2014 full year analysis - mace® brandcorp.mace.com/wp-content/uploads/2015/03/full-year-2014... ·...

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2014 Full Year Analysis

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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.

Customer Profile

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2014 Mace® Brand Exclusive Accounts :

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Mace® Brand is highly effective as

we use natural ingredients and we

factory test our products.

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1

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Ashley Young Professional “I carry Mace ® Brand pepper spray because everybody has the right to be safe.”

ASHL

EY

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Urban Dad “I carry Mace ® Brand pepper spray because I’ve had too many close calls. I’m not embarrassed to put me and my family’s safety ahead of my ego.”

FRANK

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Modern Mom “I carry Mace ® Brand

pepper spray because I want both my family

and myself to be safe.”

JEN

NIF

ER

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Working Single “I carry Mace ® Brand pepper spray because I was mugged once and I now know that sometimes it’s better to be smart than macho.”

RALPH

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Mature Worker “I carry Mace ® Brand pepper spray because it gives me peace of mind when I am out and about.”

MAR

GAR

ET

Channel Profile

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Millions of Customers Proven Technology

Product Solutions for Home and Business

Est. 1965

Non- Lethal Product Solutions Original Pepper Spray Manufacturers

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LE Solutions

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Retail and Direct to Consumers

Product Solutions for Personal, Home and Outdoors

Est. 1965

Non- Lethal Product Solutions Original Pepper Spray Manufacturers

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Marketing & Partnerships

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Mace Means Security

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Mace® Tactical Solutions (MTS)

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* Structure: Doug Melzig, 28 Sales Reps Nationwide * Product: Available May/June for start ship * Targets: Distributors, Police, Corrections, Federal * Key Partners: Galls, NAPED * Events: PTOA March, OTOA June, IACP October, NTOA September, SWAT Round-Up November, ACA August * Training: Key to success of MTS * Team is pre-selling now. * Sales Training and Product Demo Canton, OH April 22-23 www.macetactical.com

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Mace® Tactical Training (MTT)

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• Strategic Partner: Tactical Defense Training (Canton, OH) • TDT will be Official Training Command for MTS • Based in Canton, OH. Excellent facilities for our needs • Offices, retail/pro shop and classrooms in Canton • 1700 acre range 45 minutes from Canton • ATF approved storage bunker to house small inventory • Conducts training for agencies and clients around the world including DOD, DOS and many more • Co-Branded partnership • Credibility, authenticity, professional, qualified, capable • Classes already being scheduled www.tacticaldefensetraining.com

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Mace® Brand Nite Beams

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• LED/Reflective Safety products for people and pets • Running, Walking, Working, Biking, Hiking • Catalog & Price Lists complete March 1 • Initial small qty inventory on hand April 15 • Must place additional buys to hit plan • Exposure: SHOT Show, Housewares, Buying Groups, IWA • New oppty’s include non-pepper sporting goods outlets • Sporting goods sections of mass merchants and national chains • Tactical market opportunities in addition to civilian markets www.nitebeams.com

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New Relationships/Products

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Nite Beams and Mace will launch a series of unique LED products which are designed with safety and security in mind.

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2014 Fourth Quarter & Full Year Sales Analysis

Year 2014 2013 Variance

Net Sales $ 2,091 Gross Profit $ 807 GP % 38.6% SG&A Expenses $ 1,164 Oper Exp % 55.7% Loss from Cont. Ops $ (387) EBITDA $ (355)

$ 2,099 $ 714 34.0% $ 1,902 90.6% $ (1,311)

$ (1,232)

- 0.4% + 13.0% + 13.5% + 38.8% + 70.5%

25

2014 4th Quarter Financial Results

+ 71.2%

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Major Improvement in net results year to year

Net Sales $ 7,794 Gross Profit $ 2,855 GP % 36.6% SG&A Expenses $ 4,849 Oper Exp % 62.2% Loss from Cont. Ops $ (2,106) EBITDA $ (1,950)

