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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): February 29, 2008
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))
(1)
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On February 29, 2008, Acme United Corporation (the "Company") issued a press
release announcing its financial results for the year ended December 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 February 29, 2008.
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
Chairman and
Chief Executive Officer
Dated: February 29, 2008
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: February 29, 2008
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EXHIBIT INDEX
Exhibit Number Description
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99.1 Press release dated February 29, 2008.
(3)
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 February 29, 2008
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ACME UNITED CORPORATION REPORTS FOURTH QUARTER NET SALES INCREASE OF 23% AND NET
INCOME INCREASE OF 38% AND RECORD FULL YEAR RESULTS
FAIRFIELD, CONN. - February 29, 2008 - Acme United Corporation
(AMEX:ACU) today announced that net sales for the quarter ended December 31,
2007 were $14.9 million compared to $12.1 million in the same period in 2006, an
increase of 23% . Net sales for the year ended December 31, 2007 were $63.2
million compared to $56.9 million in the same period in 2006, an increase of 11%
(10% in local currency).
Net income for the fourth quarter ended December 31, 2007 was $546,000,
or $.15 per diluted share, compared to $396,000, or $.11 per diluted share, for
the comparable period last year, an increase of 38%. Net income for the year
ended December 31, 2007 was $4,022,258, or $1.09 per diluted share, compared to
$3,885,662, or $1.05 per diluted share, in the comparable period last year, an
increase of 4%.
Net sales for the year ended December 31, 2007, in the U.S. segment
increased 10% compared to 2006 as the result of sales of new products, including
the iPoint electric pencil sharpener and market share gains. Net sales in Canada
for the year ended December 31, 2007 increased by 11% in U.S. dollars and 5% in
local currency compared to 2006 primarily due to higher sales of the iPoint
electric pencil sharpeners. Net sales in Europe for the year ended December 31,
2007 increased by 21% in U.S. dollars and 11% in local currency compared to 2006
due to higher sales of manicure items and expanded distribution of office
products.
Gross margins were 42% for 2007 compared to 43% in 2006. The gross
margin decline in 2007 was due to product mix and increased cost of goods sold
on purchases from China due to higher raw material and labor costs and
depreciation of the U.S. dollar. Costs also increased due to the reduction of an
export tax credit in China.
(1)
Walter C. Johnsen, Chairman and CEO said, "The results in the fourth
quarter and the year represent strong growth in our market shares, expansion of
our distribution channels, and improvement in Europe. I am especially pleased
with the recent placement of our new products, including the iPoint razor pencil
sharpener and Microban school and office products, which are expected to
generate robust sales in 2008."
The effective income tax rate improved to 36% in 2007 compared to 39%
in 2006 primarily due to the decreased losses in 2007 in Europe where there is
no recorded tax benefit for losses. The European business is improving due to
operational improvements and sales growth.
The Company's bank debt less cash on December 31, 2007 was $5.2 million
compared to $6.4 million on December 31, 2006, a decrease of $1.2 million. This
change primarily resulted from the Company's payments of $600,000 for
acquisitions and $500,000 for shareholder dividends, which was offset by the
Company's generation of $2.7 million in cash flow from operations.
ACME UNITED CORPORATION is an innovative supplier of cutting devices,
measuring instruments and safety products for school, home, office, industrial
and hardware use. Its leading brands include Westcott(R), Clauss(R) and
PhysiciansCare (R).
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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(2)
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
YEAR END REPORT 2007
Quarter Ended Quarter Ended
December 31, 2007 December 31, 2006
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net sales $ 14,852 $ 12,089
Gross profit 5,799 4,979
Selling, general, and administrative expenses 4,919 4,110
Interest expense 136 154
Other income 129 103
Pre-tax income 873 818
Income tax expense 327 422
Net income 546 396
Shares outstanding - Basic 3,548 3,508
Shares outstanding - Diluted 3,697 3,726
Earnings per share basic $ 0.15 $ 0.11
Earnings per share diluted 0.15 0.11
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
YEAR END REPORT 2007
Year Ended Year Ended
Amounts in $000's except per share data December 31, 2007 December 31, 2006
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Net sales $ 63,173 $ 56,863
Gross profit 26,493 24,583
Selling, general, and administrative expenses 19,741 17,870
Interest expense 655 616
Other income 206 252
Pre-tax income 6,303 6,349
Income tax expense 2,281 2,463
Net income 4,022 3,886
Shares outstanding - Basic 3,536 3,495
Shares outstanding - Diluted 3,697 3,712
Earnings per share basic $ 1.14 $ 1.11
Earnings per share diluted 1.09 1.05
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
YEAR END REPORT 2007
Amounts in $000's December 31, 2007 December 31, 2006
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Assets:
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Current assets:
Cash $ 4,988 $ 3,838
Accounts receivable, net 12,727 10,852
Inventories 18,935 15,677
Prepaid and other current assets 1,210 1,120
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Total current assets 37,860 31,487
Property and equipment, net 2,479 2,540
Other assets 1,883 994
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Total assets $ 42,222 $ 35,021
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Liabilities and stockholders' equity:
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Current liabilities
Accounts payable 4,575 2,358
Other current liabilities 3,907 3,669
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Total current liabilities 8,482 6,027
Long-term debt 10,187 10,218
Other non current liabilities 507 645
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19,176 16,890
Total stockholders' equity 23,046 18,131
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Total liabilities and stockholders' equity $ 42,222 $ 35,021
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