Acme United Corporation (NYSE American: ACU) today announced that
net sales for the three months ended September 30, 2019 were $37.0
million, compared to $34.7 million for the same period of 2018, an
increase of 7%. Net sales for the nine months ended September 30,
2019 were $108.6 million, compared to $106.2 million for the same
period in 2018, a 2% increase.
Net income for the three months ended September
30, 2019 was $1.1 million, or $0.30 per diluted share, compared to
$.8 million, or $0.23 per diluted share, for the same period in
2018, increases of 31% and 30%, respectively. Net income for the
nine months ended September 30, 2019 was $4.5 million, or $1.32 per
diluted share, compared to $4.0 million, or $1.12 per diluted
share, in last year’s same period, increases of 13% and 18%,
respectively.
Chairman and CEO Walter C. Johnsen, said, “We
are very pleased with our third quarter sales and earnings. We had
excellent performance with our First Aid Only safety products line,
driven by success of SmartCompliance kits and refills.
International sales both in Europe and Canada were strong. Our
on-line business was excellent, reflecting strength in first aid
products and back-to-school items.
Mr. Johnsen added, “We expect continued good
performance in the fourth quarter of 2019, particularly as our
focus on productivity and sales growth continues. Based on the
trends we are currently seeing, we are updating our financial
guidance for the year. We now expect net sales of approximately
$142 million compared to our previously provided range of $140
million - $143 million; net income of approximately $5.2 million
compared to our previously provided range of $5.0 million - $5.3
million; and earnings per share of approximately $1.48 compared to
our previously provided range of $1.41 - $1.50.
In the U.S. segment, net sales for the three
months ended September 30, 2019 increased 6% compared to the same
period in 2018. Sales of first aid and safety products were strong,
more than offsetting softness in the sales of certain school and
office products. Net sales for the first nine months of 2019 in the
U.S. segment increased 2% compared to the same period in 2018.
Net sales in Europe for the three months ended
September 30, 2019 increased 15% in U.S. dollars and 21% in local
currency compared to the same 2018 period. Net sales for the nine
months ended September 30, 2019 increased 14% in U.S. dollars and
22% in local currency compared to the first nine months of 2018.
The sales increases in the quarter and nine months were mainly due
to new customers in the office products channel and continued
growth of DMT sharpening products.
Net sales in Canada for the three months ended
September 30, 2019 increased 5% in U.S. dollars and 6% in local
currency compared to the same 2018 period. Net sales for the nine
months ended September 30, 2019 decreased 6% in U.S. dollars and 3%
in local currency compared to the first nine months of 2018.
Gross margin was 35.5% in the three months ended
September 30, 2019, compared to 35.8% in the same period in 2018.
Gross margin was 36.6% in the nine months ended September 30, 2019,
compared to 37.0% in the same period in 2018.
The Company’s bank debt less cash on September
30, 2019 was $35.9 million compared to $46.8 million on September
30, 2018. During the twelve-month period ended September 30, 2019,
the Company distributed $1.6 million in dividends on its common
stock, repurchased $0.4 million in treasury stock and generated $14
million in free cash flow, including a $2.3 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,
October 18, 2019, at 12:00 p.m. EDT. To listen or participate in a
question and answer session, dial 800-767-8973. International
callers may dial 334-777-6979. 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.
