Acme United Corporation (NYSE American: ACU) today announced that
net sales for the quarter ended March 31, 2021 were $43.5 million
compared to $35.8 million in the first quarter of 2020, an increase
of 22%.
Net income was $2,046,000 or $0.52 per diluted
share for the quarter ended March 31, 2021 compared to $1,277,000,
or $0.36 per diluted share, for the comparable period last year, an
increase of 60% in net income and 44% in diluted earnings per
share.
Chairman and CEO Walter C. Johnsen said, “Net
sales in first quarter of 2021 continued the strong performance we
achieved in 2020, with revenues in all of our operating units
increasing. We had particularly strong sales of our Westcott
cutting tools and DMT sharpeners, and our European business had a
record first quarter. Sales in Canada at First Aid Central
continued to grow. First quarter 2021 revenues included
approximately $0.9 million from the sales of Med-Nap products.”
Mr. Johnsen added, “We continue to gain market
share and new placements with existing customers. We have
introduced new Westcott craft cutting tools and first aid items,
and we have new production coming on stream at DMT and Med-Nap. We
are optimistic about the next three quarters of 2021 and
beyond.”
For the first quarter of 2021, net sales in the
U.S. segment increased 18% compared to the same period in 2020. The
sales growth was primarily attributable to growth in sales of
Westcott cutting tools and strong sales of first aid and safety
products.
European net sales for the first quarter of 2021
increased 42% in U.S. dollars and 31% in local currency compared to
the first quarter of 2020, mainly due to growth in the e-commerce
channel across all product lines, and continued growth of DMT
sharpening products.
Net sales in Canada for the first quarter of
2021 increased 38% in U.S. dollars and 31% in local currency
compared to the same period in 2020, due to higher sales of First
Aid Central products, principally in the e-commerce channel.
Gross margin was 35.8% in the first quarter of
2021 versus 37.8% in the comparable period last year. The lower
gross margin was mainly due to product mix and higher ocean freight
costs as a result of a scarcity of shipping containers and
congestion at global ports.
The Company’s bank debt less cash on March 31,
2021 was $43.4 million compared to $32.9 million on March 31, 2020.
During the twelve-month period ended March 31, 2021, the Company
paid approximately $9.3 million for the acquisition of the assets
of Med-Nap LLC., distributed $1.7 million in dividends on its
common stock, and generated $1.5 million in free cash flow.
Inventory increased approximately $12 million due primarily to
anticipated growth in our business as well as the acquisition of
product to offset the impact of potential supply chain
interruptions related to COVID-19.
Conference Call and Webcast
InformationAcme United will hold a conference call to
discuss its quarterly results, which will be broadcast on Monday,
April 19, 2021, at 12:00 p.m. EDT. To listen or participate in a
question and answer session, dial 800-367-2403. International
callers may dial 334-777-6978. The confirmation code is
7892281. 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®, First Aid Central®,
PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®,
Camillus®, Cuda®, DMT®, and Med-Nap. For more information, visit
www.acmeunited.com.
Forward Looking
StatementsForward-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 the impact that the
global COVID-19 pandemic has had and will continue to have on the
Company’s business, operations and financial results. These
include, the extent of the COVID-19 pandemic, including the
duration, spread, severity, and any recurrence of the COVID-19
pandemic including through any new variant strains of the
underlying virus; the effectiveness and availability of vaccines;
the duration and scope of pandemic-related government orders and
restrictions on commercial and other activities, including retail
store, office, school and restaurant closures; the duration and
scope of the Company’s actions to maintain employee health at our
offices, production facilities and distribution centers; the extent
of the impact of the COVID-19 pandemic on overall demand for the
Company’s products; the pace of recovery when an effective vaccine
is widely available or when the pandemic otherwise subsides and the
heightened impact the pandemic has on many of the risks described
herein, including, without limitation, risks relating to the
on-going world-wide economic downturn, and potential disruptions in
our supply chain, any of which could adversely impact the Company’s
ability to manufacture, source or distribute it products, both
domestically and internationally.
