Acme United Reports 9% Sales Increase, and 65% Net Income and EPS Increase for Fourth Quarter of 2019
Net income for the quarter ended
Chairman and CEO
“On the sales front, we achieved our ninth consecutive year of record sales. We generated strong cash flow, increased our dividend, and reduced net debt by almost
In the
Net sales in
Net sales in
Gross margin was 36.3% in the three months ended
The Company’s debt less cash on
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
| CONTACT: | ||||
| Phone: (203) 254-6060 | FAX: (203) 254-6521 |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2019 | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | Quarter Ended | |||||||
| Amounts in |
||||||||
| Net sales | $ | 33,873 | $ | 31,130 | ||||
| Cost of goods sold |
21,579 | 19,768 | ||||||
| Gross profit |
12,294 | 11,362 | ||||||
| Selling, general, and administrative expenses |
10,893 | 10,269 | ||||||
| Income from operations |
1,401 | 1,093 | ||||||
| Interest expense |
(338 | ) | (523 | ) | ||||
| Interest income | 12 | 10 | ||||||
| Net interest expense | (326 | ) | (513 | ) | ||||
| Other (expense) income, net | (46 | ) | 18 | |||||
| Total other expense, net | (372 | ) | (495 | ) | ||||
| Pre-tax income | 1,029 | 598 | ||||||
| Income tax expense | 52 | 7 | ||||||
| Net income | $ | 977 | $ | 591 | ||||
| Shares outstanding - Basic | 3,352 | 3,363 | ||||||
| Shares outstanding - Diluted | 3,495 | 3,421 | ||||||
| Earnings per share basic | $ | 0.29 | $ | 0.18 | ||||
| Earnings per share diluted | 0.28 | 0.17 | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2019 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Year Ended | Year Ended | |||||||
| Amounts in |
||||||||
| Net sales | $ | 142,457 | $ | 137,321 | ||||
| Cost of goods sold | 90,456 | 86,672 | ||||||
| Gross profit | 52,001 | 50,649 | ||||||
| Selling, general, and administrative expenses | 43,572 | 43,192 | ||||||
| Income from operations | 8,429 | 7,457 | ||||||
| Interest expense | (1,828 | ) | (1,891 | ) | ||||
| Interest income | 40 | 33 | ||||||
| Net interest expense | (1,788 | ) | (1,858 | ) | ||||
| Other expense, net | (98 | ) | (68 | ) | ||||
| Total other expense, net | (1,886 | ) | (1,926 | ) | ||||
| Pre-tax income | 6,543 | 5,531 | ||||||
| Income tax expense | 1,030 | 933 | ||||||
| Net income | $ | 5,513 | $ | 4,598 | ||||
| Shares outstanding - Basic | 3,352 | 3,371 | ||||||
| Shares outstanding - Diluted | 3,453 | 3,542 | ||||||
| Earnings per share basic | $ | 1.65 | 1.36 | |||||
| Earnings per share diluted | 1.60 | 1.30 | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| YEAR END REPORT 2019 | ||||||||
| (Unaudited) | ||||||||
| Amounts in |
||||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash | $ | 6,822 | $ | 4,409 | ||||
| Accounts receivable, net | 25,485 | 25,102 | ||||||
| Inventories | 39,261 | 41,332 | ||||||
| Prepaid and other current assets | 1,578 | 2,149 | ||||||
| Total current assets | 73,146 | 72,992 | ||||||
| Property and equipment, net | 14,036 | 14,543 | ||||||
| Intangible assets, less amortization | 15,793 | 17,044 | ||||||
| 4,696 | 4,696 | |||||||
| Operating lease right of use asset | 2,989 | - | ||||||
| Other assets | 89 | 203 | ||||||
| Total assets | $ | 110,749 | $ | 109,478 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,693 | $ | 7,983 | ||||
| Operating lease liability - short term | 1,047 | - | ||||||
| Mortgage payable - short term | 267 | 267 | ||||||
| Other current liabilities | 8,626 | 5,115 | ||||||
| Total current liabilities | 16,633 | 13,365 | ||||||
| Non-current liabilities | ||||||||
| Long term debt | 33,240 | 40,283 | ||||||
| Mortgage payable - long term | 3,178 | 3,444 | ||||||
| Operating lease liability - long term | 1,961 | - | ||||||
| Other non current liabilities | 32 | 53 | ||||||
| Total liabilities | 55,044 | 57,145 | ||||||
| Total stockholders' equity | 55,705 | 52,333 | ||||||
| Total liabilities and stockholders' equity | $ | 110,749 | $ | 109,478 | ||||
Source: Acme United Corporation