News

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