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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): April 20, 2007
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.)
60 Round Hill Road, Fairfield, Connecticut 06824
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 254-6060
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 April 20, 2007, Acme United Corporation (the "Company") issued a press
release announcing its financial results for the quarter ended March 31, 2007. 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 April 20, 2007.
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: April 20, 2007
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: April 20, 2007
EXHIBIT INDEX
Exhibit Number Description
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99.1 Press release dated April 20, 2007.
EXHIBIT 99.1
ACME UNITED CORPORATION NEWS RELEASE
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CONTACT: Paul G. Driscoll
Acme United Corporation
60 Round Hill Road Fairfield, CT 06824
Phone: (203) 254-6060 FAX: (203) 254-6521
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FOR IMMEDIATE RELEASE April 20, 2007
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ACME UNITED CORPORATION REPORTS FIRST QUARTER RESULTS
FAIRFIELD, CONN. - April 20, 2007 - Acme United Corporation (AMEX:ACU)
today announced that net sales for the quarter ended March 31, 2007 were $12.2
million, compared to $12.3 million in the comparable period of 2006.
Net income was $650,000 or $.17 per diluted share for the first quarter
ended March 31, 2007 compared to $759,000 or $.20 per diluted share for the
comparable period last year, a decrease of 15%.
Net sales for the first quarter in the U.S. segment decreased 4%
compared to the same period in 2006. Sales in the first quarter of 2006 included
over $1 million of initial new product shipments to three major retail chains.
Since the products are now regular items for these retailers, the first quarter
of 2007's sales represented only restocking shipments. During the first quarter
of 2007, sales in Europe and Canada increased by 11% in constant currency, as
compared to the comparable period in 2006.
Gross margins were 44% in the first quarter of 2007 versus 45% in the
first quarter of 2006. The margin in 2007 declined due to a higher proportion of
European sales at lower margins compared to margins in the U.S. segment.
Walter C. Johnsen, President and CEO said, "While revenues in the first
quarter were approximately even with the same period last year, we look forward
to stronger sales in the coming quarters. Our award winning iPoint pencil
sharpeners will be shipped to many of our major customers for back to school
sales. We expect to begin new scissor and paper trimmer business in the second
and third quarters and start a rollout of new sewing items in the fourth
quarter. We believe these growth initiatives will provide the foundation for a
strong year in 2007 and forward momentum in 2008."
(1)
The Company's bank debt less cash on March 31, 2007 was $7.1 million
compared to $6.8 million on March 31, 2006. The increase in bank debt was
primarily due to the purchase of additional inventory amounting to $1.8 million,
a $1.1 million payment for the demolition of a former manufacturing site and
repurchase of Acme stock of $0.4 million offset by earnings.
On March 28, 2007 the Company announced a 4 cents per share quarterly
dividend on its outstanding common stock for shareholders of record on April 6,
2007, and is payable on April 27, 2007. This represents an increase of 33
percent or 1 cent per share over each of the previous seven quarterly dividends.
ACME UNITED CORPORATION is a leading worldwide supplier of innovative
cutting, measuring and safety products to the school, home, office and
industrial markets.
Forward-looking statements in this earnings release, included without
limitation, statements related to the Company's plans, strategies, objectives,
expectations, intentions and adequacy of resources. 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
FIRST QUARTER REPORT 2007
Quarter Ended Quarter Ended
March 31, 2007 March 31, 2006
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net sales $ 12,241 $ 12,257
Gross profit 5,334 5,552
Selling, general, and administrative expenses 4,158 4,259
Interest expense 154 125
Other (income) expense (27) (76)
Pre-Tax income 1,049 1,244
Income tax expense 399 485
Net income 650 759
Shares outstanding - Basic 3,525 3,484
Shares outstanding - Diluted 3,729 3,735
Earnings per share - basic 0.18 0.22
Earnings per share - diluted 0.17 0.20
(3)
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
FIRST QUARTER REPORT 2007
(Unaudited)
Amounts in $000's
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March 31, 2007 March 31, 2006
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Assets
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Current assets:
Cash $ 3,386 $ 990
Accounts receivable, net 9,656 9,567
Inventories 16,223 14,374
Prepaid and other current assets 1,755 1,307
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Total current assets 31,020 26,238
Property and equipment, net 2,437 2,632
Other assets 983 1,572
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Total assets $ 34,440 $ 30,442
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Liabilities and stockholders' equity
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Current liabilities
Accounts payable $ 2,589 $ 2,582
Other current liabilities 2,164 4,277
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Total current liabilities 4,753 6,859
Long-term debt 10,463 7,795
Other non-current liabilities 663 1,037
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Total liabilities 15,879 15,691
Total stockholders' equity 18,561 14,751
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Total liabilities and stockholders' equity $ 34,440 $ 30,442
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(4)