Acme United Reports 12% Sales Increase and 14% Net Income Increase for Fourth Quarter of 2021
Acme United Corporation (NYSE American: ACU) reported a 12% increase in net sales for Q4 2021, totaling $45.8 million, compared to $40.9 million in Q4 2020. For the full year, net sales rose by 11% to $182.1 million. Net income for Q4 grew by 14% to $2.34 million, or $0.60 per diluted share. Annual net income reached $13.7 million, including $3.5 million loan forgiveness, marking a 69% increase. The firm experienced sales growth in U.S., Canada, and Europe, driven by first aid and craft product sales, though gross margins declined due to rising costs.
- Net sales increased by 12% in Q4 2021 and 11% year-over-year, reaching $45.8 million and $182.1 million, respectively.
- Net income for Q4 2021 increased by 14% to $2.34 million; annual net income reached $13.7 million, a 69% increase.
- The company achieved its 12th consecutive year of sales growth, indicating strong business performance.
- Sales growth in U.S., Canada, and Europe was primarily driven by strong first aid and medical product sales.
- Gross margin declined to 35.1% in Q4 2021 from 36.8% the previous year, primarily due to cost inflation and higher transportation costs.
SHELTON, Conn., March 01, 2022 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended December 31, 2021 were
Net income was
Chairman and CEO Walter C. Johnsen said, “Acme United performed at record levels during 2021. We delivered our 12th consecutive year of sales growth and generated the highest profits in the Company’s history. Our team effectively managed significant cost increases, labor shortages, and supply chain delays. In 2021 we completed installation of a new warehouse management system in our largest distribution center and we expect the system to increase our operating efficiencies in 2022. We also integrated the Med-Nap and First Aid Central acquisitions.”
Mr. Johnsen added, “With on our operational improvements, our expanded first aid and medical product lines, and market share gains, we believe Acme United is positioned for another outstanding year in 2022.”
For the fourth quarter of 2021, net sales in the U.S. segment increased
European net sales for the fourth quarter of 2021 increased
Net sales in Canada for the fourth quarter of 2021 increased
Gross margin was
The Company’s bank debt less cash on December 31, 2021 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Tuesday, March 1, 2022, at 12:00 p.m. Eastern Time. To listen or participate in a question and answer session, dial 888-394-8218. International callers may dial 646-828-8193. The confirmation code is 8000932. 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®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, DMT®, and Med-Nap. For more information, visit www.acmeunited.com.
Forward Looking Statements
The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations.
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 that may impact the Company’s business, operations and financial results, including those risks and uncertainties resulting from the global COVID-19 pandemic, future waves of COVID-19, including through the Delta and Omicron variants and any new variant strains of the underlying virus; any future pandemics; the continuing effectiveness, global availability, and public acceptance of existing vaccines; the effectiveness, availability, and public acceptance of vaccines against variant strains of potential new viruses; and the heightened impact the pandemic has on many of the risks described herein, including, without limitation, risks relating to disruptions in our supply chain, and labor shortages, any of which could materially adversely impact the Company’s ability to manufacture, source or distribute its products, both domestically and internationally.
These risks and uncertainties further include, 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, whether caused by COVID-19 or otherwise, including the impact on the Company’s suppliers and customers; (iii) additional disruptions in the Company’s supply chains, whether caused by COVID-19 or otherwise; (iv) labor shortages and related costs the Company may incur, including costs of acquiring and training new employees; (v) the impact of rising inflation rates; (vi) the Company’s ability to effectively manage its inventory in a rapidly changing business environment, including the additional inventory it acquired in 2020 and 2021 in anticipation of supply chain disruptions and uncertainties; (vii) changes in client needs and consumer spending habits; (viii) the impact of competition; (ix) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (x) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (xi) rising wages and benefits; ( (xii) currency fluctuations; (xiii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
