Acme United Corporation Reports Third Quarter Earnings
Third quarter 2009 earnings included pre-tax income of
Net sales for the nine months ended
Net sales for the quarter ended
Gross margins were 36% in the third quarter of 2009 versus 41% in the comparable period last year. For the first nine months of 2009, gross margins were 37% compared to 41% in the same period in 2008. The gross margin decline for the three and nine month periods was primarily due to fixed costs spread over lower sales, the weaker Canadian dollar which raised the cost of products in our Canadian segment and product mix.
Mr. Johnsen added that during the past 12 months, the Company repurchased about 7% of its outstanding stock, increased its dividend and reduced net debt by approximately 60%. He noted that the Company is very well positioned for future growth opportunities.
The Company’s bank debt less cash on
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) currency fluctuations (iv) the Company’s plans and results of
operations will be affected by the Company’s ability to manage its
growth, and (v) other risks and uncertainties indicated from time to
time in the Company’s filings with the
ACME UNITED CORPORATION | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
THIRD QUARTER REPORT 2009 | ||||||||
(Unaudited) | ||||||||
Quarter Ended | Quarter Ended | |||||||
Amounts in $000's except per share data | September 30, 2009 | September 30, 2008 | ||||||
Net sales | $ | 15,269 | $ | 19,158 | ||||
Cost of goods sold | 9,771 | 11,288 | ||||||
Gross profit | 5,498 | 7,870 | ||||||
Selling, general, and administrative expenses | 4,864 | 5,651 | ||||||
Income from operations | 634 | 2,219 | ||||||
Interest expense | 38 | 135 | ||||||
Interest income | 31 | 15 | ||||||
Net interest expense | 7 | 120 | ||||||
Other income (expense) | 461 | (138 | ) | |||||
Total other income (expense) | 454 | (258 | ) | |||||
Pre-tax income | 1,088 | 1,961 | ||||||
Income tax expense | 360 | 610 | ||||||
Net income | $ | 728 | $ | 1,351 | ||||
Shares outstanding - Basic | 3,290 | 3,515 | ||||||
Shares outstanding - Diluted | 3,353 | 3,650 | ||||||
Earnings per share basic | $ | 0.22 | $ | 0.38 | ||||
Earnings per share diluted | 0.22 | 0.37 |
ACME UNITED CORPORATION | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
THIRD QUARTER REPORT 2009 (cont.) | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | Nine Months Ended | |||||||
Amounts in $000's except per share data | September 30, 2009 | September 30, 2008 | ||||||
Net sales | $ | 45,727 | $ | 56,135 | ||||
Cost of goods sold | 28,827 | 33,361 | ||||||
Gross profit | 16,900 | 22,774 | ||||||
Selling, general, and administrative expenses | 14,166 | 16,690 | ||||||
Income from operations | 2,734 | 6,084 | ||||||
Interest expense | 124 | 389 | ||||||
Interest income | 97 | 83 | ||||||
Net interest expense | 27 | 306 | ||||||
Other income | 480 | 23 | ||||||
Total other income (expense) | 453 | (283 | ) | |||||
Pre-tax income | 3,187 | 5,801 | ||||||
Income tax expense | 1,076 | 1,968 | ||||||
Net income | $ | 2,111 | $ | 3,833 | ||||
Shares outstanding - Basic | 3,318 | 3,517 | ||||||
Shares outstanding - Diluted | 3,362 | 3,654 | ||||||
Earnings per share basic | $ | 0.64 | $ | 1.09 | ||||
Earnings per share diluted | 0.63 | 1.05 | ||||||
ACME UNITED CORPORATION | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
THIRD QUARTER REPORT 2009 | |||||||
(Unaudited) | |||||||
Amounts in $000's | September 30, 2009 | September 30, 2008 | |||||
Assets: |
|||||||
Current assets: | |||||||
Cash | $ | 6,599 | $ | 5,485 | |||
Accounts receivable, net | 11,846 | 16,045 | |||||
Inventories | 17,850 | 20,240 | |||||
Prepaid and other current assets | 1,207 | 951 | |||||
Total current assets | 37,502 | 42,721 | |||||
Property and equipment, net | 2,159 | 2,402 | |||||
Long term receivable | 1,905 | - | |||||
Other assets | 2,505 | 1,976 | |||||
Total assets | $ | 44,071 | $ | 47,099 | |||
Liabilities and stockholders' equity: |
|||||||
Current liabilities | |||||||
Accounts payable | $ | 3,305 | $ | 3,734 | |||
Other current liabilities | 4,680 | 4,427 | |||||
Bank debt due June 30, 2010 | 9,324 | - | |||||
Total current liabilities | 17,308 | 8,161 | |||||
Bank debt due June 30, 2010 | - | 12,994 | |||||
Other non current liabilities | 1,990 | 542 | |||||
19,299 | 21,697 | ||||||
Total stockholders' equity | 24,772 | 25,402 | |||||
Total liabilities and stockholders' equity | $ | 44,071 | $ | 47,099 |
Source:
Acme United Corporation
Paul G. Driscoll, 203-254-6060
FAX:
203-254-6521