Acme United Reports 21% Sales Increase and Record 109% Net Income Increase for Fourth Quarter of 2020
Acme United’s revenues in the fourth quarter and year ended
Net income was
Chairman and CEO
For the fourth quarter of 2020, net sales in the
European net sales for the fourth quarter of 2020 increased 65% in
Net sales in
Gross margin was 36.8% in the fourth quarter of 2020 versus 36.3% in the comparable period last year. Gross margin was 36.3% in the year ended
Included in other expense in the fourth quarter of 2020 is a one-time charge of
On
The Company’s debt less cash on
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 the impact that the global COVID-19 pandemic has had and will continue to have on the Company’s business, operations and financial results. These include, the extent of the COVID-19 pandemic, including the duration, spread, severity, and any recurrence of the COVID-19 pandemic including through any new variant strains of the underlying virus; the effectiveness and availability of vaccines; the duration and scope of pandemic-related government orders and restrictions on commercial and other activities, including retail store, office, school and restaurant closures; the duration and scope of the Company’s actions to maintain employee health at our offices, production facilities and distribution centers; the extent of the impact of the COVID-19 pandemic on overall demand for the Company’s products; the pace of recovery when an effective vaccine is widely available or when the pandemic otherwise subsides and the heightened impact the pandemic has on many of the risks described herein, including, without limitation, risks relating to the on-going world-wide economic downturn, and potential disruptions in our supply chain, any of which could adversely impact the Company’s ability to manufacture, source or distribute it products, both domestically and internationally.
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, whether caused by COVID-19 or otherwise, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits, including COVID-19 related changes; (iv) the impact of competition; (v) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment, including additional inventory acquired to respond to COVID-19 related uncertainties; (viii) currency fluctuations; (ix) 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 (x) other risks and uncertainties indicated from time to time in the Company’s filings with the
CONTACT:
Phone: (203) 254-6060
FAX: (203) 254-6521
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2020 | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | Quarter Ended | |||||||
| Amounts in |
||||||||
| Net sales | $ | 40,871 | $ | 33,873 | ||||
| Cost of goods sold | 25,824 | 21,579 | ||||||
| Gross profit | 15,047 | 12,294 | ||||||
| Selling, general, and administrative expenses | 12,151 | 10,893 | ||||||
| Income from operations | 2,896 | 1,401 | ||||||
| Interest expense | (203 | ) | (338 | ) | ||||
| Interest income | 8 | 12 | ||||||
| Net interest expense | (195 | ) | (326 | ) | ||||
| Other (expense) income, net | (667 | ) | (46 | ) | ||||
| Total other expense, net | (862 | ) | (372 | ) | ||||
| Pre-tax income | 2,034 | 1,029 | ||||||
| Income tax expense | (9 | ) | 52 | |||||
| Net income | $ | 2,043 | $ | 977 | ||||
| Shares outstanding - Basic | 3,340 | 3,352 | ||||||
| Shares outstanding - Diluted | 3,753 | 3,495 | ||||||
| Earnings per share basic | $ | 0.61 | $ | 0.29 | ||||
| Earnings per share diluted | 0.54 | 0.28 | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| YEAR END REPORT 2020 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Year Ended | Year Ended | |||||||
| Amounts in |
||||||||
| Net sales | $ | 164,003 | $ | 142,457 | ||||
| Cost of goods sold | 104,408 | 90,456 | ||||||
| Gross profit | 59,595 | 52,001 | ||||||
| Selling, general, and administrative expenses | 48,182 | 43,572 | ||||||
| Income from operations | 11,413 | 8,429 | ||||||
| Interest expense | (944 | ) | (1,828 | ) | ||||
| Interest income | 25 | 40 | ||||||
| Net interest expense | (919 | ) | (1,788 | ) | ||||
| Other expense, net | (666 | ) | (98 | ) | ||||
| Total other expense, net | (1,585 | ) | (1,886 | ) | ||||
| Pre-tax income | 9,827 | 6,543 | ||||||
| Income tax expense | 1,728 | 1,030 | ||||||
| Net income | $ | 8,098 | $ | 5,513 | ||||
| Shares outstanding - Basic | 3,343 | 3,352 | ||||||
| Shares outstanding - Diluted | 3,509 | 3,453 | ||||||
| Earnings per share basic | $ | 2.42 | 1.65 | |||||
| Earnings per share diluted | 2.31 | 1.60 | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| YEAR END REPORT 2020 | ||||||||
| (Unaudited) | ||||||||
| Amounts in |
||||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash | $ | 4,167 | $ | 6,822 | ||||
| Accounts receivable, net | 27,173 | 25,485 | ||||||
| Inventories | 50,704 | 39,261 | ||||||
| Prepaid and other current assets | 1,641 | 1,578 | ||||||
| Total current assets | 83,685 | 73,146 | ||||||
| Property and equipment, net | 20,239 | 14,036 | ||||||
| Intangible assets, less amortization | 18,825 | 15,793 | ||||||
| 4,696 | 4,696 | |||||||
| Operating lease right of use asset | 2,422 | 2,989 | ||||||
| Other assets | - | 89 | ||||||
| Total assets | $ | 129,867 | $ | 110,749 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,601 | $ | 6,693 | ||||
| Operating lease liability - short term | 873 | 1,047 | ||||||
| Mortgage payable - short term | 267 | 267 | ||||||
| Other current liabilities | 11,297 | 8,626 | ||||||
| Total current liabilities | 20,235 | 16,633 | ||||||
| Non-current liabilities | ||||||||
| Long term debt | 38,767 | 33,240 | ||||||
| Note Payable (PPP) | 3,508 | - | ||||||
| Mortgage payable - long term | 2,911 | 3,178 | ||||||
| Operating lease liability - long term | 1,654 | 1,961 | ||||||
| Other non current liabilities | 257 | 32 | ||||||
| Total liabilities | 67,135 | 55,044 | ||||||
| Total stockholders' equity | 62,732 | 55,705 | ||||||
| Total liabilities and stockholders' equity | $ | 129,867 | $ | 110,749 | ||||
Acme United Corporation