ACME United Reports 16% Net Income Increase and 2% EPS Increase for Second Quarter of 2021
Acme United Corporation (ACU) reported Q2 2021 net sales of $44.8 million, up 2% YoY, with six-month sales at $88.4 million, an 11% increase. Net income, excluding PPP loan forgiveness, rose 16% to $3.7 million or $0.94 per diluted share. Including the forgiveness, net income reached $7.2 million. U.S. sales saw a 4% decline in Q2 due to a new warehouse system, while European sales surged 26%. Canadian sales increased 68%. Gross margins slightly decreased to 36%. The company experienced operational interruptions but expects improved shipping efficiency moving forward.
- Net sales for Q2 2021 increased by 2% year-over-year to $44.8 million.
- Six-month sales improved by 11% to $88.4 million compared to 2020.
- Net income rose by 16% to $3.7 million, or $0.94 per diluted share, for Q2 2021.
- Including PPP loan forgiveness, net income for Q2 was $7.2 million, or $1.82 per diluted share.
- European sales increased by 26% in Q2 2021, mainly due to reopening offices.
- Canadian sales surged by 68% in Q2, driven by e-commerce growth.
- U.S. net sales decreased by 4% in Q2 2021 due to delayed shipments from new warehouse system installation.
- Gross margin slightly declined to 36% from 36.5% in Q2 2020.
SHELTON, Conn., July 22, 2021 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended June 30, 2021 were
Net income (excluding the impact of the forgiveness of the Company’s Paycheck Protection Program (“PPP”) loan) was
On June 9, 2021 the Company’s PPP loan of
Chairman and CEO Walter C. Johnsen said, “Our performance in the second quarter was impacted by interruptions in our operations as we installed a new warehouse management system at our main U.S. distribution facility in North Carolina. As planned, we did not ship for the first 10 days of the quarter. We finished the quarter with approximately
For the second quarter of 2021, net sales in the U.S. segment decreased
European net sales for the second quarter of 2021 increased
Net sales in Canada for the second quarter of 2021 increased
Gross margin was
The second quarter tax expense included a
The Company’s bank debt less cash on June 30, 2021 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Thursday, July 22, 2021, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 800-353-6461. International callers may dial 334-323-0501. The confirmation code is 8518704. 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
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 the impact that the global COVID-19 pandemic has had and will continue to have on the Company’s business, operations and financial results. These include, the extent of the COVID-19 pandemic, including the duration, spread, severity, and any recurrence of the COVID-19 pandemic including through any new variant strains of the underlying virus; the effectiveness and availability of vaccines; the duration and scope of pandemic-related government orders and restrictions on commercial and other activities, including retail store, office, school and restaurant closures; the duration and scope of the Company’s actions to maintain employee health at our offices, production facilities and distribution centers; the extent of the impact of the COVID-19 pandemic on overall demand for the Company’s products; the pace of recovery when an effective vaccine is widely available or when the pandemic otherwise subsides and the heightened impact the pandemic has on many of the risks described herein, including, without limitation, risks relating to the on-going world-wide economic downturn, and potential disruptions in our supply chain, any of which could adversely impact the Company’s ability to manufacture, source or distribute it 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) changes in client needs and consumer spending habits, including COVID-19 related changes; (iv) the impact of competition; (v) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment, including additional inventory acquired to respond to COVID-19 related uncertainties; (viii) currency fluctuations; (ix) 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 (x) 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 | ||||||||||||
| SECOND QUARTER REPORT 2021 | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||
| Amounts in 000's except per share data | June 30, 2021 | June 30, 2020 | ||||||||||
| Net sales | $ | 44,847 | $ | 44,042 | ||||||||
| Cost of goods sold | 28,694 | 27,989 | ||||||||||
| Gross profit | 16,153 | 16,053 | ||||||||||
| Selling, general, and administrative expenses | 12,364 | 11,670 | ||||||||||
| Operating income | 3,789 | 4,383 | ||||||||||
| Interest expense | (226 | ) | (245 | ) | ||||||||
| Interest income | 4 | 11 | ||||||||||
