Universal Security Instruments Inc (UUU, Financial) filed Quarterly Report for the period ended 2010-06-30.
Universal Security Instruments Inc has a market cap of $14.3 million; its shares were traded at around $6.01 with a P/E ratio of 6.3 and P/S ratio of 0.6.
Net Income. We reported net income of $281,867 for the quarter ended June 30, 2010, compared to net income of $611,465 for the corresponding quarter of the prior fiscal year, a $329,598 (53.9%) decrease. The decrease in net income is primarily a result of losses from domestic operations, offset by earnings from the Hong Kong Joint Venture.
Our factored accounts receivable as of the end of our last fiscal year are $3,824,553, and were $1,195,552 as of June 30, 2010. Our prepaid expenses as of the end of our last fiscal year were $351,192, and were $329,688 as of June 30, 2010.
Operating activities provided cash of $720,113 for the three months ended June 30, 2010. This was primarily due to a decrease in inventories and prepaid expenses of $316,528, a decrease in accounts receivable and due from factor of $2,088,530 and offset by earnings of the Joint Venture of $435,381, decreases in accounts payable and accrued expenses of $1,462,762 and increases in deferred taxes and other assets of $82,425. For the same period last year, operating activities provided cash of $748,490, primarily as a result of unremitted earnings of the Hong Kong Joint Venture and increases in inventory and prepaid expenses offset by a decrease in accounts payable and accrued expenses.
Expenses. Selling, general and administrative expenses were $1,067,291 for the three month period ended June 30, 2010, compared to $878,201 in the comparable prior year period. As a percentage of sales, expenses were 15.7% and 15.0% for the three month periods ended June 30, 2010 and 2009. The changes in selling, general and administrative expense as a percent of sales are primarily due to the timing of the recognition of foreign currency gains and losses on foreign currency bonds.
Liquidity. Cash needs of the Joint Venture are currently met by funds generated from operations. During the three months ended June 30, 2010, working capital increased by $887,636 from $11,756,026 on March 31, 2010 to $12,643,662 on June 30, 2010.
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Universal Security Instruments Inc has a market cap of $14.3 million; its shares were traded at around $6.01 with a P/E ratio of 6.3 and P/S ratio of 0.6.
Highlight of Business Operations:
Sales. Net sales for the three months ended June 30, 2010 were $3,681,421 compared to $5,914,905 for the comparable three months in the prior fiscal year, a decrease of $2,233,484 (37.8%). The primary reason for the reduction in net sales in the 2010 period was the previously announced non-renewal by a national retailer of our product line beginning April 1, 2010.Net Income. We reported net income of $281,867 for the quarter ended June 30, 2010, compared to net income of $611,465 for the corresponding quarter of the prior fiscal year, a $329,598 (53.9%) decrease. The decrease in net income is primarily a result of losses from domestic operations, offset by earnings from the Hong Kong Joint Venture.
Our factored accounts receivable as of the end of our last fiscal year are $3,824,553, and were $1,195,552 as of June 30, 2010. Our prepaid expenses as of the end of our last fiscal year were $351,192, and were $329,688 as of June 30, 2010.
Operating activities provided cash of $720,113 for the three months ended June 30, 2010. This was primarily due to a decrease in inventories and prepaid expenses of $316,528, a decrease in accounts receivable and due from factor of $2,088,530 and offset by earnings of the Joint Venture of $435,381, decreases in accounts payable and accrued expenses of $1,462,762 and increases in deferred taxes and other assets of $82,425. For the same period last year, operating activities provided cash of $748,490, primarily as a result of unremitted earnings of the Hong Kong Joint Venture and increases in inventory and prepaid expenses offset by a decrease in accounts payable and accrued expenses.
Expenses. Selling, general and administrative expenses were $1,067,291 for the three month period ended June 30, 2010, compared to $878,201 in the comparable prior year period. As a percentage of sales, expenses were 15.7% and 15.0% for the three month periods ended June 30, 2010 and 2009. The changes in selling, general and administrative expense as a percent of sales are primarily due to the timing of the recognition of foreign currency gains and losses on foreign currency bonds.
Liquidity. Cash needs of the Joint Venture are currently met by funds generated from operations. During the three months ended June 30, 2010, working capital increased by $887,636 from $11,756,026 on March 31, 2010 to $12,643,662 on June 30, 2010.
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