EX-99.1 5 v123295_ex99-1.htm
Exhibit 99.1
 
universal
For Immediate Release
Contact: Harvey Grossblatt, CEO
Universal Security Instruments, Inc.
410-363-3000, Ext. 224
or
Don Hunt, Jeff Lambert
Lambert, Edwards & Associates, Inc.
616-233-0500
 
Universal Security Instruments Reports First-Quarter Results
 
OWINGS MILLS, MD, August 13, 2008 – Universal Security Instruments, Inc. (AMEX: UUU) today announced results for its fiscal first quarter ended June 30, 2008.
 
The Owings Mills, MD-based designer and marketer of safety and security equipment posted net earnings for the quarter of $403,480 or $0.16 per basic and diluted share on sales of $6,192,801 compared to net earnings of $791,002 or $0.32 per basic share ($0.31 per diluted share) on sales of $10,449,343 for last year's first quarter. Included in this year’s first quarter results was a charge of $53,659 and $413,842 in last year's results from our discontinued Canadian operation. 
 
The Company said its Canadian operations ceased activities as of August 5, 2008, and has liquidated all its inventory and equipment. The Company anticipates the receiver will file the necessary documents with the Court and the Company should be able to record a gain between $3,750,000 and $4,250,000 later this fiscal year due to abatement of debt to certain unsecured creditors.

"We are pleased with the improvement in Universal’s operating results for the June quarter which rose to $457,139 compared to $37,591 for the quarter ended March 31, 2008, despite the continued softening in the housing market. Universal will continue to focus on increasing retail sales and controlling expenses," 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 39-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 www.universalsecurity.com. 

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"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.

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Universal/Page 2

UNIVERSAL SECURITY INSTRUMENTS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
    
   
Three Months Ended June 30,
  
   
2008
  
2007
  
Sales
  
$
6,192,801
  
$
10,449,343
  
               
Net income from continuing operations
    
457,139
    
1,204,844
  
Income per share from continuing operations:
              
Basic
    
0.18
    
0.49
  
Diluted
    
0.18
    
0.48
  
               
Loss from discontinued operations
    
(53,659
)
  
(413,842
)
Loss per share from discontinued operations:
              
Basic
    
(0.02
)
  
(0.17
)
Diluted
    
(0.02
)
  
(0.17
)
               
Net income:
    
403,480
    
791,002
  
Net income per share – basic
    
0.16
    
0.32
  
Net income per share – diluted
    
0.16
    
0.31
  
Weighted average number of common shares outstanding:
              
Basic
    
2,487,867
    
2,479,979
  
Diluted
    
2,487,867
    
2,533,733
  
 
CONSOLIDATED BALANCE SHEETS

 
  
June 30, 2008
  
March 31, 2008
  
ASSETS
              
Cash
  
$
3,288,509
  
$
3,863,784
  
Accounts receivable and amount due from factor
    
6,496,340
    
6,144,169
  
Inventory
    
6,814,018
    
5,357,488
  
Prepaid expenses
    
345,561
    
206,197
  
Current assets of discontinued operations
    
2,729,142
    
2,850,731
  
TOTAL CURRENT ASSETS
  
$
19,673,570
  
$
18,422,369
  
INVESTMENT IN HONG KONG JOINT VENTURE
    
10,279,352
    
9,986,579
  
PROPERTY, PLANT AND EQUIPMENT – NET
    
119,035
    
130,347
  
OTHER ASSETS AND DEFERRED TAX ASSET
    
1,829,620
    
1,929,622
  
TOTAL ASSETS
  
$
31,901,577
  
$
30,468,917
  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
               
Accounts payable and accrued expenses
  
$
3,602,218
  
$
2,465,292
  
Current liabilities of discontinued operations
    
7,816,252
    
7,823,450
  
Accrued liabilities
    
673,774
    
665,080
  
TOTAL CURRENT LIABILITIES
  
$
12,092,244
  
$
10,953,822
  
LONG TERM OBLIGATION
    
92,527
    
91,160
  
SHAREHOLDERS’ EQUITY:
              
Common stock, $.01 par value per share; authorized 20,000,000 shares; issued and outstanding 2,487,867 and at June 30, 2008 and March 31, 2008
    
24,879
    
24,879
  
Additional paid-in capital
    
13,456,871
    
13,453,378
  
Retained earnings
    
6,293,503
   
5,890,023
 
Other comprehensive income
    
(58,447
)
  
55,655
  
TOTAL SHAREHOLDERS’ EQUITY
  
$
19,716,806
  
$
19,423,935
  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  
$
31,901,577
  
$
30,468,917