| Interest expense, net | (222 | ) | (234 | ) | ||||||||
| PPP Loan forgiveness | 3,508 | - | ||||||||||
| Other (expense) income , net | (68 | ) | 1 | |||||||||
| Total other income (expense), net | 3,440 | (233 | ) | |||||||||
| Income before income tax expense | 7,007 | 4,150 | ||||||||||
| Income tax (benefit) expense | (224 | ) | 951 | |||||||||
| Net income | $ | 7,231 | $ | 3,199 | ||||||||
| Shares outstanding - Basic | 3,347 | 3,349 | ||||||||||
| Shares outstanding - Diluted | 3,964 | 3,482 | ||||||||||
| Earnings per share - Basic | $ | 2.16 | $ | 0.96 | ||||||||
| Earnings per share - Diluted | 1.82 | 0.92 | ||||||||||
| Reconciliation to reported Net Income (GAAP) | ||||||||||||
| Net income as reported (GAAP) | 7,231 | 3,199 | ||||||||||
| PPP Loan Forgiveness | (3,508 | ) | - | |||||||||
| Net income as adjusted | 3,723 | 3,199 | ||||||||||
| Earnings per share before PPP Loan forgiveness - Basic | $ | 1.11 | $ | 0.96 | ||||||||
| Earnings per share before PPP Loan forgiveness - Diluted | 0.94 | 0.92 | ||||||||||
| ACME UNITED CORPORATION | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| SECOND QUARTER REPORT 2021 (cont.) | ||||||||||||
| (Unaudited) | ||||||||||||
| Six Months Ended | Six Months Ended | |||||||||||
| Amounts in 000's except per share data | June 30, 2021 | June 30, 2020 | ||||||||||
| Net sales | $ | 88,372 | $ | 79,817 | ||||||||
| Cost of goods sold | 56,632 | 50,234 | ||||||||||
| Gross profit | 31,740 | 29,583 | ||||||||||
| Selling, general, and administrative expenses | 24,983 | 23,191 | ||||||||||
| Operating income | 6,757 | 6,392 | ||||||||||
| Interest expense | (452 | ) | (568 | ) | ||||||||
| Interest income | 9 | 14 | ||||||||||
| Interest expense, net | (443 | ) | (554 | ) | ||||||||
| PPP Loan forgiveness | 3,508 | - | ||||||||||
| Other expense, net | (145 | ) | (36 | ) | ||||||||
| Total other income (expense), net | 3,363 | (591 | ) | |||||||||
| Income before income tax expense | 9,677 | 5,802 | ||||||||||
| Income tax expense | 400 | 1,326 | ||||||||||
| Net income | $ | 9,277 | $ | 4,476 | ||||||||
| Shares outstanding - Basic | 3,409 | 3,344 | ||||||||||
| Shares outstanding - Diluted | 3,960 | 3,499 | ||||||||||
| Earnings per share - Basic | $ | 2.72 | $ | 1.34 | ||||||||
| Earnings per share - Diluted | 2.34 | 1.28 | ||||||||||
| Reconciliation to reported Net Income (GAAP) | ||||||||||||
| Net income as reported (GAAP) | 9,277 | 4,476 | ||||||||||
| PPP Loan Forgiveness | (3,508 | ) | - | |||||||||
| Net income as adjusted | 5,769 | 4,476 | ||||||||||
| Earnings per share before PPP Loan forgiveness - Basic | $ | 1.69 | $ | 1.34 | ||||||||
| Earnings per share before PPP Loan forgiveness - Diluted | 1.46 | 1.28 | ||||||||||
| ACME UNITED CORPORATION | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| SECOND QUARTER REPORT 2021 | ||||||||||
| (Unaudited) | ||||||||||
| Amounts in 000's | June 30, 2021 | June 30, 2020 | ||||||||
| Assets: | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 3,240 | $ | 5,239 | ||||||
| Accounts receivable, net | 36,270 | 33,720 | ||||||||
| Inventories | 48,691 | 44,311 | ||||||||
| Prepaid expenses and other current assets | 2,233 | 2,438 | ||||||||
| Total current assets | 90,434 | 85,708 | ||||||||
| Property, plant and equipment, net | 22,408 | 14,277 | ||||||||
| Operating lease right of use asset | 3,476 | 2,438 | ||||||||
| Intangible assets, less accumulated amortization | 18,019 | 16,376 | ||||||||
| Goodwill | 4,800 | 4,696 | ||||||||
| Other assets | 1 | 41 | ||||||||
| Total assets | $ | 139,138 | $ | 123,536 | ||||||
| Liabilities and stockholders' equity: | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 8,021 | $ | 8,733 | ||||||
| Operating lease liability - short term | 919 | 933 | ||||||||
| Mortgage payable - short term | 267 | 267 | ||||||||
| Other accrued liabilities | 10,374 | 10,680 | ||||||||
| Total current liabilities | 19,581 | 20,613 | ||||||||
| Long term debt | 39,550 | 35,742 | ||||||||
| Note payable | - | 3,508 | ||||||||
| Mortgage payable - long term | 2,952 | 3,044 | ||||||||
| Operating lease liability - long term | 2,589 | 1,573 | ||||||||
| Other non-current liabilities | 14 | 49 | ||||||||
| Total liabilities | 64,686 | 64,529 | ||||||||
| Total stockholders' equity | 74,452 | 59,007 | ||||||||
| Total liabilities and stockholders' equity | $ | 139,138 | $ | 123,536 | ||||||
| CONTACT: | Paul G. Driscoll | Acme United Corporation | 1 Waterview Drive | Shelton, CT 06484 |
| Phone: (203) 254-6060 |
FAQ
What were Acme United's Q2 2021 net sales?
How did Acme United's net income change in Q2 2021?
What drove the increase in Acme United's Canadian sales?
What impact did the new warehouse system have on Acme United's sales?
What was Acme United's gross margin in Q2 2021?
