Acme United Reports 17% Sales Increase and 49% Net Income Increase for Third Quarter of 2020
Acme United Corporation (NYSE American: ACU) reported a strong third-quarter performance for 2020, with net sales of $43.3 million, up 17% from $37 million in Q3 2019. Year-to-date sales reached $123.1 million, a 13% increase. The acquisition of First Aid Central contributed approximately $1.2 million in sales this quarter. Net income rose 49% to $1,579,000, or $0.46 per share. Notably, U.S. sales increased 12%, boosted by first aid products, while European sales surged 35%. However, gross margin dropped to 34.5% due to COVID-19 related costs.
- Net sales increased 17% to $43.3 million in Q3 2020.
- Net income rose 49% to $1,579,000, with diluted EPS up 53%.
- U.S. segment sales increased 12%, driven by first aid and safety products.
- European net sales increased 35%, indicating strong market performance.
- Gross margin decreased to 34.5% in Q3 2020 from 35.5% a year earlier due to COVID-19 costs.
FAIRFIELD, Conn., Oct. 21, 2020 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended September 30, 2020 were
Acme United’s revenues in the third quarter and nine months ended September 30, 2020 included approximately
Net income was
Chairman and CEO Walter C. Johnsen said, “We achieved very strong results in our third quarter by successfully managing and executing across all of our markets under very difficult circumstances. As in the second quarter of 2020, Acme United benefited from market share gains in first aid and safety supplies, Westcott craft cutting products, Camillus hunting and Cuda fishing products, and e-commerce sales. We have also successfully shifted our business to support mass market and e-commerce customers, which has compensated for weak sales to offices, schools, restaurants, and other businesses adversely impacted by the COVID-19 pandemic.”
Mr. Johnsen added, “We are grateful for the focus and dedication of our associates who have produced and shipped our products under very challenging circumstances. Our performance this quarter reflects their hard work.”
For the third quarter of 2020, net sales in the U.S. segment increased
European net sales for the third quarter of 2020 increased
Net sales in Canada, excluding First Aid Central products, for the third quarter of 2020 increased
Gross margin was
The Company’s debt less cash on September 30, 2020 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Wednesday, October 21, 2020, 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. 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®, 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 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 severity and duration of the pandemic, including whether there is a “second wave,” the effect of measures taken by the Company to limit the spread of the disease at our offices and distribution centers, further actions that may be taken by governmental authorities or by businesses or individuals on their own initiative in response to the pandemic, 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 disruptions in our supply chain,, any of which could 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, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits; (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; (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.
CONTACT:
Paul G. Driscoll
Acme United Corporation
55 Walls Drive
Fairfield, CT 06824
Phone: (203) 254-6060
FAX: (203) 254-6521
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| THIRD QUARTER REPORT 2020 | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | Three Months Ended | |||||||
| Amounts in 000's except per share data | September 30, 2020 | September 30, 2019 | ||||||
| Net sales | $ | 43,316 | $ | 36,995 | ||||
| Cost of goods sold | 28,360 | 23,861 | ||||||
| Gross profit | 14,956 | 13,134 | ||||||
| Selling, general, and administrative expenses | 12,832 | 11,408 | ||||||
| Operating income | 2,124 | 1,726 | ||||||
| Interest expense | 173 | 478 | ||||||
| Interest income | (5 | ) | (9 | ) | ||||
| Interest expense, net | 168 | 469 | ||||||
| Other (income) expense, net | (35 | ) | 40 | |||||
| Total other expense, net | 133 | 509 | ||||||
| Income before income tax expense | 1,991 | 1,217 | ||||||
| Income tax expense | 412 | 158 | ||||||
| Net income | $ | 1,579 | $ | 1,059 | ||||
| Shares outstanding - Basic | 3,340 | 3,352 | ||||||
| Shares outstanding - Diluted | 3,461 | 3,486 | ||||||
| Earnings per share - Basic | $ | 0.47 | $ | 0.32 | ||||
| Earnings per share - Diluted | 0.46 | 0.30 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| THIRD QUARTER REPORT 2020 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | Nine Months Ended | |||||||
| Amounts in 000's except per share data | September 30, 2020 | September 30, 2019 | ||||||
| Net sales | $ | 123,133 | $ | 108,585 | ||||
| Cost of goods sold | 78,594 | 68,877 | ||||||
| Gross profit | 44,539 | 39,708 | ||||||
| Selling, general, and administrative expenses | 36,023 | 32,679 | ||||||
| Operating income | 8,516 | 7,029 | ||||||
| Interest expense | 742 | 1,491 | ||||||
| Interest income | (20 | ) | (28 | ) | ||||
| Interest expense, net | 722 | 1,463 | ||||||
| Other expense, net | 2 | 52 | ||||||
| Total other expense, net | 724 | 1,515 | ||||||
| Income before income tax expense | 7,792 | 5,514 | ||||||
| Income tax expense | 1,737 | 977 | ||||||
| Net income | $ | 6,055 | $ | 4,537 | ||||
| Shares outstanding - Basic | 3,343 | 3,352 | ||||||
| Shares outstanding - Diluted | 3,454 | 3,446 | ||||||
| Earnings per share - Basic | $ | 1.81 | $ | 1.35 | ||||
| Earnings per share - Diluted | 1.75 | 1.32 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| THIRD QUARTER REPORT 2020 | ||||||||
| (Unaudited) | ||||||||
| Amounts in 000's | September 30, 2020 | September 30, 2019 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,031 | $ | 5,698 | ||||
| Accounts receivable, net | 32,154 | 30,635 | ||||||
| Inventories | 48,351 | 38,970 | ||||||
| Prepaid expenses and other current assets | 2,142 | 1,787 | ||||||
| Total current assets | 85,678 | 77,090 | ||||||
| Property, plant and equipment, net | 14,341 | 14,006 | ||||||
| Operating lease right of use asset | 2,190 | 2,123 | ||||||
| Intangible assets, less accumulated amortization | 16,072 | 16,107 | ||||||
| Goodwill | 4,696 | 4,696 | ||||||
| Other assets | 40 | 202 | ||||||
| Total assets | $ | 123,017 | $ | 114,224 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,251 | $ | 7,217 | ||||
| Operating lease liability - short term | 847 | 920 | ||||||
| Mortgage payable - short term | 267 | 267 | ||||||
| Other accrued liabilities | 13,376 | 8,202 | ||||||
| Total current liabilities | 23,741 | 16,606 | ||||||
| Long term debt | 30,703 | 38,125 | ||||||
| Note Payable (PPP) | 3,508 | - | ||||||
| Mortgage payable - long term | 2,978 | 3,244 | ||||||
| Operating lease liability - long term | 1,422 | 1,210 | ||||||
| Other non-current liabilities | 69 | 15 | ||||||
| Total liabilities | 62,421 | 59,200 | ||||||
| Total stockholders' equity | 60,596 | 55,024 | ||||||
| Total liabilities and stockholders' equity | $ | 123,017 | $ | 114,224 | ||||
FAQ
What were Acme United's net sales for Q3 2020?
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