Acme United Corporation (NYSE American: ACU) today announced that
net sales for the fourth quarter ended December 31, 2019 were $33.9
million, compared to $31.1 million in the comparable period of
2018, an increase of 9%. Net sales for the year ended December 31,
2019 were $142.5 million, compared to $137.3 million in 2018, an
increase of 4%.
Net income for the quarter ended December 31,
2019 was $977,000, or $0.28 per diluted share, compared to
$591,000, or $0.17 per diluted share, an increase of 65% for both
net income and earnings per share. Net income for the year
ended December 31, 2019 was $5.5 million, or $1.60 per diluted
share, compared to $4.6 million, or $1.30 per diluted share in
2018, increases of 20% and 23%, respectively.
Chairman and CEO Walter C. Johnsen said, “Acme
United delivered an excellent year in 2019 from many different
perspectives. On the new product front, we introduced the next
generation of Smart Compliance first aid kits while at the same
time expanding distribution of our innovative Safety Hub refill
software. We had strong sales of our new Westcott adjustable
scissors, which have adjustable tension and operate more smoothly
than traditional scissors. Camillus knives continued to gain
market share in the U.S. and Canada.
“On the sales front, we achieved our ninth
consecutive year of record sales. We generated strong cash
flow, increased our dividend, and reduced net debt by almost $10
million. We also began 2020 on a strong note, acquiring First
Aid Central, a Canadian first aid and safety supplier, in early
January. The acquisition, which we expect to be accretive in 2020,
expands our product offerings, global distribution capabilities and
online presence.”
Mr. Johnsen added, “With our continuing sales
momentum in first aid and safety products, expanded line of
Westcott cutting tools, increased capacity at DMT, and
contributions from our recent acquisition of First Aid Central, we
believe we are well positioned for growth in 2020.”
In the U.S. segment, net sales for the quarter
ended December 31, 2019 increased 11% compared to the same period
in 2018. Net sales for the year ended December 31, 2019 grew 4%
over 2018. The sales increase for both periods was mainly due to
strong sales of first aid and safety products.
Net sales in Canada for the quarter ended
December 31, 2019 decreased 4% in both U.S. dollars and local
currency compared to the prior-year period. Net sales for the
year ended December 31, 2019 decreased 5% in U.S. dollars and 3% in
local currency compared to the same period in 2018.
Net sales in Europe for the quarter ended
December 31, 2019 decreased 10% in U.S. dollars and 7% in local
currency compared to the same period in 2018. Net sales for
the year ended December 31, 2019 increased 8% in U.S. dollars and
14% in local currency compared to last year. The sales decline in
the quarter was mainly due to a large promotional sale in the
fourth quarter of 2018 that did not repeat in 2019. Net sales
for the year grew mainly due to new customers in the office
products channel, growth in sales of DMT sharpening products, and
strong e-commerce demand for these
products.
Gross margin was 36.3% in the three months ended December 31, 2019
compared to 36.5% in the same period in 2018. Gross margin
was 36.5% for the year ended December 31, 2019 compared to 36.9%
for 2018.
The Company’s debt less cash on December 31,
2019 was $30.0 million compared to $39.6 million on December 31,
2018. During the year, the Company distributed $1.6 million
in dividends on its common stock and generated $13.0 million in
free cash flow, including a $2.1 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 Thursday,
February 27, 2020 at 12:00 p.m. EST. To listen or participate in a
question and answer session, dial 800-353-6461. International
callers may dial 334-323-0501. 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®, PhysiciansCare®, Pac-Kit®,
Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, and DMT®. 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, 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 |
