Acme United Corporation (NYSE American: ACU) today announced that
net sales for the quarter ended September 30, 2021 were $47.9
million compared to $43.3 million in the third quarter of 2020, an
increase of 11%. Net sales for the nine months ended September 30,
2021 were $136.3 million, compared to $123.1 million in the same
period in 2020, an increase of 11%.
Net income was $2,046,000 or $0.50 per diluted
share for the quarter ended September 30, 2021 compared to
$1,579,000, or $0.46 per diluted share, for the comparable period
last year, an increase of 30% in net income and 9% in diluted
earnings per share. Net income (excluding the impact of the PPP
loan forgiveness) for the nine months ended September 30, 2021 was
$7,814,000, or $1.97 per diluted share, compared to $6,055,000, or
$1.75 per diluted share, in last year’s same period, increases of
29% and 13%, respectively. Net income for the nine months ended
September 30, 2021, including the PPP loan forgiveness, was $11.3
million, or $2.85 per diluted share.
Chairman and CEO Walter C. Johnsen said, “Acme
United had strong demand for our first aid and cutting products in
the third quarter. Sales to our office customers rebounded
strongly, and our ecommerce revenues were robust. We proactively
increased inventory by nearly 33% during the past 18 months in
anticipation of potential global supply chain interruptions. Having
done so, we believe we are well-positioned to respond to customer
needs in the coming quarters.” Mr. Johnsen added, ”We are excited
about many new opportunities as we continue to innovate and
grow.”
For the third quarter of 2021, net sales in the
U.S. segment increased 12% compared to the same period in 2020. For
the nine months ended September 30, 2021, net sales in the U.S.
segment increased 8% compared to the same period in 2020. The
growth for both periods was primarily attributable to strong sales
of first aid and medical products.
European net sales for the third quarter of 2021
were constant in both U.S. dollars and local currency compared to
the third quarter of 2020 due to the timing of several large orders
in 2020. Net sales for the nine months ended September 30, 2021
increased 22% in U.S. dollars and 15% in local currency compared to
the first nine months of 2020, mainly due to sales growth in the
ecommerce channel across all product lines and market share gains
in Westcott school and office products.
Net sales in Canada for the third quarter of
2021 increased 6% in U.S. dollars and were constant in local
currency compared to the same period in 2020. Higher sales of First
Aid Central products were offset by lower sales of school and
office products. In 2020, back-to-school shipments of school and
office products were delayed from the second quarter to the third
quarter due to the COVID-19 lockdowns in the second quarter of
2020. Net sales for the nine months ended September 30, 2021
increased 33% in U.S. dollars and 23% in local currency compared to
the first nine months of 2020 primarily to due to higher sales of
first aid products.
Gross margin was 35.5% in the third quarter of
2021 versus 34.5% in the comparable period last year. Gross margin
was 35.8% for the nine months ended September 30, 2021, compared to
36.2% for the same period of 2020.
The Company’s bank debt less cash on September
30, 2021 was $38.1 million compared to $34.4 million on September
30, 2020. During the twelve-month period ended September 30, 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, generated approximately $2 million in free
cash flow, and received forgiveness for the PPP loan of $3.5
million.
Conference Call and Webcast
InformationAcme United will hold a conference call to
discuss its quarterly results, which will be broadcast on Tuesday,
October 26, 2021, at 2:30 p.m. EDT. To listen or participate in a
question and answer session, dial 866-248-8441. International
callers may dial 929-477-0591. The confirmation code is
5719272. 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 existing and
any new variant strains of the underlying virus; the continuing
effectiveness, global availability, and public acceptance 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 and strength of
economic recovery 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 turbulence, 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) the potential disruptions in the
Company’s supply chains, whether caused by COVID-19 or otherwise;
(iv) changes in client needs and consumer spending habits,
including COVID-19 related changes; (v) the impact of competition;
(vi) the impact of technological changes including, specifically,
the growth of online marketing and sales activity; (vii) the
Company’s ability to manage its growth effectively, including its
ability to successfully integrate any business it might acquire;
(viii) 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;
(ix) the impact of any increases in inflation; (x) currency
fluctuations; (xi) 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
(xii) other risks and uncertainties indicated from time to time in
the Company’s filings with the Securities and Exchange
Commission.