$ 8,018 $ 3,087 38.5% $ 6,336 79.0% $ (3,581)

$ (3,258)

- 2.8% - 8.0% - 5.0% + 23.5% + 41.2%

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2014 Full Year Financial Results

+ 40.1%

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Major Improvement in net results year to year

Year 2014 2013 Variance

Sales, SG&A Analysis

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28

Revenue Comparison

2,091 2,099

-8 Net Sales

4th Quarter 2014 Net Sales 2014 2013 Delta

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7,794 8,018

-224 Net Sales

Full Year 2014 Net Sales 2014 2013 Delta

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Revenue Comparison

30

1,701 1,736

-35 Defense Products

TRADITIONAL DEFENSE PRODUCT NET SALES 4th Quarter 2014

2014 2013 Delta

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Revenue Comparison

31

6,193 6,452

-259 Defense Products

TRADITIONAL DEFENSE PRODUCTS NET SALES Full Year 2014

2014 2013 Delta

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Revenue Comparison

32

931

607

785

668

146

-61 Sporting Goods Consumer

Traditional Channels - 4th Quarter 2014 2014 2013 Delta

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Revenue Comparison

33

2,911

2,072

3,229

2,063

-318

9

Sporting Goods Consumer

Traditional Channels – Full Year Net Sales 2014 2014 2013 Delta

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Revenue Comparison

34

64 92

141 107

216

50

-43

-124

91

Direct to Consumer Tactical International

NET SALES BY CHANNEL- 4th Quarter 2014 2014 2013 Delta

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Revenue Comparison

35

240

489

601

356

676

415

-116

-187

186

Direct to Consumer Tactical International

NET SALES BY CHANNEL - FULL YEAR 2014 2014 2013 Delta

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Revenue Comparison

36

391

4

364

7 27

-3 Surveillance Products Other Products

TRADITIONAL SURVEILLANCE & OTHER PRODUCTS NET SALES – 4th Quarter 2014

2014 2013 Delta

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Revenue Comparison

37

1,601

50

1,566

61 35

-11 Surveillance Products Other Products

TRADITIONAL SURVEILLANCE & OTHER PRODUCTS NET SALES – Full Year Quarter 2014

2014 2013 Delta

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Revenue Comparison

2014 Financial Performance

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807 714

13%

Gross Profit

Gross Profit Comparison – 4th Quarter 2014 2014 2013 Delta

Quarter GP was up even with some advertising and promotions at key Accounts in the Quarter

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2,855 3,087

-8% Gross Profit

Gross Profit Comparison – Full Year 2014 2014 2013 Delta

Difference was in maintaining or gaining new accounts & distribution with advertising and promotion at the account level

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2014 Financial Performance

2014 Financial Performance

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1,164

-396

1,902

-1,230

-39% -68% SG&A Expenses Operating Loss

SG& A Comparison & Operating Loss – 4th Quarter 2014

2014 2013 Delta

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2014 Financial Performance

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4,849

2,160

6,336

3,410

-23% -37% SG&A Expenses Operating Loss

SG& A & Operating Loss Comparison – Full Year 2014 2014 2013 Delta

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2014 Financial Performance

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40

$52

44 $48

-9% 8%

Employee Count Revenue Per Employee

Revenue Per Employee Comparison – 4th Quarter 2014 2014 2013 Delta

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2014 Financial Performance

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40

$195

44

$182

-9% 7%

Employee Count Revenue Per Employee

Revenue Per Employee Comparison – Full Year 2014 2013 Delta

Mace Means Security...Personal. Home. Schools. Business

Our Mission at Mace® Brand is empowering your world through safety & security. We have a diverse, high quality product line that fits any type of lifestyle and environment.

Customers Deliver best in class products & services

for our partners & customers

Employees Be a great place to work where people are

inspire to be their best and achieve their goals

Shareholders Be a disciplined, forward-thinking brand

driven to maximize shareholder value

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