Mace Security International has entered into agreements to sell two of its remaining Texas carwashes for a combined $1.8 million. One carwash is in Lubbock with the second in Arlington. The announcement came in a press release recapping the company’s second-quarter financial highlights.
Total revenue for the quarter, ended June 30, was $8.5 million, down from $12.9 million for the same period in 2008.
"While Mace has been under the same intense pressure and reduced revenue levels as most manufacturers and distributors in the security industry, we have been able to continue executing our strategy, which is to focus Mace as a security-based company, moving away from the carwash business, while maximizing our digital media segment and adjusting the size of our security segment to the realities of today's marketplace,” Dennis Raefield, president and CEO, said in a released statement.
“The current state of the credit markets continues to provide challenges to us as credit availability slows the sale of our remaining carwashes and the ability of our dealers and end-user customers to purchase Mace products,” he continued.
The decrease in overall revenues during the second quarter was attributed in part to management’s decision to discontinue the marketing efforts of its online marketing division, as well as a reduction in sales in Mace’s security and carwash segments.
Loss from continuing operations for the second quarter was approximately $3.5 million, up from $4 million in 2008. The reduction in loss from continuing operations was due to a decrease in asset impairment charges, as well as a reduction in selling, general and administrative expenses.
Discontinued operations, including the company’s carwash holdings, generated income of approximately $164,000 for the quarter, up from $107,000 during the same period last year.
Net loss for the quarter was approximately $3.3 million compared to $3.9 million during the second quarter last year.
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