Acme United Corporation Reports Record First Quarter Sales and 33% Increase in Earnings Per Share
April 22 2016 - 9:00AM
Business Wire
Acme United Corporation (NYSE MKT:ACU) today announced that net
sales for the quarter ended March 31, 2016 were $25.3 million,
compared to $22.8 million in the first quarter of 2015, an increase
of 11% (12% in constant currency).
Net income was $565,000 or $.16 per diluted share for the
quarter ended March 31, 2016 compared to $436,000 or $.12 per
diluted share for the comparable period last year, an increase of
30% in net income and 33% in earnings per share.
On February 1, 2016, the Company acquired the assets of Diamond
Machining Technology (“DMT”) for $7.0 million in cash. DMT is a
leader in diamond sharpening tools for knives, scissors, chisels,
and other cutting tools, and had sales of $5.4 million in 2015.
Acme United’s first quarter 2016 revenues included approximately
$1.0 million from the sales of DMT products.
Net sales for the first quarter of 2016 in the U.S. segment
increased 12% compared to the same period in 2015 due to strong
sales of Westcott school and office products, increased
distribution of first aid products and the sale of DMT
products.
Net sales in Canada in the first quarter of 2016 increased 22%
in local currency, and 12% in U.S. dollars compared to the same
period in 2015 primarily due to the introduction of the Cuda line
of fishing tools and an improvement in the office products market
in Canada.
European net sales in the first quarter of 2016 decreased 4% in
local currency and 6% in U.S. dollars compared to the first quarter
of 2015 mainly due to the timing of shipments into the office
products channel.
Gross margins were 36.3% in the first quarter of 2016 versus
36.9% in the comparable period last year. The lower gross margin
was primarily due to product mix.
Walter C. Johnsen, Chairman and CEO said, “We are pleased to
report another quarter of record performance. We delivered strong
results in our Westcott family of cutting tools and our first aid
business. Our Canadian business executed well, and rebounded from
last year with sales to new retail customers and market share gains
in the office channel. We are integrating the new DMT acquisition
ahead of plan and have added new distribution in the U.S. and
Europe. We believe we have a solid book of new business for the
remainder of the year.”
Mr. Johnsen re-affirmed the guidance previously provided for
2016 of approximately $120.0 million in revenues, $5.6 million in
net income, and $1.47 earnings per share.
The Company’s bank debt less cash on March 31, 2016 was $34
million compared to $26 million on March 31, 2015. During the
twelve month period ended March 31, 2016, the Company paid
approximately $7 million for the acquisition of the assets of DMT,
spent $1.5 million on stock re-purchases and paid $1.3 million in
dividends on its common stock. During the twelve month period, the
Company also generated $2.2 million in cash flow from
operations.
Acme United will hold a conference call to discuss its quarterly
and year-end results, which will be broadcast over the Internet on
Friday, April 22, 2016, at 12:00 p.m. EDT. To listen or participate
in a question and answer session, dial 888-287-5563. International
callers may dial 719-457-2085. You may access the live webcast of
the conference call through the Investor Relations section of the
Company’s website, www.acmeunited.com. A replay may be accessed
under Investor Relations, Audio Archives or by logging on to
www.streetevents.com.
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®, Pac-Kit® and DMT®. 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 2016
(unaudited) Quarter Ended Quarter Ended
Amounts in 000's except per share data
March 31, 2016
March 31, 2015
Net sales $ 25,288 $ 22,837
Cost of goods sold 16,103 14,402 Gross
profit 9,185 8,435 Selling, general, and
administrative expenses 8,230 7,609 Income
from operations 955 826 Interest expense,
net 184 130 Other (income) expense, net
(38) 75 Pre-tax income 809 621
Income tax expense 244 185 Net income
$ 565 $ 436 Shares
outstanding - Basic 3,336 3,300 Shares
outstanding - Diluted 3,572 3,702
Earnings per share - basic $ 0.17 $
0.13 Earnings per share - diluted 0.16
0.12
ACME UNITED CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS FIRST QUARTER REPORT 2016
(Unaudited)
Amounts in
$000's
March 31, 2016 March 31, 2015
Assets
Current assets: Cash $ 1,474 $
1,797 Accounts receivable, net 19,118
16,722 Inventories 37,551 35,925
Prepaid and other current assets 2,733
2,476 Total current assets 60,876
56,920 Property and equipment, net
7,745 7,158 Intangible assets, less
amortization 17,224 12,374 Goodwill
1,406 1,375 Other assets 1,039
973 Total assets $ 88,290 $
78,800
Liabilities and
stockholders' equity
Current liabilities Accounts payable $
6,279 $ 5,905 Other current liabilities
2,854 5,553 Total current liabilities
9,133 11,458 Long-term debt
35,696 27,561 Other non-current liabilities
316 315 Total liabilities 45,145
39,334 Total stockholders' equity
43,145 39,466 Total liabilities and stockholders'
equity $ 88,290 $ 78,800
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version on businesswire.com: http://www.businesswire.com/news/home/20160422005130/en/
Acme United CorporationPaul G. Driscoll, 203-254-6060FAX:
203-254-6521
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