Acme United Corporation Reports 21% Sales Increase and Improved Earnings
FAIRFIELD, Conn.--(BUSINESS WIRE)--Oct. 22, 2003--Acme United Corporation (ASE:ACU) today announced net sales of $9.5 million for the quarter ending September 30, 2003 compared to $7.9 million for the same quarter in 2002, an increase of 21% (17% at constant currency). Net sales for the nine months ending September 30, 2003 were $26.9 million compared to $24.0 million for the same period in 2002, an increase of 12% (8% at constant currency). Year to date net sales in the U.S. increased 13% due to the launch of new products, market share gains and new customers. Year to date international sales increased by 8%, primarily due to currency gains.
Net income for the quarter ending September 30, 2003 was $302,000 or $.08 per diluted share compared to $270,000 or $.08 per diluted share for the comparable period last year. Net income for the nine months ending September 30, 2003 was $995,000, or $.28 per share compared to $619,000, or $.17 per share in the comparable period last year.
Walter C. Johnsen, President and CEO, said, "We have made significant progress this year. Sales have increased due to new products and market share gains. Our prior investments in new product development are paying off. The back to school season was strong with the acceptance of titanium scissors and "Critters", our new line of children scissors. We expect the positive response to our new products to continue."
Gross margins were 33.2% in the third quarter of 2003 versus 33.9% in the comparable period last year. The gross margin for the quarter was reduced by approximately $200,000 due to costs associated with the closure of manufacturing in Germany. Gross margins for the quarter without this effect would have been 35.3%. Gross margins for the first nine months of 2003 were 37.1% compared to 33.2% in 2002. The improvement is primarily due to new products and productivity gains.
Income before income taxes was $565,000 in the third quarter of 2003 compared with a loss of $104,000 in the third quarter of 2002, an increase of $669,000. Pretax income for the first nine months was $1.9 million in 2003 compared to $333,000 in 2002.
Income tax expense for the third quarter of 2003 was $263,000 versus a tax benefit of $374,000 in the third quarter of 2002. In 2002 the Company recognized a significant one-time income tax benefit associated with liquidating its UK business.
The Company's debt less cash on September 30, 2003 was $5.6 million compared to $6.1 million on September 30, 2002. During the first nine months of 2003, the Company repurchased 118,200 shares at a cost of $470,000.
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
THIRD QUARTER REPORT 2003
Quarter Ended Quarter Ended
September 30, September 30,
2003 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
--------------------------------------- -------------- --------------
Net Sales $ 9,538 $ 7,867
Gross Profit 3,171 2,663
Selling, General, and Administrative
Expenses 2,648 2,688
Other (Income) Expense (43) 79
Pre-Tax Income (loss) 565 (104)
Income Tax Expense (Benefit) 263 (374)
Net Income 302 270
Earnings Per Share Basic 0.09 0.08
Earnings Per Share Diluted 0.08 0.08
Nine Months Nine Months
Ended Ended
September 30, September 30,
2003 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
--------------------------------------- -------------- --------------
Net Sales $ 26,869 $ 24,020
Gross Profit 9,973 7,971
Selling, General, and Administrative
Expenses 7,854 7,372
Other (Income) Expense 245 266
Pre-Tax Income 1,874 333
Income Tax Expense (Benefit) 879 (286)
Net Income 995 619
Earnings Per Share Basic 0.30 0.18
Earnings Per Share Diluted 0.28 0.17
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
THIRD QUARTER REPORT 2003
(Unaudited)
Amounts in $000's
-----------------
September 30, September 30,
Assets 2003 2002
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Current Assets:
Cash $ 825 $ 594
Accounts Receivable, Net 9,600 7,927
Inventories 8,214 6,592
Prepaid and Other current Assets 491 988
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Total Current Assets 19,130 16,101
Property and Equipment, Net 2,222 2,440
Other Assets 447 1,384
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Total Assets $ 21,799 $ 19,925
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Liabilities and Stockholders' Equity
Current Liabilities
Notes Payable $ 3 $ 448
Accounts Payable 2,395 1,457
Other Current Liabilities 2,506 1,945
Current Portion of Long Term Debt 4,316 2,578
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Total Current Liabilities 9,220 6,428
Long-Term debt 2,062 3,635
Other Non Current Liabilities 953 499
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12,235 10,562
Total Stockholders' Equity 9,564 9,363
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Total Liabilities and Stockholders'
Equity $ 21,799 $ 19,925
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CONTACT: Acme United Corporation, Fairfield
Paul G. Driscoll, 203-332-7330
Fax: 203-576-1547
SOURCE: Acme United Corporation