Acme United Reports 3% Sales Increase, 39% Operating Profit Increase and 6% EPS Increase for Fourth Quarter of 2018
Net income for the quarter ended
Net income for the year ended
Operating profit increased 39% and decreased 5% for the three and twelve months ended
Chairman and CEO
Mr. Johnsen added, “I am pleased with our increase in operating income during the fourth quarter of 2018, which was primarily due to sales growth and gross margin improvement. We will continue to drive our many sales initiatives and the cost cutting programs we implemented in the fourth quarter throughout 2019. Among the products we expect to contribute to our 2019 sales results are various newly developed Wescott scissors and an array of safety cutters for opening boxes. In addition, we have new Camillus knife placements planned at large mass market retailers and are focusing on continuing the growth of our SmartCompliance First Aid kits and refills with industrial users. For the year, we are providing guidance of approximately
In the U.S. segment, net sales for the quarter ended
Net sales in
Net sales in
Gross margin was 36.5% in the three months ended
The Company’s long-term debt less cash on
The Company believes that our presentation of non-GAAP financial measures, when presented together with the corresponding GAAP financial measures, provides a more complete understanding to investors of the Company’s results of operations. Specifically, our use of non-GAAP measures facilitates comparisons of our financial results and operating performance with prior periods. In addition, our adjusted financial measures provide greater transparency to investors of supplemental information used by management in its financial and operational decision making. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the corresponding measures calculated in accordance with GAAP.
Conference Call and Webcast Information
About
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
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2018 | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | Quarter Ended | |||||||
| Amounts in $000's except per share data | December 31, 2018 | December 31, 2017 | ||||||
| Net sales | $ | 31,130 | $ | 30,170 | ||||
| Cost of goods sold | 19,768 | 19,544 | ||||||
| Gross profit | 11,362 | 10,626 | ||||||
| Selling, general, and administrative expenses | 10,269 | 9,838 | ||||||
| Income from operations | 1,093 | 788 | ||||||
| Interest expense | (523 | ) | (386 | ) | ||||
| Interest income | 10 | 7 | ||||||
| Net interest expense | (513 | ) | (379 | ) | ||||
| Other income (expense), net | 18 | (41 | ) | |||||
| Total other expense, net | (495 | ) | (420 | ) | ||||
| Pre-tax income | 598 | 368 | ||||||
| Income tax expense | 7 | 1,023 | ||||||
| Net income (loss) | $ | 591 | $ | (655 | ) | |||
| Shares outstanding - Basic | 3,363 | 3,374 | ||||||
| Shares outstanding - Diluted | 3,421 | 3,676 | ||||||
| Earnings per share basic | $ | 0.18 | $ | (0.19 | ) | |||
| Earnings per share diluted | 0.17 | (0.18 | ) | |||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||
| GAAP net income (loss) | 591 | (655 | ) | |||||
| Adjustment for tax expense related to U.S. tax reform | - | 1,245 | ||||||
| Non-GAAP net income | 591 | 590 | ||||||
| Earnings per share basic - Non GAAP | $ | 0.18 | $ | 0.17 | ||||
| Earnings per share diluted - Non GAAP | 0.17 | 0.16 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2018 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Year Ended | Year Ended | |||||||
| Amounts in $000's except per share data | December 31, 2018 | December 31, 2017 | ||||||
| Net sales | $ | 137,321 | $ | 130,550 | ||||
| Cost of goods sold | 86,672 | 82,651 | ||||||
| Gross profit | 50,649 | 47,899 | ||||||
| Selling, general, and administrative expenses |
43,192 | 40,016 | ||||||
| Income from operations | 7,457 | 7,883 | ||||||
| Interest expense | (1,891 | ) | (1,357 | ) | ||||
| Interest income | 33 | 29 | ||||||
| Net interest expense | (1,858 | ) | (1,328 | ) | ||||
| Other (expense) income, net | (68 | ) | (62 | ) | ||||
| Total other expense, net | (1,926 | ) | (1,390 | ) | ||||
| Pre-tax income | 5,531 | 6,493 | ||||||
| Income tax expense | 933 | 2,441 | ||||||
| Net income | $ | 4,598 | $ | 4,052 | ||||
| Shares outstanding - Basic | 3,371 | 3,356 | ||||||
| Shares outstanding - Diluted | 3,542 | 3,725 | ||||||
| Earnings per share basic | $ | 1.36 | 1.21 | |||||
| Earnings per share diluted | 1.30 | 1.09 | ||||||
| Reconciliation of Non-GAAP Financial Measures |
||||||||
| GAAP net income | 4,598 | 4,052 | ||||||
| Adjustment for tax expense related to U.S. tax reform | 1,245 | |||||||
| Non-GAAP net income | 4,598 | 5,297 | ||||||
| Earnings per share basic - Non GAAP | $ | 1.36 | $ | 1.58 | ||||
| Earnings per share diluted - Non GAAP |
1.30 | 1.42 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| YEAR END REPORT 2018 | ||||||||
| (Unaudited) | ||||||||
| Amounts in $000's | December 31, 2018 | December 31, 2017 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash | $ | 4,409 | $ | 9,338 | ||||
| Accounts receivable, net | 25,102 | 26,012 | ||||||
| Inventories | 41,332 | 40,087 | ||||||
| Prepaid and other current assets | 2,529 | 2,664 | ||||||
| Total current assets | 73,372 | 78,101 | ||||||
| Property and equipment, net | 14,543 | 13,728 | ||||||
| Intangible assets, less amortization | 16,664 | 17,882 | ||||||
| Goodwill | 4,696 | 4,696 | ||||||
| Other assets | 203 | 323 | ||||||
| Total assets | $ | 109,478 | $ | 114,730 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 7,983 | $ | 11,151 | ||||
| Other current liabilities | 5,382 | 5,632 | ||||||
| Total current liabilities | 13,365 | 16,783 | ||||||
| Non-current liabilities | ||||||||
| Long term debt | 40,283 | 43,450 | ||||||
| Mortgage payable L/T | 3,444 | 3,711 | ||||||
| Other non current liabilities | 53 | 848 | ||||||
| Total liabilities | 57,145 | 64,792 | ||||||
| Total stockholders' equity | 52,333 | 49,938 | ||||||
| Total liabilities and stockholders' equity |
$ | 109,478 | $ | 114,730 | ||||
CONTACT:
Phone: (203) 254-6060
Fax: (203) 254-6521
Source: Acme United Corporation