Acme United Reports 3% Increase in Net Income for Third Quarter of 2024
Acme United (NYSE American: ACU) reported financial results for Q3 2024. Net sales were $48.2 million, down 4% from Q3 2023, but up 4% excluding the impact of sold product lines. Net income increased 3% to $2.23 million, while diluted EPS decreased 7% to $0.54. For the nine months ended September 30, 2024, net sales slightly decreased by 1%, but net income rose 26% to $8.32 million.
The company saw strong sales in Westcott cutting tools and DMT sharpeners, offsetting soft U.S. first aid product sales. Acme United introduced new industrial first aid kits with automatic replenishment capabilities. European sales increased 10% in Q3, while Canadian sales were mixed. Gross margin slightly decreased to 38.5% in Q3 but improved to 39.4% for the nine-month period. The company's bank debt less cash decreased to $26.7 million from $38.2 million year-over-year.
Acme United (NYSE American: ACU) ha riportato i risultati finanziari per il terzo trimestre del 2024. Le vendite nette sono state di 48,2 milioni di dollari, in calo del 4% rispetto al terzo trimestre del 2023, ma in aumento del 4% escludendo l'impatto delle linee di prodotti venduti. Il reddito netto è aumentato del 3% a 2,23 milioni di dollari, mentre l'EPS diluito è diminuito del 7% a 0,54 dollari. Per i nove mesi conclusosi il 30 settembre 2024, le vendite nette sono diminuite leggermente dell'1%, ma il reddito netto è aumentato del 26% a 8,32 milioni di dollari.
L'azienda ha visto forti vendite negli strumenti da taglio Westcott e nei temperini DMT, compensando le vendite di prodotti di pronto soccorso statunitensi che sono state deboli. Acme United ha introdotto nuovi kit di pronto soccorso industriali con capacità di rifornimento automatico. Le vendite in Europa sono aumentate del 10% nel terzo trimestre, mentre le vendite in Canada sono state miste. Il margine lordo è leggermente diminuito al 38,5% nel terzo trimestre, ma è migliorato al 39,4% per il periodo di nove mesi. Il debito bancario dell'azienda, al netto della liquidità, è diminuito a 26,7 milioni di dollari rispetto ai 38,2 milioni di dollari dell'anno precedente.
Acme United (NYSE American: ACU) reportó resultados financieros para el tercer trimestre de 2024. Las ventas netas fueron de 48,2 millones de dólares, una disminución del 4% en comparación con el tercer trimestre de 2023, pero un aumento del 4% excluyendo el impacto de las líneas de productos vendidos. El ingreso neto aumentó un 3% a 2,23 millones de dólares, mientras que las ganancias por acción diluidas disminuyeron un 7% a 0,54 dólares. Para los nueve meses que terminaron el 30 de septiembre de 2024, las ventas netas cayeron ligeramente un 1%, pero el ingreso neto se incrementó un 26% a 8,32 millones de dólares.
La compañía vio fuertes ventas en herramientas de corte Westcott y en afiladores DMT, compensando las suaves ventas de productos de primeros auxilios en EE. UU. Acme United presentó nuevos kits de primeros auxilios industriales con capacidades de reabastecimiento automático. Las ventas en Europa aumentaron un 10% en el tercer trimestre, mientras que las ventas en Canadá fueron variadas. El margen bruto disminuyó ligeramente al 38,5% en el tercer trimestre, pero mejoró al 39,4% para el período de nueve meses. La deuda bancaria de la compañía, menos el efectivo, se redujo a 26,7 millones de dólares desde 38,2 millones de dólares en comparación con el año anterior.
Acme United (NYSE American: ACU)는 2024년 3분기 재무 결과를 보고했습니다. 순매출은 4820만 달러로, 2023년 3분기 대비 4% 감소했지만, 매각된 제품 라인의 영향을 제외하면 4% 증가했습니다. 순이익은 3% 증가하여 223만 달러에 이르렀으나, 희석 주당순이익은 7% 감소하여 0.54달러입니다. 2024년 9월 30일로 끝나는 9개월 동안, 순매출은 약간 1% 감소했지만, 순이익은 26% 증가하여 832만 달러에 달했습니다.
