UUU another great qtr.
Universal Security Instruments Reports Highest Quarterly Earnings in the Company's 37-Year History
Monday August 14, 9:27 am ET
Earnings Rise to $0.91/Share on 16 Percent Increase in Sales
OWINGS MILLS, Md., Aug. 14 /PRNewswire-FirstCall/ -- Universal Security Instruments, Inc. (Amex: UUU - News) today announced its financial results for its first quarter ended June 30, 2006.
The Company reported a 77% increase in net income to $1,577,468, or $0.91 per basic share ($0.83 per diluted share), on net sales which rose approximately 16% to $8,038,437 in the first quarter ended June 30, 2006 compared to net income of $889,770 or $0.54 per basic share ($0.50 per diluted share) on net sales of $6,923,810 in the same period last year.
The Company cited continued market share gains in its core product lines, as well as a substantially increased contribution from its Hong Kong Joint Venture as key drivers during the period. Included in the Company's first quarter results was a provision for income tax expense in the amount of $366,000, compared to a net tax benefit of $87,428 in the comparable 2005 quarter. For income tax purposes, the income tax expense in the quarter ended June 30, 2006 was offset by the tax benefit associated with the exercise of employee stock options. As required by GAAP, this tax benefit was credited to additional paid-in capital and, accordingly, the $366,000 income tax liability does not represent a cash requirement of the Company. Also included in last year's first quarter results were legal fees of approximately $430,000 associated with the settlement of a suit brought by a former director and company executive.
"We are very pleased with our results for the period as we build on our momentum in both the electrical distribution and retail channels, while continuing our efforts to control operating costs and maintain efficiencies throughout our operation," said Harvey Grossblatt, chief executive officer. |
