8-K 1 acme_8k30305.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (date of earliest event reported): March 3, 2005 ACME UNITED CORPORATION (Exact name of registrant as specified in its charter) ------------------ Connecticut 01-07698 06-0236700 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) file number) Identification No.) 1931 Black Rock Turnpike, Fairfield, Connecticut 06825 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (203) 332-7330 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On March 3, 2005, Acme United Corporation (the "Company") issued a press release announcing its financial results for the three-month period and year ended December 31, 2004. A copy of the press release is attached as Exhibit 99.1 to this current report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Exhibit Number Description -------------- ----------- 99.1 Press release dated March 3, 2005. ACME UNITED CORPORATION NEWS RELEASE -------------------------------------------------------------------------------- CONTACT: Paul G. Driscoll Acme United Corporation 1931 Black Rock Turnpike Fairfield, CT 06825 Phone: (203) 332-7330 FAX: (203) 576-1547 -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE March 3, 2005 ACME UNITED CORPORATION REPORTS 24% SALES INCREASE AND STRONG EARNINGS FOR 2004 FAIRFIELD, CONN. - March 3, 2005 - Acme United Corporation (AMEX:ACU) today announced net income for the year 2004 of $3.2 million or $.85 per diluted share compared to $1.2 million or $.34 per diluted share in 2003. Net sales in 2004 were $43.4 million versus $35.0 million in 2003, an increase of 24% (22% at constant currency). Net sales in the U.S. increased by 23% due to the success of new products, market share gains and the acquisition of Clauss Cutlery in June of 2004. Clauss added approximately $1.7 million to the U.S. sales growth in 2004. Combined sales in Europe and Canada increased by 14% (5% in constant currency). The Company's new business unit in Hong Kong began selling to global customers in January of 2004 and generated sales of $1.2 million in 2004. For the fourth quarter of 2004, net income was $754,000 or $.19 per diluted share compared to $227,000, or $.06 per diluted share in 2003. Net sales for the fourth quarter of 2004 were $10.9 million compared to $8.1 in the same quarter of 2003, an increase of 35% (33% at constant currency). Walter C. Johnsen, President and CEO, said, "We are particularly pleased with our new product successes and market share gains. Products introduced during the past 36 months accounted for 25% of 2004 domestic revenues. I am particularly happy with the momentum we have going into 2005." Gross margins were 45% in 2004 versus 38% in 2003. The improvement is primarily due to increased sales of new products and productivity gains. On December 31, 2004, cash exceeded total debt by $454,000. The Company's total debt less cash was $3.5 million on December 31, 2003. During 2004 the Company repurchased 48,830 shares at a cost of $252,798. The Company also paid dividends of 4 cents per share in 2004 amounting to $143,007. ACME UNITED CORPORATION is a specialized supplier of cutting devices, measuring instruments, and safety products for school, home, and office use. 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) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. # # # ACME UNITED CORPORATION CONSOLIDATED STATEMENT OF INCOME YEAR END REPORT 2004
Quarter Ended Quarter Ended December 31, 2004 December 31, 2003 Amounts in $000's except per share data (Unaudited) (Unaudited) -------------------------------------------------------------------------------------------------------- Net Sales $ 10,921 $ 8,106 Gross Profit 4,962 3,160 Selling, General, and Administrative Expenses 3,874 2,793 Other (Income) Expense (106) (101) Pre-Tax Income 1,194 468 Income Tax Expense 440 241 Net Income 754 227 Earnings Per Share Basic 0.22 0.07 Earnings Per Share Diluted 0.19 0.06 Year Ended Year Ended December 31, 2004 December 31, 2003 Amounts in $000's except per share data (Unaudited) -------------------------------------------------------------------------------------------------------- Net Sales $ 43,381 $ 34,975 Gross Profit 19,653 13,133 Selling, General, and Administrative Expenses 14,162 10,646 Other (Income) Expense 151 145 Pre-Tax Income 5,340 2,342 Income Tax Expense 2,102 1,120 Net Income 3,238 1,222 Earnings Per Share Basic 0.96 0.37 Earnings Per Share Diluted 0.85 0.34
ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET YEAR END REPORT 2004 (Unaudited)
Amounts in $000's ----------------- December 31, 2004 December 31, 2003 ---------------------------------------------- Assets ------ Current Assets: Cash $ 1,930 $ 1,391 Accounts Receivable, Net 8,885 6,795 Inventories 8,389 8,179 Prepaid and Other current Assets 764 546 ---------------------------------------------- Total Current Assets 19,968 16,911 Property and Equipment, Net 2,295 2,385 Other Assets 746 447 ---------------------------------------------- Total Assets $ 23,009 $ 19,743 ============================================== Liabilities and Stockholders' Equity Current Liabilities Notes Payable $ 42 $ 141 Accounts Payable 2,316 1,743 Other Current Liabilities 4,682 2,215 Current Portion of Long Term Debt 1,379 2,035 ---------------------------------------------- Total Current Liabilities 8,419 6,134 Long-Term debt 55 2,752 Other Non Current Liabilities 552 678 ---------------------------------------------- 9,026 9,564 Total Stockholders' Equity 13,983 10,179 ---------------------------------------------- Total Liabilities and Stockholders' Equity $ 23,009 $ 19,743 ==============================================
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ACME UNITED CORPORATION By /s/ WALTER C. JOHNSEN ------------------------------ Walter C. Johnsen President and Chief Executive Officer Dated: March 3, 2005 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: March 3, 2005 EXHIBIT INDEX Exhibit Number Description -------------- ----------- 99.1 Press release dated March 3, 2005.