Acme United Corporation Reports 21% Sales Increase and 71% Earnings Growth
FAIRFIELD, Conn.--(BUSINESS WIRE)--July 23, 2004--Acme United Corporation (ASE:ACU) today announced net income of $1,075,000 or $.29 per diluted share for the second quarter ending June 30, 2004 compared to $615,000 or $.17 per diluted share for the comparable period last year. Net income for the first six months ending June 30, 2004 was $1,468,000, or $.40 per diluted share compared to $693,000, or $.20 per diluted share in the comparable period last year.
Net sales for the quarter ending June 30, 2004 were $12.3 million compared to $10.1 million in 2003, an increase of 21%. Net sales in the U.S. increased 18% due to the launch of new products and market share gains. International sales increased by 30%, and 23% in local currency. Net sales for the first six months ending June 30, 2004 were $20.9 million compared to $17.3 million in 2003, an increase of 20% (18% at constant currency).
Acme United purchased selected inventory and intangible assets of Clauss Cutlery on June 1, 2004 for approximately $450,000. Clauss revenues for the first month of ownership were approximately $200,000. Acme added three sales and marketing personnel to its staff from the Clauss organization.
Walter C. Johnsen, President and CEO, said, "The purchase of Clauss provides us a new range of high quality cutting products, and many new industrial and floral customers. We expect the purchase to be accretive to earnings, and a base for new growth."
Gross margins were 45% in the second quarter of 2004 versus 39% in the comparable period last year due to new product sales and improved productivity. For the first six months of 2004 gross margins were 44% compared to 39% in 2003.
Income before income taxes was $1.8 million in the second quarter of 2004 compared with $1.0 million in the second quarter of 2003, an increase of $800,000. Pretax income for the first six months was $2.5 million in 2004 compared to $1.3 million in 2003.
Mr. Johnsen said that each operating subsidiary improved its performance over the prior year, and that the management team is working hard to continue the improvements.
The Company's debt less cash on June 30, 2004 was $4.6 million compared to $5.8 million on June 30, 2003. During the first six months of 2004, the Company repurchased 46,830 shares at a cost of $236,000.
On June 28, 2004 the Company announced the initiation of a quarterly cash dividend of 2 cents per share payable on July 29, 2004 to shareholders of record on the close of business on July 8, 2004.
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
SECOND QUARTER REPORT 2004
Quarter Ended Quarter Ended
June 30, 2004 June 30, 2003
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 12,298 $ 10,142
Gross Profit 5,519 3,921
Selling, General, and Administrative
Expenses 3,579 2,906
Other (Income) Expense 120 57
Pre-Tax Income 1,820 958
Income Tax Expense 745 343
Net Income 1,075 615
Earnings Per Share Basic 0.32 0.18
Earnings Per Share Diluted 0.29 0.17
Six Months Six Months
Ended Ended
June 30, 2004 June 30, 2003
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 20,865 $ $17,331
Gross Profit 9,239 6,803
Selling, General, and Administrative
Expenses 6,550 5,206
Other (Income) Expense 159 287
Pre-Tax Income (loss) 2,530 1,310
Income Tax Expense 1,062 617
Net Income 1,468 693
Earnings Per Share Basic 0.44 0.21
Earnings Per Share Diluted 0.40 0.20
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
SECOND QUARTER REPORT 2004
(Unaudited)
Amounts in $000's except per share data June 30, 2004 June 30, 2003
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Assets:
Current Assets:
Cash $ 804 $ 252
Accounts Receivable, Net 11,869 9,447
Inventories 8,259 7,780
Prepaid and Other current Assets 771 772
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Total Current Assets 21,703 18,251
Property and Equipment, Net 2,225 2,241
Other Assets 681 432
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Total Assets $ 24,609 $ 20,924
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Liabilities and Stockholders' Equity:
Current Liabilities
Notes Payable $ 392 $ 208
Accounts Payable 2,203 2,446
Other Current Liabilities 4,358 2,060
Current Portion of Long Term Debt 2,481 3,793
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Total Current Liabilities 9,434 8,507
Long-Term debt 2,533 2,065
Other Non Current Liabilities 809 910
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12,776 11,482
Total Stockholders' Equity 11,833 9,442
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Total Liabilities and Stockholders'
Equity $ 24,609 $ 20,924
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CONTACT: Acme United Corporation
Paul G. Driscoll, 203-332-4102
SOURCE: Acme United Corporation