ACU Acme United Corp

Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the fourth quarter ended December 31, 2014 were $24.7 million, compared to $21.4 million in the comparable period of 2013, an increase of 15% (17% in constant currency).

Net sales for the year ended December 31, 2014 were $107.2 million, compared to $89.6 million in 2013, an increase of 20%. Excluding sales resulting from the acquisition of the assets of First Aid Only, Inc. on June 2, 2014, sales increased 8% (9% in constant currency).

Net income was $689,000 or $.19 per diluted share for the quarter ended December 31, 2014 compared to $524,000 or $.15 per diluted share for the comparable period of 2013, an increase of 31% in net income and 27% in diluted earnings per share. Net income for the year ended December 31, 2014 was $4,789,000 or $1.36 per diluted share compared to $4,003,000 or $1.22 per diluted share for the comparable period of 2013, a 20% increase in net income and 11% increase in diluted earnings per share.

Net sales for the quarter ended December 31, 2014 in the U.S. segment increased 22% compared to the same period in 2013 due to increased sales of first aid products, including sales of First Aid Only products and higher sales of iPoint pencil sharpeners. Net sales for the year ended December 31, 2014 in the U.S. segment grew 24% compared to the same period in 2013 due to increased sales of first aid products, including sales of First Aid Only products, the introduction of new lawn and garden products, and growth in sales of Camillus knives and iPoint pencil sharpeners.

Net sales in Canada for the three months ended December 31, 2014 decreased 5% in U.S dollars but remained constant in local currency compared to the same period in 2013. Net sales in Canada for the year ended December 31, 2014 increased 9% in U.S. dollars and 17% in local currency compared to 2013. The increase in revenues for the year ended December 31, 2014 was primarily due to strong back to school sales, higher shipments of Camillus knives and the introduction of new lawn and garden products.

European net sales for the three months ended December 31, 2014 decreased 23% in U.S. dollars and 15% in local currency compared to the same period last year. European net sales for the year ended December 31, 2014 decreased 10% in both U.S. dollars and local currency compared to last year. The decline of sales in Europe for the fourth quarter and year ended December 31, 2014 was due to lower sales of promotional products in the mass market.

Gross margins were 36% in the fourth quarter of 2014 versus 35% in the comparable period last year. Gross margins were 36% for the year ended December 31, 2013 and 2014.

Operating profit was $1,104,000 for the quarter ended December 31, 2014 compared to $763,000 for the same period in 2013, a 45% increase. Operating profit was $7,394,000 for the year ended December 31, 2014 compared to $5,879,000 for 2013, an increase of 26%.

Walter C. Johnsen, Chairman and CEO said, “We just concluded a record year in sales and earnings, and our new products are being well received. I want to congratulate our team for their outstanding performance. We enter 2015 with confidence.”

The Company’s bank debt less cash and cash equivalents on December 31, 2014 was $21.9 million compared to $11.3 million on December 31, 2013. During the year ended December 31, 2014, Acme United made capital improvements to its new distribution facility in Rocky Mount, NC of $0.9 million, sold its Fremont, NC plant for $0.8 million, and paid approximately $13.8 million for the acquisition of the assets of First Aid Only. During the year, the Company also generated $4.6 million in cash flow from operations and paid $1.1 million in dividends on its common stock.

ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include Westcott®, Clauss®, Camillus®, PhysiciansCare ®, First Aid Only® and Pac-Kit®.

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) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers, (iii) changes in client needs and consumer spending habits; (iv) the impact of competition and technological changes on the Company (v) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vi) currency fluctuations; and (vii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

  ACME UNITED CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME YEAR END REPORT 2014 (Unaudited)       Quarter Ended       Quarter Ended Amounts in $000's except per share data       December 31, 2014         December 31, 2013     Net sales $ 24,667 $ 21,379 Cost of goods sold 15,691 14,004 Gross profit 8,976 7,375 Selling, general, and administrative expenses 7,872 6,612 Income from operations 1,104 763 Interest expense (136) (122) Interest income 5 13 Net interest expense (131) (109) Other expense, net (39) (19) Total other expense, net (170) (128) Pre-tax income 934 635 Income tax expense 245 111 Net income $ 689 $ 524   Shares outstanding - Basic 3,287 3,189 Shares outstanding - Diluted 3,625 3,395         Earnings per share basic $ 0.21 $ 0.16 Earnings per share diluted 0.19 0.15   ACME UNITED CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME YEAR END REPORT 2014 (cont.) (Unaudited)               Year Ended Year Ended Amounts in $000's except per share data       December 31, 2014         December 31, 2013   Net sales $ 107,222 $ 89,577 Cost of goods sold 69,037 57,753 Gross profit 38,185 31,824 Selling, general, and administrative expenses 30,791 25,945 Income from operations 7,394 5,879 Interest expense (490) (502) Interest income 17 152 Net interest expense (473) (350) Other expense, net (118) (35) Total other expense, net (591) (385) Pre-tax income 6,803 5,494 Income tax expense 2,014 1,491 Net income $ 4,789 $ 4,003   Shares outstanding - Basic 3,240 3,168 Shares outstanding - Diluted 3,526 3,283   Earnings per share basic $ 1.48 $ 1.26 Earnings per share diluted 1.36 1.22     ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS YEAR END REPORT 2014 (Unaudited)   Amounts in $000's           December 31, 2014         December 31, 2013              

Assets:

Current assets: Cash $ 2,286 $ 11,644 Accounts receivable, net 19,477 15,629 Inventories 33,671 28,219 Prepaid and other current assets 2,077 1,494 Total current assets 57,511 56,986   Property and equipment, net 6,931 5,936 Other assets 14,866 5,157 Total assets $ 79,308 $ 68,079  

Liabilities and stockholders' equity:

Current liabilities Accounts payable $ 7,773 $ 4,789 Other current liabilities 7,590 5,087 Total current liabilities 15,363 9,876 Non-current liabilities Long term debt 24,147 22,912 Other non current liabilities 370 286 Total liabilities 39,880 33,074 Total stockholders' equity 39,428 35,005 Total liabilities and stockholders' equity $ 79,308 $ 68,079  

Acme United CorporationPaul G. Driscoll, 203-254-6060FAX: 203-254-6521