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

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

Business Wire

FAIRFIELD, Conn. -- April 19, 2013

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      March 31, 2013    March 31, 2012
data
                                                                
                                                                
Net sales                                $ 17,651             $ 16,878
Cost of goods sold                         11,224               10,934
Gross profit                               6,427                5,944
Selling, general, and                      5,914                5,486
administrative expenses
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                    4,200                3,264
amortization
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                    $ 65,494             $ 52,885
stockholders' equity
                                                                

Contact:

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