Acme United Corporation Reports 9% Increase in Sales and 19% Increase in Net Income for First Quarter

Business Wire

FAIRFIELD, Conn.--(BUSINESS WIRE)--

Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the quarter ended March 31, 2014 were $19.2 million, compared to $17.7 million in the first quarter of 2013, an increase of 9%.

Net income was $368,000 or $.11 per diluted share for the quarter ended March 31, 2014 compared to $309,000 or $.10 per diluted share for the comparable period last year, an increase of 19% in net income and 10% in earnings per share.

Net sales for the first quarter of 2014 in the U.S. segment increased 13% compared to the same period in 2013 mainly due to the introduction of new lawn and garden products and growth of first aid kits. Net sales in Canada in the first quarter of 2014 decreased 7% in U.S. dollars but increased 2% in local currency compared to the same period in 2013. European net sales in the first quarter of 2014 decreased 15% in U.S. dollars and 21% in local currency compared to the first quarter of 2013 primarily due to the timing of sales to mass market customers.

Gross margins were 36% in the first quarters of 2014 and 2013.

Walter C. Johnsen, Chairman and CEO said, “We successfully completed the consolidation of our U.S. warehousing operations into our new 340,000 square foot facility in Rocky Mount, NC during the quarter. Also, as part of the consolidation plan, on April 7, 2014 we sold our former distribution facility in Fremont, NC for $850,000. We will record a gain of approximately $200,000 in the second quarter of 2014 related to this sale.”

The Company’s bank debt less cash on March 31, 2014 was $13.9 million compared to $15.5 million on March 31, 2013. On August 30, 2013, Acme purchased the distribution facility in North Carolina for $2.8 million. Through March 31, 2014, Acme expended $1.3 million to upgrade the facility and equipment. On August 21, 2013 the Company received $1.7 million from early repayment of a mortgage receivable. During the 12 month period the Company also generated $5.7 million in cash flow from operations while reducing inventory by $1.5 million, and paid $1.0 million in dividends on its common stock.

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®, Clauss®, Camillus®, PhysiciansCare® and Pac-Kit®.

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) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impact of competition and technological changes on the company; (v) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vi) currency fluctuations; and (vii) 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 2014
(unaudited)

 

 

Amounts in 000's except per share data        

Quarter Ended
March 31, 2014

     

Quarter Ended
March 31, 2013

 
 
Net sales $ 19,152 $ 17,651
Cost of goods sold 12,274 11,224
Gross profit 6,878 6,427
Selling, general, and administrative expenses 6,253 5,914
Income from operations 625 513
Interest expense, net 83 69
Other expense (income), net 19 3
Pre-tax income 523 441
Income tax expense 155 132
Net income $ 368 $ 309
   

Shares outstanding - Basic

3,201 3,132

Shares outstanding - Diluted

3,443 3,213

 

Earnings per share - basic $ 0.12 $ 0.10
Earnings per share - diluted 0.11 0.10
 
       

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2014
(Unaudited)

 

Amounts in $000's

 

 

March 31, 2014

March 31, 2013

Assets

Current assets:

Cash

$ 3,367 $ 8,941

Accounts receivable, net

16,111 14,902

Inventories

28,977 30,450

Prepaid and other current assets

  1,755 1,919
Total current assets 50,210 56,212
 

Property and equipment, net

6,455 2,278

Long term receivable

0 1,685

Intangible assets, less amortization

4,035 4,200

Other assets

  1,081 1,119
Total assets $ 61,781 $ 65,494
 

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$ 4,312 $ 4,842

Other current liabilities

  4,867 4,336
Total current liabilities 9,179 9,178
 

Long-term debt

17,286 24,452

Other non-current liabilities

  276 962
Total liabilities 26,741 34,592
Total stockholders' equity   35,040 30,902
Total liabilities and stockholders' equity $ 61,781 $ 65,494
 

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

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