UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
__________________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
report (date of earliest event reported): July 23, 2010
ACME
UNITED CORPORATION
(Exact
name of registrant as specified in its charter)
__________________
|
Connecticut
|
001-07698
|
06-0236700
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(Commission
file number)
|
(I.R.S.
Employer
Identification
No.)
|
|
60
Round Hill Road, Fairfield, Connecticut
|
06824
|
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant’s
telephone number, including area code: (203) 254-6060
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM
2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July
23, 2010, Acme United Corporation (the “Company”) issued a press release
announcing its financial results for the quarter ended June 30,
2010. A copy of the press release is attached as Exhibit 99.1 to this
current report.
ITEM
9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
| Exhibit Number | Description |
|
99.1
|
Press
release dated July 23,
2010.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
ACME
UNITED CORPORATION
| By | /s/ Walter C. Johnsen | |
|
Walter
C. Johnsen
Chairman
and
Chief
Executive Officer
|
Dated: July
23, 2010
| By | /s/ Paul G. Driscoll | |
|
Paul
G. Driscoll
Vice
President and
Chief
Financial Officer
|
Dated: July
23, 2010
2
EXHIBIT
INDEX
Exhibit
99.1
ACME
UNITED
CORPORATION NEWS
RELEASE
| CONTACT: | Paul G. Driscoll | Acme United Corporation | 60 Round Hill Road | Fairfield, CT 06824 |
| Phone: (203) 254-6060 | FAX: (203) 254-6521 |
FOR IMMEDIATE RELEASE July 23,
2010
ACME
UNITED CORPORATION REPORTS 7% SALES INCREASE FOR THE SECOND QUARTER
FAIRFIELD,
CONN. – July 23, 2010 – Acme United Corporation (NYSE AMEX:ACU) today announced
that net sales for the second quarter ended June 30, 2010 were $20.6 million,
compared to $19.2 million in the comparable period of 2009, an increase of 7%
(8% in local currency). Net income was $1,567,000, or $.48 per
diluted share, for the quarter ended June 30, 2010, compared to $1,341,000 or
$.40 per diluted share for the comparable period last year, an increase of 17%
in net income and 20% in diluted earnings per share.
Net sales for the six months ended June
30, 2010 were $33.7 million, compared to $30.5 million in the same period in
2009, an increase of 11% (10% in local currency). Net income for the
six months ended June 30, 2010 was $1,780,000, or$.54 per diluted share, compared to $1,383,000, or $.41 per
diluted share in the comparable period last year, a 29% increase in net income
and 32% in diluted earnings per share.
Net sales for the quarter ended June
30, 2010 in the U.S. segment increased 1% compared to the same period in 2009.
Net sales for the six months ended June 30, 2010 in the U.S. segment increased
5% compared to the same period in 2009. Sales in the U.S. were a reflection of
the slow economic recovery in the U.S. Net sales in Canada for the
three and six months ended June 30, 2010 increased 10% and 14%, respectively, in
U.S. dollars compared to the same periods in 2009 but decreased 2% and 1%
respectively, in local currency. European net sales for the three and
six months ended June 30, 2010 increased 64% and 46%, respectively, in U.S.
dollars compared to the same periods in 2009 and increased 75% and 49%
respectively, in local currency. Sales in Europe increased due to growth in the
mass and office markets.
Gross margins were 36.7% in the second
quarter of 2010 versus 37.1% in the comparable period last year. The
gross margins in the second quarter of 2010 were impacted by higher airfreight
expense of approximately $250,000 due to labor shortages and production
constraints in the Asian factories. For the first six months of 2010, gross
margins were 37.6%, compared to 37.4% in the same period in 2009.
The
effective tax rate for the first six months of 2010 was 17%, compared to 34% in
the same period of 2009. The effective tax rate for the six months
ended June 30, 2010, reflects approximately $180,000 of tax benefits associated
with the Company’s donation of land to the City of Bridgeport, CT in the fourth
quarter of 2009.
Walter C.
Johnsen, Chairman and CEO said, “We had a solid quarter in sales, earnings, and
cash flow. However, the Company incurred substantial air freights costs due to
lower production than planned, with the resultant need to expedite shipments to
meet customer demand on time. We are addressing this by increasing
supply stock and expanding capacity.” Mr. Johnsen added that he was pleased with
the growth in European sales.
The
Company’s bank debt less cash on June 30, 2010 was $8.9 million compared to $8.9
million on June 30, 2009. During the 12 month period ended June 30,
2010, Acme purchased 241,000 shares of its common stock for treasury for a total
of approximately $2.25 million and paid a total of $650,000 in dividends, which
were offset by cash flow from operations of $3 million. As of June 30, 2010,
there were 83,376 shares remaining for purchase under the Company’s stock
repurchase program.
ACME UNITED CORPORATION is a
leading worldwide supplier of innovative cutting, measuring and safety products
to the school, home, office and industrial markets. Its leading brands include
Westcott®, Clauss®, Camillus® and PhysiciansCare ®.
