Mace Security International, Inc
4th Quarter and Full Year 2016 Analysis
3/7/17 1
OTCQX: MACE
Mace Security International, Inc 4th Quarter and Full Year 2016 Analysis
2
Certain statements and information included in this presentation constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this presentation, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “projected,” “intend 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, our ability to compete with competitors, dilution to shareholders, and limited capital resources.
3/7/17
3
Continued to build significant positive momentum; • Third consecutive positive net income quarter
• Added additional new accounts in the quarter and in the full year
• Margin improvements spurred by automation, production efficiencies and cost reductions
• Announced pending acquisition will be accretive for the company
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
4
Continued to build significant positive momentum; • Net revenue up 9.1% for the quarter; up 26.7% full year
• Gross profit up 19.0% for the quarter; up 33.8% full year
• EBITDA of $138,000, up $583,000 for the quarter; $317,000 for the year, up $1,332,000
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
5
• Company continued to grow top line, improve results and cut costs
• Sporting Goods + 29.8% • Consumer + 15.1% • Web/Direct Sales - (29.5)% • Tactical Division - (53.6)% • International - (55.8)% • OEM/Other +174.3%
• All Channels + 9.1%
Mace Security International, Inc Net Sales by Channel – Fourth Quarter 2016 versus Fourth Quarter 2015
3/7/17
6
• Significant growth in key channels with opportunities in other channels
• Sporting Goods + 12.6% • Consumer + 48.3% • Web/Direct Sales + 2.4% • Tactical Division - (35.1)% • International + 71.0% • OEM/Other + 48.0%
• All Channels + 26.7%
Mace Security International, Inc Net Sales by Channel- Full Year Analysis
3/7/17
7
• All Channels +19.0%
An increase of 3.3% Points in margin in the Fourth Quarter
Mace Security International, Inc Gross Profit by All Channels – 4th Quarter, 2016 versus 2015
3/7/17
8
• All Channels + 33.8%
An increase of 2.1% points in margin for the full year
Mace Security International, Inc Gross Profit by All Channels – 12 Months, Dec. 2016 versus 2015
3/7/17
9
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
The American Original, Mace® Brand Mace Security International, Inc, located in Cleveland, Ohio, is a diversified manufacturer and provider of personal defense and security products to consumer and business market segments under the world renowned Mace® Brand. Since 1970, Mace® Brand has been the original trusted brand for personal defense sprays, while continuously adding high quality security products to the brand line through the years. Mace® Brand supports their products through warranty and educational programs. Mace® Brand directly distributes and supports its branded products and services through strategically targeted customer channels which include mass market retailers, wholesale distributors, independent dealers and e-commerce marketers.
10
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
50.6%
8.5%
3.5%
2.0%
12.8%
2.6%
8.1%
0.6%
10.2%
1.0%
Sabre
Ruger
Kimber
American Defender
Defense Technolgy
Pepper Shot
I Don’t Own Pepper Spray
Don’t Know
Other (Please Specify)
0% 20% 40% 60%
Mace® Brand
Consumer Study on Brands Owned*
Just over half (51%) said they own Mace brand pepper spray. Pepper Shot (13%), Sabre (9%), and American Defender (8%) are the next most common brands owned. One in ten (10%) said they do not know what brand they owned. *Study done by Balance Inc. in 2013
11
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
Consumer Personal Profiles
12
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
Updated, improved and launched the Mace Hard Case line – Improved with Flip Top Lid
Old Version of Mace Brand Hard Case Pepper Spray
NEW Version of Mace Brand Hard Case Pepper Spray
13
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
Best P
ersonal Alarm
s in the W
orld
14
• Continued our brand dominance with innovative packaging
• New packaging is environmentally friendly - less use of plastic
• Improved design and marketing platform
• Cost effective materials and assembly
• Packaging has been recognized internationally as BEST IN CLASS
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
15
Expansion at Retail continued with Signage and Displays to
Promote the #1 brand in Defense Sprays
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
16
Pin, Like, Tweet - Empower. Sharing content and engaging with customers world wide through social media channels, we’re able to give them the best safety information and answer any questions quickly.
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
17
Mace continues to support empowerment and giving back to the
community
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
18
Mace partnerships to drive the brand and sales opportunities
Mace partnerships to promote empowerment
Mace Security International, Inc 4th Quarter 2016 Key Takeaways
3/7/17
19
Brand Ambassadors ~ Educate, Train and help sell Products
JenniferCutrona Owner/Designer of BoobyTrap Bras • Survivor of attempted physical attack • Designs specific apparel to hold
personal defense items • Active voice and designer in the safety
and security arena
JenniferCassetta Safety & Personal Trainer • Creator of Stilettos and Self
Defense DVD series • Active spokeswoman, Self Defense
Trainer & Personal Trainer
Mace Security International, Inc
20
Channel of Distribution Number of Accounts Sporting Goods 2
Consumer 1
Tactical 2
International 1
Other 1
Totals 7
Mace Security International, Inc New Distribution by Channel – 4th Quarter 2016
3/7/17
21
Channel of Distribution Number of Accounts Sporting Goods 27
Consumer 18
Tactical 18
International 5
Other 4
Totals 72
Mace Security International, Inc New Distribution by Channel – 12 Months, Dec. 31st , 2016
3/7/17
22
4th Quarter 2016 Comparable Financial Results
Mace Security International, Inc
3/7/17
23
2,238
863
2,051
725
187 138
-
500
1,000
1,500
2,000
2,500
Revenue Gross Profit
2016 4th Quarter
2015 4th Quarter
2016 versus 2015 Δ
Mace Security International, Inc 2016 4th Quarter versus 2015 4th Quarter
Sales & Gross Profit
3/7/17
24
940 958
39 98 122
724 832
56 211
44
216
126
(17) (113)
78
(200)
-
200
400
600
800
1,000
1,200
2016 4th Quarter
2015 4th Quarter
2016 versus 2015 Δ
Mace Security International, Inc 2016 4th Quarter versus 2015 4th Quarter
Sales Key Channels
3/7/17
25
4th Quarter 2016 2015 Percentage
Net Sales $2,238 $2,051 9.1%
Gross Profit $863 $725 19.0%
GP % 38.6% 35.3%
SG&A Expenses $947 $1,022 <-7.3%>
SG&A Exp. % 42.3% 49.8% Net Income (loss) $120 $(450)
EBITDA $138 $(445)
Mace Security International, Inc 2016 4th Quarter
Comparative Financial Results
3/7/17
26
4th Quarter 2016 2015 Percentage
Net Sales $9,054 $7,145 26.7%
Gross Profit $3,685 $2,755 33.8%
GP % 40.7% 38.6%
SG&A Expenses $3,719 $3,838 <3.1%>
SG&A Exp. % 41.1% 53.7% Net Income (loss) $250 $(1,027)
EBITDA $317 $(1,015)
Mace Security International, Inc YTD 12 Months ending 12/31/16
Comparative Financial Results
3/7/17
27 3/7/17
Mace Security International, Inc Mace® Brand made in the USA
Manufacturing & Shipping out of the USA
Our Mission at Mace Security International, Inc. is empowering your world through safety & security
Customers Deliver best in class products & services
for our partners and customers
Employees Be a great place to work where people are inspired to
be their best and achieve their goals
Shareholders Be a disciplined, forward-thinking brand driven to
maximize shareholder value
28 3/7/17