday, May 11, 2001 at 11:00 AM
EDT. The conference call number is (888) 868-9083. 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. A tape
recording of the teleconference will also be available on the Company's
website through July 1, 2001.
Mace Security International, Inc. is a leading provider of car care
services, which owns and operates 57 car washes and five truck washes
nationwide. Additional information about Mace is available at http://www.mace.com.
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 effects 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.
TABLES FOLLOW
Mace Security International, Inc.
Consolidated Statements of Operations
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2001 2000
Restated (1)
Revenues
Car wash and detailing services $10,614 $9,281
Fuel, lube and merchandise sales 2,155 2,450
Operating agreements 60 29
12,829 11,760
Cost of revenues
Car wash and detailing services 7,326 6,257
Fuel, lube and merchandise sales 1,754 1,968
9,080 8,225
Selling, general and administrative
expenses 1,838 1,652
Depreciation and amortization 675 563
Operating income 1,236 1,320
Interest expense, net (819) (713)
Other income 63 84
Income from continuing operations
before income taxes 480 691
Income tax expense 178 221
Income from continuing operations 302 470
Loss from discontinued operations,
net of applicable income taxes - (190)
Net income $302 $280
Basic earnings (loss) per share
From continuing operations $0.01 $0.02
From discontinued operations - (0.01)
Total $0.01 $0.01
Weighted average shares outstanding 25,485,313 23,175,411
Diluted earnings (loss) per share
From continuing operations $0.01 $0.02
From discontinued operations - (0.01)
Total $0.01 $0.01
Weighted average shares outstanding 25,485,836 24,778,754
EBITDA (2) $1,974 $1,967
EBITDA % 15.4% 16.7%
(1) Restated to reflect the discontinuance of Innovative Control Systems,
Inc.
(2) EBITDA is calculated as income from continuing operations adding back
interest, income taxes, depreciation and amortization.
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