Acme United Reports 9% Sales Increase and 20% Net Income Increase for Second Quarter of 2020
Acme United’s second quarter and six months ended
Net income was
Chairman and CEO
Net sales for the second quarter and the first six months of 2020 in the
European net sales for the second quarter of 2020 increased 4% in
Net sales in
Gross margin was 36.5% in the second quarter of 2020 versus 36.7% in the comparable period last year. Gross margin was 37.1% in the each of the six months ended
The Company’s debt less cash on
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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 the impact that the global COVID-19 pandemic has had and will continue to have on the Company’s business, operations and financial results. These include the severity and duration of the pandemic, including whether there is a “second wave,” the effect of measures taken by the Company to limit the spread of the disease at our offices and distribution centers, further actions that may be taken by governmental authorities or by businesses or individuals on their own initiative in response to the pandemic, the pace of recovery when an effective vaccine is widely available or when the pandemic otherwise subsides and the heightened impact the pandemic has on many of the risks described herein, including without limitation risks relating to the on-going world-wide economic downturn and disruptions in our supply chain, any of which could 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, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impact of competition, (v) the impact of technological changes including specifically the growth of online marketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (viii) currency fluctuations; (ix) 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 (x) other risks and uncertainties indicated from time to time in the Company’s filings with the
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
SECOND QUARTER REPORT 2020 | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
Amounts in 000's except per share data | |||||||||||||
Net sales | $ | 44,042 | $ | 40,220 | |||||||||
Cost of goods sold | 27,989 | 25,449 | |||||||||||
Gross profit | 16,053 | 14,771 | |||||||||||
Selling, general, and administrative expenses | 11,670 | 11,003 | |||||||||||
Operating income | 4,383 | 3,768 | |||||||||||
Interest expense | 245 | 502 | |||||||||||
Interest income | (11 | ) | (11 | ) | |||||||||
Interest expense, net |
234 | 491 | |||||||||||
Other (income) expense, net | (1 | ) | 14 | ||||||||||
Total other expense, net | 233 | 505 | |||||||||||
Income before income tax expense | 4,150 | 3,263 | |||||||||||
Income tax expense | 951 | 592 | |||||||||||
Net income | $ | 3,199 | $ | 2,672 | |||||||||
Shares outstanding - Basic |
3,349 | 3,351 | |||||||||||
Shares outstanding - Diluted |
3,482 | 3,485 | |||||||||||
Earnings per share - Basic | $ | 0.96 | $ | 0.80 | |||||||||
Earnings per share - Diluted | 0.92 | 0.77 | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
SECOND QUARTER REPORT 2020 (cont.) | |||||||||||||
(Unaudited) | |||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||
Amounts in 000's except per share data | |||||||||||||
Net sales | $ | 79,817 | $ | 71,590 | |||||||||
Cost of goods sold | 50,234 | 45,016 | |||||||||||
Gross profit | 29,583 | 26,574 | |||||||||||
Selling, general, and administrative expenses | 23,191 | 21,271 | |||||||||||
Operating income | 6,392 | 5,303 | |||||||||||
Interest expense | 568 | 395 | |||||||||||
Interest income | (14 | ) | - | ||||||||||
Interest expense, net |
554 | 994 | |||||||||||
Other expense, net | 36 | 12 | |||||||||||
Total other expense, net | 590 | 1,006 | |||||||||||
Income before income tax expense | 5,802 | 4,297 | |||||||||||
Income tax expense | 1,326 | 819 | |||||||||||
Net income | $ | 4,476 | $ | 3,478 | |||||||||
Shares outstanding - Basic |
3,344 | 3,351 | |||||||||||
Shares outstanding - Diluted |
3,499 | 3,429 | |||||||||||
Earnings per share - Basic | $ | 1.34 | $ | 1.04 | |||||||||
Earnings per share - Diluted | 1.28 | 1.01 | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
SECOND QUARTER REPORT 2020 | |||||||||||||
(Unaudited) | |||||||||||||
Amounts in 000's | |||||||||||||
Assets: | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents |
$ | 5,239 | $ | 1,924 | |||||||||
Accounts receivable, net |
33,720 | 35,462 | |||||||||||
Inventories |
44,311 | 39,615 | |||||||||||
Prepaid expenses and other current assets |
2,438 | 2,085 | |||||||||||
Total current assets | 85,708 | 79,086 | |||||||||||
Property, Plant and equipment, net |
14,278 | 14,200 | |||||||||||
Operating lease right of use asset |
2,438 | 2,424 | |||||||||||
Intangible assets, less accumulated amortization |
15,164 | 16,422 | |||||||||||
5,909 | 4,696 | ||||||||||||
Other assets |
39 | 202 | |||||||||||
Total assets | $ | 123,536 | $ | 117,030 | |||||||||
Liabilities and stockholders' equity: | |||||||||||||
Current liabilities: | |||||||||||||
Accounts payable |
$ | 8,733 | $ | 9,931 | |||||||||
Operating lease liability - short term |
933 | 987 | |||||||||||
Mortgage payable - short term |
267 | 267 | |||||||||||
Other accrued liabilities |
10,680 | 6,865 | |||||||||||
Total current liabilities | 20,613 | 18,050 | |||||||||||
Long term debt | 35,742 | 39,388 | |||||||||||
Note Payable | 3,508 | - | |||||||||||
Mortgage payable - long term |
3,044 | 3,311 | |||||||||||
Operating lease liability - long term |
1,572 | 1,441 | |||||||||||
Other non-current liabilities | 50 | 38 | |||||||||||
Total liabilities | 64,529 | 62,228 | |||||||||||
Total stockholders' equity | 59,007 | 54,802 | |||||||||||
Total liabilities and stockholders' equity | $ | 123,536 | $ | 117,030 | |||||||||
CONTACT:
Phone: (203) 254-6060
FAX: (203) 254-6521
Source: Acme United Corporation