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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported) October 21, 2003
Commission file number Q4823
ACME UNITED CORPORATION
(Exact name of registrant as specified in its charter)
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CONNECTICUT 06-0236700
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1931 BLACK ROCK TURNPIKE, Fairfield, Connecticut 06825
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 332-7330
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes | X | No | |
Registrant had 3,265,551 shares outstanding as of October 21, 2003 of its $2.50
par value Common Stock.
(1)
ACME UNITED CORPORATION
Page
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Item 12. Results of Operations and Financial Condition...... 3
Signatures.................................................. 7
(2)
ACME UNITED CORPORATION NEWS RELEASE
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CONTACT: Paul G. Driscoll Acme United Corporation
1931 Black Rock Turnpike Fairfield, CT 06825
Phone: 332-7330 FAX: (203) 576-1547
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FOR IMMEDIATE RELEASE October 22, 2003
ACME UNITED CORPORATION REPORTS 21% SALES INCREASE AND IMPROVED EARNINGS
FAIRFIELD, CONN. - October 22, 2003 - Acme United Corporation (ASE:ACU)
today announced net sales of $9.5 million for the quarter ending September 30,
2003 compared to $7.9 million for the same quarter in 2002, an increase of 21%
(17% at constant currency). Net sales for the nine months ending September 30,
2003 were $26.9 million compared to $24.0 million for the same period in 2002,
an increase of 12% (8% at constant currency). Year to date net sales in the U.S.
increased 13% due to the launch of new products, market share gains and new
customers. Year to date international sales increased by 8%, primarily due to
currency gains.
Net income for the quarter ending September 30, 2003 was $302,000 or
$.08 per diluted share compared to $270,000 or $.08 per diluted share for the
comparable period last year. Net income for the nine months ending September 30,
2003 was $995,000, or $.28 per share compared to $619,000 or $.17 per share in
the comparable period last year.
Walter C. Johnsen, President and CEO, said, "We have made significant
progress this year. Sales have increased due to new products and market share
gains. Our prior investments in new product development are paying off. The back
to school season was strong with the acceptance of titanium scissors and
"Critters", our new line of children scissors. We expect the positive response
to our new products to continue."
Gross margins were 33.2% in the third quarter of 2003 versus 33.9% in
the comparable period last year. The gross margin for the quarter was reduced by
approximately $200,000 due to costs associated with the closure of manufacturing
in Germany. Gross margins for the quarter without this effect would have been
35.3%. Gross margins for the first nine months of 2003 were 37.1% compared to
33.2% in 2002. The improvement is primarily due to new products and productivity
gains.
(3)
Income before income taxes was $565,000 in the third quarter of 2003
compared with a loss of $104,000 in the third quarter of 2002, an increase of
$669,000. Pretax income for the first nine months was $1.9 million in 2003
compared to $333,000 in 2002.
Income tax expense for the third quarter of 2003 was $263,000 versus a
tax benefit of $374,000 in the third quarter of 2002. In 2002 the Company
recognized a significant one-time income tax benefit associated with liquidating
its UK business.
The Company's debt less cash on September 30, 2003 was $5.6 million
compared to $6.1 million on September 30, 2002. During the first nine months of
2003, the Company repurchased 118,200 shares at a cost of $470,000.
ACME UNITED CORPORATION is a specialized supplier of cutting devices,
measuring instruments, and safety products for school, home, and office use.
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) the Company's
plans, strategies, objectives, expectations and intentions are subject to change
at any time at the discretion of the Company; (ii) the Company's plans and
results of operations will be affected by the Company's ability to manage its
growth, and (iii) other risks and uncertainties indicated from time to time in
the Company's filings with the Securities and Exchange Commission.
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(4)
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
THIRD QUARTER REPORT 2003
Quarter Ended Quarter Ended
September 30, 2003 September 30, 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 9,538 $ 7,867
Gross Profit 3,171 2,663
Selling, General, and Administrative Expenses 2,648 2,688
Other (Income) Expense (43) 79
Pre-Tax Income (loss) 565 (104)
Income Tax Expense (Benefit) 263 (374)
Net Income 302 270
Earnings Per Share Basic 0.09 0.08
Earnings Per Share Diluted 0.08 0.08
Nine Months Ended Nine Months Ended
September 30, 2003 September 30, 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 26,869 $ 24,020
Gross Profit 9,973 7,971
Selling, General, and Administrative Expenses 7,854 7,372
Other (Income) Expense 245 266
Pre-Tax Income 1,874 333
Income Tax Expense (Benefit) 879 (286)
Net Income 995 619
Earnings Per Share Basic 0.30 0.18
Earnings Per Share Diluted 0.28 0.17
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
THIRD QUARTER REPORT 2003
(Unaudited)
Amounts in $000's
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Assets September 30, 2003 September 30, 2002
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Current Assets:
Cash $ 825 $ 594
Accounts Receivable, Net 9,600 7,927
Inventories 8,214 6,592
Prepaid and Other current Assets 491 988
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Total Current Assets 19,130 16,101
Property and Equipment, Net 2,222 2,440
Other Assets 447 1,384
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Total Assets $ 21,799 $ 19,925
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Liabilities and Stockholders' Equity
Current Liabilities
Notes Payable $ 3 $ 448
Accounts Payable 2,395 1,457
Other Current Liabilities 2,506 1,945
Current Portion of Long Term Debt 4,316 2,578
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Total Current Liabilities 9,220 6,428
Long-Term debt 2,062 3,635
Other Non Current Liabilities 953 499
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12,235 10,562
Total Stockholders' Equity 9,564 9,363
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Total Liabilities and Stockholders' Equity $ 21,799 $ 19,925
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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 thereunto duly authorized.
ACME UNITED CORPORATION
By /s/ WALTER C. JOHNSEN
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Walter C. Johnsen
President and
Chief Executive Officer
Dated: October 21, 2003
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: October 21, 2003
(7)