Acme United Corporation Reports 19% Increase in Sales and 18% Increase in Net Income for First Quarter
April 17 2015 - 8:00AM
Business Wire
Acme United Corporation (NYSE MKT:ACU) today announced that net
sales for the quarter ended March 31, 2015 were $22.8 million,
compared to $19.2 million in the first quarter of 2014, an increase
of 19% (21% in constant currency).
Net income was $436,000 or $.12 per diluted share for the
quarter ended March 31, 2015 compared to $368,000 or $.11 per
diluted share for the comparable period last year, an increase of
18% in net income and 9% in earnings per share.
Net sales for the first quarter of 2015 in the U.S. segment
increased 25% compared to the same period in 2014 due to strong
sales of Westcott school and office products, the recently
introduced Cuda brand fishing tools and the contribution of First
Aid Only, which was acquired on June 1, 2014.
Net sales in Canada in the first quarter of 2015 decreased 8% in
local currency, and 18% in U.S. currency compared to the same
period in 2014. The office superstore market in Canada was soft due
to weak economic conditions, but this was partially offset by
growth with independent dealers.
European net sales in the first quarter of 2015 increased 14% in
local currency but decreased 5% in U.S. currency compared to the
first quarter of 2014. European growth was due to strong office
product sales.
Gross margins were 37% in the first quarter of 2015 versus 36%
in the comparable period last year.
Walter C. Johnsen, Chairman and CEO said, “We had a good start
for 2015. I am pleased with the performance of our Westcott product
line across all channels. Our recently introduced Cuda filet
knives, crimpers, pliers, and other fishing tools have had a strong
reception in the U.S., Canada, and Europe. All feature proprietary,
rust-resistant steel and high performance designs. We expect to
continue to leverage the increased volumes of our combined first
aid businesses. Although we were impacted by the weak Canadian
dollar and the Euro, we are adjusting prices and costs.”
The Company’s bank debt less cash on March 31, 2015 was $25.8
million compared to $13.9 million on March 31, 2014. During the
twelve month period, the Company paid approximately $13.8 million
for the acquisition of the assets of First Aid Only and paid $1.2
million in dividends on its common stock. During the twelve month
period, the Company also generated $3.0 million in cash flow from
operations and received approximately $1.5 million from the
exercise of employee stock options.
ACME UNITED CORPORATION is a leading worldwide supplier
of innovative cutting, measuring and safety products to the school,
home, office, hardware, sporting goods and industrial markets. Its
leading brands include Westcott®, Clauss®, Camillus®, Cuda®,
PhysiciansCare®, First Aid Only® and Pac-Kit®. For more
information, visit www.acmeunited.com.
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 FIRST QUARTER REPORT 2015
(unaudited) Quarter Ended
Quarter Ended Amounts in 000's except per share data
March 31, 2015 March
31, 2014 Net sales $ 22,837
$ 19,152 Cost of goods sold 14,402
12,274 Gross profit 8,435 6,878
Selling, general, and administrative expenses 7,609
6,253 Income from operations 826 625
Interest expense, net 130 83 Other expense,
net 75 19 Pre-tax income 621
523 Income tax expense 185 155 Net
income $ 436 $ 368
Shares outstanding - Basic 3,300 3,201
Shares outstanding - Diluted 3,702 3,443
Earnings per share - basic $ 0.13
$ 0.12 Earnings per share - diluted
0.12 0.11 ACME
UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2015 (Unaudited)
Amounts in
$000's
March 31, 2015 March 31, 2014
Assets
Current assets: Cash $ 1,797 $
3,367 Accounts receivable, net 16,722
16,111 Inventories 35,925 28,977
Prepaid and other current assets 2,476
1,755 Total current assets 56,920
50,210 Property and equipment, net
7,158 6,455 Intangible assets, less
amortization 12,374 4,035 Goodwill
1,375 - Other assets 973
1,081 Total assets $ 78,800 $
61,781
Liabilities and
stockholders' equity
Current liabilities Accounts payable $
5,905 $ 4,312 Other current liabilities
5,553 4,867 Total current liabilities
11,458 9,179 Long-term debt
27,561 17,286 Other non-current liabilities
315 276 Total liabilities 39,334
26,741 Total stockholders' equity
39,466 35,040 Total liabilities and stockholders'
equity $ 78,800 $ 61,781
Acme United CorporationPaul G. Driscoll, 203-254-6060Fax:
203-254-6521
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