These risks and uncertainties further include,
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, whether
caused by COVID-19 or otherwise, including the impact on the
Company’s suppliers and customers; (iii) changes in client needs
and consumer spending habits, including COVID-19 related changes;
(iv) the impact of competition; (v) the impact of technological
changes including, specifically, the growth of online marketing and
sales activity; (vi) the Company’s ability to manage its growth
effectively, including its ability to successfully integrate any
business it might acquire; (vii) the Company’s ability to
effectively manage its inventory in a rapidly changing business
environment, including additional inventory acquired to respond to
COVID-19 related uncertainties; (viii) currency fluctuations; (ix)
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 (x) other
risks and uncertainties indicated from time to time in the
Company’s filings with the Securities and Exchange Commission.
CONTACT: Paul
G. Driscoll |
Acme United
Corporation |
1 Waterview
Drive |
Shelton, CT
06484 |
|
Phone: (203) 254-6060 |
|
|
ACME UNITED CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
FIRST QUARTER REPORT 2021 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|
|
Quarter Ended |
|
Amounts in 000's except per share data |
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
|
$ |
43,525 |
|
|
$ |
35,775 |
|
Cost of
goods sold |
|
|
|
27,938 |
|
|
|
22,244 |
|
Gross
profit |
|
|
|
|
15,583 |
|
|
|
13,531 |
|
Selling,
general and administrative expenses |
|
12,619 |
|
|
|
11,521 |
|
Operating
income |
|
|
|
2,964 |
|
|
|
2,010 |
|
Interest
expense |
|
|
|
226 |
|
|
|
322 |
|
Interest
income |
|
|
|
(5) |
|
|
|
(8) |
|
|
Net
interest expense |
|
|
|
221 |
|
|
|
314 |
|
Other
expense, net |
|
|
|
78 |
|
|
|
44 |
|
Income
before income tax expense |
|
|
2,665 |
|
|
|
1,652 |
|
Income tax
expense |
|
|
|
623 |
|
|
|
375 |
|
Net
income |
|
|
|
$ |
2,046 |
|
|
$ |
1,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding - basic |
|
|
3,347 |
|
|
|
3,349 |
|
|
Shares
outstanding - diluted |
|
|
3,911 |
|
|
|
3,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - basic |
|
$ |
0.61 |
|
|
$ |
0.38 |
|
Earnings
per share - diluted |
|
|
0.52 |
|
|
|
0.36 |
|
|
|
|
|
|
|
|
|
|
ACME UNITED CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS |
FIRST QUARTER REPORT 2021 |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in
$000's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
|
|
|
March 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
3,857 |
|
|
$ |
4,272 |
|
|
Accounts
receivable, net |
|
|
31,592 |
|
|
|
27,413 |
|
|
Inventories |
|
|
|
49,389 |
|
|
|
36,250 |
|
|
Prepaid
expenses and other current assets |
|
2,477 |
|
|
|
1,926 |
|
Total
current assets |
|
|
|
87,315 |
|
|
|
69,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant,
property and equipment, net |
|
|
21,137 |
|
|
|
14,097 |
|
|
Operating
lease right of use asset |
|
|
3,961 |
|
|
|
2,711 |
|
|
Intangible
assets, less accumulated amortization |
|
18,361 |
|
|
|
15,478 |
|
|
Goodwill |
|
|
|
|
4,800 |
|
|
|
5,886 |
|
|
Other
assets |
|
|
|
- |
|
|
|
89 |
|
Total
assets |
|
|
|
$ |
135,574 |
|
|
$ |
108,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
$ |
8,151 |
|
|
$ |
5,186 |
|
|
Operating
lease liability - short term |
|
1,074 |
|
|
|
1,003 |
|
|
Mortgage
payable - short term |
|
|
267 |
|
|
|
267 |
|
|
Other
current liabilities |
|
|
11,290 |
|
|
|
6,955 |
|
Total
current liabilities |
|
|
|
20,786 |
|
|
|
13,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
|
40,626 |
|
|
|
33,853 |
|
|
Long term
debt - PPP loan |
|
|
3,508 |
|
|
|
- |
|
|
Mortgage
payable - long term |
|
|
2,844 |
|
|
|
3,111 |
|
|
Operating
lease liability - long term |
|
3,044 |
|
|
|
1,765 |
|
|
Other
non-current liabilities |
|
|
144 |
|
|
|
157 |
|
Total
liabilities |
|
|
|
70,952 |
|
|
|
52,297 |
|
Total
stockholders' equity |
|
|
|
64,626 |
|
|
|
55,825 |
|
Total
liabilities and stockholders' equity |
$ |
135,574 |
|
|
$ |
108,122 |
|
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