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"The businesses that the companies were selling generated positive cash flow and the businesses that the company is expanding into continue to lose substantial amounts of money and haven't achieved their promise" Shapiro told PhillyInc. "It's greatly concerning."
Mace has been expanding its security businesses from proceeds of the sale of a national chain of car washes it owns. In its belated first-quarter filing to the SEC this week, Mace reported a net loss of $658,000, or 13 cents a share. That was narrower than the $966,000, or 6 cents a share, in the same period a year earlier. Sales fell about 13 percent to $11.6 million.
But the dismal quarterly results hardly will be the only subject of interest. Among other topics likely will be the company's controversial compensation deal awarded to CEO Louis Paolino Jr. and the embezzlement uncovered at one of its businesses. To make matters worse, its quarterly SG&A (selling, general and administrative) expenses rose 8 percent from 2006 to 2007 because of increased legal fees for the embezzlement probe and for costs related to an investigation of the hiring of illegal immigrants at its car washes.
Shapiro says this is the first earnings conference call Mace has held with its investors in years. Most publicly traded companies began holding them every quarter following the adoption of the SEC Regulation FD in 2000. Also, companies usually hold these earnings conference calls on the same day or just after releasing earnings. Shapiro said he didn't mind waiting to hear from Mace's management. "As a shareholder, I prefer the extra time provided. It provides for a higher quality conference call with thoughtful questions."
The call is scheduled to start at 11 a.m. People can dial-in at (888) 751-6352 or listen to a Web cast at www.mace.com. Replays will be available from 5 p.m. July 13 to 5 p.m. July 27 and can be accessed by dialing 800-642-1687 with the ID 10900.
