Acme United Corporation Reports 19% Increase in Net Income for First Quarter

Fri Apr 19, 2013 9:00am EDT

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Acme United Corporation Reports 19% Increase in Net Income for First Quarter

Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the quarter ended March 31, 2013 were $17.7 million, compared to $16.9 million in the first quarter of 2012, an increase of 5%.

Net income was $309,000 or $.10 per diluted share for the quarter ended March 31, 2013 compared to $260,000 or $.08 per diluted share for the comparable period last year, an increase of 19% in net income and 25% in earnings per share.

Net sales for the first quarter of 2013 in the U.S. segment increased 12% compared to the same period in 2012 mainly due to higher sales of Camillus knives and the acquisition of the C-Thru Ruler Company. Net sales in Canada in the first quarter of 2013 decreased 2% in both U.S. dollars and local currency compared to the same period in 2012. European net sales in the first quarter of 2013 decreased 31% in both U.S. dollars and local currency compared to the first quarter of 2012 primarily due to the bankruptcy and liquidation of a large customer in the second quarter of 2012.

Gross margins were 36% in the first quarter of 2013 compared to 35% in the first quarter of 2012. The higher gross margin in the first quarter of 2013 was mainly due to customer and product mix.

Walter C. Johnsen, Chairman and CEO said, “During the quarter, we benefited from successful new product introductions in the Westcott and Camillus families, favorable product mix, and operating leverage. We are particularly excited about the prospects of several new product families currently in test markets, and the recently announced garden tool launch in conjunction with ScottsMiracle-Gro.”

The Company’s bank debt less cash on March 31, 2013 was $15.5 million compared to $12.8 million on March 31, 2012. On June 7, 2012, the Company paid approximately $1.5 million for certain assets of the C-Thru Ruler Company. Additionally, during the 12 month period ended March 31, 2013, Acme paid approximately $ 0.9 million in dividends on its common stock.

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® PhysiciansCare ® 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

CONSOLIDATED STATEMENTS OF INCOME

FIRST QUARTER REPORT 2013

(unaudited)

   
Quarter Ended Quarter Ended
Amounts in 000's except per share data         March 31, 2013       March 31, 2012
 
 
Net sales $ 17,651 $ 16,878
Cost of goods sold 11,224 10,934
Gross profit 6,427 5,944
Selling, general, and administrative expenses 5,914 5,486
Income from operations 513 458
Interest expense, net 69 56
Other expense (income), net 3 42
Pre-tax income 441 360
Income tax expense 132 100
Net income $ 309 $ 260
   

Shares outstanding - Basic

 

3,132 3,129

Shares outstanding - Diluted

 

3,213 3,131
 
Earnings per share - basic $ 0.10 $ 0.08

Earnings per share - diluted

0.10 0.08
 
         

ACME UNITED CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

FIRST QUARTER REPORT 2013

(Unaudited)

 

Amounts in $000's

 
March 31, 2013 March 31, 2012

Assets

Current assets:

Cash

$ 8,941 $ 4,078

Accounts receivable, net

14,902 14,689

Inventories

30,450 23,634

Prepaid and other current assets

1,918 1,926
Total current assets 56,212 44,327
 

Property and equipment, net

2,278 2,400

Long term receivable

1,685 1,750

Intangible assets, less amortization

4,200 3,264

Other assets

1,119 1,143
Total assets $ 65,494 $ 52,885
 

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$ 4,842 $ 3,541

Other current liabilities

4,336 3,437
Total current liabilities 9,178 6,978
 

Long-term debt

24,452 16,920

Other non-current liabilities

963 1,207
Total liabilities 34,592 25,105
Total stockholders' equity 30,902 27,780
Total liabilities and stockholders' equity $ 65,494 $ 52,885
 

Acme United Corporation
Paul G. Driscoll, 203-254-6060
FAX: 203-254-6521

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