ACU Acme United Corp

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (date of earliest event reported): July 22, 2015

ACME UNITED CORPORATION

(Exact name of registrant as specified in its charter)

__________________

Connecticut	001-07698	06-0236700
(State or other jurisdiction of incorporation or organization)	(Commission file number)	(I.R.S. Employer Identification No.)
55 Walls Drive, Fairfield, Connecticut		06824
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (203) 254-6060

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 22, 2015, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2015. A copy of the press release is attached as Exhibit 99.1 to this current report.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(c)       Exhibits

 

Exhibit Number	Description
99.1	Press release dated July 22, 2015.

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

ACME UNITED CORPORATION
By	/s/  Walter C. Johnsen
	Walter C. Johnsen
	Chairman and
	Chief Executive Officer
Dated: July 22, 2015
By	/s/  Paul G. Driscoll
	Paul G. Driscoll
	Vice President and
	Chief Financial Officer
Dated: July 22, 2015

EXHIBIT INDEX

	Exhibit Number	Description
	99.1	Press release dated July 22, 2015.

 

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Exhibit 99.1

 

ACME UNITED CORPORATION			NEWS RELEASE
CONTACT:	Paul G. Driscoll	Acme United Corporation	55 Walls Drive	Fairfield, CT 06824
		Phone: (203) 254-6060	FAX: (203) 254-6521

 

FOR IMMEDIATE RELEASE    July 22, 2015

 

 

ACME UNITED REPORTS SECOND QUARTER SALES AND EARNINGS

 

New Camillus® Knives, First Aid Only® and Westcott® Initiatives Planned for 2H 2015

 

FAIRFIELD, CONN. – July 22, 2015 – Acme United Corporation (NYSE MKT:ACU) today announced that net sales for the second quarter ended June 30, 2015 were $34.0 million, compared to $33.4 million in the comparable period of 2014, an increase of 2%, or 4% in constant currency. Net sales for the six months ended June 30, 2015 were $56.8 million, compared to $52.5 million in the same period in 2014, an increase of 8%, or 10% in constant currency.

 

Net income for the quarter ended June 30, 2015 was $2.7 million, or $0.74 per diluted share, compared to $2.5 million, or $0.72 per diluted share, for the 2014 period, an increase in net income of 6%. Net income for the six months ended June 30, 2015 was $3.1 million, or $0.85 per diluted share, compared to $2.9 million, or $0.83 per diluted share, in last year’s period, an 8% increase in net income.

 

Chairman and CEO Walter C. Johnsen said, “We set new sales and earnings records for the quarter despite being impacted by store closures at large office supply retail chains. Our diversification into the hardware, industrial, safety, and sporting goods channels has broadened our customer base, thereby offsetting the softness of the office market. We have a number of new first aid, hunting, and office product initiatives underway for the coming quarters, which are intended to increase sales and earnings. These programs reflect our emphasis on penetrating additional markets, offering innovative products, and bringing greater value to our customers.”

 

In the U.S. segment, net sales for the quarter ended June 30, 2015 increased 6% compared to the same period in 2014 due to increased sales of first aid products, Camillus knives, and Cuda fishing tools. Year over year, net sales for the first six months of 2015 grew 13% due to increased sales of first aid products and Westcott scissors.

 

 

Net sales in Canada for the three months ended June 30, 2015 decreased 23% in U.S. dollars and 13% in local currency compared to the prior-year period. Year over year, net sales for the six months ended June 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 June 30, 2015 decreased 19% in U.S. dollars but were constant in local currency compared to the 2014 period. Net sales for the first half of 2015 decreased 13% in U.S. dollars but rose 6% in local currency.

 

Gross margins were 36.9% in the second quarter of 2015 compared to 35.1% in the 2014 period. Gross margins were 36.9% for the six months ended June 30, 2015 compared to 35.4% for last year’s period. The gross margin improvement for both periods was primarily due to a favorable product mix.

 

The Company’s bank debt less cash on June 30, 2015 was $28.2 million compared to $28.9 million on June 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.

 

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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER REPORT 2015
(Unaudited)
			Three Months Ended				Three Months Ended
Amounts in 000's except per share data			June 30, 2015				June 30, 2014
Net sales		$	33,954			$	33,396
Cost of goods sold			21,419				21,875
Gross profit			12,535				11,521
Selling, general, and administrative expenses			8,660				7,983
Income from operations			3,875				3,538
Interest expense			142				108
Interest income			(2	)			(2	)
Net interest expense			141				106
Other (income) expense, net			(18	)			(204	)
Total other (income) expense, net			123				(98	)
Pre-tax income			3,752				3,636
Income tax expense			1,044				1,093
Net income		$	2,708			$	2,543
Shares outstanding - Basic			3,300				3,210
Shares outstanding - Diluted			3,682				3,539
Earnings per share basic		$	0.82			$	0.79
Earnings per share diluted			0.74				0.72

 

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER REPORT 2015 (cont.)
(Unaudited)
			Six Months Ended				Six Months Ended
Amounts in 000's except per share data			June 30, 2015				June 30, 2014
Net sales		$	56,791			$	52,548
Cost of goods sold			35,821				34,150
Gross profit			20,970				18,398
Selling, general, and administrative expenses			16,269				14,235
Income from operations			4,702				4,163
Interest expense			274				197
Interest income			(3	)			(9	)
Net interest expense			270				188
Other (income) expense, net			60				(184	)
Total other (income) expense, net			329				4
Pre-tax income			4,373				4,159
Income tax expense			1,229				1,248
Net income		$	3,144			$	2,911
Shares outstanding - Basic			3,315				3,206
Shares outstanding - Diluted			3,705				3,487
Earnings per share basic		$	0.95			$	0.91
Earnings per share diluted			0.85				0.83

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
SECOND QUARTER REPORT 2015
(Unaudited)
Amounts in 000's			June 30, 2015				June 30, 2014
Assets:
Current assets:
Cash		$	1,941			$	2,426
Accounts receivable, net			27,123				30,795
Inventories			36,217				30,885
Prepaid and other current assets			2,425				1,969
Total current assets			67,706				66,075
Property and equipment, net			7,195				6,577
Intangible assets, less amortization			12,174				12,876
Goodwill			1,375				1,375
Other assets			971				1,084
Total assets		$	89,421			$	87,987
Liabilities and stockholders' equity:
Current liabilities
Accounts payable		$	9,332			$	10,919
Other current liabilities			7,039				7,466
Total current liabilities			16,371				18,385
Bank debt			30,179				31,325
Other non current liabilities			336				439
			46,886				50,150
Total stockholders' equity			42,535				37,838
Total liabilities and stockholders' equity		$	89,421			$	87,987

 

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