Acme United Corporation (NYSE American: ACU) today announced that
net sales for the three months ended June 30, 2019 were $40.2
million, compared to $39.8 million in the same period of 2018, an
increase of 1%, or 2% in constant currency. Net sales for the six
months ended June 30, 2019 were $71.6 million, compared to $71.5
million in the same period in 2018, a 1% increase in constant
currency.
Net income for the three months ended June 30,
2019 was $2.7 million, or $0.77 per diluted share, compared to $2.4
million, or $0.67 per diluted share, for the same period in 2018,
increases of 10% and 15%, respectively. Net income for the six
months ended June 30, 2019 was $3.5 million, or $1.01 per diluted
share, compared to $3.2 million, or $0.88 per diluted share, in
last year’s same period, increases of 9% and 15%,
respectively.
Walter C. Johnsen, Chairman and CEO said, “We
had excellent sales of first aid products, Camillus hunting and
camping items, and Cuda fishing tools. Sales of Westcott
items related to back to school were softer than in last year’s
period.
“Revenues for the next 6 months are forecast to
have solid growth in first aid, Camillus and DMT products.
Sales of Westcott school and office products are expected to be
consistent with last year. Accordingly, we are reiterating our
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.”
Mr. Johnsen added, “We have reduced net debt by over $5.0
million during the past 12 months and continue to seek tuck-in
acquisitions with particular interest in products we can bring in
through multiple channels of distribution.”
In the U.S. segment, net sales for the three
months ended June 30, 2019 increased 1% compared to the same period
in 2018. Sales of first aid and safety products were strong;
however, there was softness in sales of certain school and office
products. Net sales for the first six months of 2019 in the
U.S. segment were constant compared to the same period in 2018.
Net sales in Europe for the three months ended
June 30, 2019 increased 22% in U.S. dollars and 28% in local
currency compared to the same 2018 period. The sales increase
in the quarter was mainly due to a large back-to-school promotion
to a major retailer. Net sales for the six months ended June
30, 2019 increased 13% in U.S. dollars and 22% in local currency
compared to the first half 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 three and six months
ended June 30, 2019 decreased 10% in U.S. dollars and 6% in local
currency compared to the same prior-year periods.
Gross margin was 36.7% in the three months ended
June 30, 2019, compared to 37.0% in the same period in 2018.
Gross margin was 37.1% in the six months ended June 30, 2019,
compared to 37.6% in the same period in 2018.
The Company’s bank debt less cash on June 30,
2019 was $41.0 million compared to $46.3 million on June 30,
2018. During the twelve-month period ended June 30, 2019, the
Company distributed $1.5 million in dividends on its common stock,
repurchased $0.4 million in treasury stock and generated $8.4
million in free cash flow, including a $2.9 million reduction in
inventory.
Conference Call and Webcast
InformationAcme United will hold a conference call to
discuss its quarterly results, which will be broadcast on Friday,
July 19, 2019, at 12:00 p.m. EDT. To listen or participate in a
question and answer session, dial 800-289-0558. International
callers may dial 929-477-0275. 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 United
ACME 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.
CONTACT: |
Paul G.