CONTACT:
Paul G. Driscoll
Acme United Corporation
1 Waterview Drive
Shelton, CT 06484
Phone: (203) 254-6060
| ACME UNITED CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| YEAR END REPORT 2021 | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||
| Amounts in 000's except per share data | December 31, 2021 | December 31, 2020 | ||||||||||
| Net sales | $ | 45,793 | $ | 40,871 | ||||||||
| Cost of goods sold | 29,737 | 25,824 | ||||||||||
| Gross profit | 16,056 | 15,047 | ||||||||||
| Selling, general, and administrative expenses | 12,999 | 12,151 | ||||||||||
| Operating income | 3,057 | 2,896 | ||||||||||
| Interest expense | (240 | ) | (203 | ) | ||||||||
| Interest income | 3 | 8 | ||||||||||
| Interest expense, net | (237 | ) | (195 | ) | ||||||||
| Other income (expense) , net | 18 | (667 | ) | |||||||||
| Total other income (expense) , net | 18 | (667 | ) | |||||||||
| Income before income tax expense | 2,838 | 2,034 | ||||||||||
| Income tax expense (benefit) | 500 | (9 | ) | |||||||||
| Net income | $ | 2,338 | $ | 2,043 | ||||||||
| Shares outstanding - Basic | 3,550 | 3,340 | ||||||||||
| Shares outstanding - Diluted | 3,915 | 3,753 | ||||||||||
| Earnings per share - Basic | $ | 0.66 | $ | 0.61 | ||||||||
| Earnings per share - Diluted | 0.60 | 0.54 | ||||||||||
| ACME UNITED CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| YEAR END REPORT 2021 (cont.) | ||||||||||||
| (Unaudited) | ||||||||||||
| Year Ended | Year Ended | |||||||||||
| Amounts in 000's except per share data | December 31, 2021 | December 31, 2020 | ||||||||||
| Net sales | $ | 182,088 | $ | 164,003 | ||||||||
| Cost of goods sold | 117,287 | 104,408 | ||||||||||
| Gross profit | 64,801 | 59,595 | ||||||||||
| Selling, general, and administrative expenses | 52,030 | 48,182 | ||||||||||
| Operating income | 12,771 | 11,413 | ||||||||||
| Interest expense | (922 | ) | (944 | ) | ||||||||
| Interest income | 14 | 25 | ||||||||||
| Interest expense, net | (908 | ) | (919 | ) | ||||||||
| PPP loan forgiveness | 3,508 | - | ||||||||||
| Other expense, net | (196 | ) | (667 | ) | ||||||||
| Total other income (expense), net | 3,312 | (667 | ) | |||||||||
| Income before income tax expense | 15,175 | 9,827 | ||||||||||
| Income tax expense | 1,519 | 1,728 | ||||||||||
| Net income | $ | 13,656 | $ | 8,099 | ||||||||
| Shares outstanding - Basic | 3,471 | 3,343 | ||||||||||
| Shares outstanding - Diluted | 3,955 | 3,509 | ||||||||||
| Earnings per share - Basic | $ | 3.93 | $ | 2.42 | ||||||||
| Earnings per share - Diluted | 3.45 | 2.31 | ||||||||||
| Reconciliation to reported net income (GAAP) | ||||||||||||
| Net income as reported (GAAP) | 13,656 | 8,099 | ||||||||||
| PPP loan forgiveness | (3,508 | ) | - | |||||||||
| Net income as adjusted | 10,148 | 8,099 | ||||||||||
| Earnings per share before PPP loan forgiveness - Basic | $ | 2.92 | $ | 2.42 | ||||||||
| Earnings per share before PPP loan forgiveness - Diluted | 2.57 | 2.31 | ||||||||||
| ACME UNITED CORPORATION | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| YEAR END REPORT 2021 | |||||||||||
| (Unaudited) | |||||||||||
| Amounts in 000's | December 31, 2021 | December 31, 2020 | |||||||||
| Assets: | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 4,843 | $ | 4,167 | |||||||
| Accounts receivable, net | 34,221 | 27,173 | |||||||||
| Inventories | 53,552 | 50,704 | |||||||||
| Prepaid expenses and other current assets | 2,635 | 1,642 | |||||||||
| Total current assets | 95,251 | 83,686 | |||||||||
| Property, plant and equipment, net | 24,027 | 20,239 | |||||||||
| Operating lease right of use asset | 3,130 | 2,422 | |||||||||
| Intangible assets, less accumulated amortization | 17,231 | 18,720 | |||||||||
| Goodwill | 4,800 | 4,800 | |||||||||
| Total assets | $ | 144,439 | $ | 129,867 | |||||||
| Liabilities and stockholders' equity: | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 8,977 | $ | 7,601 | |||||||
| Operating lease liability - short term | 1,000 | 873 | |||||||||
| Mortgage payable - short term | 389 | 267 | |||||||||
| Other accrued liabilities | 9,880 | 11,460 | |||||||||
| Total current liabilities | 20,246 | 20,201 | |||||||||
| Long term debt | 33,037 | 38,767 | |||||||||
| Note payable - PPP loan | - | 3,508 | |||||||||
| Mortgage payable, net of current portionMortgage payable - long term | 11,081 | 2,911 | |||||||||
| Operating lease liability - long term | 2,364 | 1,654 | |||||||||
| Other non-current liabilities | 629 | 110 | |||||||||
| Total liabilities | 67,357 | 67,151 | |||||||||
| Total stockholders' equity | 77,082 | 62,716 | |||||||||
| Total liabilities and stockholders' equity | $ | 144,439 | $ | 129,867 | |||||||
FAQ
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