Acme United Corporation Reports First Quarter Sales Increase of 16%,
Solid Earnings Growth
Solid Earnings Growth
FAIRFIELD, Conn., Apr 16, 2010 (BUSINESS WIRE) --Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the quarter ended March 31, 2010 were $13.1 million, compared to $11.3 million in the first quarter of 2009, an increase of 16% (13% in local currency).
Net income was $214,000 or $.07 per diluted share for the quarter ended March 31, 2010 compared to $42,000 or $.01 per diluted share for the comparable period last year.
Net sales for the first quarter of 2010 in the U.S. segment increased 13% compared to the same period in 2009. The growth was mainly due to increased sales of new products, including iPoint pencil sharpeners, proprietary non-stick scissors, and Speed Pak utility knives. The Company added a number of new customers including major hardware and industrial accounts.
Net sales in Canada in the first quarter of 2010 increased 22% in U.S. dollars and 2% in local currency. European sales in the first quarter of 2010 increased 26% in U.S. dollars and 20% in local currency compared to the first quarter in 2009. Sales in Europe increased due to growth in the mass and office markets.
Gross margins were 39% in the first quarter of 2010 compared to 38% in the first quarter of 2009.
Walter C. Johnsen, President and CEO, said, "All business segments had growth during the quarter, and contributed to our performance. We are particularly pleased with the sales of our new products, and the prospects for growth from our large customer base and new customers."
The Company's bank debt less cash on March 31, 2010 was $3.4 million compared to $8.6 million on March 31, 2009. During the 12-month period ended March 31, 2010, Acme purchased 175,509 shares of its common stock for treasury for a total of approximately $1.5 million and paid $650,000 in dividends on its common stock, which were offset by cash flow from operations of $7.4 million. As of March 31, 2010, there were 148,826 shares that may be purchased under the Company's stock repurchase program.
ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office, hardware and industrial markets.
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 impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company's suppliers and customers (iii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iv) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.
| ACME UNITED CORPORATION | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| FIRST QUARTER REPORT 2010 | ||||||||||||
| (unaudited) | ||||||||||||
| Quarter Ended | Quarter Ended | |||||||||||
| Amounts in 000's except per share data | March 31, 2010 | March 31, 2009 | ||||||||||
| Net sales | $ | 13,121 | $ | 11,297 | ||||||||
| Cost of goods sold | 8,008 | 7,000 | ||||||||||
| Gross profit | 5,113 | 4,299 | ||||||||||
| Selling, general, and administrative expenses | 4,812 | 4,216 | ||||||||||
| Income from operations | 301 | 82 | ||||||||||
| Interest expense, net | 20 | 7 | ||||||||||
| Other expense, net | 14 | 12 | ||||||||||
| Pre-tax income | 267 | 63 | ||||||||||
| Income tax expense | 53 | 21 | ||||||||||
| Net income | 214 | 42 | ||||||||||
| Shares outstanding - Basic | 3,170 | 3,343 | ||||||||||
| Shares outstanding - Diluted | 3,274 | 3,402 | ||||||||||
| Earnings per share - basic | 0.07 | 0.01 | ||||||||||
| Earnings per share - diluted | 0.07 | 0.01 | ||||||||||
| ACME UNITED CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| FIRST QUARTER REPORT 2010 | ||||||||||
| (Unaudited) | ||||||||||
|
Amounts in $000's |
||||||||||
| March 31, 2010 | March 31, 2009 | |||||||||
|
Assets |
||||||||||
| Current assets: | ||||||||||
| Cash | $ | 5,468 | $ | 3,283 | ||||||
| Accounts receivable, net | 10,230 | 9,625 | ||||||||
| Inventories | 18,497 | 21,734 | ||||||||
| Prepaid and other current assets | 1,229 | 1,245 | ||||||||
| Total current assets | 35,424 | 35,888 | ||||||||
| Property and equipment, net | 2,050 | 2,339 | ||||||||
| Long term receivable | 1,879 | 1,933 | ||||||||
| Other assets | 2,556 | 2,512 | ||||||||
| Total assets | $ | 41,909 | $ | 42,672 | ||||||
|
Liabilities and stockholders' equity |
||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 4,030 | $ | 2,824 | ||||||
| Other current liabilities | 2,557 | 3,767 | ||||||||
| Total current liabilities | 6,587 | 6,591 | ||||||||
| Long-term debt | 8,908 | 11,880 | ||||||||
| Other non-current liabilities | 1,815 | 1,944 | ||||||||
| Total liabilities | 17,310 | 20,415 | ||||||||
| Total stockholders' equity | 24,599 | 22,257 | ||||||||
| Total liabilities and stockholders' equity | $ | 41,909 | $ | 42,672 | ||||||
SOURCE: Acme United Corporation
Acme United Corporation
Paul G. Driscoll, 203-254-6060
Fax: 203-254-6521