0001026608-19-000040.txt : 20191018 0001026608-19-000040.hdr.sgml : 20191018 20191018111753 ACCESSION NUMBER: 0001026608-19-000040 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20191018 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20191018 DATE AS OF CHANGE: 20191018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACME UNITED CORP CENTRAL INDEX KEY: 0000002098 STANDARD INDUSTRIAL CLASSIFICATION: CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420] IRS NUMBER: 060236700 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07698 FILM NUMBER: 191157107 BUSINESS ADDRESS: STREET 1: 55 WALLS DRIVE CITY: FAIRFIELD STATE: CT ZIP: 06824 BUSINESS PHONE: 203-254-6060 MAIL ADDRESS: STREET 1: 55 WALLS DRIVE CITY: FAIRFIELD STATE: CT ZIP: 06824 FORMER COMPANY: FORMER CONFORMED NAME: ACME SHEAR CO DATE OF NAME CHANGE: 19710713 8-K 1 acu_8k101819.htm 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): October 18, 2019

ACME UNITED CORPORATION

(Exact name of registrant as specified in its charter)

__________________

Connecticut 001-07698 06-0236700
(State or other jurisdiction of incorporation or organization)

(Commission file number)

 

(I.R.S. Employer

Identification No.)

 

 

55 Walls Drive, Fairfield, Connecticut

 

 

06824

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (203) 254-6060

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))

 

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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 18, 2019, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2019. 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 October 18, 2019.

 

 

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  
  Chairman and  
  Chief Executive Officer  
     
Dated: October 18, 2019
     
     
     
By /s/  Paul G. Driscoll  
  Paul G. Driscoll  
  Vice President and  
  Chief Financial Officer  
     
Dated: October 18, 2019

 

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EXHIBIT INDEX

  Exhibit Number Description
     
  99.1 Press release dated October 18, 2019.

 

 

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 EX-99.1 2 acu_8k101819ex991.htm EXHIBIT 99.1

Exhibit 99.1

 

ACME UNITED CORPORATION NEWS RELEASE
CONTACT: Paul G. Driscoll Acme United Corporation 55 Walls Drive Fairfield, CT 06824
    Phone: (203) 254-6060 FAX: (203) 254-6521  

 

FOR IMMEDIATE RELEASE   October 18, 2019  

  

 

ACME UNITED REPORTS 7% NET SALES INCREASE AND 30% DILUTED EPS
INCREASE FOR THIRD QUARTER OF 2019

 

 

FAIRFIELD, CT. – October 18, 2019 – Acme United Corporation (NYSE American: ACU) today announced that net sales for the three months ended September 30, 2019 were $37.0 million, compared to $34.7 million for the same period of 2018, an increase of 7%. Net sales for the nine months ended September 30, 2019 were $108.6 million, compared to $106.2 million for the same period in 2018, a 2% increase.

 

Net income for the three months ended September 30, 2019 was $1.1 million, or $0.30 per diluted share, compared to $.8 million, or $0.23 per diluted share, for the same period in 2018, increases of 31% and 30%, respectively. Net income for the nine months ended September 30, 2019 was $4.5 million, or $1.32 per diluted share, compared to $4.0 million, or $1.12 per diluted share, in last year’s same period, increases of 13% and 18%, respectively.

 

Chairman and CEO Walter C. Johnsen, said, “We are very pleased with our third quarter sales and earnings. We had excellent performance with our First Aid Only safety products line, driven by success of SmartCompliance kits and refills. International sales both in Europe and Canada were strong. Our on-line business was excellent, reflecting strength in first aid products and back-to-school items.

 

Mr. Johnsen added, “We expect continued good performance in the fourth quarter of 2019, particularly as our focus on productivity and sales growth continues.  Based on the trends we are currently seeing, we are updating our financial guidance for the year.  We now expect net sales of approximately $142 million compared to our previously provided range of $140 million - $143 million; net income of approximately $5.2 million compared to our previously provided range of $5.0 million - $5.3 million; and earnings per share of approximately $1.48 compared to our previously provided range of $1.41 - $1.50.

 

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In the U.S. segment, net sales for the three months ended September 30, 2019 increased 6% compared to the same period in 2018. Sales of first aid and safety products were strong, more than offsetting softness in the sales of certain school and office products. Net sales for the first nine months of 2019 in the U.S. segment increased 2% compared to the same period in 2018.

 

Net sales in Europe for the three months ended September 30, 2019 increased 15% in U.S. dollars and 21% in local currency compared to the same 2018 period. Net sales for the nine months ended September 30, 2019 increased 14% in U.S. dollars and 22% in local currency compared to the first nine months of 2018. The sales increases in the quarter and nine months were mainly due to new customers in the office products channel and continued growth of DMT sharpening products.

