FORT LAUDERDALE, Fla.--Mace Security International, Inc. ("Mace" or the â€œCompanyâ€) (Nasdaq:MACE) today announced that its Board of Directors authorized a Stock Buy Back Plan to purchase shares of the Companyâ€™s common stock up to a maximum value of $2.0 million. The Company also announced financial results for the first six months and second quarter ended June 30, 2007.
On August 13, 2007, the Companyâ€™s Board of Directors authorized a Stock Buy Back Plan to purchase shares of the Companyâ€™s common stock up to a maximum value of $2.0 million. Maceâ€™s Board of Directors considers the Companyâ€™s current stock price to be undervalued. Maceâ€™s stock price is currently trading under its book value per share as of June 30, 2007 of $3.60. Stock purchases will be made in the open market, if and when management determines to effect purchases. Management may elect not to make purchases or make purchases less than $2.0 million in amount.
Mace narrowed its net loss by approximately $900,000 in the first half of 2007 to $1.9 million, or $(0.13) per share, from a net loss of $2.8 million, or $(0.19) per share, in the first half of 2006.
Total revenues for the first six months of 2007 were $22.7 million, compared to $25.7 million for the same period in 2006. Revenues in the Security Segment decreased by approximately $1.4 million, and car wash and detailing revenues decreased by approximately $1.0 million. The decrease in Security Segment revenues was primarily a result of the inability of some of Maceâ€™s vendors to supply high volume products in a timely manner, increased sales of discontinued and refurbished products at lower prices, and the impact on operations and management of the previously disclosed Florida embezzlement investigation. This decrease in sales was partially offset by growth in revenues in our personal defense and law enforcement aerosol operations. The decrease in our car wash and detailing revenue was primarily the result of the sale of car washes and reduced volumes in our remaining car washes due to an increase in inclement weather.
Gross profit as a percentage of revenues was approximately 23.1% for the first six months of 2007 and 25.3% for the first six months of 2006. Gross profit percentage for 2007 was comprised of 25.5% for the Security Segment and 20.8% for the Car and Truck Wash Segment, and in 2006 this percentage was comprised of 28.2% for the Security Segment and 22.6% for the Car and Truck Wash Segment. The decrease in the Security Segment gross profit was due to the decrease in revenues noted above, a change in customer and product mix and an increase in sales of discontinued and refurbished products at reduced margins. The decrease in the Car and Truck Wash gross profit percentage was principally the result of reduced volumes.
Selling, general and administrative (â€œSG&Aâ€) expenses for the first six months of 2007 decreased by $114,000, compared to the same period in 2006. Maceâ€™s SG&A expenses for the first six months of 2007 were impacted by several notable cash and non-cash charges. SG&A expenses include $248,000 of legal, consulting and accounting fees in the first six months of 2007 relating to the ongoing immigration investigation, compared to $1.1 million of such expenses in the first six months of 2006. As previously disclosed, the Company determined that our former divisional controller of the Florida Security division embezzled funds from the Company. Included in 2007 SG&A expenses is a charge of $99,000 representing the amounts of funds embezzled in the first quarter ended March 31, 2007 and approximately $300,000 of legal, consulting and accounting fees related to the Florida embezzlement investigation. SG&A expenses also include non-cash charges to compensation expenses for share-based compensation (employee stock options) of $332,000 and $387,000 for the first six months of 2007 and 2006, respectively.