Provides Financial Guidance for 2017
Acme United Corporation (NYSE MKT:ACU) today announced that net
sales for the fourth quarter ended December 31, 2016 were $26.4
million compared to $23.1 million in the same period of 2015, an
increase of 14%. Net sales for the year ended December 31, 2016
were $124.6 million, compared to $109.8 million in 2015, an
increase of 13%.
For the quarter ended December 31, 2016, net income was
$551,000, or $0.15 per diluted share, compared to $440,000, or
$0.12 per diluted share, for the comparable period of 2015, both
increases of 25%. Net income for the year ended December 31, 2016
was $5.9 million, or $1.64 per diluted share, compared to $4.8
million, or $1.30 per diluted share, for the prior year, an
increase of 22% in net income and 26% in earnings per share.
Chairman and CEO Walter C. Johnsen said, “Our team delivered
strong results in 2016, and I am very proud of all of their
efforts. In particular, we achieved strong growth in Wescott
cutting tools. The Company generated strength in revenues in the
First Aid business with improved margins. We increased market
shares for both our Cuda fishing tools and Camillus hunting knives.
The DMT sharpening business which we acquired in February 2016
exceeded our expectations, while our Canadian and European
businesses delivered strong performances.”
Mr. Johnsen added, “We are entering 2017 with confidence. Our
core businesses are doing well and growing. We acquired Spill Magic
this month, which provides world-class fluid absorbent solutions
for safety, and look forward to building its sales and earnings.
For 2017, we are providing guidance of approximately $137 million
in sales and net income of $6.7 million.”
In the Company’s U.S. segment, net sales for the quarter ended
December 31, 2016 increased 13% compared to the same period in 2015
due to strong sales of Camillus knives, Cuda fishing tools, and
first aid kits. Revenues from our acquisition of DMT contributed
$1.7 million in the fourth quarter and $5.5 million since its
acquisition in February 2016 through year-end. Net sales for the
year ended December 31, 2016 grew 15% over the comparable period in
2015 due to strong sales of Westcott school and office products,
Camillus knives, Cuda fishing tools and first aid products.
Net sales in Canada for the quarter ended December 31, 2016
increased 12% in both U.S. dollars and local currency compared to
the same period in 2015. Net sales in Canada for the year ended
December 31, 2016 were constant in U.S. dollars but increased 4% in
local currency.
European net sales for the quarter ended December 31, 2016
increased 25% in both U.S. dollars and local currency compared to
the same period in 2015. Net sales for the year ended December 31,
2016 increased 9% in both U.S. dollars and local currency. The
sales increases in Europe for both periods was due to market share
gains in the office products channel.
Gross margin was 37.2% in the fourth quarter of 2016 versus
35.8% in the comparable period last year. The higher gross margin
was primarily due to a favorable product mix. Gross margin was
36.6% for the year ended December 31, 2016 compared to 36% in
2015.
The Company’s bank debt less cash and cash equivalents on
December 31, 2016 was $27.0 million compared to $23.5 million on
December 31, 2015. During the year, the Company paid approximately
$7.0 million for the acquisition of the assets of DMT, spent $0.9
million on stock repurchases and paid $1.3 million in dividends on
its common stock. The Company also generated $7.8 million in free
cash flow.
Acme United will hold a conference call to discuss its quarterly
and year-end results, which will be broadcast over the Internet on
Thursday, February 23, 2017, at 12:00 p.m. EST. To listen or
participate in a question and answer session, dial 877-888-4312.
International callers may dial 785-424-1876. Access to the live
webcast of the conference call can be found in the Investor
Relations section of the Company’s website, www.acmeunited.com. A
replay may be accessed under Investor Relations, Audio Archives.
Access also 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 CORPORATIONCONDENSED
CONSOLIDATED STATEMENTS OF INCOMEYEAR END REPORT
2016(Unaudited)
Quarter Ended Quarter Ended Amounts in
$000's except per share data
December 31, 2016 December 31,
2015 Net sales $ 26,376
$ 23,118 Cost of goods sold 16,564
14,852 Gross profit 9,812 8,266
Selling, general, and administrative expenses 9,105
7,611 Income from operations 707 655
Interest expense (233) (154) Interest
income 6 7 Net interest expense
(227) (147) Other expense, net (38)
(18) Total other expense, net (265)
(165) Pre-tax income 442 490 Income
tax (benefit) expense (109) 50 Net income
$ 551 $ 440 Shares
outstanding - Basic 3,325 3,354 Shares
outstanding - Diluted 3,668 3,696
Earnings per share basic $ 0.17 $
0.13 Earnings per share diluted 0.15
0.12
ACME UNITED CORPORATIONCONDENSED
CONSOLIDATED STATEMENTS OF INCOMEYEAR END REPORT 2016
(cont.)(Unaudited)
Year Ended Year Ended Amounts in
$000's except per share data
December 31, 2016 December 31,
2015 Net sales $ 124,574 $
109,812 Cost of goods sold 79,019
70,251 Gross profit 45,555 39,561
Selling, general, and administrative
expenses
37,113 32,214 Income from operations
8,442 7,347 Interest expense (869)
(570) Interest income 0 5 Net
interest expense (869) (565) Other expense,
net (76) (168) Total other expense, net
(945) (733) Pre-tax income 7,497
6,614 Income tax expense 1,646 1,820
Net income $ 5,851 $ 4,794
Shares outstanding - Basic 3,328 3,335
Shares outstanding - Diluted 3,578 3,687
Earnings per share basic $ 1.76
$ 1.44 Earnings per share diluted 1.64
1.30
ACME UNITED CORPORATIONCONDENSED
CONSOLIDATED BALANCE SHEETSYEAR END REPORT
2016(Unaudited)
Amounts in $000's
December 31, 2016 December 31,
2015
Assets:
Current assets: Cash $ 5,911 $
2,426 Accounts receivable, net 20,021
19,565 Inventories 37,238 35,508
Prepaid and other current assets 2,294 2,135
Total current assets 65,464 59,634
Property and equipment, net 7,973 7,401
Intangible assets, less amortization 13,988
11,951 Goodwill 3,948 1,406 Other
assets 694 1,029 Total assets $
92,067 $ 81,421
Liabilities and
stockholders' equity:
Current liabilities Accounts payable $
7,339 $ 6,664 Other current liabilities
5,481 5,273 Total current liabilities
12,820 11,937 Non-current liabilities Long
term debt 32,936 25,913 Other non current
liabilities 190 388 Total liabilities
45,946 38,238 Total stockholders' equity
46,121 43,184 Total liabilities and stockholders'
equity $ 92,067 $ 81,421
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version on businesswire.com: http://www.businesswire.com/news/home/20170223005309/en/
Acme United CorporationPaul G. Driscoll, 203-254-6060FAX:
203-254-6521
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