Acme United Reports 9% Sales Increase and 20% Net Income Increase for Second Quarter of 2020
Acme United Corporation (NYSE American: ACU) reported a 9% increase in net sales for Q2 2020, totaling $44.0 million, compared to $40.2 million in Q2 2019. For the first half of the year, net sales rose 11% to $79.8 million. Net income also improved by 20% to $3.2 million or $0.92 per diluted share. Strong demand for first aid products, partly driven by COVID-related sales, offset declines in traditional product lines. However, Canadian sales were hit hard, declining 44% in Q2 due to office closures. Acme United also secured a $3.5 million loan from the Paycheck Protection Program to support payroll.
- Net sales increased 9% in Q2 2020, totaling $44.0 million.
- Net income rose 20% to $3.2 million, or $0.92 per diluted share.
- First aid and safety product sales surged due to COVID-related demand.
- The company generated $9 million in free cash flow during the twelve months ended June 30, 2020.
- Sales of traditional office and school supply products declined dramatically, over 80%.
- Net sales in Canada dropped 44% in Q2 2020 compared to the same period in 2019.
FAIRFIELD, Conn., July 17, 2020 (GLOBE NEWSWIRE) -- Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended June 30, 2020 were
Acme United’s second quarter and six months ended June 30, 2020 revenues included approximately
Net income was
Chairman and CEO Walter C. Johnsen said, “This was a very difficult quarter that ended with good results. We benefited from the diversification during the past 5 years of our customer base and product lines. Sales of our traditional Westcott cutting and measuring tools to office and school supply customers declined dramatically, in some cases more than
Mr. Johnsen added, “I am incredibly proud of our team. They are working under difficult conditions with a sense of purpose, and delivering results.”
Net sales for the second quarter and the first six months of 2020 in the U.S. segment increased
European net sales for the second quarter of 2020 increased
Net sales in Canada, excluding First Aid Central products, for the second quarter of 2020 declined
Gross margin was
Acme United received a loan of
The Company’s debt less cash on June 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 Friday, July 17, 2020, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 800-437-2398. International callers may dial 323-289-6576. 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.
| ACME UNITED CORPORATION | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| SECOND QUARTER REPORT 2020 | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||
| Amounts in 000's except per share data | June 30, 2020 | June 30, 2019 | |||||||||||
| Net sales | $ | 44,042 | $ | 40,220 | |||||||||
| Cost of goods sold | 27,989 | 25,449 | |||||||||||
| Gross profit | 16,053 | 14,771 | |||||||||||
| Selling, general, and administrative expenses | 11,670 | 11,003 | |||||||||||
| Operating income | 4,383 | 3,768 | |||||||||||
| Interest expense | 245 | 502 | |||||||||||
| Interest income | (11 | ) | (11 | ) | |||||||||
| Interest expense, net | 234 | 491 | |||||||||||
| Other (income) expense, net | (1 | ) | 14 | ||||||||||
| Total other expense, net | 233 | 505 | |||||||||||
| Income before income tax expense | 4,150 | 3,263 | |||||||||||
| Income tax expense | 951 | 592 | |||||||||||
| Net income | $ | 3,199 | $ | 2,672 | |||||||||
| Shares outstanding - Basic | 3,349 | 3,351 | |||||||||||
| Shares outstanding - Diluted | 3,482 | 3,485 | |||||||||||
| Earnings per share - Basic | $ | 0.96 | $ | 0.80 | |||||||||
| Earnings per share - Diluted | 0.92 | 0.77 | |||||||||||
| ACME UNITED CORPORATION | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| SECOND QUARTER REPORT 2020 (cont.) | |||||||||||||
| (Unaudited) | |||||||||||||
| Six Months Ended | Six Months Ended | ||||||||||||
| Amounts in 000's except per share data | June 30, 2020 | June 30, 2019 | |||||||||||
| Net sales | $ | 79,817 | $ | 71,590 | |||||||||
| Cost of goods sold | 50,234 | 45,016 | |||||||||||
| Gross profit | 29,583 | 26,574 | |||||||||||
| Selling, general, and administrative expenses | 23,191 | 21,271 | |||||||||||
| Operating income | 6,392 | 5,303 | |||||||||||
| Interest expense | 568 | 395 | |||||||||||
| Interest income | (14 | ) | - | ||||||||||
| Interest expense, net | 554 | 994 | |||||||||||
| Other expense, net | 36 | 12 | |||||||||||
| Total other expense, net | 590 | 1,006 | |||||||||||
| Income before income tax expense | 5,802 | 4,297 | |||||||||||
| Income tax expense | 1,326 | 819 | |||||||||||
| Net income | $ | 4,476 | $ | 3,478 | |||||||||
| Shares outstanding - Basic | 3,344 | 3,351 | |||||||||||
| Shares outstanding - Diluted | 3,499 | 3,429 | |||||||||||
| Earnings per share - Basic | $ | 1.34 | $ | 1.04 | |||||||||
| Earnings per share - Diluted | 1.28 | 1.01 | |||||||||||
| ACME UNITED CORPORATION | |||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
| SECOND QUARTER REPORT 2020 | |||||||||||||
| (Unaudited) | |||||||||||||
| Amounts in 000's | June 30, 2020 | June 30, 2019 | |||||||||||
| Assets: | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 5,239 | $ | 1,924 | |||||||||
| Accounts receivable, net | 33,720 | 35,462 | |||||||||||
| Inventories | 44,311 | 39,615 | |||||||||||
| Prepaid expenses and other current assets | 2,438 | 2,085 | |||||||||||
| Total current assets | 85,708 | 79,086 | |||||||||||
| Property, Plant and equipment, net | 14,278 | 14,200 | |||||||||||
| Operating lease right of use asset | 2,438 | 2,424 | |||||||||||
| Intangible assets, less accumulated amortization | 15,164 | 16,422 | |||||||||||
| Goodwill | 5,909 | 4,696 | |||||||||||
| Other assets | 39 | 202 | |||||||||||
| Total assets | $ | 123,536 | $ | 117,030 | |||||||||
| Liabilities and stockholders' equity: | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 8,733 | $ | 9,931 | |||||||||
| Operating lease liability - short term | 933 | 987 | |||||||||||
| Mortgage payable - short term | 267 | 267 | |||||||||||
| Other accrued liabilities | 10,680 | 6,865 | |||||||||||
| Total current liabilities | 20,613 | 18,050 | |||||||||||
| Long term debt | 35,742 | 39,388 | |||||||||||
| Note Payable | 3,508 | - | |||||||||||
| Mortgage payable - long term | 3,044 | 3,311 | |||||||||||
| Operating lease liability - long term | 1,572 | 1,441 | |||||||||||
| Other non-current liabilities | 50 | 38 | |||||||||||
| Total liabilities | 64,529 | 62,228 | |||||||||||
| Total stockholders' equity | 59,007 | 54,802 | |||||||||||
| Total liabilities and stockholders' equity | $ | 123,536 | $ | 117,030 | |||||||||
CONTACT:
Paul G. Driscoll
Acme United Corporation
55 Walls Drive
Fairfield, CT 06824
Phone: (203) 254-6060
FAX: (203) 254-6521
FAQ
What were Acme United's net sales for Q2 2020?
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How did Acme United's sales perform in Canada during Q2 2020?
Did Acme United take any loans during Q2 2020?
