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 19, 2013
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 19, 2013, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2013. 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 19, 2013. |
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 19, 2013 | ||
| By | /s/ Paul G. Driscoll | |
| Paul G. Driscoll | ||
| Vice President and | ||
| Chief Financial Officer | ||
| Dated: July 19, 2013 | ||
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EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Press release dated July 19, 2013. |
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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 19, 2013 |
ACME UNITED CORPORATION REPORTS RECORD QUARTERLY EARNINGS
FAIRFIELD, CONN. – July 19, 2013 – Acme United Corporation (NYSE MKT:ACU) today announced record quarterly net income of $2,210,000, or $.68 per diluted share, for the quarter ended June 30, 2013, compared to $2,061,000 or $.66 per diluted share for the comparable period in 2012, an increase of 7% in net income and 3% in diluted earnings per share.
Net income for the six months ended June 30, 2013 was $2,520,000, or $.78 per diluted share, compared to $2,320,000, or $.74 per diluted share in the comparable period last year, a 9% increase in net income and 5% increase in diluted earnings per share.
Net sales for the six months ended June 30, 2013 were $46.1 million, compared to $44.5 million in the same period in 2012, an increase of 4%. Net sales for the second quarter ended June 30, 2013 were $28.4 million, compared to $27.6 million in the comparable period of 2012, an increase of 3%.
Net sales for the quarter ended June 30, 2013 in the U.S. segment increased 5% compared to the same period in 2012 due to increased back to school sales and additional sales resulting from the acquisition of the C-Thru Ruler Company in June 2012. Net sales for the six months ended June 30, 2013 in the U.S. segment increased 8% compared to the same period in 2012 due to additional sales resulting from the acquisition of the C-Thru Ruler Company in June 2012, increased back to school sales and higher sales of Camillus knives.
Net sales in Canada for the three months ended June 30, 2013 decreased 5% in U.S. dollars and 3% in local currency compared to the same period in 2012. Net sales for the six months ended June 30, 2012 in Canada decreased 4% in U.S. dollars and 3% in local currency compared to the same period in 2012.
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Net sales in Europe for the three months ended June 30, 2013 increased 3% in U.S. dollars and 2% in local currency compared to the same period in 2012. Net sales for the six months ended June 30, 2013 in Europe decreased 18% in both U.S. dollars and local currency compared to the same period in 2012 primarily due to the bankruptcy and liquidation of a large customer in Germany in the second quarter of 2012.
Gross margins were 35.5% in the second quarter of 2013 compared to 35.6% in the second quarter of 2012. Gross margins were 35.8% for the six months ended June 30, 2013 compared to 35.4% for the comparable period last year.
Walter C. Johnsen, Chairman and CEO said, “We had the best quarterly sales and earnings in the Company’s history during the second quarter of 2013, an achievement especially significant as last year’s second quarter was also a record. Our back-to-school products continue to sell well and make market share inroads.” Mr. Johnsen added that sales of Camillus knives, PacKit first aid kits, and our gardening tools appear to be broadening the Company’s earnings base and may strengthen the second half performance.
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®.
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; and (vii) 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 2013 | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | Three Months Ended | |||||||
| Amounts in 000's except per share data | June 30, 2013 | June 30, 2012 | ||||||
| Net sales | $ | 28,412 | $ | 27,594 | ||||
| Cost of goods sold | 18,331 | 17,773 | ||||||
| Gross profit | 10,081 | 9,821 | ||||||
| Selling, general, and administrative expenses | 6,889 | 6,743 | ||||||
| Income from operations | 3,192 | 3,078 | ||||||
| Interest expense | 114 | 91 | ||||||
| Interest income | (40 | ) | (29 | ) | ||||
| Net interest expense | 74 | 62 | ||||||
| Other expense | 25 | 43 | ||||||
| Total other expense | 99 | 105 | ||||||
| Pre-tax income | 3,093 | 2,973 | ||||||
| Income tax expense | 883 | 912 | ||||||
| Net income | $ | 2,210 | $ | 2,061 | ||||
| Shares outstanding - Basic | 3,156 | 3,103 | ||||||
| Shares outstanding - Diluted | 3,265 | 3,144 | ||||||
| Earnings per share basic | $ | 0.70 | $ | 0.66 | ||||
| Earnings per share diluted | 0.68 | 0.66 | ||||||
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| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| SECOND QUARTER REPORT 2013 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended | Six Months Ended | |||||||
| Amounts in 000's except per share data | June 30, 2013 | June 30, 2012 | ||||||
| Net sales | $ | 46,063 | $ | 44,472 | ||||
| Cost of goods sold | 29,554 | 28,707 | ||||||
| Gross profit | 16,509 | 15,765 | ||||||
| Selling, general, and administrative expenses | 12,803 | 12,229 | ||||||
| Income from operations | 3,706 | 3,536 | ||||||
| Interest expense | 241 | 193 | ||||||
| Interest income | (98 | ) | (76 | ) | ||||
| Net interest expense | 143 | 117 | ||||||
| Other expense | 28 | 86 | ||||||
| Total other expense | 171 | 203 | ||||||
| Pre-tax income | 3,535 | 3,333 | ||||||
| Income tax expense | 1,015 | 1,013 | ||||||
| Net income | $ | 2,520 | $ | 2,320 | ||||
| Shares outstanding - Basic | 3,144 | 3,118 | ||||||
| Shares outstanding - Diluted | 3,233 | 3,142 | ||||||
| Earnings per share basic | $ | 0.80 | $ | 0.74 | ||||
| Earnings per share diluted | 0.78 | 0.74 | ||||||
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| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| SECOND QUARTER REPORT 2013 | ||||||||
| (Unaudited) | ||||||||
| Amounts in 000's | June 30, 2013 | June 30, 2012 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash | $ | 8,458 | $ | 7,141 | ||||
| Accounts receivable, net | 25,420 | 23,857 | ||||||
| Inventories | 29,450 | 26,681 | ||||||
| Prepaid and other current assets | 2,115 | 1,859 | ||||||
| Total current assets | 65,443 | 59,538 | ||||||
| Property and equipment, net | 2,353 | 2,377 | ||||||
| Long term receivable | 1,669 | 1,734 | ||||||
| Intangible assets, less amortization | 4,156 | 4,288 | ||||||
| Other assets | 1,115 | 1,217 | ||||||
| Total assets | $ | 74,736 | $ | 69,154 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 9,092 | $ | 9,968 | ||||
| Other current liabilities | 5,401 | 5,612 | ||||||
| Total current liabilities | 14,493 | 15,580 | ||||||
| Bank debt | 26,012 | 23,005 | ||||||
| Other non current liabilities | 1,021 | 1,130 | ||||||
| 41,526 | 39,715 | |||||||
| Total stockholders' equity | 33,210 | 29,439 | ||||||
| Total liabilities and stockholders' equity | $ | 74,736 | $ | 69,154 | ||||
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