Universal Security Instruments
Reports Three and Nine Month Results
OWINGS MILLS, MD, February 13, 2008 - Universal Security Instruments, Inc. (AMEX: UUU) today
announced results for its third quarter ended December 31, 2007.
The Owings Mills, MD-based designer and marketer of safety and security equipment reported a net loss of
$1,635,789, or $0.66 per basic and diluted share on net sales of $9,120,408 compared with net earnings of
$1,712,883 or $0.71 per basic share ($0.68 per diluted share) on net sales of $8,620,893 last year. Included in
the current quarter's results were two non-recurring items. The first was the previously announced impairment of
goodwill as required by SFAS No 142 in the amount of $1,926,696 by the Company’s majority-owned
Canadian subsidiary, International Conduits, Ltd. (Icon), an Ontario based manufacturer of steel electrical
conduit. The second item was a bad debt charge of $170,814 for an account receivable not insured by the
For the nine months ended December 31, 2007, sales were $35,754,833 versus $24,655,342 for the same
period last year. The Company reported a net loss of $526,647 or $0.21 per basic and diluted share versus net
earnings of $4,699,262 or $1.97 per basic share ($1.88 per diluted share) last year. Included in the three and
nine month results was Icon’s loss of $2,415,996 and $3,316,763 respectively.
In other developments, Icon has now ceased operations. A receiver was appointed for Icon on February 11,
2008, by CIT Financial, Ltd., Icon’s secured lender, to manage the disposition of assets in settlement of the
indebtedness owed by Icon to CIT Canada. This process is in the initial stage and the Company is currently
unable to determine the net realizable value of the assets of Icon or the extent of additional losses that may be
recorded as a result of the settlement of the obligations of the Canadian subsidiary.
The Company said that the losses at its Canadian operations, reduced revenu