Acme United Corporation (NYSE American: ACU) today announced that
net sales for the quarter ended March 31, 2023 were $45.8 million
compared to $43.3 million for the quarter ended March 31, 2022, an
increase of 6%.
Net income was $990,000, or $0.28 per diluted
share, for the quarter ended March 31, 2023, compared to $830,000,
or $0.22 per diluted share, for the comparable period last year, an
increase of 19% in net income and 27% in diluted earnings per
share.
Chairman and CEO Walter C. Johnsen said, “We are successfully
executing our growth and productivity plans. Our net sales growth
reflects expansion of our customer base and new product
introductions in the first aid and medical segment, offset in part
by continued inventory reductions by some large mass market
customers. We realized over $0.5 million in productivity savings
during the quarter. Inventory declined by $5.0 million from
December 31, 2022, which reduced debt.”
Mr. Johnsen added, “The Company is on track to realize projected
annual savings of $5.0 million in 2023 due to the many productivity
improvements we have been implementing. I am grateful to the Acme
United team which has been intensely focused on delivering
outstanding performance in 2023. We look forward to growth and
improved profitability in 2023.”
For the first quarter of 2023, net sales in the
U.S. segment increased 9% compared to the same period in 2022
mainly due to higher sales of first aid and medical products.
European net sales for the first quarter of 2023
decreased 6% in U.S. dollars and 2% in local currency compared to
the first quarter of 2022.
Net sales in Canada for the first quarter of
2023 decreased 10% in U.S. dollars and 5% in local currency
compared to the same period in 2022, mainly due to retailer
inventory reductions.
Gross margin was 35.5% in the first quarter of
2023 versus 34.5% in the comparable period last year. The increase
in the quarter was primarily due to cost saving initiatives
implemented in the fall of 2022.
Operating income in the first quarter of 2023
increased $0.8 million, or 60%, compared to the same period last
year, mainly due to higher sales and an improved gross margin.
Interest expense in the first quarter of 2023
increased $0.6 million compared to the last year’s same period due
to higher interest rates.
The Company’s bank debt less cash on March 31,
2023 was $48.4 million compared to $46.2 million on March 31, 2022.
During the twelve-month period ended March 31, 2023, the Company
paid approximately $11 million for the acquisition of the assets of
Live Safely Products, LLC, paid $1.9 million in dividends on its
common stock and generated approximately $11 million in free cash
flow, including a reduction in inventory of $3 million.
Conference Call and Webcast
InformationAcme United will hold a conference call to
discuss its quarterly results, which will be broadcast on Friday,
April 21, 2023, at 12:00 p.m. ET. To listen or participate in a
question and answer session, dial 877-407-0784 . International
callers may dial 201-689-8560. The confirmation code is 13737289.
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®, Spill Magic®, Westcott®, Clauss®, Camillus®,
Cuda®, DMT®, Med-Nap and Safety Made. For more information, visit
www.acmeunited.com.
Forward Looking StatementsThe Company may from
time to time make written or oral “forward-looking statements”
including statements contained in this report and in other
communications by the Company, which are made in good faith
pursuant to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are based on our
beliefs as well as assumptions made by and information currently
available to us. When used in this document, words like “may,”
“might,” “will,” “except,” “anticipate,” “believe,” “potential,”
and similar expressions are intended to identify forward-looking
statements. Actual results could differ materially from our current
expectations.
