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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, 2004
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 3,405,921 shares outstanding as of October 21, 2004 of its $2.50
par value Common Stock.
(1)
ACME UNITED CORPORATION
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Item 2.02 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: (203) 332-7330 FAX: (203) 576-1547
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FOR IMMEDIATE RELEASE October 22, 2004
ACME UNITED CORPORATION REPORTS 22% SALES AND MORE THAN TRIPLE EARNINGS
INCREASES FOR THE THIRD QUARTER
FAIRFIELD, CONN. - October 22, 2004 - Acme United Corporation (ASE:ACU) today
announced net income of $1,017,000 or $.26 per diluted share for the third
quarter ending September 30, 2004 compared to $302,000 or $.08 per diluted share
for the comparable period last year. Net income for the first nine months ending
September 30, 2004 was $2,484,000, or $.66 per diluted share compared to
$995,000, or $.28 per diluted share in the comparable period last year.
Net sales for the quarter ending September 30, 2004 were $11.6 million
compared to $9.5 million in 2003, an increase of 22%. Net sales in the U.S.
increased 21% due to the launch of new products and market share gains.
International sales increased by 4%. Net sales for the first nine months ending
September 30, 2004 were $32.5 million compared to $26.9 million in 2003, an
increase of 21% (19% at constant currency).
The Clauss acquisition in June of this year is progressing ahead of
plan. The business contributed approximately $750,000 in revenue during the
third quarter.
Walter C. Johnsen, President and CEO, said, "Acme United had a strong
back to school season with market share gains. I am particularly pleased with
the reception of our new products including titanium sewing scissors and paper
trimmers. The revamped Westcott ruler line was well received at the recent
school, home and office product show."
Gross margins were 47% in the third quarter of 2004 versus 33% in the
comparable period last. The gross margin for the third quarter 2003 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%. For the first nine months of 2004 gross margins were 45%
compared to 37% in 2003. The improvement is mainly due to new product sales.
(3)
Income before income taxes was $1.6 million in the third quarter of
2004 compared with $565,000 in the third quarter of 2003, an increase of $1.0
million. Pretax income for the first nine months was $4.1 million in 2004
compared to $1.9 million in 2003.
The Company's debt less cash on September 30, 2004 was $1.8 million
compared to $5.6 million on September 30, 2003. During the first nine months of
2004, the Company repurchased 46,830 shares at a cost of $236,000.
The Company extended its debt facility until 2007 and reduced its
interest rate to LIBOR plus 1.5%, or approximately 3.75%. The $10 million
facility had unused capacity of $6.8 million at September 30, 2004 and is no
longer tied to asset availability.
The board of directors declared a cash dividend of 2 cents per share
payable on October 29, 2004 to shareholders of record on the close of business
on October 9, 2004.
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 2004
Quarter Ended Quarter Ended
September 30, 2004 September 30, 2003
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 11,595 $ 9,538
Gross Profit 5,453 3,171
Selling, General, and Administrative Expenses 3,739 2,648
Other (Income) Expense 98 (42)
Pre-Tax Income 1,616 565
Income Tax Expense 599 263
Net Income 1,017 302
Earnings Per Share Basic 0.30 0.09
Earnings Per Share Diluted 0.26 0.08
Nine Months Ended Nine Months Ended
September 30, 2004 September 30, 2003
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 32,460 $ 26,869
Gross Profit 14,691 9,973
Selling, General, and Administrative Expenses 10,288 7,854
Other (Income) Expense 257 245
Pre-Tax Income (loss) 4,146 1,874
Income Tax Expense 1,662 879
Net Income 2,484 995
Earnings Per Share Basic 0.74 0.30
Earnings Per Share Diluted 0.66 0.28
(5)
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
THIRD QUARTER REPORT 2004
(Unaudited)
Amounts in $000's except per share data September 30, 2004 September 30, 2003
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Assets:
Current Assets:
Cash $ 1,599 $ 825
Accounts Receivable, Net 11,213 9,600
Inventories 8,053 8,214
Prepaid and Other current Assets 647 491
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Total Current Assets 21,512 19,130
Property and Equipment, Net 2,212 2,222
Other Assets 711 447
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Total Assets $ 24,435 $ 21,799
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Liabilities and Stockholders' Equity:
Current Liabilities
Notes Payable $ 118 $ 3
Accounts Payable 1,928 2,395
Other Current Liabilities 5,365 2,506
Current Portion of Long Term Debt 1,000 4,316
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Total Current Liabilities 8,411 9,220
Long-Term debt 2,308 2,062
Other Non Current Liabilities 701 953
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11,420 12,235
Total Stockholders' Equity 13,015 9,564
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Total Liabilities and Stockholders' Equity $ 24,435 $ 21,799
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(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
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Walter C. Johnsen
President and
Chief Executive Officer
Dated: October 21, 2004
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: October 21, 2004
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