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): April 20, 2018
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.) |
|
55 Walls Drive, 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 April 20, 2018, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2018. 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 April 20, 2018. |
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: April 20, 2018 | ||
| By | /s/ Paul G. Driscoll | |
| Paul G. Driscoll | ||
| Vice President and | ||
| Chief Financial Officer | ||
| Dated: April 20, 2018 | ||
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EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Press release dated April 20, 2018. |
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Exhibit 99.1
| ACME UNITED CORPORATION | NEWS RELEASE | |||
| CONTACT: | Paul G. Driscoll | Acme United Corporation | 55 Walls Drive | Fairfield, CT 06824 |
| Phone: (203) 254-6060 | FAX: (203) 254-6521 | |||
| FOR IMMEDIATE RELEASE April 20, 2018 |
ACME UNITED REPORTS 14% SALES INCREASE AND 17% DILUTED EPS
INCREASE FOR FIRST QUARTER OF 2018
Provides Financial Guidance for 2018
FAIRFIELD, CT. – April 20, 2018 – Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended March 31, 2018 were $31.7 million compared to $27.7 million in the first quarter of 2017, an increase of 14%.
Net income was $765,000 or $0.21 per diluted share for the quarter ended March 31, 2018 compared to $659,000, or $0.18 per diluted share, for the comparable period last year, an increase of 16% in net income and 17% in diluted earnings per share.
Walter C. Johnsen, Chairman and CEO said, “We have just completed another record first quarter in sales and earnings. All of our major product groups and our international businesses contributed, with especially strong growth in our first aid and safety products, where we have been gaining industrial customers through our patented SmartCompliance System. Continuing the trend we have been seeing since 2013, our on-line sales were robust. This was a strong start for 2018, and we have many plans to continue introducing new products and applications that leverage our proprietary technologies, our diverse customer base and our global reach.”
For the first quarter of 2018, net sales in the U.S. segment increased 13% compared to the same period in 2017. The sales increase was mainly due to market share gains in first aid and safety, growth in Westcott office scissors, and strong performance from the Camillus, DMT, and Cuda knives and sharpening tools.
Net sales in Canada for the first quarter of 2018 increased 12% in U.S. dollars and 8% in local currency compared to the same period in 2017, primarily due to gains in the school and office channel and higher sales of Camillus knives.
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European net sales for the first quarter of 2018 increased 27% in U.S. dollars and 10% in local currency compared to the first quarter of 2017, mainly due to new customers in the office products channel, growth of DMT products, and strong e-commerce demand for these products.
Gross margin was 38.2% in the first quarter of 2018 versus 38.1% in the comparable period last year.
The Company is providing financial guidance for 2018 of approximately $140 million in revenues, $5.7 million in net income, and $1.53 earnings per share. This compares to sales of $130.6 million, non-GAAP net income of $5.3 million and earnings per share of $1.42 for 2017. (As previously reported, the Company’s GAAP net income of $4.1 million for 2017 included a $1.2 million non-cash tax charge related to the U.S. Tax Cuts and Jobs Act.)
The Company’s bank debt less cash on March 31, 2018 was $43.7 million compared to $38.2 million on March 31, 2017. During the twelve-month period ended March 31, 2018, the Company purchased its manufacturing and distribution facility in Vancouver, WA for $4.0 million and distributed $1.4 million in dividends on its common stock.
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Friday, April 20, 2018, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 800-289-0438. International callers may dial 323-794-2423. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives.
About Acme United
ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, and DMT®. For more information, visit www.acmeunited.com.
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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) uncertainties arising from the interpretation and application of the recently enacted Tax Act; and (ix) 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
FIRST QUARTER REPORT 2018
(Unaudited)
| Quarter Ended | Quarter Ended | |||||||
| Amounts in 000's except per share data | March 31, 2018 | March 31, 2017 | ||||||
| Net sales | $ | 31,709 | $ | 27,745 | ||||
| Cost of goods sold | 19,585 | 17,181 | ||||||
| Gross profit | 12,124 | 10,564 | ||||||
| Selling, general and administrative expenses | 10,774 | 9,372 | ||||||
| Operating income | 1,350 | 1,192 | ||||||
| Interest expense, net | 405 | 263 | ||||||
| Other income, net | (28 | ) | (9 | ) | ||||
| Income before income tax expense | 974 | 938 | ||||||
| Income tax expense | 209 | 279 | ||||||
| Net income | $ | 765 | $ | 659 | ||||
| Shares outstanding - Basic | 3,374 | 3,329 | ||||||
| Shares outstanding - Diluted | 3,662 | 3,730 | ||||||
| Earnings per share - basic | $ | 0.23 | $ | 0.20 | ||||
| Earnings per share - diluted | 0.21 | 0.18 | ||||||
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2018
(Unaudited)
| Amounts in $000's | ||||||||
| March 31, 2018 | March 31, 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,065 | $ | 6,175 | ||||
| Accounts receivable, less allowance | 24,451 | 21,251 | ||||||
| Inventories | 41,900 | 37,284 | ||||||
| Prepaid expenses and other current assets | 2,801 | 2,879 | ||||||
| Total current assets | 70,217 | 67,589 | ||||||
| Plant, Property and equipment, net | 14,158 | 8,380 | ||||||
| Intangible assets, less amortization | 17,576 | 19,525 | ||||||
| Goodwill | 4,696 | 3,948 | ||||||
| Other assets | 597 | 762 | ||||||
| Total assets | $ | 107,246 | $ | 100,204 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,483 | $ | 5,731 | ||||
| Other current liabilities | 3,669 | 3,204 | ||||||
| Total current liabilities | 11,152 | 8,935 | ||||||
| Long-term debt | 41,100 | 44,382 | ||||||
| Mortgage payable, net of current portion | 3,644 | — | ||||||
| Other non-current liabilities | 859 | 284 | ||||||
| Total liabilities | 56,755 | 53,601 | ||||||
| Total stockholders' equity | 50,491 | 46,603 | ||||||
| Total liabilities and stockholders' equity | $ | 107,246 | $ | 100,204 | ||||
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