UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): March 3, 2005
ACME UNITED CORPORATION
(Exact name of registrant as specified in its charter)
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Connecticut 01-07698 06-0236700
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) file number) 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
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[_] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On March 3, 2005, Acme United Corporation (the "Company") issued a press release
announcing its financial results for the three-month period and year ended
December 31, 2004. A copy of the press release is attached as Exhibit 99.1 to
this current report.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Exhibit Number Description
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99.1 Press release dated March 3, 2005.
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 March 3, 2005
ACME UNITED CORPORATION REPORTS 24% SALES INCREASE AND STRONG EARNINGS FOR 2004
FAIRFIELD, CONN. - March 3, 2005 - Acme United Corporation (AMEX:ACU)
today announced net income for the year 2004 of $3.2 million or $.85 per diluted
share compared to $1.2 million or $.34 per diluted share in 2003.
Net sales in 2004 were $43.4 million versus $35.0 million in 2003, an
increase of 24% (22% at constant currency). Net sales in the U.S. increased by
23% due to the success of new products, market share gains and the acquisition
of Clauss Cutlery in June of 2004. Clauss added approximately $1.7 million to
the U.S. sales growth in 2004. Combined sales in Europe and Canada increased by
14% (5% in constant currency). The Company's new business unit in Hong Kong
began selling to global customers in January of 2004 and generated sales of $1.2
million in 2004.
For the fourth quarter of 2004, net income was $754,000 or $.19 per
diluted share compared to $227,000, or $.06 per diluted share in 2003. Net sales
for the fourth quarter of 2004 were $10.9 million compared to $8.1 in the same
quarter of 2003, an increase of 35% (33% at constant currency).
Walter C. Johnsen, President and CEO, said, "We are particularly
pleased with our new product successes and market share gains. Products
introduced during the past 36 months accounted for 25% of 2004 domestic
revenues. I am particularly happy with the momentum we have going into 2005."
Gross margins were 45% in 2004 versus 38% in 2003. The improvement is
primarily due to increased sales of new products and productivity gains.
On December 31, 2004, cash exceeded total debt by $454,000. The
Company's total debt less cash was $3.5 million on December 31, 2003. During
2004 the Company repurchased 48,830 shares at a cost of $252,798. The Company
also paid dividends of 4 cents per share in 2004 amounting to $143,007.
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.
# # #
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
YEAR END REPORT 2004
Quarter Ended Quarter Ended
December 31, 2004 December 31, 2003
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 10,921 $ 8,106
Gross Profit 4,962 3,160
Selling, General, and Administrative Expenses 3,874 2,793
Other (Income) Expense (106) (101)
Pre-Tax Income 1,194 468
Income Tax Expense 440 241
Net Income 754 227
Earnings Per Share Basic 0.22 0.07
Earnings Per Share Diluted 0.19 0.06
Year Ended Year Ended
December 31, 2004 December 31, 2003
Amounts in $000's except per share data (Unaudited)
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Net Sales $ 43,381 $ 34,975
Gross Profit 19,653 13,133
Selling, General, and Administrative Expenses 14,162 10,646
Other (Income) Expense 151 145
Pre-Tax Income 5,340 2,342
Income Tax Expense 2,102 1,120
Net Income 3,238 1,222
Earnings Per Share Basic 0.96 0.37
Earnings Per Share Diluted 0.85 0.34
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
YEAR END REPORT 2004
(Unaudited)
Amounts in $000's
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December 31, 2004 December 31, 2003
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Assets
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Current Assets:
Cash $ 1,930 $ 1,391
Accounts Receivable, Net 8,885 6,795
Inventories 8,389 8,179
Prepaid and Other current Assets 764 546
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Total Current Assets 19,968 16,911
Property and Equipment, Net 2,295 2,385
Other Assets 746 447
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Total Assets $ 23,009 $ 19,743
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Liabilities and Stockholders' Equity
Current Liabilities
Notes Payable $ 42 $ 141
Accounts Payable 2,316 1,743
Other Current Liabilities 4,682 2,215
Current Portion of Long Term Debt 1,379 2,035
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Total Current Liabilities 8,419 6,134
Long-Term debt 55 2,752
Other Non Current Liabilities 552 678
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9,026 9,564
Total Stockholders' Equity 13,983 10,179
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Total Liabilities and Stockholders' Equity $ 23,009 $ 19,743
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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 hereunto duly authorized.
ACME UNITED CORPORATION
By /s/ WALTER C. JOHNSEN
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Walter C. Johnsen
President and
Chief Executive Officer
Dated: March 3, 2005
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: March 3, 2005
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press release dated March 3, 2005.