FAIRFIELD, Conn., April 20, 2018 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American:ACU) today announced that net sales for the quarter ended March 31, 2018 were $31.7 million compared to $27.7 million in the first quarter of 2017, an increase of 14%.
Net income was $765,000 or $0.21 per diluted share for the quarter ended March 31, 2018 compared to $659,000, or $0.18 per diluted share, for the comparable period last year, an increase of 16% in net income and 17% in diluted earnings per share.
Walter C. Johnsen, Chairman and CEO said, “We have just completed another record first quarter in sales and earnings. All of our major product groups and our international businesses contributed, with especially strong growth in our first aid and safety products, where we have been gaining industrial customers through our patented SmartCompliance System. Continuing the trend we have been seeing since 2013, our on-line sales were robust. This was a strong start for 2018, and we have many plans to continue introducing new products and applications that leverage our proprietary technologies, our diverse customer base and our global reach.”
For the first quarter of 2018, net sales in the U.S. segment increased 13% compared to the same period in 2017. The sales increase was mainly due to market share gains in first aid and safety, growth in Westcott office scissors, and strong performance from the Camillus, DMT, and Cuda knives and sharpening tools.
Net sales in Canada for the first quarter of 2018 increased 12% in U.S. dollars and 8% in local currency compared to the same period in 2017, primarily due to gains in the school and office channel and higher sales of Camillus knives.
European net sales for the first quarter of 2018 increased 27% in U.S. dollars and 10% in local currency compared to the first quarter of 2017, mainly due to new customers in the office products channel, growth of DMT products, and strong e-commerce demand for these products.
Gross margin was 38.2% in the first quarter of 2018 versus 38.1% in the comparable period last year.
The Company is providing financial guidance for 2018 of approximately $140 million in revenues, $5.7 million in net income, and $1.53 earnings per share. This compares to sales of $130.6 million, non-GAAP net income of $5.3 million and earnings per share of $1.42 for 2017. (As previously reported, the Company’s GAAP net income of $4.1 million for 2017 included a $1.2 million non-cash tax charge related to the U.S. Tax Cuts and Jobs Act.)
The Company’s bank debt less cash on March 31, 2018 was $43.7 million compared to $38.2 million on March 31, 2017. During the twelve-month period ended March 31, 2018, the Company purchased its manufacturing and distribution facility in Vancouver, WA for $4.0 million and distributed $1.4 million in dividends on its common stock.
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Friday, April 20, 2018, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 800-289-0438. International callers may dial 323-794-2423. 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.
About Acme United
ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, and DMT®. For more information, visit www.acmeunited.com.
Forward Looking Statements
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; (vii) increases in the cost of borrowings resulting from rising interest rates; (viii) uncertainties arising from the interpretation and application of the recently enacted Tax Act; and (ix) 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 2018|
|Quarter Ended||Quarter Ended|
|Amounts in 000's except per share data||March 31, 2018||March 31, 2017|
|Cost of goods sold||19,585||17,181|
|Selling, general and administrative expenses||10,774||9,372|
|Interest expense, net||405||263|
|Other income, net||(28)||(9)|
|Income before income tax expense||974||938|
|Income tax expense||209||279|
|Shares outstanding - Basic||3,374||3,329|
|Shares outstanding - Diluted||3,662||3,730|
|Earnings per share - basic||$||0.23||$||0.20|
|Earnings per share - diluted||0.21||0.18|
|ACME UNITED CORPORATION|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|FIRST QUARTER REPORT 2018|
|Amounts in $000's|
|March 31, 2018||March 31, 2017|
|Cash and cash equivalents||$||1,065||$||6,175|
|Accounts receivable, less allowance||24,451||21,251|
|Prepaid expenses and other current assets||2,801||2,879|
|Total current assets||70,217||67,589|
|Plant, Property and equipment, net||14,158||8,380|
|Intangible assets, less amortization||17,576||19,525|
|Liabilities and stockholders' equity|
|Other current liabilities||3,669||3,204|
|Total current liabilities||11,152||8,935|
|Mortgage payable, net of current portion||3,644||-|
|Other non-current liabilities||859||284|
|Total stockholders' equity||50,491||46,603|
|Total liabilities and stockholders' equity||$||107,246||$||100,204|
|CONTACT:||Paul G. Driscoll||Acme United Corporation||55 Walls Drive||Fairfield, CT 06824|
|Phone: (203) 254-6060||FAX: (203) 254-6521|