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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): July 21, 2005
ACME UNITED CORPORATION
(Exact name of registrant as specified in its charter)
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Connecticut 001-07698 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 July 21, 2005, Acme United Corporation (the "Company") issued a press release
announcing its financial results for the three and six months ended June 30,
2005. 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 July 21, 2005.
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: July 21, 2005
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: July 21, 2005
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press release dated July 21, 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 July 21, 2005
ACME UNITED CORPORATION REPORTS 21% NET SALES INCREASE AND A 22% INCREASE IN NET
INCOME FOR ITS SECOND QUARTER
FAIRFIELD, CONN. - July 21, 2005 - Acme United Corporation (AMEX:ACU) today
announced net income of $1,314,000 or $.34 per diluted share for the second
quarter ended June 30, 2005 compared to $1,075,000 or $.29 per diluted share for
the comparable period last year. Net income for the six months ended June 30,
2005 was $1,964,000, or $.52 per diluted share compared to $1,468,000, or $.40
per diluted share in the comparable period last year, a 34% increase.
Net sales for the quarter ended June 30, 2005 were $14.9 million
compared to $12.3 million in the same period in 2004, an increase of 21% (20% at
constant currency). Net sales for the six months ended June 30, 2005 were $25.5
million compared to $20.9 million in the same period in 2004, an increase of 22%
(20% at constant currency). Net sales in the U.S. increased 25% due to the sale
of new products, market share gains and the Clauss business acquired on June 1,
2004. International sales increased by 14%, and 7% in local currency.
Gross margins were 45.2% in the second quarter of 2005 versus 44.9% in
the comparable period last year. For the first six months of 2005 gross margins
were 45.5% compared to 44.3% in the same period in 2004. The improvement is
primarily due to the sale of new products and product rationalization efforts in
Europe. These positive impacts were partially offset by mainly higher raw
material costs.
Walter C. Johnsen, President and CEO, said, "Acme United continues to
plan and invest for future growth. We are finalizing new products for
introduction in the fall, and upgrading our systems and customer support. We are
very pleased with our continued strong performance."
(1)
The Company's bank debt less cash on June 30, 2005 was $4.4 million
compared to $4.6 million on June 30, 2004. During the first six months of 2005,
the Company repurchased 146,000 shares of its common stock at a cost of $2.2
million and paid dividends in the total amount of $146,000.
On June 28, 2005 the Company announced a 50% increase in the quarterly
cash dividend to 3 cents per share.
ACME UNITED CORPORATION is a specialized supplier of cutting devices,
measuring instruments, and safety products for school, home, office and
industrial 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.
# # #
(2)
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
SECOND QUARTER REPORT 2005
Quarter Ended Quarter Ended
June 30, 2005 June 30, 2004
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 14,904 $ 12,298
Gross Profit 6,731 5,519
Selling, General, and Administrative Expenses 4,577 3,579
Other Expense 140 120
Pre-Tax Income 2,014 1,820
Income Tax Expense 700 745
Net Income 1,314 1,075
Earnings Per Share Basic 0.37 0.32
Earnings Per Share Diluted 0.34 0.29
Six Months Ended Six Months Ended
June 30, 2005 June 30, 2004
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 25,487 $ 20,865
Gross Profit 11,592 9,239
Selling, General, and Administrative Expenses 8,296 6,550
Other Expense 202 159
Pre-Tax Income 3,094 2,530
Income Tax Expense 1,130 1,062
Net Income 1,964 1,468
Earnings Per Share Basic 0.56 0.44
Earnings Per Share Diluted 0.52 0.40
(3)
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
SECOND QUARTER REPORT 2005
(Unaudited)
Amounts in $000's June 30, 2005 June 30, 2004
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Assets:
Current Assets:
Cash $ 602 $ 412
Accounts Receivable, Net 12,625 11,869
Inventories 11,141 8,259
Prepaid and Other current Assets 818 771
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Total Current Assets 25,186 21,311
Property and Equipment, Net 2,203 2,225
Other Assets 809 681
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Total Assets $ 28,198 $ 24,217
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Liabilities and Stockholders' Equity:
Current Liabilities
Accounts Payable 3,770 2,203
Other Current Liabilities 4,559 4,358
Current Portion of Long Term Debt 4,968 2,481
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Total Current Liabilities 13,297 9,042
Long-Term debt 54 2,533
Other Non Current Liabilities 541 809
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13,892 12,384
Total Stockholders' Equity 14,306 11,833
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Total Liabilities and Stockholders' Equity $ 28,198 $ 24,217
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(4)