ACME UNITED
CORPORATION |
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
|
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|
THIRD
QUARTER REPORT 2021 |
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|
|
|
|
(Unaudited) |
|
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Three Months
Ended |
|
Three Months
Ended |
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Amounts in 000's except per share data |
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|
September 30, 2021 |
|
September 30, 2020 |
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|
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Net
sales |
|
|
$ |
47,923 |
|
|
$ |
43,316 |
|
|
|
|
|
|
|
|
Cost
of goods sold |
|
|
|
30,918 |
|
|
|
28,360 |
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
17,005 |
|
|
|
14,956 |
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
14,044 |
|
|
|
12,832 |
|
|
|
|
|
|
|
|
Operating income |
|
|
|
2,961 |
|
|
|
2,124 |
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
(230 |
) |
|
|
(173 |
) |
|
|
|
|
|
|
|
Interest income |
|
|
|
2 |
|
|
|
5 |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(228 |
) |
|
|
(168 |
) |
|
|
|
|
|
|
|
Other (expense) income , net |
|
|
(68 |
) |
|
|
35 |
|
|
|
|
|
|
|
|
Total other (expense) income , net |
|
|
(68 |
) |
|
|
35 |
|
|
|
|
|
|
|
|
Income before income tax expense |
|
|
2,665 |
|
|
|
1,991 |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
619 |
|
|
|
412 |
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
2,046 |
|
|
$ |
1,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding - Basic |
|
|
|
3,542 |
|
|
|
3,340 |
|
|
|
|
|
|
|
|
Shares outstanding - Diluted |
|
|
|
4,058 |
|
|
|
3,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - Basic |
|
$ |
0.58 |
|
|
$ |
0.47 |
|
|
|
|
|
|
|
|
Earnings per share - Diluted |
|
|
0.50 |
|
|
|
0.46 |
|
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ACME UNITED
CORPORATION |
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CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
|
|
|
|
|
|
THIRD
QUARTER REPORT 2021 (cont.) |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
Nine Months
Ended |
|
Nine Months
Ended |
|
|
|
|
|
|
Amounts in 000's except per share data |
|
|
September 30, 2021 |
|
September 30, 2020 |
|
|
|
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|
|
|
|
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|
|
|
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|
|
Net
sales |
|
|
$ |
136,295 |
|
|
$ |
123,133 |
|
|
|
|
|
|
|
|
Cost
of goods sold |
|
|
|
87,550 |
|
|
|
78,594 |
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
48,745 |
|
|
|
44,539 |
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses |
|
39,028 |
|
|
|
36,023 |
|
|
|
|
|
|
|
|
Operating income |
|
|
|
9,717 |
|
|
|
8,516 |
|
|
|
|
|
|
|
|
Interest expense |
|
|
|
(682 |
) |
|
|
(742 |
) |
|
|
|
|
|
|
|
Interest income |
|
|
|
11 |
|
|
|
20 |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(671 |
) |
|
|
(722 |
) |
|
|
|
|
|
|
|
PPP
Loan forgiveness |
|
|
|
3,508 |
|
|
|
- |
|
|
|
|
|
|
|
|
Other expense, net |
|
|
|
(213 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
|
Total other income (expense), net |
|
|
3,295 |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
Income before income tax expense |
|
|
12,341 |
|
|
|
7,792 |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
1,019 |
|
|
|
1,737 |
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
11,322 |
|
|
$ |
6,055 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding - Basic |
|
|
|
3,449 |
|
|
|
3,343 |
|
|
|
|
|
|
|
|
Shares outstanding - Diluted |
|
|
|
3,969 |
|
|
|
3,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - Basic |
|
$ |
3.28 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
Earnings per share - Diluted |
|
|
2.85 |
|
|
|
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to reported Net Income (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income as reported (GAAP) |
|
|
|
11,322 |
|
|
|
6,055 |
|
|
|
|
|
|
|
|
PPP Loan Forgiveness |
|
|
|
(3,508 |
) |
|
|
- |
|
|
|
|
|
|
|
|
Net income as adjusted |
|
|
|
7,814 |
|
|
|
6,055 |
|
|
|
|
|
|
|
|
Earnings per share before PPP Loan forgiveness -
Basic |
|
|
$ |
2.27 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
Earnings per share before PPP Loan forgiveness -
Diluted |
|
1.97 |
|
|
|
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED
CORPORATION |
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
THIRD
QUARTER REPORT 2021 |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in 000's |
|
|
|
September 30, 2021 |
|
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
5,306 |
|
|
$ |
3,031 |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
|
36,088 |
|
|
|
32,154 |
|
|
|
|
|
|
|
|
Inventories |
|
|
|
48,795 |
|
|
|
48,351 |
|
|
|
|
|
|
|
|
Prepaid expenses and other current
assets |
|
|
2,458 |
|
|
|
2,142 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
|
92,647 |
|
|
|
85,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
|
23,181 |
|
|
|
14,341 |
|
|
|
|
|
|
|
|
Operating lease right of use asset |
|
|
|
3,187 |
|
|
|
2,190 |
|
|
|
|
|
|
|
|
Intangible assets, less accumulated
amortization |
|
|
17,615 |
|
|
|
16,072 |
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
4,800 |
|
|
|
4,696 |
|
|
|
|
|
|
|
|
Other assets |
|
|
|
- |
|
|
|
40 |
|
|
|
|
|
|
|
|
Total assets |
|
|
$ |
141,430 |
|
|
$ |
123,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
6,695 |
|
|
$ |
9,251 |
|
|
|
|
|
|
|
|
Operating lease liability - short term |
|
|
|
945 |
|
|
|
847 |
|
|
|
|
|
|
|
|
Mortgage payable - short term |
|
|
|
267 |
|
|
|
267 |
|
|
|
|
|
|
|
|
Other accrued liabilities |
|
|
|
11,184 |
|
|
|
13,376 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
|
19,091 |
|
|
|
23,741 |
|
|
|
|
|
|
|
|
Long term debt |
|
|
|
40,454 |
|
|
|
30,703 |
|
|
|
|
|
|
|
|
Note payable - PPP loan |
|
|
|
- |
|
|
|
3,508 |
|
|
|
|
|
|
|
|
Mortgage payable - long term |
|
|
|
2,711 |
|
|
|
2,978 |
|
|
|
|
|
|
|
|
Operating lease liability - long term |
|
|
|
2,484 |
|
|
|
1,422 |
|
|
|
|
|
|
|
|
Other non-current liabilities |
|
|
141 |
|
|
|
69 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
64,881 |
|
|
|
62,421 |
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
76,549 |
|
|
|
60,596 |
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
141,430 |
|
|
$ |
123,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
CONTACT: Paul G.
Driscoll Acme United
Corporation 1
Waterview Drive
Shelton, CT
06484Phone: (203) 254-6060
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