acme_8k072012.htm
 
 
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 20, 2012
 
 
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))
 
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ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
 
On July 20, 2012, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2012.  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
   
Press release dated July 20, 2012.
 
                                           
 
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 20, 2012
 
     
     
 By  /s/  Paul G. Driscoll  
 
Paul G. Driscoll
Vice President and
Chief Financial Officer
 
     
Dated:  July 20, 2012
 
 
 
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EXHIBIT INDEX
 
 
  Exhibit Number Description
     
 
Press release dated July 20, 2012.
 
 
 
 
 
 
 
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acme_8k072012ex991.htm
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 20, 2012          


ACME UNITED CORPORATION REPORTS 15% SALES GROWTH AND 18% EARNINGS INCREASE FOR SECOND QUARTER

FAIRFIELD, CONN. – July 20, 2012 – Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the second quarter ended June 30, 2012 were $27.6 million, compared to $24.0 million in the comparable period of 2011, an increase of 15% (16% in local currency).

Net income was $2,061,000, or $.66 per diluted share, for the quarter ended June 30, 2012, compared to $1,743,000 or $.56 per diluted share for the comparable period last year, an increase of 18% in both net income and diluted earnings per share.

Net sales for the six months ended June 30, 2012 were $44.5 million, compared to $38.4 million in the same period in 2011, an increase of 16% (17% in local currency).

Net income for the six months ended June 30, 2012 was $2,320,000, or $.74 per diluted share, compared to $1,863,000, or $.60 per diluted share in the comparable period last year, a 25% increase in net income and 23% in diluted earnings per share.
 
Net sales for the quarter ended June 30, 2012 in the U.S. segment increased 22% compared to the same period in 2011 primarily due to increased sales of Camillus knives, iPoint pencil sharpeners, paper trimmers and first aid products. Net sales for the six months ended June 30, 2012 in the U.S. segment increased 21% compared to the same period in 2011.  Net sales in Canada for the three months ended June 30, 2012 were constant in U.S. dollars but increased 4% in local currency compared to the same period in 2011.  Net sales for the six months ended June 30, 2012 in Canada decreased 4% in U.S. dollars and 1% in local currency compared to the same period in 2011.

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Net sales in Europe for the three months ended June 30, 2012 decreased 21% in U.S. dollars and 11% in local currency compared to the same period in 2011 due to the loss of a large customer as a result of their financial troubles.  Net sales for the six months ended June 30, 2012 in Europe increased 4% in U.S. dollars and 13% in local currency compared to the same period in 2011.

Gross margins were 36% in the second quarters of both 2012 and 2011.  Gross margins were 35% for the six months ended June 30, 2012 compared to 36% for the comparable period last year.

Operating profit was $3,078,000 for the quarter ended June 30, 2012 compared to$2,460,000 for the comparable period last year, an increase of 25%. Operating profit was$3,536,000 for the six months ended June 30, 2012 compared to $2,643,000 for the comparableperiod last year, an increase of 34%.

Walter C. Johnsen, Chairman and CEO said, “I am very pleased with the Company’s performance, which has just recorded its highest quarterly sales and earnings in its history.  Our Westcott, Clauss, Camillus, Physicians Care, and Pac-Kit brands each had record quarterly sales. In addition, our back-to-school sales continue to be strong.”
 
Mr. Johnsen added that The C-Thru Ruler product family has now been integrated into Acme United’s operations. He looks forward to its contribution to earnings in the third quarter and going forward.
 
The Company’s bank debt less cash on June 30, 2012 was $15.9 million compared to $14.4 million on June 30, 2011.  On June 7, 2012, the Company paid approximately $1.5 million for certain assets of the C-Thru Ruler Company. Additionally, during the 12 month period ended June 30, 2012, Acme purchased 40,560 shares of its common stock for treasury for a total of approximately $400,000, paid approximately $800,000 in dividends on its common stock and generated $1.3 million in cash flow from operations less capital expenditures.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office, hardware and industrial markets. Its leading brands include Westcott®, Clauss®, Camillus®, PhysiciansCare ® and Pac-Kit®.

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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, including its ability to integrate successfully companies which it may acquire from time to time and (v) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
 
 
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ACME UNITED CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
SECOND QUARTER REPORT 2012
 
(Unaudited)
 
             
             
   
Three Months Ended
   
Three Months Ended
 
Amounts in 000's except per share data
 
June 30, 2012
   
June 30, 2011
 
             
             
Net sales
  $ 27,594     $ 24,029  
Cost of goods sold
    17,773       15,346  
Gross profit
    9,821       8,683  
Selling, general, and administrative expenses
    6,743       6,223  
Income from operations
    3,078       2,460  
Interest expense
    91       114  
Interest income
    (29 )     (40 )
     Net interest expense
    62       74  
Other expense
    43       3  
Total other expense
    105       77  
Pre-tax income
    2,973       2,383  
Income tax expense
    912       640  
Net income
  $ 2,061     $ 1,743  
                 
Shares outstanding - Basic
    3,103       3,096  
Shares outstanding - Diluted
    3,144       3,117  
                 
Earnings per share basic
  $ 0.66     $ 0.56  
Earnings per share diluted
    0.66       0.56  
 
 
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ACME UNITED CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
SECOND QUARTER REPORT 2012 (cont.)
 
(Unaudited)
 
             
             
   
Six Months Ended
   
Six Months Ended
 
Amounts in 000's except per share data
 
June 30, 2012
   
June 30, 2011
 
             
             
Net sales
  $ 44,472     $ 38,430  
Cost of goods sold
    28,707       24,439  
Gross profit
    15,765       13,991  
Selling, general, and administrative expenses
    12,229       11,348  
Income from operations
    3,536       2,643  
Interest expense
    193       211  
Interest income
    (76 )     (90 )
     Net interest expense
    118       121  
Other expense (income)
    86       (22 )
Total other expense
    203       99  
Pre-tax income
    3,333       2,544  
Income tax expense
    1,013       681  
Net income
  $ 2,320     $ 1,863  
                 
Shares outstanding - Basic
    3,118       3,085  
Shares outstanding - Diluted
    3,142       3,111  
                 
Earnings per share basic
  $ 0.74     $ 0.60  
Earnings per share diluted
    0.74       0.60  
 
 
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ACME UNITED CORPORATION
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
SECOND QUARTER REPORT 2012
 
(Unaudited)
 
             
             
Amounts in 000's
 
June 30, 2012
   
June 30, 2011
 
             
Assets:
           
Current assets:
           
Cash
  $ 7,141     $ 4,234  
Accounts receivable, net
    23,857       23,481  
Inventories
    26,681       23,575  
Prepaid and other current assets
    1,859       1,298  
Total current assets
    59,538       52,588  
                 
Property and equipment, net
    2,377       2,303  
Long term receivable
    1,734       1,810  
Intangible assets, less amortization
    4,288       3,331  
Other assets
    1,217       1,032  
Total assets
  $ 69,154     $ 61,064  
                 
Liabilities and stockholders' equity:
               
Current liabilities
               
Accounts payable
  $ 9,968     $ 8,210  
Other current liabilities
    5,612       5,145  
Total current liabilities
    15,580       13,355  
Bank debt
    23,005       18,601  
Other non current liabilities
    1,130       1,583  
      39,715       33,539  
Total stockholders' equity
    29,439       27,525  
Total liabilities and stockholders' equity
  $ 69,154     $ 61,064  
 
 
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