================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------
FORM 8-K
------------------------------------
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported) March 3, 2004
Commission file number Q4823
ACME UNITED CORPORATION
(Exact name of registrant as specified in its charter)
------------------
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 3,340,551 shares outstanding as of March 3, 2004 of its $2.50 par
value Common Stock.
(1)
ACME UNITED CORPORATION
Page
----
Item 12. Results of Operations and Financial Condition................ 3
Signatures............................................................ 7
(2)
ACME UNITED CORPORATION NEWS RELEASE
- --------------------------------------------------------------------------------
CONTACT: Paul G. Driscoll
Acme United Corporation
1931 Black Rock Turnpike Fairfield, CT 06825
Phone: (203) 332-7330 FAX: (203) 576-1547
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE March 3, 2004
ACME UNITED CORPORATION REPORTS 13% SALES INCREASE AND STRONG EARNINGS
FAIRFIELD, CONN. - March 3, 2004 - Acme United Corporation (ASE:ACU)
today announced net income for the year 2003 of $1.2 million or $.34 per diluted
share compared to $659,000 or $.19 per share in 2002. For the fourth quarter of
2003, net income was $227,000 or $.06 per diluted share compared to $40,000, or
$.01 per share in 2002.
Net sales in 2003 were $35.0 million versus $30.9 million in 2002, an
increase of 13% (10% at constant currency). Net sales in the U.S. increased 16%
due to the launch of new products, market share gains and new customers.
International sales increased by 5% due to currency gains. Net sales for the
fourth quarter of 2003 were $8.1 million compared to $6.9 in the same quarter of
2002, an increase of 18% (14% at constant currency).
Walter C. Johnsen, President and CEO, said, "I am particularly pleased
with our new product successes and market share gains. Products introduced
during the past 36 months accounted for 23% of 2003 revenues and continue to
gain momentum. We are entering 2004 with confidence."
Gross margins were 37.6% in 2003 versus 33.8% in 2002. The improvement
is primarily due to new products and productivity
gains.
Income before income taxes was $2.3 million in 2003 compared with
$97,000 in 2002. Excluding restructuring costs related to liquidating the UK
business, income before income taxes was $653,000 in 2002.
Income tax expense for 2003 was $1.1 million versus a tax benefit of
$562,000 in 2002. In 2002 the Company recognized a significant one-time income
tax benefit associated with the UK liquidation.
(3)
The Company's debt less cash on December 31, 2003 was $3.5 million
compared to $4.5 million on December 31, 2002. In 2003, the Company repurchased
118,200 shares, or approximately 3% of the outstanding 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.
# # #
(4)
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
YEAR END REPORT 2003
Quarter Ended Quarter Ended
December 31, 2003 December 31, 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
- -----------------------------------------------------------------------------------------------------
Net Sales $ 8,106 $ 6,863
Gross Profit 3,160 2,462
Selling, General, and Administrative Expenses 2,793 2,505
Other (Income) Expense (101) 193
Pre-Tax Income (loss) 468 (236)
Income Tax Expense (Benefit) 241 (276)
Net Income 227 40
Earnings Per Share Basic 0.07 0.01
Earnings Per Share Diluted 0.06 0.01
Year Ended Year Ended
December 31, 2003 December 31, 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
- -----------------------------------------------------------------------------------------------------
Net Sales $ 34,975 $ 30,884
Gross Profit 13,133 10,433
Selling, General, and Administrative Expenses 10,646 9,877
Other (Income) Expense 144 459
Pre-Tax Income 2,342 97
Income Tax Expense (Benefit) 1,120 (562)
Net Income 1,222 659
Earnings Per Share Basic 0.37 0.19
Earnings Per Share Diluted 0.34 0.19
(5)
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
YEAR END REPORT 2003
(Unaudited)
Amounts in $000's
- -----------------
Assets December 31, 2003 December 31, 2002
- ------ ---------------------------------------------
Current Assets:
Cash $ 1,391 $ 598
Accounts Receivable, Net 7,075 6,410
Inventories 8,179 6,675
Prepaid and Other current Assets 546 1,249
---------------------------------------------
Total Current Assets 17,191 14,932
Property and Equipment, Net 2,385 2,281
Other Assets 447 401
---------------------------------------------
Total Assets $ 20,023 $ 17,614
=============================================
Liabilities and Stockholders' Equity
Current Liabilities
Notes Payable $ 141 $ 362
Accounts Payable 1,743 1,296
Other Current Liabilities 2,495 2,027
Current Portion of Long Term Debt 2,035 2,731
---------------------------------------------
Total Current Liabilities 6,414 6,416
Long-Term debt 2,752 2,033
Other Non Current Liabilities 678 685
---------------------------------------------
9,844 9,134
Total Stockholders' Equity 10,179 8,480
---------------------------------------------
Total Liabilities and Stockholders' Equity $ 20,023 $ 17,614
=============================================
(6)
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
------------------------------
Walter C. Johnsen
President and
Chief Executive Officer
Dated: March 3, 2004
By /s/ PAUL G. DRISCOLL
------------------------------
Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: March 3, 2004
(7)