Mace Security Announces Financial Results For Q1 2000
11 May 2000
Mace Security International Announces Financial Results For The First Quarter 2000
MOUNT LAUREL, N.J., May 10 Mace Security International,
Inc. (Mace) , a leading provider of car care services, today
announced financial results for the quarter ended March 31, 2000. Income from
operations for the first quarter of 2000 was $280,000 compared to a loss from
continuing operations of $58,000 in the first quarter of 1999. Earnings per
share for the quarter was $.01 per share on a fully diluted basis compared to
a loss from continuing operations of $.01 per share in the 1999 quarter.
Revenues for the first quarter of 2000 were $12.1 million, a 328% increase
over the $2.8 million for the first quarter of 1999. Operating income for the
quarter was $1.0 million or 8.7% of revenues, up from $25,000 or 0.9% of
revenues in the prior year period. EBITDA for the quarter was $1.6 million or
13.4% of revenues compared to EBITDA of $160,000 or 5.7% of revenues in the
same quarter of 1999. Additionally, prior year quarter results exclude a loss
from discontinued operations of $114,000 or $.01 per share, net of related
income taxes.
During the first quarter of 2000, Mace completed one acquisition and
signed definitive purchase agreements to acquire four additional businesses.
These businesses represent 75 car wash facilities and seven truck wash service
facilities having annual revenues of approximately $116 million. This total
includes the previously announced acquisition of Wash Depot Holdings, Inc.,
which operates 73 car washes in 15 states. The Company also entered the truck
wash service business by acquiring Red Baron Truck Wash and signing a
definitive purchase agreement to acquire Planet Truck Wash, two truck wash
chains specializing in providing services for tractor trailers and fleet
transport vehicles. Together Red Baron and Planet operate seven truck wash
locations in four states.
Louis D. Paolino, Jr., Chairman and Chief Executive Officer of Mace, said,
"During the first quarter of 2000, we revolutionized the car wash industry by
announcing the acquisition of Wash Depot Holdings, Inc., the largest car wash
operator in the United States. At the completion of the Wash Depot
transaction, Mace will be the largest car wash chain ever assembled operating
approximately 140 locations in 18 states." He added, "We have also made great
strides this quarter in improving our financial results, particularly in the
areas of revenue growth, cost containment and cash flows. Revenues have
increased 328% from the prior year period primarily due to our disciplined
acquisition strategy. SG&A expenses as a percentage of revenues have dropped
from 40% in the first quarter of 1999 to 15% in 2000, while EBITDA percentage
increased almost 8 percentage points due to solid improvements to operating
efficiencies and consistently increasing car wash volume."
In addition, Mace refinanced the terms of the majority of its short-term
debt by receiving two new secured term loans and modifying several previously
assumed loans with Bank One, Texas N.A. totaling approximately $10 million.
Bank One, Texas N.A. is a subsidiary of Bank One Corporation, which is the
nation's fourth largest bank holding company with total assets of more than
$260 billion.
Mace will conduct a conference call on Thursday, May 11, 2000 at 2:00 PM
EDT to review the Company's first quarter 2000 operating results and other
company news. The conference call number is (800) 530-8983. In addition, a
live webcast of the conference call will be available online at http://www.mace.com
or http://www.streetevents.com through June 1, 2000.
Mace Security International, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2000 1999
Restated (1)
Revenues
Car wash and detailing services $9,281 $1,354
Fuel, lube and merchandise sales 2,450 107
Security Product Sales - 704
Computer products and services 358 664
Operating agreements 29 -
12,118 2,829
Cost of revenues
Car wash and detailing services 6,257 695
Fuel, lube and merchandise sales 1,968 70
Security Product Sales - 364
Computer products and services 404 395
8,629 1,524
Selling, general and administrative expenses 1,863 1,145
Depreciation and amortization 577 135
Operating income 1,049 25
Interest expense, net (721) (37)
Other income (expense) 84 (46)
Income (loss) from continuing operations
before income taxes 412 (58)
Income tax expense 132 -
Income (loss) from continuing operations 280 (58)
Loss from discontinued operations,
net of applicable income taxes - (114)
Net income (loss) $280 $(172)
Basic earnings (loss) per share
From continuing operations $ 0.01 $(0.01)
From discontinued operations - (0.01)
Total $ 0.01 $(0.02)
Weighted average shares outstanding 23,175,411 8,191,820
Diluted earnings (loss) per share
From continuing operations $ 0.01 $(0.01)
From discontinued operations - (0.01)
Total $ 0.01 $(0.02)
Weighted average shares outstanding 24,778,754 8,191,820
EBITDA $1,626 $ 160
EBITDA% 13.4% 5.7%
(1) Prior period financial statements have been restated to reflect the
merger transactions accounted for as "poolings of interests" with Innovative
Control Systems, Inc., 50's Classic Car Wash of Lubbock, Inc. and Eager Beaver
Car Wash, Inc.
Mace Security International, Inc.
1000 Crawford Place, Suite 400
Mount Laurel, NJ 08054
(856) 778-2300 - http://www.mace.com
Eduardo Nieves, Jr., Investor Relations