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): February 26, 2014
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 February 26, 2014, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the Year ended December 31, 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 February 26, 2014. |
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: February 26, 2014 | ||
| By | /s/ Paul G. Driscoll | |
| Paul G. Driscoll | ||
| Vice President and | ||
| Chief Financial Officer | ||
| Dated: February 26, 2014 | ||
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EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Press release dated February 26, 2014. |
| 3 |
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 February 26, 2014 |
ACME UNITED CORPORATION REPORTS 9% SALES INCREASE AND 22% INCREASE IN NET INCOME FOR THE FOURTH QUARTER
FAIRFIELD, CONN. – February 26, 2014 – Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the fourth quarter ended December 31, 2013 were $21.4 million, compared to $19.5 million in the comparable period of 2012, an increase of 9%.
Net income was $524,000, or $.15 per diluted share, for the quarter ended December 31, 2013, compared to $431,000 or $.14 per diluted share, for the comparable period of 2012, an increase of 22% in net income and 7% in diluted earnings per share.
Net sales for the year ended December 31, 2013 were $89.6 million, compared to $84.4 million in 2012, an increase of 6%.
Net income for the year ended December 31, 2013 was $4,003,000, or $1.22 per diluted share, compared to $3,549,000, or $1.13 per diluted share for the comparable period of 2012, a 13% increase in net income and 8% increase in diluted earnings per share.
Net sales in the U.S. segment for the quarter and year ended December 31, 2013 increased 11% and 9%, respectively, compared to the same periods in 2012. The increases for both periods were primarily due to higher sales of Camillus knives and back to school products as well as increased distribution of first aid kits. Net sales in Canada for the three months ended December 31, 2013 decreased 7% in U.S dollars but remained constant in local currency compared to the same period in 2012. Net sales in Canada for the year ended December 31, 2013 decreased 8% in both U.S. dollars and local currency compared to 2012. The sales decline in Canada was primarily due to general softness in the office products industry. European net sales for the three months ended December 31, 2013 increased 8% in U.S. dollars (2% in local currency), compared to the same period last year. European net sales for the year ended December 31, 2013 decreased 2% in U.S. dollars (5% in local currency), compared to last year. The decreased sales in Europe were primarily due to the bankruptcy and liquidation of a large customer in Germany in the second quarter of 2012.
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Gross margins were 34.5% in the fourth quarter of 2013 versus 33.6% in the comparable period last year. Gross margins were 35.5% for the year ended December 31, 2013 versus 35.3% for the comparable period in 2012.
Operating profit was $763,000 for the quarter ended December 31, 2013 compared to $465,000 for the same period in 2012, a 64% increase. Operating profit was $5,879,000 for the year ended December 31, 2013 compared to $5,361,000 last year, an increase of 10%.
Walter C. Johnsen, Chairman and CEO said, “We performed well throughout the year, and I am pleased with the financial results. We achieved record sales, strengthened our product offerings across all our brands, and acquired a superb facility in North Carolina to consolidate many of our operations. Mr. Johnsen added that the company has continued to build its balance sheet, and is positioned to finance continued growth.”
The Company’s bank debt less cash and cash equivalents on December 31, 2013 was $11.3 million compared to $14.6 million on December 31, 2012. During the year ended December 31, 2013, Acme purchased a new distribution facility in North Carolina for $2.8 million, added $.9 million in refurbishments to the facility, and paid $.7 million in dividends on its common stock. On August 21, 2013 the Company received $1.7 million from early repayment of a mortgage receivable. During the year the Company also generated $5.5 million in free cash flow while reducing inventory by $2.1 million.
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 | ||||||||
| YEAR END REPORT 2013 | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | Quarter Ended | |||||||
| Amounts in $000's except per share data | December 31, 2013 | December 31, 2012 | ||||||
| Net sales | $ | 21,379 | $ | 19,534 | ||||
| Cost of goods sold | 14,004 | 12,979 | ||||||
| Gross profit | 7,375 | 6,555 | ||||||
| Selling, general, and administrative expenses | 6,612 | 6,090 | ||||||
| Income from operations | 763 | 465 | ||||||
| Interest expense | (122 | ) | (125 | ) | ||||
| Interest income | 13 | 61 | ||||||
| Net interest expense | (109 | ) | (64 | ) | ||||
| Other expense, net | (19 | ) | (5 | ) | ||||
| Total other expense, net | (128 | ) | (69 | ) | ||||
| Pre-tax income | 635 | 396 | ||||||
| Income tax expense (benefit) | 111 | (35 | ) | |||||
| Net income | $ | 524 | $ | 431 | ||||
| Shares outstanding - Basic | 3,189 | 3,118 | ||||||
| Shares outstanding - Diluted | 3,395 | 3,175 | ||||||
| Earnings per share basic | $ | 0.16 | $ | 0.14 | ||||
| Earnings per share diluted | 0.15 | 0.14 | ||||||
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| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2013 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Year Ended | Year Ended | |||||||
| Amounts in $000's except per share data | December 31, 2013 | December 31, 2012 | ||||||
| Net sales | $ | 89,577 | $ | 84,370 | ||||
| Cost of goods sold | 57,753 | 54,623 | ||||||
| Gross profit | 31,824 | 29,747 | ||||||
| Selling, general, and administrative expenses | 25,945 | 24,386 | ||||||
| Income from operations | 5,879 | 5,361 | ||||||
| Interest expense | (502 | ) | (444 | ) | ||||
| Interest income | 152 | 179 | ||||||
| Net interest expense | (350 | ) | (265 | ) | ||||
| Other expense, net | (35 | ) | (99 | ) | ||||
| Total other expense, net | (385 | ) | (364 | ) | ||||
| Pre-tax income | 5,494 | 4,997 | ||||||
| Income tax expense | 1,491 | 1,448 | ||||||
| Net income | $ | 4,003 | $ | 3,549 | ||||
| Shares outstanding - Basic | 3,168 | 3,116 | ||||||
| Shares outstanding - Diluted | 3,283 | 3,133 | ||||||
| Earnings per share basic | $ | 1.26 | $ | 1.14 | ||||
| Earnings per share diluted | 1.22 | 1.13 | ||||||
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| ACME UNITED CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| YEAR END REPORT 2013 | ||||||||||
| (Unaudited) | ||||||||||
| Amounts in $000's except per share data | December 31, 2013 | December 31, 2012 | ||||||||
| Assets: | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 11,644 | $ | 9,750 | ||||||
| Accounts receivable, net | 15,629 | 16,442 | ||||||||
| Inventories | 28,219 | 30,292 | ||||||||
| Prepaid and other current assets | 1,494 | 1,925 | ||||||||
| Total current assets | 56,986 | 58,409 | ||||||||
| Property and equipment, net | 5,936 | 2,353 | ||||||||
| Long term receivable | — | 1,702 | ||||||||
| Other assets | 5,157 | 5,364 | ||||||||
| Total assets | $ | 68,079 | $ | 67,828 | ||||||
| Liabilities and stockholders' equity: | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 4,789 | $ | 6,480 | ||||||
| Other current liabilities | 5,087 | 5,250 | ||||||||
| Total current liabilities | 9,876 | 11,730 | ||||||||
| Non-current liabilities | ||||||||||
| Long term debt | 22,912 | 24,320 | ||||||||
| Other non current liabilities | 286 | 912 | ||||||||
| Total liabilities | 33,074 | 36,962 | ||||||||
| Total stockholders' equity | 35,005 | 30,866 | ||||||||
| Total liabilities and stockholders' equity | $ | 68,079 | $ | 67,828 | ||||||
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