Acme United Reports 10% Net Income Increase and 15% Diluted EPS Increase for Second Quarter of 2019
Net income for the three months ended
“Revenues for the next 6 months are forecast to have solid growth in first aid, Camillus and DMT products. Sales of Westcott school and office products are expected to be consistent with last year. Accordingly, we are reiterating our financial guidance for 2019 of approximately
Mr. Johnsen added, “We have reduced net debt by over
In the U.S. segment, net sales for the three months ended
Net sales in
Net sales in
Gross margin was 36.7% in the three months ended
The Company’s bank debt less cash on
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Forward-Looking Statements
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) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impact of competition and technological changes on the Company; (v) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vi) currency fluctuations; (vii) increases in the cost of borrowings resulting from rising interest rates; (viii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (ix) other risks and uncertainties indicated from time to time in the Company’s filings with the
CONTACT: | Paul G. Driscoll | Acme United Corporation | 55 Walls Drive | Fairfield, CT 06824 |
Phone: (203) 254-6060 | FAX: (203) 254-6521 |
ACME UNITED CORPORATION | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
SECOND QUARTER REPORT 2019 | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Three Months Ended | ||||||||||
Amounts in 000's except per share data | June 30, 2019 | June 30, 2018 | |||||||||
Net sales | $ | 40,220 | $ | 39,751 | |||||||
Cost of goods sold | 25,449 | 25,039 | |||||||||
Gross profit | 14,771 | 14,712 | |||||||||
Selling, general, and administrative expenses | 11,003 | 11,087 | |||||||||
Operating Income | 3,768 | 3,625 | |||||||||
Interest expense, net | 491 | 445 | |||||||||
Other expense, net | 14 | 74 | |||||||||
Total other expense, net | 505 | 519 | |||||||||
Income before income tax expense | 3,263 | 3,106 | |||||||||
Income tax expense | 592 | 670 | |||||||||
Net income | $ | 2,671 | $ | 2,436 | |||||||
Shares outstanding - Basic | 3,351 | 3,374 | |||||||||
Shares outstanding - Diluted | 3,485 | 3,624 | |||||||||
Earnings per share - Basic | $ | 0.80 | $ | 0.72 | |||||||
Earnings per share - Diluted | 0.77 | 0.67 | |||||||||
ACME UNITED CORPORATION | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
SECOND QUARTER REPORT 2019 (cont.) | |||||||||||
(Unaudited) | |||||||||||
Six Months Ended | Six Months Ended | ||||||||||
Amounts in 000's except per share data | June 30, 2019 | June 30, 2018 | |||||||||
Net sales | $ | 71,590 | $ | 71,460 | |||||||
Cost of goods sold | 45,016 | 44,624 | |||||||||
Gross profit | 26,574 | 26,836 | |||||||||
Selling, general, and administrative expenses | 21,271 | 21,846 | |||||||||
Operating Income | 5,303 | 4,990 | |||||||||
Interest expense, net | 994 | 850 | |||||||||
Other expense, net | 12 | 61 | |||||||||
Total other expense, net | 1,006 | 911 | |||||||||
Income before income tax expense | 4,297 | 4,079 | |||||||||
Income tax expense | 819 | 879 | |||||||||
Net income | $ | 3,478 | $ | 3,200 | |||||||
Shares outstanding - Basic | 3,351 | 3,374 | |||||||||
Shares outstanding - Diluted | 3,429 | 3,642 | |||||||||
Earnings per share - Basic | $ | 1.04 | $ | 0.95 | |||||||
Earnings per share - Diluted | 1.01 | 0.88 | |||||||||
ACME UNITED CORPORATION | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
SECOND QUARTER REPORT 2019 | |||||||||||
(Unaudited) | |||||||||||
Amounts in 000's | June 30, 2019 | June 30, 2018 | |||||||||
Assets: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,924 | $ | 1,894 | |||||||
Accounts receivable, less allowance | 35,462 | 34,511 | |||||||||
Inventories, net | 39,615 | 42,510 | |||||||||
Prepaid expenses and other current assets | 2,085 | 2,525 | |||||||||
Total current assets | 79,086 | 81,440 | |||||||||
Property, Plant and equipment, net | 14,200 | 14,576 | |||||||||
Operating lease right of use asset | 2,424 | - | |||||||||
Intangible assets, less accumulated amortization | 16,422 | 17,268 | |||||||||
Goodwill | 4,696 | 4,696 | |||||||||
Other assets | 202 | 598 | |||||||||
Total assets | $ | 117,030 | $ | 118,578 | |||||||
Liabilities and stockholders' equity: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 9,931 | $ | 12,972 | |||||||
Operating lease liability - short term | 987 | - | |||||||||
Mortgage payable | 267 | 267 | |||||||||
Other accrued liabilities | 6,865 | 4,373 | |||||||||
Total current liabilities | 18,050 | 17,612 | |||||||||
Long term debt | 39,388 | 44,318 | |||||||||
Mortgage payable, net of current portion | 3,311 | 3,578 | |||||||||
Operating lease liability - long term | 1,441 | - | |||||||||
Other non-current liabilities | 38 | 846 | |||||||||
Total liabilities | 62,228 | 66,354 | |||||||||
Total stockholders' equity | 54,802 | 52,224 | |||||||||
Total liabilities and stockholders' equity | $ | 117,030 | $ | 118,578 | |||||||
Source: Acme United Corporation