YEAR END
REPORT 2019 |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Quarter
Ended |
|
|
Quarter
Ended |
Amounts in $000's except per share data |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
33,873 |
|
|
$ |
31,130 |
|
Cost of goods sold |
|
21,579 |
|
|
|
19,768 |
|
Gross profit |
|
12,294 |
|
|
|
11,362 |
|
Selling, general, and administrative expenses |
|
10,893 |
|
|
|
10,269 |
|
Income from operations |
|
1,401 |
|
|
|
1,093 |
|
Interest expense |
|
(338 |
) |
|
|
(523 |
) |
Interest income |
|
12 |
|
|
|
10 |
|
Net interest expense |
|
(326 |
) |
|
|
(513 |
) |
Other (expense) income, net |
|
(46 |
) |
|
|
18 |
|
Total other expense, net |
|
(372 |
) |
|
|
(495 |
) |
Pre-tax income |
|
1,029 |
|
|
|
598 |
|
Income tax expense |
|
52 |
|
|
|
7 |
|
Net income |
$ |
977 |
|
|
$ |
591 |
|
|
|
|
|
|
|
|
|
Shares outstanding - Basic |
|
3,352 |
|
|
|
3,363 |
|
|
Shares outstanding - Diluted |
|
3,495 |
|
|
|
3,421 |
|
|
|
|
|
|
|
|
Earnings per share basic |
$ |
0.29 |
|
|
$ |
0.18 |
|
Earnings per share diluted |
|
0.28 |
|
|
|
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED
CORPORATION |
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
YEAR END
REPORT 2019 (cont.) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended |
|
|
Year
Ended |
Amounts in $000's except per share data |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
Net sales |
$ |
142,457 |
|
|
$ |
137,321 |
|
Cost of goods sold |
|
90,456 |
|
|
|
86,672 |
|
Gross profit |
|
52,001 |
|
|
|
50,649 |
|
Selling, general, and administrative expenses |
|
43,572 |
|
|
|
43,192 |
|
Income from operations |
|
8,429 |
|
|
|
7,457 |
|
Interest expense |
|
(1,828 |
) |
|
|
(1,891 |
) |
Interest income |
|
40 |
|
|
|
33 |
|
Net interest expense |
|
(1,788 |
) |
|
|
(1,858 |
) |
Other expense, net |
|
(98 |
) |
|
|
(68 |
) |
Total other expense, net |
|
(1,886 |
) |
|
|
(1,926 |
) |
Pre-tax income |
|
6,543 |
|
|
|
5,531 |
|
Income tax expense |
|
1,030 |
|
|
|
933 |
|
Net income |
$ |
5,513 |
|
|
$ |
4,598 |
|
|
|
|
|
|
|
|
|
Shares outstanding - Basic |
|
3,352 |
|
|
|
3,371 |
|
|
Shares outstanding - Diluted |
|
3,453 |
|
|
|
3,542 |
|
|
|
|
|
|
|
|
Earnings per share basic |
$ |
1.65 |
|
|
|
1.36 |
|
Earnings per share diluted |
|
1.60 |
|
|
|
1.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACME UNITED
CORPORATION |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
YEAR END
REPORT 2019 |
(Unaudited) |
|
|
|
|
|
|
|
Amounts in $000's |
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
$ |
6,822 |
|
|
$ |
4,409 |
|
|
Accounts receivable, net |
|
25,485 |
|
|
|
25,102 |
|
|
Inventories |
|
39,261 |
|
|
|
41,332 |
|
|
Prepaid and other current assets |
|
1,578 |
|
|
|
2,149 |
|
Total current assets |
|
73,146 |
|
|
|
72,992 |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
14,036 |
|
|
|
14,543 |
|
|
Intangible assets, less amortization |
|
15,793 |
|
|
|
17,044 |
|
|
Goodwill |
|
4,696 |
|
|
|
4,696 |
|
|
Operating lease right of use asset |
|
2,989 |
|
|
|
- |
|
|
Other assets |
|
89 |
|
|
|
203 |
|
Total assets |
$ |
110,749 |
|
|
$ |
109,478 |
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity: |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
$ |
6,693 |
|
|
$ |
7,983 |
|
|
Operating lease liability - short term |
|
1,047 |
|
|
|
- |
|
|
Mortgage payable - short term |
|
267 |
|
|
|
267 |
|
|
Other current liabilities |
|
8,626 |
|
|
|
5,115 |
|
Total current liabilities |
|
16,633 |
|
|
|
13,365 |
|
Non-current liabilities |
|
|
|
|
|
|
Long
term debt |
|
33,240 |
|
|
|
40,283 |
|
|
Mortgage payable - long term |
|
3,178 |
|
|
|
3,444 |
|
|
Operating lease liability - long term |
|
1,961 |
|
|
|
- |
|
|
Other non current liabilities |
|
32 |
|
|
|
53 |
|
Total liabilities |
|
55,044 |
|
|
|
57,145 |
|
Total stockholders' equity |
|
55,705 |
|
|
|
52,333 |
|
Total liabilities and stockholders' equity |
$ |
110,749 |
|
|
$ |
109,478 |
|
|
|
|
|
|
|
|
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