Driscoll |
Acme United
Corporation |
55 Walls
Drive |
Fairfield,
CT 06824 |
|
|
Phone: (203) 254-6060 |
FAX: (203) 254-6521 |
|
ACME UNITED CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
SECOND QUARTER REPORT 2019 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Amounts in 000's except per share data |
|
June 30, 2019 |
|
|
June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
|
$ |
40,220 |
|
$ |
39,751 |
|
|
Cost of
goods sold |
|
|
|
25,449 |
|
|
25,039 |
|
|
Gross
profit |
|
|
|
|
14,771 |
|
|
14,712 |
|
|
Selling,
general, and administrative expenses |
|
11,003 |
|
|
11,087 |
|
|
Operating
Income |
|
|
|
3,768 |
|
|
3,625 |
|
|
Interest
expense, net |
|
|
|
491 |
|
|
445 |
|
|
Other
expense, net |
|
|
|
14 |
|
|
74 |
|
|
Total
other expense, net |
|
|
|
505 |
|
|
519 |
|
|
Income
before income tax expense |
|
|
3,263 |
|
|
3,106 |
|
|
Income tax
expense |
|
|
|
592 |
|
|
670 |
|
|
Net
income |
|
|
|
$ |
2,671 |
|
$ |
2,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding - Basic |
|
|
3,351 |
|
|
3,374 |
|
|
|
Shares
outstanding - Diluted |
|
|
3,485 |
|
|
3,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - Basic |
|
$ |
0.80 |
|
$ |
0.72 |
|
|
Earnings
per share - Diluted |
|
|
0.77 |
|
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
SECOND QUARTER REPORT 2019 (cont.) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
Amounts in 000's except per share data |
|
June 30, 2019 |
|
|
June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
|
|
$ |
71,590 |
|
$ |
71,460 |
|
|
Cost of
goods sold |
|
|
|
45,016 |
|
|
44,624 |
|
|
Gross
profit |
|
|
|
|
26,574 |
|
|
26,836 |
|
|
Selling,
general, and administrative expenses |
|
21,271 |
|
|
21,846 |
|
|
Operating
Income |
|
|
|
5,303 |
|
|
4,990 |
|
|
Interest
expense, net |
|
|
|
994 |
|
|
850 |
|
|
Other
expense, net |
|
|
|
12 |
|
|
61 |
|
|
Total
other expense, net |
|
|
|
1,006 |
|
|
911 |
|
|
Income
before income tax expense |
|
|
4,297 |
|
|
4,079 |
|
|
Income tax
expense |
|
|
|
819 |
|
|
879 |
|
|
Net
income |
|
|
|
$ |
3,478 |
|
$ |
3,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding - Basic |
|
|
3,351 |
|
|
3,374 |
|
|
|
Shares
outstanding - Diluted |
|
|
3,429 |
|
|
3,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share - Basic |
|
$ |
1.04 |
|
$ |
0.95 |
|
|
Earnings
per share - Diluted |
|
|
1.01 |
|
|
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED CORPORATION |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
SECOND QUARTER REPORT 2019 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts in 000's |
|
|
|
June 30, 2019 |
|
|
June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,924 |
|
$ |
1,894 |
|
|
|
Accounts
receivable, less allowance |
|
35,462 |
|
|
34,511 |
|
|
|
Inventories, net |
|
|
|
39,615 |
|
|
42,510 |
|
|
|
Prepaid
expenses and other current assets |
|
2,085 |
|
|
2,525 |
|
|
Total
current assets |
|
|
|
79,086 |
|
|
81,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property,
Plant and equipment, net |
|
|
14,200 |
|
|
14,576 |
|
|
|
Operating
lease right of use asset |
|
|
2,424 |
|
|
- |
|
|
|
Intangible
assets, less accumulated amortization |
|
16,422 |
|
|
17,268 |
|
|
|
Goodwill |
|
|
|
|
4,696 |
|
|
4,696 |
|
|
|
Other
assets |
|
|
|
202 |
|
|
598 |
|
|
Total
assets |
|
|
|
$ |
117,030 |
|
$ |
118,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity: |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts
payable |
|
|
$ |
9,931 |
|
$ |
12,972 |
|
|
|
Operating
lease liability - short term |
|
987 |
|
|
- |
|
|
|
Mortgage
payable |
|
|
|
267 |
|
|
267 |
|
|
|
Other
accrued liabilities |
|
|
6,865 |
|
|
4,373 |
|
|
Total
current liabilities |
|
|
|
18,050 |
|
|
17,612 |
|
|
Long term debt |
|
|
|
39,388 |
|
|
44,318 |
|
|
Mortgage payable, net of current portion |
|
3,311 |
|
|
3,578 |
|
|
|
Operating
lease liability - long term |
|
1,441 |
|
|
- |
|
|
Other non-current liabilities |
|
|
38 |
|
|
846 |
|
|
Total
liabilities |
|
|
|
62,228 |
|
|
66,354 |
|
|
Total
stockholders' equity |
|
|
|
54,802 |
|
|
52,224 |
|
|
Total
liabilities and stockholders' equity |
$ |
117,030 |
|
$ |
118,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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