회사는 Westcott 커팅 도구와 DMT 샤프너에서 강력한 판매를 보이며, 미국에서의 일차 의료 제품 판매 부진을 상쇄했습니다. Acme United는 자동 보충 기능을 갖춘 새로운 산업용 응급 처치 키트를 출시했습니다. 유럽에서의 판매는 3분기에 10% 증가했으며, 캐나다의 판매는 혼조세를 보였습니다. 총 이익률은 3분기에 38.5%로 약간 감소했지만, 9개월 동안 39.4%로 개선되었습니다. 회사의 은행 채무는 현금을 제외하고 3820만 달러에서 2670만 달러로 감소했습니다.
Acme United (NYSE American: ACU) a publié ses résultats financiers pour le troisième trimestre 2024. Les ventes nettes se sont élevées à 48,2 millions de dollars, en baisse de 4% par rapport au troisième trimestre 2023, mais en hausse de 4% en excluant l'impact des lignes de produits vendues. Le revenu net a augmenté de 3% pour atteindre 2,23 millions de dollars, tandis que le BPA dilué a diminué de 7% pour s'établir à 0,54 dollar. Pour les neuf mois se terminant le 30 septembre 2024, les ventes nettes ont légèrement diminué de 1%, mais le revenu net a grimpé de 26% pour atteindre 8,32 millions de dollars.
L'entreprise a constaté de fortes ventes dans les outils de coupe Westcott et les taille-crayons DMT, compensant les ventes de produits de premiers secours aux États-Unis qui étaient faibles. Acme United a introduit de nouveaux kits de premiers secours industriels avec des capacités de réapprovisionnement automatique. Les ventes en Europe ont augmenté de 10% au troisième trimestre, tandis que les ventes au Canada étaient variées. Le marge brute a légèrement diminué à 38,5% au troisième trimestre, mais s'est améliorée à 39,4% pour la période de neuf mois. La dette bancaire de l'entreprise, moins la trésorerie, a diminué à 26,7 millions de dollars, contre 38,2 millions de dollars un an auparavant.
Acme United (NYSE American: ACU) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht. Die Nettoverkäufe lagen bei 48,2 Millionen US-Dollar, was einem Rückgang von 4% im Vergleich zum dritten Quartal 2023 entspricht, jedoch unter Ausschluss des Einflusses verkaufter Produktlinien um 4% gestiegen ist. Der Nettoertrag stieg um 3% auf 2,23 Millionen US-Dollar, während der verwässerte Gewinn pro Aktie um 7% auf 0,54 US-Dollar fiel. Für die neun Monate bis zum 30. September 2024 sanken die Nettoverkäufe leicht um 1%, aber der Nettoertrag stieg um 26% auf 8,32 Millionen US-Dollar.
Das Unternehmen verzeichnete starke Verkäufe bei Westcott-Schneidwerkzeugen und DMT-Schärfern, die schwache Verkaufszahlen bei US-Erste-Hilfe-Produkten ausglichen. Acme United stellte neue industrielle Erste-Hilfe-Kits mit automatischen Nachfüllfunktionen vor. Die europäischen Verkäufe stiegen im 3. Quartal um 10%, während die Verkäufe in Kanada gemischt waren. Der Bruttomargen sank im 3. Quartal leicht auf 38,5%, verbesserte sich jedoch auf 39,4% für den Neunmonatzeitraum. Die Bankverbindlichkeiten des Unternehmens abzüglich der Barbestände sanken im Jahresvergleich von 38,2 Millionen US-Dollar auf 26,7 Millionen US-Dollar.
