Acme United Corporation Reports 9% Sales Increase and 22% Increase in Net Income for the Fourth Quarter Business Wire FAIRFIELD, Conn. -- February 26, 2014 Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the fourth quarter ended December 31, 2013 were $21.4 million, compared to $19.5 million in the comparable period of 2012, an increase of 9%. Net income was $524,000, or $.15 per diluted share, for the quarter ended December 31, 2013, compared to $431,000 or $.14 per diluted share, for the comparable period of 2012, an increase of 22% in net income and 7% in diluted earnings per share. Net sales for the year ended December 31, 2013 were $89.6 million, compared to $84.4 million in 2012, an increase of 6%. Net income for the year ended December 31, 2013 was $4,003,000, or $1.22 per diluted share, compared to $3,549,000, or $1.13 per diluted share for the comparable period of 2012, a 13% increase in net income and 8% increase in diluted earnings per share. Net sales in the U.S. segment for the quarter and year ended December 31, 2013 increased 11% and 9%, respectively, compared to the same periods in 2012. The increases for both periods were primarily due to higher sales of Camillus knives and back to school products as well as increased distribution of first aid kits. Net sales in Canada for the three months ended December 31, 2013 decreased 7% in U.S. dollars but remained constant in local currency compared to the same period in 2012. Net sales in Canada for the year ended December 31, 2013 decreased 8% in both U.S. dollars and local currency compared to 2012. The sales decline in Canada was primarily due to general softness in the office products industry. European net sales for the three months ended December 31, 2013 increased 8% in U.S. dollars (2% in local currency), compared to the same period last year. European net sales for the year ended December 31, 2013 decreased 2% in U.S. dollars (5% in local currency), compared to last year. The decreased sales in Europe were primarily due to the bankruptcy and liquidation of a large customer in Germany in the second quarter of 2012. Gross margins were 34.5% in the fourth quarter of 2013 versus 33.6% in the comparable period last year. Gross margins were 35.5% for the year ended December 31, 2013 versus 35.3% for the comparable period in 2012. Operating profit was $763,000 for the quarter ended December 31, 2013 compared to $465,000 for the same period in 2012, a 64% increase. Operating profit was $5,879,000 for the year ended December 31, 2013 compared to $5,361,000 last year, an increase of 10%. Walter C. Johnsen, Chairman and CEO said, “We performed well throughout the year, and I am pleased with the financial results. We achieved record sales, strengthened our product offerings across all our brands, and acquired a superb facility in North Carolina to consolidate many of our operations. Mr. Johnsen added that the company has continued to build its balance sheet, and is positioned to finance continued growth.” The Company’s bank debt less cash and cash equivalents on December 31, 2013 was $11.3 million compared to $14.6 million on December 31, 2012. During the year ended December 31, 2013, Acme purchased a new distribution facility in North Carolina for $2.8 million, added $.9 million in refurbishments to the facility, and paid $.7 million in dividends on its common stock. On August 21, 2013 the Company received $1.7 million from early repayment of a mortgage receivable. During the year the Company also generated $5.5 million in free cash flow while reducing inventory by $2.1 million. 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®, 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 CONDENSED CONSOLIDATED STATEMENTS OF INCOME YEAR END REPORT 2013 (Unaudited) Quarter Ended Quarter Ended Amounts in $000's except per December 31, 2013 December 31, share data 2012 Net sales $ 21,379 $ 19,534 Cost of goods sold 14,004 12,979 Gross profit 7,375 6,555 Selling, general, and 6,612 6,090 administrative expenses Income from operations 763 465 Interest expense (122) (125) Interest income 13 61 Net interest expense (109) (64) Other expense, net (19) (5) Total other expense, net (128) (69) Pre-tax income 635 396 Income tax expense (benefit) 111 (35) Net income $ 524 $ 431 Shares outstanding - Basic 3,189 3,118 Shares outstanding - Diluted 3,395 3,175 Earnings per share basic $ 0.16 $ 0.14 Earnings per share diluted 0.15 0.14 ACME UNITED CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME YEAR END REPORT 2013 (cont.) (Unaudited) Year Ended Year Ended Amounts in $000's except per share December 31, 2013 December 31, data 2012 Net sales $ 89,577 $ 84,370 Cost of goods sold 57,753 54,623 Gross profit 31,824 29,747 Selling, general, and 25,945 24,386 administrative expenses Income from operations 5,879 5,361 Interest expense (502) (444) Interest income 152 179 Net interest expense (350) (265) Other expense, net (35) (99) Total other expense, net (385) (364) Pre-tax income 5,494 4,997 Income tax expense 1,491 1,448 Net income $ 4,003 $ 3,549 Shares outstanding - Basic 3,168 3,116 Shares outstanding - Diluted 3,283 3,133 Earnings per share basic $ 1.26 $ 1.14 Earnings per share diluted 1.22 1.13 ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS YEAR END REPORT 2013 (Unaudited) Amounts in $000's December 31, 2013 December 31, 2012 Assets: Current assets: Cash $ 11,644 $ 9,750 Accounts receivable, net 15,629 16,442 Inventories 28,219 30,292 Prepaid and other current 1,494 1,925 assets Total current assets 56,986 58,409 Property and equipment, net 5,936 2,353 Long term receivable - 1,702 Other assets 5,157 5,364 Total assets $ 68,079 $ 67,828 Liabilities and stockholders' equity: Current liabilities Accounts payable $ 4,789 $ 6,480 Other current liabilities 5,087 5,250 Total current liabilities 9,876 11,730 Non-current liabilities Long term debt 22,912 24,320 Other non current liabilities 286 912 Total liabilities 33,074 36,962 Total stockholders' equity 35,005 30,866 Total liabilities and $ 68,079 $ 67,828 stockholders' equity Contact: Acme United Corporation Paul G. Driscoll, 203-254-6060 FAX: 203-254-6521
Acme United Corporation Reports 9% Sales Increase and 22% Increase in Net Income for the Fourth Quarter
Press spacebar to pause and continue. Press esc to stop.