ACME UNITED
CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
THIRD
QUARTER REPORT 2019 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months
Ended |
Amounts in 000's except per share data |
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
36,995 |
|
$ |
34,731 |
Cost of goods sold |
|
23,861 |
|
|
22,281 |
Gross profit |
|
13,134 |
|
|
12,450 |
Selling, general, and administrative expenses |
|
11,408 |
|
|
11,077 |
Operating Income |
|
1,726 |
|
|
1,373 |
Interest expense, net |
|
469 |
|
|
496 |
Other expense, net |
|
40 |
|
|
23 |
Total other expense, net |
|
509 |
|
|
519 |
Income before income tax expense |
|
1,217 |
|
|
854 |
Income tax expense |
|
158 |
|
|
47 |
Net income |
$ |
1,059 |
|
$ |
807 |
|
|
|
|
|
|
|
|
Shares outstanding - Basic |
|
3,352 |
|
|
3,374 |
|
Shares outstanding - Diluted |
|
3,486 |
|
|
3,551 |
|
|
|
|
|
|
|
Earnings per share - Basic |
$ |
0.32 |
|
$ |
0.24 |
Earnings per share - Diluted |
|
0.30 |
|
|
0.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED
CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
THIRD
QUARTER REPORT 2019 (cont.) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
Nine Months
Ended |
Amounts in 000's except per share data |
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
|
|
|
|
|
Net sales |
$ |
108,585 |
|
$ |
106,191 |
Cost of goods sold |
|
68,877 |
|
|
66,905 |
Gross profit |
|
39,708 |
|
|
39,286 |
Selling, general, and administrative expenses |
|
32,679 |
|
|
32,923 |
Operating Income |
|
7,029 |
|
|
6,363 |
Interest expense, net |
|
1,463 |
|
|
1,346 |
Other expense, net |
|
52 |
|
|
84 |
Total other expense, net |
|
1,515 |
|
|
1,430 |
Income before income tax expense |
|
5,514 |
|
|
4,933 |
Income tax expense |
|
977 |
|
|
926 |
Net income |
$ |
4,537 |
|
$ |
4,007 |
|
|
|
|
|
|
|
|
Shares outstanding - Basic |
|
3,352 |
|
|
3,374 |
|
Shares outstanding - Diluted |
|
3,445 |
|
|
3,574 |
|
|
|
|
|
|
|
Earnings per share - Basic |
$ |
1.35 |
|
$ |
1.19 |
Earnings per share - Diluted |
|
1.32 |
|
|
1.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED
CORPORATION |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
THIRD
QUARTER REPORT 2019 |
(Unaudited) |
|
|
|
|
|
|
|
Amounts in 000's |
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
5,698 |
|
$ |
4,021 |
|
Accounts receivable, less allowance |
|
30,635 |
|
|
30,869 |
|
Inventories, net |
|
38,970 |
|
|
41,274 |
|
Prepaid expenses and other current assets |
|
1,787 |
|
|
2,270 |
Total current assets |
|
77,090 |
|
|
78,434 |
|
|
|
|
|
|
|
|
Property, Plant and equipment, net |
|
14,006 |
|
|
14,488 |
|
Operating lease right of use asset |
|
2,123 |
|
|
- |
|
Intangible assets, less accumulated
amortization |
16,107 |
|
|
16,959 |
|
Goodwill |
|
4,696 |
|
|
4,696 |
|
Other assets |
|
202 |
|
|
606 |
Total assets |
$ |
114,224 |
|
$ |
115,183 |
|
|
|
|
|
|
|
Liabilities and stockholders' equity: |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
7,217 |
|
$ |
6,654 |
|
Operating lease liability - short term |
|
920 |
|
|
- |
|
Mortgage payable |
|
267 |
|
|
267 |
|
Other accrued liabilities |
|
8,202 |
|
|
4,417 |
Total current liabilities |
|
16,606 |
|
|
11,338 |
Long term debt |
|
38,125 |
|
|
47,028 |
Mortgage payable, net of current portion |
|
3,244 |
|
|
3,511 |
Operating lease liability - long term |
|
1,210 |
|
|
- |
Other non-current liabilities |
|
15 |
|
|
815 |
Total liabilities |
|
59,200 |
|
|
62,692 |
Total stockholders' equity |
|
55,024 |
|
|
52,491 |
Total liabilities and stockholders' equity |
$ |
114,224 |
|
$ |
115,183 |
CONTACT: |
Paul G.
Driscoll |
Acme United
Corporation |
55 Walls
Drive |
Fairfield,
CT 06824 |
|
|
Phone: (203) 254-6060 |
FAX: (203) 254-6521 |
|
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