Acme United Reports 6% Sales Increase and 27% EPS Increase for First Quarter of 2023
Net income was
Chairman and CEO
For the first quarter of 2023, net sales in the
European net sales for the first quarter of 2023 decreased 6% in
Net sales in
Gross margin was 35.5% in the first quarter of 2023 versus 34.5% in the comparable period last year. The increase in the quarter was primarily due to cost saving initiatives implemented in the fall of 2022.
Operating income in the first quarter of 2023 increased
Interest expense in the first quarter of 2023 increased
The Company’s bank debt less cash on
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About
Forward Looking Statements
The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations.
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 that may impact the Company’s business, operations and financial results, including those risks and uncertainties resulting from the global COVID-19 pandemic, future waves of COVID-19, including through the Delta and Omicron variants and any new variant strains of the underlying virus; any future pandemics; the continuing effectiveness, global availability, and public acceptance of existing vaccines; the effectiveness, availability, and public acceptance of vaccines against variant strains of potential new viruses; and the heightened impact the pandemic has on many of the risks described herein, including, without limitation, risks relating to disruptions in our supply chain, and labor shortages, any of which could materially adversely impact the Company’s ability to manufacture, source or distribute its products, both domestically and internationally.
These risks and uncertainties further include, 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, whether caused by COVID-19 or otherwise, including the impact on the Company’s suppliers and customers; (iii) additional disruptions in the Company’s supply chains, whether caused by COVID-19, natural disasters or otherwise; (iv) labor-related costs the Company has incurred and continues to incur, including costs of acquiring and training new employees and rising wages and benefits; (v) the continuing adverse impact of inflation on products costs and interest rates; (vi) the Company’s ability to effectively manage its inventory in a rapidly changing business environment, including the additional inventory the Company acquired in anticipation of supply chain disruptions and uncertainties; (vii) potential adverse effects on the Company, its customers, and suppliers resulting from the war in
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| FIRST QUARTER REPORT 2023 | |||||||||||
| (Unaudited) | |||||||||||
| Quarter Ended | Quarter Ended | ||||||||||
| Amounts in 000's except per share data | |||||||||||
| Net sales | $ | 45,838 | $ | 43,333 | |||||||
| Cost of goods sold | 29,557 | 28,365 | |||||||||
| Gross profit | 16,281 | 14,968 | |||||||||
| Selling, general and administrative expenses | 14,093 | 13,597 | |||||||||
| Operating income | 2,188 | 1,371 | |||||||||
| Interest expense | 919 | 309 | |||||||||
| Interest income | (17 | ) | (4 | ) | |||||||
| Net interest expense | 902 | 305 | |||||||||
| Other income, net | (23 | ) | (2 | ) | |||||||
| Income before income tax expense | 1,309 | 1,068 | |||||||||
| Income tax expense | 319 | 238 | |||||||||
| Net income | $ | 990 | $ | 830 | |||||||
| Shares outstanding - basic | 3,541 | 3,521 | |||||||||
| Shares outstanding - diluted | 3,541 | 3,848 | |||||||||
| Earnings per share - basic | $ | 0.28 | $ | 0.24 | |||||||
| Earnings per share - diluted | 0.28 | 0.22 | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| FIRST QUARTER REPORT 2023 | |||||||||||
| (Unaudited) | |||||||||||
| Amounts in |
|||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 2,764 | $ | 5,307 | |||||||
| Accounts receivable, net | 32,972 | 34,605 | |||||||||
| Inventories | 58,488 | 60,716 | |||||||||
| Prepaid expenses and other current assets | 4,961 | 3,810 | |||||||||
| Total current assets | 99,185 | 104,438 | |||||||||
| Property, plant and equipment, net | 26,397 | 23,887 | |||||||||
| Operating lease right of use asset | 2,675 | 3,064 | |||||||||
| Intangible assets, less accumulated amortization | 20,272 | 16,888 | |||||||||
| 8,189 | 4,800 | ||||||||||
| Other assets | 750 | - | |||||||||
| Total assets | $ | 157,468 | $ | 153,077 | |||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 10,597 | $ | 10,939 | |||||||
| Operating lease liability - short term | 1,216 | 1,112 | |||||||||
| Mortgage payable - short term | 405 | 389 | |||||||||
| Other current liabilities | 11,816 | 8,937 | |||||||||
| Total current liabilities | 24,034 | 21,377 | |||||||||
| Long-term debt | 40,135 | 40,151 | |||||||||
| Mortgage payable - long term | 10,597 | 10,989 | |||||||||
| Operating lease liability - long term | 1,628 | 2,187 | |||||||||
| Other non-current liabilities | 957 | 600 | |||||||||
| Total liabilities | 77,351 | 75,304 | |||||||||
| Total stockholders' equity | 80,117 | 77,773 | |||||||||
| Total liabilities and stockholders' equity | $ | 157,468 | $ | 153,077 | |||||||
CONTACT:
Phone: (203) 254-6060
Source: Acme United Corporation