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 that may impact the Company’s business, operations
and financial results, including those risks and uncertainties
resulting from the global COVID-19 pandemic, future waves of
COVID-19, including through the Delta and Omicron variants and any
new variant strains of the underlying virus; any future pandemics;
the continuing effectiveness, global availability, and public
acceptance of existing vaccines; the effectiveness, availability,
and public acceptance of vaccines against variant strains of
potential new viruses; and the heightened impact the pandemic has
on many of the risks described herein, including, without
limitation, risks relating to disruptions in our supply chain, and
labor shortages, any of which could materially adversely impact the
Company’s ability to manufacture, source or distribute its
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) additional disruptions in the
Company’s supply chains, whether caused by COVID-19, natural
disasters or otherwise; (iv) labor-related costs the Company has
incurred and continues to incur, including costs of acquiring and
training new employees and rising wages and benefits; (v) the
continuing adverse impact of inflation on products costs and
interest rates; (vi) the Company’s ability to effectively manage
its inventory in a rapidly changing business environment, including
the additional inventory the Company acquired in anticipation of
supply chain disruptions and uncertainties; (vii) potential adverse
effects on the Company, its customers, and suppliers resulting from
the war in Ukraine; (viii) changes in client needs and consumer
spending habits; (ix) the impact of competition; (x) the impact of
technological changes including, specifically, the growth of online
marketing and sales activity; (xi) the Company’s ability to manage
its growth effectively, including its ability to successfully
integrate any business it might acquire; (xii) currency
fluctuations; (xiii) 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 (xiv) 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 2023 |
(Unaudited) |
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Quarter Ended |
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|
Quarter Ended |
Amounts in 000's except per share data |
|
March 31, 2023 |
|
|
March 31, 2022 |
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
$ |
45,838 |
|
|
$ |
43,333 |
|
Cost of goods sold |
|
|
|
29,557 |
|
|
|
28,365 |
|
Gross profit |
|
|
|
|
16,281 |
|
|
|
14,968 |
|
Selling, general and administrative expenses |
|
14,093 |
|
|
|
13,597 |
|
Operating income |
|
|
|
2,188 |
|
|
|
1,371 |
|
Interest expense |
|
|
|
919 |
|
|
|
309 |
|
Interest income |
|
|
|
(17 |
) |
|
|
(4 |
) |
|
Net interest expense |
|
|
|
902 |
|
|
|
305 |
|
Other income, net |
|
|
|
(23 |
) |
|
|
(2 |
) |
Income before income tax expense |
|
|
1,309 |
|
|
|
1,068 |
|
Income tax expense |
|
|
|
319 |
|
|
|
238 |
|
Net income |
|
|
|
$ |
990 |
|
|
$ |
830 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding - basic |
|
|
3,541 |
|
|
|
3,521 |
|
|
Shares outstanding - diluted |
|
|
3,541 |
|
|
|
3,848 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
$ |
0.28 |
|
|
$ |
0.24 |
|
Earnings per share - diluted |
|
|
0.28 |
|
|
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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ACME UNITED CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS |
FIRST QUARTER REPORT 2023 |
(Unaudited) |
|
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Amounts in $000's |
|
|
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March 31, 2023 |
|
|
March 31, 2022 |
Assets |
|
|
|
|
|
|
|
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Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,764 |
|
|
$ |
5,307 |
|
|
Accounts receivable, net |
|
|
32,972 |
|
|
|
34,605 |
|
|
Inventories |
|
|
|
58,488 |
|
|
|
60,716 |
|
|
Prepaid expenses and other current assets |
|
4,961 |
|
|
|
3,810 |
|
Total current assets |
|
|
|
99,185 |
|
|
|
104,438 |
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
26,397 |
|
|
|
23,887 |
|
|
Operating lease right of use asset |
|
2,675 |
|
|
|
3,064 |
|
|
Intangible assets, less accumulated
amortization |
20,272 |
|
|
|
16,888 |
|
|
Goodwill |
|
|
|
|
8,189 |
|
|
|
4,800 |
|
|
Other assets |
|
|
|
750 |
|
|
|
- |
|
Total assets |
|
|
|
$ |
157,468 |
|
|
$ |
153,077 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
10,597 |
|
|
$ |
10,939 |
|
|
Operating lease liability - short term |
|
1,216 |
|
|
|
1,112 |
|
|
Mortgage payable - short term |
|
|
405 |
|
|
|
389 |
|
|
Other current liabilities |
|
|
11,816 |
|
|
|
8,937 |
|
Total current liabilities |
|
|
|
24,034 |
|
|
|
21,377 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
|
40,135 |
|
|
|
40,151 |
|
|
Mortgage payable - long term |
|
|
10,597 |
|
|
|
10,989 |
|
|
Operating lease liability - long term |
|
1,628 |
|
|
|
2,187 |
|
|
Other non-current liabilities |
|
|
957 |
|
|
|
600 |
|
Total liabilities |
|
|
|
77,351 |
|
|
|
75,304 |
|
Total stockholders' equity |
|
|
80,117 |
|
|
|
77,773 |
|
Total liabilities and stockholders' equity |
$ |
157,468 |
|
|
$ |
153,077 |
|
|
|
|
|
|
|
|
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|
CONTACT:Paul G. DriscollAcme United Corporation1 Waterview
DriveShelton, CT 06484Phone: (203) 254-6060
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