- Net income increased 3% to $2.23 million in Q3 2024
- Nine-month net income rose 26% to $8.32 million
- Excluding sold product lines, Q3 net sales increased 4%
- Strong sales in Westcott cutting tools and DMT sharpeners
- European net sales increased 10% in Q3 2024
- Nine-month gross margin improved to 39.4% from 37.3%
- Bank debt less cash decreased to $26.7 million from $38.2 million year-over-year
- Generated approximately $6.2 million in free cash flow
- Overall Q3 net sales decreased 4% to $48.2 million
- Diluted EPS decreased 7% to $0.54 in Q3 2024
- Nine-month net sales decreased 1% to $148.5 million
- U.S. segment sales decreased 6% in Q3 2024
- Soft sales of first aid products in the U.S. due to customer timing and market conditions
- Canadian net sales decreased 1% in U.S. dollars for Q3 2024
- Q3 gross margin slightly decreased to 38.5% from 38.7% year-over-year
Insights
Acme United's Q3 2024 results present a mixed picture. While net income increased by
- Gross margin remained stable at
38.5% for Q3 and improved to39.4% for the nine-month period. - Significant debt reduction, with bank debt less cash decreasing from
$38.2 million to$26.7 million year-over-year. - Strong performance in Europe with a
15% sales increase (excluding divested lines).
The introduction of new industrial first aid kits with automatic replenishment capabilities could be a game-changer, potentially driving future growth. However, softness in U.S. first aid product sales and challenges in the Canadian market are areas to watch. Overall, Acme United's financial health appears solid, with improved cash flow and strategic focus on core product lines.
Acme United's Q3 results reveal important market dynamics:
- The company's decision to divest the Camillus and Cuda product lines appears strategic, allowing focus on higher-performing segments.
- Strong performance in Westcott cutting tools and DMT sharpeners, with increased placement in mass market accounts, indicates successful market penetration strategies.
- The soft U.S. first aid product sales highlight potential market saturation or increased competition, warranting closer attention.
- European market share gains in the office channel are promising, showing
10% growth over nine months. - The Canadian market's softness in school and office products reflects broader economic challenges in that region.
The introduction of next-gen industrial first aid kits with IoT capabilities for automatic replenishment is a significant innovation. This could create a new revenue stream and strengthen Acme's position in the industrial safety market. However, the company must navigate carefully through varying regional market conditions and continue to innovate to maintain its competitive edge.
SHELTON, Conn., Oct. 18, 2024 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended September 30, 2024 were
Net income was
Chairman and CEO Walter C. Johnsen said, “After a strong performance in the first half of 2024, sales of first aid products in the U.S. were soft in the third quarter due to customer timing and market conditions. Sales of our Westcott cutting tools and DMT sharpeners continued to be strong in the quarter, with increased placement in large mass market accounts.”
“During the quarter, we introduced the latest generation of industrial first aid kits with patented automatic replenishment capabilities. The use and expiration of components in the kits are now monitored in real time, allowing the customer to order replacements automatically. First aid units with these capabilities facilitate compliance with OSHA, ANSI, and other regulations.”
For the three months ended September 30, 2024, net sales in the U.S. segment decreased
European net sales for the three months ended September 30, 2024 increased
Net sales in Canada for the three months ended September 30, 2024 decreased
Gross margin was
The Company’s bank debt less cash as of September 30, 2024 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Friday, October 18, 2024, at 12:00 p.m. ET. To listen or participate in a question and answer session, dial 877-407-0784. International callers may dial 201-689-8560. The confirmation code is 13748799. 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®, DMT®, Med-Nap and Elite First Aid. 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.
