ACU Acme United Corp

Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the quarter ended March 31, 2015 were $22.8 million, compared to $19.2 million in the first quarter of 2014, an increase of 19% (21% in constant currency).

Net income was $436,000 or $.12 per diluted share for the quarter ended March 31, 2015 compared to $368,000 or $.11 per diluted share for the comparable period last year, an increase of 18% in net income and 9% in earnings per share.

Net sales for the first quarter of 2015 in the U.S. segment increased 25% compared to the same period in 2014 due to strong sales of Westcott school and office products, the recently introduced Cuda brand fishing tools and the contribution of First Aid Only, which was acquired on June 1, 2014.

Net sales in Canada in the first quarter of 2015 decreased 8% in local currency, and 18% in U.S. currency compared to the same period in 2014. The office superstore market in Canada was soft due to weak economic conditions, but this was partially offset by growth with independent dealers.

European net sales in the first quarter of 2015 increased 14% in local currency but decreased 5% in U.S. currency compared to the first quarter of 2014. European growth was due to strong office product sales.

Gross margins were 37% in the first quarter of 2015 versus 36% in the comparable period last year.

Walter C. Johnsen, Chairman and CEO said, “We had a good start for 2015. I am pleased with the performance of our Westcott product line across all channels. Our recently introduced Cuda filet knives, crimpers, pliers, and other fishing tools have had a strong reception in the U.S., Canada, and Europe. All feature proprietary, rust-resistant steel and high performance designs. We expect to continue to leverage the increased volumes of our combined first aid businesses. Although we were impacted by the weak Canadian dollar and the Euro, we are adjusting prices and costs.”

The Company’s bank debt less cash on March 31, 2015 was $25.8 million compared to $13.9 million on March 31, 2014. During the twelve month period, the Company paid approximately $13.8 million for the acquisition of the assets of First Aid Only and paid $1.2 million in dividends on its common stock. During the twelve month period, the Company also generated $3.0 million in cash flow from operations and received approximately $1.5 million from the exercise of employee stock options.

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®, Cuda®, PhysiciansCare®, First Aid Only® and Pac-Kit®. For more information, visit www.acmeunited.com.

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 FIRST QUARTER REPORT 2015 (unaudited)       Quarter Ended Quarter Ended Amounts in 000's except per share data       March 31, 2015     March 31, 2014     Net sales $ 22,837 $ 19,152 Cost of goods sold 14,402 12,274 Gross profit 8,435 6,878 Selling, general, and administrative expenses 7,609 6,253 Income from operations 826 625 Interest expense, net 130 83 Other expense, net 75 19 Pre-tax income 621 523 Income tax expense 185 155 Net income $ 436 $ 368     Shares outstanding - Basic 3,300 3,201 Shares outstanding - Diluted 3,702 3,443   Earnings per share - basic $ 0.13 $ 0.12 Earnings per share - diluted 0.12 0.11           ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS FIRST QUARTER REPORT 2015 (Unaudited)  

Amounts in $000's

    March 31, 2015 March 31, 2014

Assets

Current assets: Cash $ 1,797 $ 3,367 Accounts receivable, net 16,722 16,111 Inventories 35,925 28,977 Prepaid and other current assets   2,476 1,755 Total current assets 56,920 50,210   Property and equipment, net 7,158 6,455 Intangible assets, less amortization 12,374 4,035 Goodwill 1,375 - Other assets   973 1,081 Total assets $ 78,800 $ 61,781  

Liabilities and stockholders' equity

Current liabilities Accounts payable $ 5,905 $ 4,312 Other current liabilities   5,553 4,867 Total current liabilities 11,458 9,179   Long-term debt 27,561 17,286 Other non-current liabilities   315 276 Total liabilities 39,334 26,741 Total stockholders' equity   39,466 35,040 Total liabilities and stockholders' equity $ 78,800 $ 61,781  

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