Acme United Corporation Reports Record First Quarter Sales, Earnings Per Share Double

Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the quarter ended March 31, 2012 were $16.9 million, compared to $14.4 million in the first quarter of 2011, an increase of 17%. Excluding the acquisition on February 28, 2011 of the Pac Kit Company, comparable sales increased by 9%.

Net sales for the first quarter of 2012 in the U.S. segment increased 19% compared to the same period in 2011 primarily due to increased sales of the Company’s iPoint pencil sharpeners, Clauss professional cutting tools, and branded first aid products. Net sales in Canada in the first quarter of 2012 decreased 11% in U.S. dollars and 9% in local currency compared to the same period in 2011. The decrease in Canada was primarily the result of the initial order of a new product line in the first quarter of 2011. European sales in the first quarter of 2012 increased 32% in U.S. dollars and 39% in local currency compared to the first quarter in 2011 due to increased sales in the mass market.

Gross margins were 35.2% in the first quarter of 2012 compared to 36.9% in the first quarter of 2011. The lower gross margin in the first quarter of 2012 was mainly due to customer and product mix.

Net income was $260,000 or $.08 per diluted share for the quarter ended March 31, 2012 compared to $120,000 or $.04 per diluted share for the comparable period last year.

Walter C. Johnsen, Chairman and CEO said, “Acme United continued to build its sales and earnings growth in the first quarter. We are now introducing new Westcott cutting tools, Camillus knives, and first aid products which we believe will provide additional platforms for growth.” Mr. Johnsen added “with our recently established banking relationship at HSBC we are better positioned for acquisitions and other expansion opportunities.”

The Company’s bank debt less cash on March 31, 2012 was $12.8 million compared to $13.2 million on March 31, 2011. During the 12 month period ended March 31, 2012, Acme paid approximately $800,000 in dividends on its common stock and generated $2.2 million in cash flow from operations.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and first aid products to the school, home, office, hardware and industrial markets. Its leading brands include Westcott®, Clauss®, Camillus® Physicians Care ® and Pac-Kit ®.

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) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company’s suppliers and customers (iii) the Company’s plans and results of operations will be affected by the Company’s ability to manage its growth, and (iv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
ACME UNITED CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FIRST QUARTER REPORT 2012
(unaudited)
           
Quarter Ended Quarter Ended
Amounts in 000's except per share data     March 31, 2012       March 31, 2011
 
 
Net sales $ 16,878 $ 14,401
Cost of goods sold 10,934 9,093  
Gross profit 5,944 5,308
Selling, general, and administrative expenses 5,486 5,125  
Income from operations 458 183
Interest expense, net 56 47
Other expense (income), net 42 (24 )
Pre-tax income 360 161
Income tax expense 100 41  
Net income $ 260 $ 120
   
Shares outstanding - Basic 3,129 3,075  
Shares outstanding - Diluted 3,131 3,105  
 
Earnings per share - basic $ 0.08 $ 0.04
Earnings per share - diluted 0.08 0.04
 
 
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2012
(Unaudited)
             

Amounts in $000's
 
March 31, 2012 March 31, 2011

Assets
Current assets:
Cash $ 4,078 $ 5,102
Accounts receivable, net 14,689 12,711
Inventories 23,634 23,354
Prepaid and other current assets   1,926 1,614
Total current assets 44,327 42,780
 
Property and equipment, net 2,400 2,376
Long term receivable 1,750 1,825
Intangible assets, less amortization 3,264 3,354
Other assets   1,142 1,032
Total assets $ 52,885 $ 51,367
 

Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 3,541 $ 3,379
Other current liabilities   3,437 2,406
Total current liabilities 6,978 5,785
 
Long-term debt 16,920 18,345
Other non-current liabilities   1,207 1,523
Total liabilities 25,105 25,653
Total stockholders' equity   27,780 25,714
Total liabilities and stockholders' equity $ 52,885 $ 51,367

Copyright Business Wire 2010

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