Acme United Reports 14% Diluted EPS Increase and 12% Operating Profit Increase for First Quarter of 2019

Date : 04/18/2019 @ 2:00PM
Source : GlobeNewswire Inc.
Stock : Acme United Corp (ACU)
Quote : 20.3  0.0 (0.00%) @ 12:49PM

Acme United Reports 14% Diluted EPS Increase and 12% Operating Profit Increase for First Quarter of 2019

Acme United (AMEX:ACU)
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6 Months : From Apr 2019 to Oct 2019

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Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended March 31, 2019 were $31.4 million compared to $31.7 million in the first quarter of 2018, a decrease of 1%, or even in constant currency.

Net income was $807,000 or $0.24 per diluted share for the quarter ended March 31, 2019 compared to $764,000, or $0.21 per diluted share, for the comparable period last year, an increase of 6% in net income and 14% in diluted earnings per share. 

Chairman and CEO Walter C. Johnsen, said, “Net sales in the first quarter of 2019 were slightly below last year’s, as expected, due to initial shipments to a large distributor that was launching its first aid program in the first quarter of last year.”

“Our strategy to reduce expenses by $2.0 million this year in purchasing, advertising, selling, and distribution is on plan.  Our business continues to be robust, including some promising new programs in the second and third quarters of 2019.  We are pleased with the performance to date.”

“Accordingly, we are reiterating financial guidance for 2019 of approximately $140 to $143 million in sales, net income of $5.0 to $5.3 million and $1.41 to $1.50 earnings per share.”

For the first quarter of 2019, net sales in the U.S. segment decreased 1% compared to the same period in 2018. The year-over-year sales decrease was mainly due to a large initial order of first aid products to a major distributor to the food service industry that took place in the first quarter of 2018. 

European net sales for the first quarter of 2019 increased 6% in U.S. dollars and 14% in local currency compared to the first quarter of 2018, mainly due to new customers in the office products channel and continued growth of DMT sharpening products.

Net sales in Canada for the first quarter of 2019 decreased 9% in U.S. dollars and 5% in local currency compared to the same period in 2018, primarily due to a large order from a new customer in the first quarter 2018 that did not repeat in the first quarter of 2019.

Gross margin was 37.6% in the first quarter of 2019 versus 38.2% in the comparable period last year. 

Operating income increased 12% for the three months ended March 31, 2019.

The Company’s bank debt less cash on March 31, 2019 was $40.9 million compared to $43.7 million on March 31, 2018.  During the twelve-month period ended March 31, 2019, the Company distributed $1.5 million in dividends on its common stock, repurchased $0.4 million in treasury stock and generated $5.5 million in free cash flow.

Conference Call and Webcast InformationAcme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, April 18, 2019, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 855-710-4182. International callers may dial 334-454-0061. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives.

About Acme UnitedACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®,  PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, and DMT®. For more information, visit www.acmeunited.com. 

Forward Looking Statements

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; (vii) increases in the cost of borrowings resulting from rising interest rates; (viii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (ix) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

 
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FIRST QUARTER REPORT 2019
(Unaudited) 
           
      Quarter Ended  Quarter Ended 
Amounts in 000's except per share data March 31, 2019  March 31, 2018 
           
           
Net sales   $31,370    $ 31,709   
Cost of goods sold   19,568    19,585   
Gross profit      11,802      12,124   
Selling, general and administrative expenses   10,268      10,759   
Operating income     1,534      1,365   
Interest expense, net     502      405   
Other income, net     (3)    (13) 
Income before income tax expense    1,035      973   
Income tax expense     228      209   
Net income   $  807    $  764   
           
 Shares outstanding - basic    3,351      3,374   
 Shares outstanding - diluted  3,392    3,662   
           
Earnings per share - basic $0.24   $0.23   
Earnings per share - diluted  0.24    0.21   
           
           
           
           
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2019
(Unaudited)
           
Amounts in $000's        
           
      March 31, 2019  March 31, 2018 
Assets         
Current assets:        
 Cash and cash equivalents $3,798   $1,065   
 Accounts receivable, less allowance 25,228    24,486   
 Inventories   40,570    41,900   
 Prepaid expenses and other current assets 2,281    2,766   
Total current assets   71,877    70,217   
           
 Plant, property and equipment, net  14,423    14,158   
 Operating lease right of use asset  2,680      -   
 Intangible assets, less accumulated amortization 16,736    17,576   
 Goodwill    4,696      4,696   
 Other assets   203    599   
Total assets   $110,615   $107,246   
           
Liabilities and stockholders' equity       
Current liabilities:        
 Accounts payable  $5,672   $7,483   
 Operating lease liability - short term 1,030      -   
 Other current liabilities  4,641    3,670   
Total current liabilities   11,343    11,153   
           
 Long-term debt   41,340    41,100   
 Mortgage payable, net of current portion 3,378      3,644   
 Operating lease liability - long term 1,650      -   
 Other non-current liabilities  36    857   
Total liabilities    57,747    56,754   
Total stockholders' equity   52,868    50,492   
Total liabilities and stockholders' equity$110,615   $107,246   
           

CONTACT:Acme United CorporationPaul G. DriscollPhone: (203) 254-6060Fax: (203) 254-652155 Walls DriveFairfield, CT  06824

 

 

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