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) the Company’s
plans, strategies, objectives, expectations and intentions are subject to change
at any time at the discretion of the Company; (ii) the impact of current
uncertainties in global economic conditions and the ongoing financial crisis
affecting the domestic and foreign banking system and financial markets,
including the impact on the Company’s suppliers and customers (iii) currency
fluctuations (iv) the Company’s plans and results of operations will be affected
by the Company’s ability to manage its growth, and (v) other risks and
uncertainties indicated from time to time in the Company’s filings with the
Securities and Exchange Commission.
.
# # #
2
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ACME UNITED CORPORATION
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
||||||||
|
SECOND QUARTER REPORT 2010
|
||||||||
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(Unaudited)
|
||||||||
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Three Months Ended
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Three Months Ended
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|||||||
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Amounts in 000's except per share
data
|
June 30, 2010
|
June 30, 2009
|
||||||
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Net sales
|
$ | 20,585 | $ | 19,161 | ||||
|
Cost of goods sold
|
13,034 | 12,056 | ||||||
|
Gross profit
|
7,551 | 7,105 | ||||||
|
Selling, general, and administrative
expenses
|
5,605 | 5,086 | ||||||
|
Income from operations
|
1,946 | 2,019 | ||||||
|
Interest expense
|
79 | 44 | ||||||
|
Interest income
|
(41 | ) | (31 | ) | ||||
|
Net interest
expense
|
38 | 13 | ||||||
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Other expense (income)
|
24 | (30 | ) | |||||
|
Total other expense (income)
|
62 | (17 | ) | |||||
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Pre-tax income
|
1,884 | 2,036 | ||||||
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Income tax expense
|
317 | 695 | ||||||
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Net income
|
$ | 1,567 | $ | 1,341 | ||||
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Shares outstanding - Basic
|
3,158 | 3,325 | ||||||
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Shares outstanding - Diluted
|
3,289 | 3,388 | ||||||
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Earnings per share basic
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$ | 0.50 | $ | 0.40 | ||||
|
Earnings per share diluted
|
0.48 | 0.40 | ||||||
3
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ACME UNITED CORPORATION
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
|
||||||||
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SECOND QUARTER REPORT 2010 (cont.)
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||||||||
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(Unaudited)
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||||||||
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Six Months Ended
|
Six Months Ended
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|||||||
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Amounts in 000's except per share
data
|
June 30, 2010
|
June 30, 2009
|
||||||
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Net sales
|
$ | 33,706 | $ | 30,458 | ||||
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Cost of goods sold
|
21,042 | 19,056 | ||||||
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Gross profit
|
12,664 | 11,402 | ||||||
|
Selling, general, and administrative
expenses
|
10,417 | 9,302 | ||||||
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Income from operations
|
2,247 | 2,100 | ||||||
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Interest expense
|
131 | 86 | ||||||
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Interest income
|
(73 | ) | (66 | ) | ||||
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Net interest
expense
|
58 | 20 | ||||||
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Other expense (income)
|
39 | (19 | ) | |||||
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Total other (expense)
|
97 | 1 | ||||||
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Pre-tax income
|
2,150 | 2,099 | ||||||
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Income tax expense
|
370 | 716 | ||||||
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Net income
|
$ | 1,780 | $ | 1,383 | ||||
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Shares outstanding - Basic
|
3,163 | 3,336 | ||||||
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Shares outstanding - Diluted
|
3,270 | 3,396 | ||||||
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Earnings per share basic
|
$ | 0.56 | $ | 0.41 | ||||
|
Earnings per share diluted
|
0.54 | 0.41 | ||||||
4
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ACME UNITED CORPORATION
|
||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
|
SECOND QUARTER REPORT 2010
|
||||||||
|
(Unaudited)
|
||||||||
|
Amounts in 000's
|
June 30, 2010
|
June 30, 2009
|
||||||
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Assets:
|
||||||||
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Current assets:
|
||||||||
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Cash
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$ | 4,250 | $ | 3,228 | ||||
|
Accounts receivable, net
|
20,416 | 18,467 | ||||||
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Inventories
|
17,970 | 19,299 | ||||||
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Prepaid and other current assets
|
1,213 | 961 | ||||||
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Total current assets
|
43,849 | 41,955 | ||||||
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Property and equipment, net
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1,994 | 2,249 | ||||||
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Long term receivable
|
1,865 | 1,919 | ||||||
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Other assets
|
2,562 | 2,509 | ||||||
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Total assets
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$ | 50,270 | $ | 48,633 | ||||
|
Liabilities and stockholders'
equity:
|
||||||||
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Current liabilities
|
||||||||
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Accounts payable
|
$ | 6,177 | $ | 6,131 | ||||
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Other current liabilities
|
4,298 | 4,276 | ||||||
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Total current liabilities
|
10,475 | 10,407 | ||||||
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Bank debt
|
13,125 | 12,122 | ||||||
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Other non current liabilities
|
1,746 | 1,995 | ||||||
| 25,346 | 24,524 | |||||||
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Total stockholders' equity
|
24,924 | 24,109 | ||||||
|
Total liabilities and stockholders'
equity
|
$ | 50,270 | $ | 48,633 | ||||
5