Acme United Corporation Reports Record Sales and 16% Earnings Increase for First Quarter
FAIRFIELD, Conn.--(BUSINESS WIRE)--April 18, 2008--Acme United Corporation (AMEX:ACU) today announced that net sales for the quarter ended March 31, 2008 were $14.3 million, compared to $12.2 million in the comparable period of 2007, an increase of 17% (13% in local currency).
Net income was $753,000 or $.21 per diluted share for the first quarter ended March 31, 2008 compared to $650,000 or $.17 per diluted share for the comparable period last year, a 16% increase in net income and 24% increase in diluted earnings per share.
Net sales for the first quarter 2008 in the U.S. segment increased 17% compared to the same period in 2007 due to market share gains in the cutting and first aid product categories. Net sales in Canada in the first quarter of 2008 increased by 8% in U.S. dollars but declined 7% in local currency due to soft demand in the overall office products market. European sales in the first quarter of 2008 increased 18% in U.S. dollars and 4% in local currency compared to the first quarter in 2007.
Gross margins were 42.0% in the first quarter of 2008 versus 43.6% in the first quarter of 2007. The margin in 2008 declined mainly due to a successful promotion of medication sales which carried a profitable, but lower margin than our other product lines. Gross margins without the promotion would have been 43.0% during the first quarter of 2008.
Walter C. Johnsen, President and CEO said, "While the retail environment is difficult, we are seeing success with our innovative and new products. We are excited about the prospects of our new school tools, pencil sharpeners, and antimicrobial scissors which begin shipping in the second quarter. Our patented cartridge-based utility knife has had good reception by its initial customers, and we are working to expand placement during the year."
The Company's bank debt less cash on March 31, 2008 was $7.9 million compared to $7.1 million on March 31, 2007. During the 12 month period ended March 31, 2008, Acme purchased 67,600 shares of its common stock for approximately $900,000 under its previously announced repurchase program. As of March 31, 2008, there were 182,400 shares that my be purchased under the outstanding stock repurchase programs.
ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office and industrial markets.
Forward-looking statements in this earnings release, included without limitation, statements related to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources. 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 STATEMENTS OF INCOME
FIRST QUARTER REPORT 2008
(unaudited)
Quarter Quarter
Ended Ended
Amounts in 000's except per share data March 31, March 31,
2008 2007
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Net sales $14,269 $12,241
Cost of Goods Sold 8,283 6,907
Gross profit 5,986 5,334
Selling, general, and administrative expenses 4,918 4,158
Income from operations 1,068 1,176
Interest expense 96 154
Other income 186 27
Pre-Tax income 1,158 1,049
Income tax expense 405 399
Net income 753 650
Shares outstanding - Basic 3,517 3,525
Shares outstanding - Diluted 3,666 3,725
Earnings per share - basic 0.21 0.18
Earnings per share - diluted 0.21 0.17
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2008
(Unaudited)
Amounts in $000's
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March 31, March 31,
2008 2007
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Assets
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Current assets:
Cash $ 4,815 $ 3,386
Accounts receivable, net 12,482 9,656
Inventories 20,076 16,223
Prepaid and other current assets 1,228 1,755
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Total current assets 38,601 31,020
Property and equipment, net 2,536 2,437
Other assets 1,879 983
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Total assets $ 43,016 $ 34,440
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Liabilities and stockholders' equity
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Current liabilities
Accounts payable $ 3,912 $ 2,589
Other current liabilities 2,903 2,164
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Total current liabilities 6,815 4,753
Long-term debt 12,711 10,463
Other non-current liabilities 537 663
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Total liabilities 20,062 15,879
Total stockholders' equity 22,954 18,561
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Total liabilities and stockholders' equity $ 43,016 $ 34,440
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CONTACT: Acme United Corporation
Paul G. Driscoll, 203-254-6060
Fax: 203-254-6521
SOURCE: Acme United Corporation