 

Net sales in Canada for the three months ended September 30, 2019 increased 5% in U.S. dollars and 6% in local currency compared to the same 2018 period. Net sales for the nine months ended September 30, 2019 decreased 6% in U.S. dollars and 3% in local currency compared to the first nine months of 2018.

 

Gross margin was 35.5% in the three months ended September 30, 2019, compared to 35.8% in the same period in 2018. Gross margin was 36.6% in the nine months ended September 30, 2019, compared to 37.0% in the same period in 2018.

 

The Company’s bank debt less cash on September 30, 2019 was $35.9 million compared to $46.8 million on September 30, 2018. During the twelve-month period ended September 30, 2019, the Company distributed $1.6 million in dividends on its common stock, repurchased $0.4 million in treasury stock and generated $14 million in free cash flow, including a $2.3 million reduction in inventory.

 

Conference Call and Webcast Information

Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Friday, October 18, 2019, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 800-767-8973. International callers may dial 334-777-6979. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives.

 

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About Acme United

ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, and DMT®. For more information, visit www.acmeunited.com.

 

Forward Looking Statements

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; (vii) increases in the cost of borrowings resulting from rising interest rates; (viii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (ix) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

 

# # #

 

 

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ACME UNITED CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

THIRD QUARTER REPORT 2019

  (Unaudited)

                     

 

   Three Months Ended  Three Months Ended
Amounts in 000's except per share data  September 30, 2019  September 30, 2018
       
       
Net sales  $36,995   $34,731 
Cost of goods sold   23,861    22,281 
Gross profit   13,134    12,450 
Selling, general, and administrative expenses   11,408    11,077 
Operating Income   1,726    1,373 
Interest expense, net   469    496 
Other expense, net   40    23 
Total other expense, net   509    519 
Income before income tax expense   1,217    854 
Income tax expense   158    47 
Net income  $1,059   $807 
           
Shares outstanding - Basic   3,352    3,374 
Shares outstanding - Diluted   3,486    3,551 
           
Earnings per share - Basic  $0.32   $0.24 
Earnings per share - Diluted   0.30    0.23 

 

 

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ACME UNITED CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

THIRD QUARTER REPORT 2019 (cont.)

(Unaudited)

                     

 

   Nine Months Ended  Nine Months Ended
Amounts in 000's except per share data  September 30, 2019  September 30, 2018
       
       
Net sales  $108,585   $106,191 
Cost of goods sold   68,877    66,905 
Gross profit   39,708    39,286 
Selling, general, and administrative expenses   32,679    32,923 
Operating Income   7,029    6,363 
Interest expense, net   1,463    1,346 
Other expense, net   52    84 
Total other expense, net   1,515    1,430 
Income before income tax expense   5,514    4,933 
Income tax expense   977    926 
Net income  $4,537   $4,007 
           
Shares outstanding - Basic   3,352    3,374 
Shares outstanding - Diluted   3,445    3,574 
           
Earnings per share - Basic  $1.35   $1.19 
Earnings per share - Diluted   1.32    1.12 

 

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ACME UNITED CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

THIRD QUARTER REPORT 2019

(Unaudited)

                     

 

Amounts in 000's  September 30, 2019  September 30, 2018
       
Assets:          
Current assets:          
Cash and cash equivalents  $5,698   $4,021 
Accounts receivable, less allowance   30,635    30,869 
Inventories, net   38,970    41,274 
Prepaid expenses and other current assets   1,787    2,270 
Total current assets   77,090    78,434 
           
Property, Plant and equipment, net   14,006    14,488 
Operating lease right of use asset   2,123    —   
Intangible assets, less accumulated amortization   16,107    16,959 
Goodwill   4,696    4,696 
Other assets   202    606 
Total assets  $114,224   $115,183 
           
Liabilities and stockholders' equity:          
Current liabilities:          
Accounts payable  $7,217   $6,654 
Operating lease liability - short term   920    —   
Mortgage payable   267    267 
Other accrued liabilities   8,202    4,417 
Total current liabilities   16,606    11,338 
Long term debt   38,125    47,028 
Mortgage payable, net of current portion   3,244    3,511 
Operating lease liability - long term   1,210    —   
Other non-current liabilities   15    815 
Total liabilities   59,200    62,692 
Total stockholders' equity   55,024    52,491 
Total liabilities and stockholders' equity  $114,224   $115,183 

 

 

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