Mace Security Announces Stock Buy Back Plan

FORT LAUDERDALE, Fla.--Mace Security International, Inc. ("Mace" or the “Company”) (Nasdaq:MACE) today announced that its Board of Directors authorized a Stock Buy Back Plan to purchase shares of the Company’s common stock up to a...


Discontinued operations include the Company’s Arizona car wash region, our Northeast car wash region, and our truck washes. The results of operations for these regions are shown as discontinued operations for financial reporting purposes. These operations generated income of approximately $1.89 million in the first six months of 2007, the majority of which was from gains on the sale of car washes.

Mace narrowed its net loss by approximately $615,000 in the second quarter of 2007 to $1.26 million, or $(0.08) per share, from a net loss of $1.88 million, or $(0.12) per share, in the second quarter of 2006.

Total revenues for the second quarter of 2007 were $11.3 million, compared to $12.6 million for the same period in 2006. Car wash and detailing revenues decreased by approximately $649,000, and Security Segment revenues decreased by approximately $293,000. The decrease in Security Segment revenues was principally the result of the inability of some of Mace’s vendors to supply high volume products in a timely manner, and the impact on operations and management of the Florida embezzlement investigation. This decrease in Security Segment sales was partially offset by growth in revenues in our machine vision camera and video conference equipment operation and our personal defense and law enforcement aerosol operation. The decrease in car wash and detailing revenues 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 22.0% for the second quarter of 2007 and 24.0% for the second quarter of 2006. Gross profit percentage for 2007 was comprised of 25.5% for the Security Segment and 18.5% for the Car and Truck Wash Segment, and in 2006 this percentage was comprised of 26.6% for the Security Segment and 21.5% for the Car and Truck Wash Segment. The decrease in the Security Segment gross profit was due to the decrease in revenues noted above and a change in customer and product mix. The decrease in the car and truck wash gross profit percentage was principally the result of reduced volumes.

Selling, general and administrative (“SG&A”) expenses for the second quarter of 2007 decreased by $423,000 as compared to the same period in 2006. Mace’s SG&A expenses for the second quarter of 2007 were also impacted by several notable cash and non-cash charges. The decrease in SG&A costs is primarily the result of a decline in legal, consulting and accounting fees related to the ongoing immigration investigation which decreased from $895,000 in the second quarter of 2006 to $117,000 in the second quarter of 2007. Additionally, included in the second quarter of 2007 SG&A expenses is approximately $300,000 of legal, consulting and accounting fees related to the Florida embezzlement investigation. SG&A expenses also included non-cash charges to compensation expense for share-based compensation (employee stock options) of $105,000 and $125,000 for the second quarter of 2007 and 2006, respectively.

Discontinued operations, as defined above, generated income of approximately $600,000 in the second quarter of 2007, which included gains on the sale of car washes of approximately $705,000.

The Company’s net book value was $55 million, or $3.60 per share, at June 30, 2007. In addition, Mace had $74.8 million in total assets, including $20.4 million of cash and short-term investments at June 30, 2007.