Acme United Corporation (NYSE MKT:ACU) today announced that net
sales for the third quarter ended September 30, 2015 were $29.9
million, compared to $30.0 million in the comparable period of 2014
and an increase of 3% in constant currency. Net sales for the nine
months ended September 30, 2015 were $86.7 million, compared to
$82.6 million in the comparable period of 2014, an increase of 5%,
or 8% in constant currency.
Net income for the quarter ended September 30, 2015 was $1.21
million, or $0.33 per diluted share, compared to $1.19 million, or
$0.34 per diluted share, for the 2014 period, an increase in net
income of 2%. During the quarter, the Company incurred $150,000 of
one-time moving and severance costs related to the consolidation of
its first aid operations. Excluding these costs, earnings per share
would have been $0.35 in the third quarter. Net income for the nine
months ended September 30, 2015 was $4.35 million, or $1.18 per
diluted share, compared to $4.10 million, or $1.18 per diluted
share, in the 2014 comparable period, a 6% increase in net
income.
Chairman and CEO Walter C. Johnsen commented, “Third quarter
sales were even with last year, and we continued to deliver a
solid, profitable performance. I am particularly happy with the
sales growth in our Westcott office products, first aid business,
and European operations. Our Canadian subsidiary was impacted by
difficult economic conditions, but we are gaining new business and
working to recover.”
Mr. Johnsen continued, “We are in the final stages of
consolidating our Norwalk, Connecticut first aid operations into
our modern facility in Vancouver, Washington. We expect the
consolidation to generate savings in fixed expenses and provide
operating leverage in 2016 and beyond. Excluding the one-time
consolidation costs of the move, earnings per share would have been
$0.35 in the third quarter.”
In the Company’s U.S. segment, net sales for the quarter ended
September 30, 2015 increased 2% compared to the same period in
2014. Sales of the Westcott family of school and office products
increased 7%, with the largest contribution coming from iPoint
pencil sharpeners and titanium scissors. Sales of first aid
products increased 4%. Excluding discontinuation of some low-margin
over-the-counter medications, first aid sales increased 9%. Sales
of Camillus knives declined $0.7 million in the quarter due to a
retail promotion in last year’s quarter that did not repeat. Year
over year, net sales for the first nine months of 2015 grew 9%,
mainly due to increased sales of first aid and Westcott
products.
Net sales in Canada for the three months ended September 30,
2015 decreased 24% in U.S. dollars and 9% in local currency
compared to the prior-year period. Year over year, net sales for
the nine months ended September 30, 2015 decreased 22% in U.S.
dollars and 11% in local currency. These decreases were primarily
due to a large retail chain exiting the Canadian market and weak
economic conditions.
Net sales in Europe for the three months ended September 30,
2015 increased 5% in U.S. dollars and 24% in local currency
compared to the 2014 period. Net sales for the nine months ended
September 30, 2015 decreased 7% in U.S. dollars but rose 13% in
local currency.
Gross margins were 34.5% in the third quarter of 2015 compared
to 35.4% in the 2014 period. In the third quarter of 2015 the
Company moved most of its first aid production from Norwalk,
Connecticut to its Vancouver, Washington plant, incurring
approximately $150,000 of one-time moving and severance costs. The
Connecticut facility will be closed on schedule in the fourth
quarter of 2015 as part of a planned consolidation of first aid
facilities. Gross margins were 36.1% for the nine months ended
September 30, 2015 compared to 35.4% for last year’s period. The
gross margin improvement for the year was primarily due to a more
favorable product mix.
The Company’s bank debt less cash on September 30, 2015 was
$23.9 million compared to $24.5 million on September 30, 2014.
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 THIRD QUARTER REPORT 2015 (Unaudited)
Three Months Ended Three Months Ended
Amounts in $000's except per share data
September 30, 2015 September 30,
2014 Net sales $ 29,903
$ 30,008 Cost of goods sold 19,577
19,393 Gross profit 10,326 10,615
Selling, general, and administrative expenses 8,334
8,685 Income from operations 1,992
1,930 Interest expense 150 157
Interest income (1) (4) Net interest
expense 149 153 Other expense (income)
93 67 Total other expense 242
221 Income before income tax expense 1,750
1,710 Income tax expense 542 521 Net
income $ 1,208 $ 1,189
Shares outstanding - Basic 3,354 3,250
Shares outstanding - Diluted 3,699 3,546
Earnings per share basic $ 0.36
$ 0.37 Earnings per share diluted 0.33
0.34
ACME UNITED CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF INCOME THIRD QUARTER REPORT 2015 (cont.)
(Unaudited) Nine Months Ended Nine
Months Ended Amounts in $000's except per share data
September 30, 2015
September 30, 2014 Net sales $
86,694 $ 82,555 Cost of goods sold
55,398 53,346 Gross profit 31,296
29,209 Selling, general, and administrative expenses
24,603 22,920 Income from operations
6,693 6,289 Interest expense 424
355 Interest income (4) (12) Net
interest expense 420 343 Other expense
149 78 Total other expense 569
421 Income before income tax expense 6,124
5,868 Income tax expense 1,771 1,769
Net income $ 4,353 $ 4,099
Shares outstanding - Basic 3,328 3,224
Shares outstanding - Diluted 3,698 3,485
Earnings per share basic $ 1.31
$ 1.27 Earnings per share diluted 1.18
1.18
ACME UNITED CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS THIRD QUARTER REPORT 2015
(Unaudited) Amounts in $000's
September 30, 2015
September 30, 2014
Assets:
Current assets: Cash and cash equivalents $
4,621 $ 5,814 Accounts receivable, net
23,587 24,007 Inventories 34,497
31,461 Prepaid and other current assets
2,163 1,839 Total current assets
64,868 63,121 Property and equipment,
net 7,343 6,649 Intangible assets, net
8,613 12,761 Goodwill 4,785
1,340
Other assets
967 1,072 Total assets $
86,576 $ 84,943
Liabilities and
stockholders' equity:
Current liabilities Accounts payable $
7,206 $ 6,574
Other current liabilities
6,759 8,067 Total current liabilities
13,965 14,641 Bank debt 28,551
30,344 Other non current liabilities
362 807 42,878 45,792 Total
stockholders' equity 43,698 39,151
Total liabilities and stockholders' equity $
86,576 $ 84,943
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version on businesswire.com: http://www.businesswire.com/news/home/20151016005213/en/
Acme United CorporationPaul G. Driscoll, 203-254-6060Fax: (203)
254-6521
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