Acme United Reports 14% Sales Increase and 50% EPS Increase for First Quarter of 2020
Acme United’s first quarter 2020 revenues included approximately
Net income was
Chairman and CEO
For the first quarter of 2020, net sales in the
European net sales for the first quarter of 2020 increased 16% in
Net sales in
Gross margin was 37.8% in the first quarter of 2020 versus 37.6% in the comparable period last year.
The Company’s bank debt less cash on
“Nevertheless, we recognize that, like many other businesses, we may face significant challenges resulting from the COVID-19 pandemic including uncertainties around the duration and magnitude of the COVID-19 outbreak. These include, for example, revenue uncertainty with retailers whose stores are closed or whose traffic has significantly declined. The Company’s sales of first aid and safety products and on-line revenues may not be sufficient to offset potential declines in our office product lines or may also decline from recent high levels. Accordingly, as a result of these uncertainties, we are not providing financial guidance for 2020 at this time."
Conference Call and Webcast Information
About
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 those arising as a result of the effects of the global COVID-19 outbreak and measures taken to limit its spread, including the on-going world-wide economic downturn and further actions that may be taken by governmental authorities or by businesses or individuals on their own initiative in response to the pandemic, any of which could adversely impact the Company’s ability to manufacture, source or distribute its products, both domestically and internationally, or reduce demand for its products.. These risks and uncertainties further include, 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) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (ix) other risks and uncertainties indicated from time to time in the Company’s filings with the
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| FIRST QUARTER REPORT 2020 | |||||||||||
| (Unaudited) | |||||||||||
| Quarter Ended | Quarter Ended | ||||||||||
| Amounts in 000's except per share data | |||||||||||
| Net sales | $ | 35,775 | $ | 31,370 | |||||||
| Cost of goods sold | 22,244 | 19,568 | |||||||||
| Gross profit | 13,531 | 11,802 | |||||||||
| Selling, general and administrative expenses | 11,521 | 10,268 | |||||||||
| Operating income | 2,010 | 1,534 | |||||||||
| Interest expense | 322 | 510 | |||||||||
| Interest income | (8 | ) | (9 | ) | |||||||
| Net interest expense | 314 | 501 | |||||||||
| Other expense (income), net | 44 | (2 | ) | ||||||||
| Income before income tax expense | 1,652 | 1,035 | |||||||||
| Income tax expense | 375 | 228 | |||||||||
| Net income | $ | 1,277 | $ | 807 | |||||||
| Shares outstanding - basic | 3,349 | 3,351 | |||||||||
| Shares outstanding - diluted | 3,519 | 3,392 | |||||||||
| Earnings per share - basic | $ | 0.38 | $ | 0.24 | |||||||
| Earnings per share - diluted | 0.36 | 0.24 | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| FIRST QUARTER REPORT 2020 | |||||||||||
| (Unaudited) | |||||||||||
| Amounts in |
|||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 4,272 | $ | 3,798 | |||||||
| Accounts receivable, net | 27,413 | 25,228 | |||||||||
| Inventories | 36,250 | 40,570 | |||||||||
| Prepaid expenses and other current assets | 1,926 | 2,281 | |||||||||
| Total current assets | 69,861 | 71,877 | |||||||||
| Plant, property and equipment, net | 14,097 | 14,423 | |||||||||
| Operating lease right of use asset | 2,711 | 2,674 | |||||||||
| Intangible assets, less accumulated amortization | 15,478 | 16,736 | |||||||||
| 5,886 | 4,696 | ||||||||||
| Other assets | 89 | 209 | |||||||||
| Total assets | $ | 108,122 | $ | 110,615 | |||||||
| Liabilities and stockholders' equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 5,186 | $ | 5,672 | |||||||
| Operating lease liability - short term | 1,003 | 1,030 | |||||||||
| Mortgage payable - short term | 267 | 267 | |||||||||
| Other current liabilities | 6,955 | 4,374 | |||||||||
| Total current liabilities | 13,411 | 11,343 | |||||||||
| Long-term debt | 33,853 | 41,340 | |||||||||
| Mortgage payable - long term | 3,111 | 3,378 | |||||||||
| Operating lease liability - long term | 1,765 | 1,650 | |||||||||
| Other non-current liabilities | 157 | 36 | |||||||||
| Total liabilities | 52,297 | 57,747 | |||||||||
| Total stockholders' equity | 55,825 | 52,868 | |||||||||
| Total liabilities and stockholders' equity | $ | 108,122 | $ | 110,615 | |||||||
CONTACT:
Phone: (203) 254-6060
FAX: (203) 254-6521
Source: Acme United Corporation