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Acme United Corporation Reports Record First Quarter Sales, Earnings Per Share Double

04/20/2012

 

FAIRFIELD, Conn., Apr 20, 2012 (BUSINESS WIRE) --Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the quarter ended March 31, 2012 were $16.9 million, compared to $14.4 million in the first quarter of 2011, an increase of 17%. Excluding the acquisition on February 28, 2011 of the Pac Kit Company, comparable sales increased by 9%.

Net sales for the first quarter of 2012 in the U.S. segment increased 19% compared to the same period in 2011 primarily due to increased sales of the Company's iPoint pencil sharpeners, Clauss professional cutting tools, and branded first aid products. Net sales in Canada in the first quarter of 2012 decreased 11% in U.S. dollars and 9% in local currency compared to the same period in 2011. The decrease in Canada was primarily the result of the initial order of a new product line in the first quarter of 2011. European sales in the first quarter of 2012 increased 32% in U.S. dollars and 39% in local currency compared to the first quarter in 2011 due to increased sales in the mass market.

Gross margins were 35.2% in the first quarter of 2012 compared to 36.9% in the first quarter of 2011. The lower gross margin in the first quarter of 2012 was mainly due to customer and product mix.

Net income was $260,000 or $.08 per diluted share for the quarter ended March 31, 2012 compared to $120,000 or $.04 per diluted share for the comparable period last year.

Walter C. Johnsen, Chairman and CEO said, "Acme United continued to build its sales and earnings growth in the first quarter. We are now introducing new Westcott cutting tools, Camillus knives, and first aid products which we believe will provide additional platforms for growth." Mr. Johnsen added "with our recently established banking relationship at HSBC we are better positioned for acquisitions and other expansion opportunities."

The Company's bank debt less cash on March 31, 2012 was $12.8 million compared to $13.2 million on March 31, 2011. During the 12 month period ended March 31, 2012, Acme paid approximately $800,000 in dividends on its common stock and generated $2.2 million in cash flow from operations.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and first aid products to the school, home, office, hardware and industrial markets. Its leading brands include Westcott(R), Clauss(R), Camillus(R) PhysiciansCare (R) and Pac-Kit (R).

Forward-looking statements in this report, including without limitation, statements related to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company's suppliers and customers (iii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iv) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.

ACME UNITED CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

FIRST QUARTER REPORT 2012

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

Quarter Ended

Amounts in 000's except per share data

 

 

March 31, 2012

 

 

 

March 31, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

 

$

16,878

 

 

$

14,401

 

Cost of goods sold

 

 

 

 

 

10,934

 

 

 

9,093

 

Gross profit

 

 

 

 

 

5,944

 

 

 

5,308

 

Selling, general, and administrative expenses

 

 

 

 

 

5,486

 

 

 

5,125

 

Income from operations

 

 

 

 

 

458

 

 

 

183

 

Interest expense, net

 

 

 

 

 

56

 

 

 

47

 

Other expense (income), net

 

 

 

 

 

42

 

 

 

(24

)

Pre-tax income

 

 

 

 

 

360

 

 

 

161

 

Income tax expense

 

 

 

 

 

100

 

 

 

41

 

Net income

 

 

 

 

$

260

 

 

$

120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding - Basic

 

 

 

 

 

3,129

 

 

 

3,075

 

 

Shares outstanding - Diluted

 

 

 

 

 

3,131

 

 

 

3,105

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

 

 

 

 

$

0.08

 

 

$

0.04

 

Earnings per share - diluted

 

 

 

 

 

0.08

 

 

 

0.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACME UNITED CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

FIRST QUARTER REPORT 2012

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts in $000's

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

 

March 31, 2011

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

 

 

 

 

$

4,078

 

 

$

5,102

 

Accounts receivable, net

 

 

 

 

 

 

14,689

 

 

 

12,711

 

Inventories

 

 

 

 

 

 

23,634

 

 

 

23,354

 

Prepaid and other current assets

 

 

 

 

 

 

1,926

 

 

 

1,614

Total current assets

 

 

 

 

 

 

44,327

 

 

 

42,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

 

 

 

 

2,400

 

 

 

2,376

 

Long term receivable

 

 

 

 

 

 

1,750

 

 

 

1,825

 

Intangible assets, less amortization

 

 

 

 

 

 

3,264

 

 

 

3,354

 

Other assets

 

 

 

 

 

 

1,142

 

 

 

1,032

Total assets

 

 

 

 

 

$

52,885

 

 

$

51,367

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

 

 

 

$

3,541

 

 

$

3,379

 

Other current liabilities

 

 

 

 

 

 

3,437

 

 

 

2,406

Total current liabilities

 

 

 

 

 

 

6,978

 

 

 

5,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

 

 

 

 

16,920

 

 

 

18,345

 

Other non-current liabilities

 

 

 

 

 

 

1,207

 

 

 

1,523

Total liabilities

 

 

 

 

 

 

25,105

 

 

 

25,653

Total stockholders' equity

 

 

 

 

 

 

27,780

 

 

 

25,714

Total liabilities and stockholders' equity

 

 

 

 

 

$

52,885

 

 

$

51,367

SOURCE: Acme United Corporation

Acme United Corporation
Paul G. Driscoll, 203-254-6060
Fax: 203-254-6521

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