Acme United Corporation Reports Record Quarterly Earnings

Acme United Corporation (NYSE MKT: ACU) today announced record quarterly net income of $2,210,000, or $.68 per diluted share, for the quarter ended June 30, 2013, compared to $2,061,000 or $.66 per diluted share for the comparable period in 2012, an increase of 7% in net income and 3% in diluted earnings per share.

Net income for the six months ended June 30, 2013 was $2,520,000, or $.78 per diluted share, compared to $2,320,000, or $.74 per diluted share in the comparable period last year, a 9% increase in net income and 5% increase in diluted earnings per share.

Net sales for the six months ended June 30, 2013 were $46.1 million, compared to $44.5 million in the same period in 2012, an increase of 4%. Net sales for the second quarter ended June 30, 2013 were $28.4 million, compared to $27.6 million in the comparable period of 2012, an increase of 3%.

Net sales for the quarter ended June 30, 2013 in the U.S. segment increased 5% compared to the same period in 2012 due to increased back to school sales and additional sales resulting from the acquisition of the C-Thru Ruler Company in June 2012. Net sales for the six months ended June 30, 2013 in the U.S. segment increased 8% compared to the same period in 2012 due to additional sales resulting from the acquisition of the C-Thru Ruler Company in June 2012, increased back to school sales and higher sales of Camillus knives.

Net sales in Canada for the three months ended June 30, 2013 decreased 5% in U.S. dollars and 3% in local currency compared to the same period in 2012. Net sales for the six months ended June 30, 2012 in Canada decreased 4% in U.S. dollars and 3% in local currency compared to the same period in 2012.

Net sales in Europe for the three months ended June 30, 2013 increased 3% in U.S. dollars and 2% in local currency compared to the same period in 2012. Net sales for the six months ended June 30, 2013 in Europe decreased 18% in both U.S. dollars and local currency compared to the same period in 2012 primarily due to the bankruptcy and liquidation of a large customer in Germany in the second quarter of 2012.

Gross margins were 35.5% in the second quarter of 2013 compared to 35.6% in the second quarter of 2012. Gross margins were 35.8% for the six months ended June 30, 2013 compared to 35.4% for the comparable period last year.

Walter C. Johnsen, Chairman and CEO said, “We had the best quarterly sales and earnings in the Company’s history during the second quarter of 2013, an achievement especially significant as last year’s second quarter was also a record. Our back-to-school products continue to sell well and make market share inroads.” Mr. Johnsen added that sales of Camillus knives, PacKit first aid kits, and our gardening tools appear to be broadening the Company’s earnings base and may strengthen the second half performance.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety 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) 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; and (vii) 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
SECOND QUARTER REPORT 2013
(Unaudited)
 
  Three Months Ended   Three Months Ended
Amounts in 000's except per share data     June 30, 2013     June 30, 2012
 
 
Net sales $ 28,412 $ 27,594
Cost of goods sold 18,331   17,773  
Gross profit 10,081 9,821
Selling, general, and administrative expenses 6,889   6,743  
Income from operations 3,192 3,078
Interest expense 114 91
Interest income (40 ) (29 )
Net interest expense 74 62
Other expense 25   43  
Total other expense 99 105
Pre-tax income 3,093 2,973
Income tax expense 883   912  
Net income $ 2,210   $ 2,061  
 
Shares outstanding - Basic 3,156 3,103
Shares outstanding - Diluted 3,265 3,144
 
Earnings per share basic $ 0.70 $ 0.66
Earnings per share diluted 0.68 0.66
 
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER REPORT 2013 (cont.)
(Unaudited)
 
  Six Months Ended   Six Months Ended
Amounts in 000's except per share data     June 30, 2013     June 30, 2012
 
Net sales $ 46,063 $ 44,472
Cost of goods sold 29,554   28,707  
Gross profit 16,509 15,765
Selling, general, and administrative expenses 12,803   12,229  
Income from operations 3,706 3,536
Interest expense 241 193
Interest income (98 ) (76 )
Net interest expense 143 117
Other expense 28   86  
Total other expense 171   203  
Pre-tax income 3,535 3,333
Income tax expense 1,015   1,013  
Net income $ 2,520   $ 2,320  
 
Shares outstanding - Basic 3,144 3,118
Shares outstanding - Diluted 3,233 3,142
 
Earnings per share basic $ 0.80 $ 0.74
Earnings per share diluted 0.78 0.74
 
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
SECOND QUARTER REPORT 2013
(Unaudited)
 
Amounts in 000's     June 30, 2013     June 30, 2012
   

Assets:
Current assets:
Cash $ 8,458 $ 7,141
Accounts receivable, net 25,420 23,857
Inventories 29,450 26,681
Prepaid and other current assets   2,115     1,859  
Total current assets 65,443 59,538
 
Property and equipment, net 2,353 2,377
Long term receivable 1,669 1,734
Intangible assets, less amortization 4,156 4,288
Other assets   1,115     1,217  
Total assets $ 74,736   $ 69,154  
 

Liabilities and stockholders' equity:
Current liabilities
Accounts payable $ 9,092 $ 9,968
Other current liabilities 5,401   5,612  
Total current liabilities 14,493 15,580
Bank debt 26,012 23,005
Other non current liabilities   1,021     1,130  
41,526 39,715
Total stockholders' equity   33,210     29,439  
Total liabilities and stockholders' equity $ 74,736   $ 69,154  

Copyright Business Wire 2010

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