These risks and uncertainties 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) the continuing adverse impact of inflation, including product costs, and interest rates; (iv) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (v) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, strikes, port closures or otherwise; (vi) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (vii) currency; (viii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (ix) changes in client needs and consumer spending habits; (x) the impact of competition; (xi) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (xii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (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 Phone: (203) 254-6060 | 1 Waterview Drive | Shelton, CT 06484 |
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| THIRD QUARTER REPORT 2024 | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | Three Months Ended | |||||||
| Amounts in 000's except per share data | September 30, 2024 | September 30, 2023 | ||||||
| Net sales | $ | 48,166 | $ | 50,384 | ||||
| Cost of goods sold | 29,602 | 30,881 | ||||||
| Gross profit | 18,564 | 19,503 | ||||||
| Selling, general, and administrative expenses | 15,638 | 15,846 | ||||||
| Operating income | 2,926 | 3,657 | ||||||
| Interest expense | 568 | 816 | ||||||
| Interest income | (33 | ) | (32 | ) | ||||
| Interest expense, net | 535 | 784 | ||||||
| Other (income) expense, net | (17 | ) | 55 | |||||
| Income before income tax expense | 2,408 | 2,818 | ||||||
| Income tax expense | 182 | 666 | ||||||
| Net income | $ | 2,226 | $ | 2,152 | ||||
| Shares outstanding - Basic | 3,726 | 3,578 | ||||||
| Shares outstanding - Diluted | 4,104 | 3,721 | ||||||
| Earnings per share - Basic | $ | 0.60 | $ | 0.60 | ||||
| Earnings per share - Diluted | 0.54 | 0.58 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| THIRD QUARTER REPORT 2024 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | Nine Months Ended | |||||||
| Amounts in 000's except per share data | September 30, 2024 | September 30, 2023 | ||||||
| Net sales | $ | 148,547 | $ | 149,559 | ||||
| Cost of goods sold | 89,960 | 93,752 | ||||||
| Gross profit | 58,587 | 55,807 | ||||||
| Selling, general, and administrative expenses | 46,728 | 44,711 | ||||||
| Operating income | 11,859 | 11,096 | ||||||
| Interest expense | 1,622 | 2,595 | ||||||
| Interest income | (105 | ) | (78 | ) | ||||
| Interest expense, net | 1,517 | 2,517 | ||||||
| Other (income) expense, net | (90 | ) | 9 | |||||
| Income before income tax expense | 10,432 | 8,570 | ||||||
| Income tax expense | 2,117 | 1,984 | ||||||
| Net income | $ | 8,315 | $ | 6,586 | ||||
| Shares outstanding - Basic | 3,686 | 3,558 | ||||||
| Shares outstanding - Diluted | 4,087 | 3,596 | ||||||
| Earnings per share - Basic | $ | 2.26 | $ | 1.85 | ||||
| Earnings per share - Diluted | 2.03 | 1.83 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| THIRD QUARTER REPORT 2024 | ||||||||
| (Unaudited) | ||||||||
| Amounts in 000's | September 30, 2024 | September 30, 2023 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,702 | $ | 5,567 | ||||
| Accounts receivable, net | 31,349 | 33,855 | ||||||
| Inventories | 55,990 | 54,575 | ||||||
| Prepaid expenses and other current assets | 5,733 | 3,779 | ||||||
| Restricted cash | - | 750 | ||||||
| Total current assets | 98,774 | 98,526 | ||||||
| Property, plant and equipment, net | 30,892 | 27,708 | ||||||
| Operating lease right of use asset | 4,808 | 2,300 | ||||||
| Intangible assets, less accumulated amortization | 22,810 | 19,546 | ||||||
| Goodwill | 8,189 | 8,189 | ||||||
| Total assets | $ | 165,473 | $ | 156,269 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,008 | $ | 9,976 | ||||
| Operating lease liability - short term | 1,550 | 1,165 | ||||||
| Mortgage payable - short term | 433 | 415 | ||||||
| Other accrued liabilities | 13,403 | 13,873 | ||||||
| Total current liabilities | 22,394 | 25,429 | ||||||
| Long term debt | 22,018 | 32,934 | ||||||
| Mortgage payable - long term | 9,970 | 10,393 | ||||||
| Operating lease liability - long term | 3,357 | 1,279 | ||||||
| Other non-current liabilities | 1,417 | 328 | ||||||
| Total liabilities | 59,156 | 70,363 | ||||||
| Total stockholders' equity | 106,317 | 85,906 | ||||||
| Total liabilities and stockholders' equity | $ | 165,473 | $ | 156,269 | ||||
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