CORRECTION – Acme United Reports Record Third Quarter Earnings of $0.58 Per Diluted Share
- Net sales for Q3 2023 increased by 1% compared to the same period last year.
- Net income for Q3 2023 was $2.2 million, a significant improvement from $64,000 in Q3 2022.
- Acme United Corporation acquired Hawktree Solutions, Inc., which is expected to be accretive starting in Q4 2023.
- None.
SHELTON, Conn., Oct. 23, 2023 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Acme United Corporation (NYSE American: ACU), please note the final two financial tables should have read "Third Quarter" rather than "Second Quarter" in their headings. The corrected release follows:
Acme United Corporation (NYSE American: ACU) today announced that net sales for the three months ended September 30, 2023 were
Net income was
Chairman and CEO Walter C. Johnsen said, “I am pleased that sales at the end of the third quarter rebounded after more than a year of customer inventory reductions. In-bound shipping costs declined to historical levels. We successfully implemented a productivity plan which is resulting in
Mr. Johnsen continued, “We gained new product placement for 2024, including additional first aid and medical products at major drug and hardware chains, new Westcott cutting tools and DMT sharpeners at large retailers, and new customers for our Spill Magic clean up products. In summary, we believe we are strongly positioned for growth.”
“In September, we acquired Hawktree Solutions, Inc., which has the exclusive license for first aid, safety, and survival products with the Canadian Red Cross. Hawktree will expand our product line to address devastating fires, floods, and earthquakes. We are also excited about the additional opportunities this acquisition will open for us in our Canada business. The business will operate from our facilities near Montreal. We expect the acquisition to be accretive starting in the fourth quarter of 2023.”
For the three months ended September 30, 2023, net sales in the U.S. segment increased
European net sales for the three months ended September 30, 2023 increased
Net sales in Canada for the three months ended September 30, 2023 decreased
Gross margin was
The Company’s bank debt less cash as of September 30, 2023 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Monday, October 23, 2023, at 12:00 p.m. EDT. 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 13741449. 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®, Med-Nap and Safety Made. 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 wars in Ukraine and the Middle East; (v) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, or otherwise, including trucker shortages, port closures and delays, and delays with container ships themselves; (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 fluctuations including, for example, the fluctuation of the dollar against the euro; (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 | ||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| THIRD QUARTER REPORT 2023 | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | Three Months Ended | |||||||
| Amounts in 000's except per share data | September 30, 2023 | September 30, 2022 | ||||||
| Net sales | $ | 50,384 | $ | 49,744 | ||||
| Cost of goods sold | 30,881 | 33,819 | ||||||
| Gross profit | 19,503 | 15,925 | ||||||
| Selling, general, and administrative expenses | 15,846 | 14,972 | ||||||
| Operating income | 3,657 | 953 | ||||||
| Interest expense | 816 | 722 | ||||||
| Interest income | (32 | ) | (8 | ) | ||||
| Interest expense, net | 784 | 714 | ||||||
| Other expense, net | 55 | 209 | ||||||
| Total other expense , net | 55 | 209 | ||||||
| Income before income tax expense | 2,818 | 30 | ||||||
| Income tax expense (benefit) | 666 | (34 | ) | |||||
| Net income | $ | 2,152 | $ | 64 | ||||
| Shares outstanding - Basic | 3,578 | 3,530 | ||||||
| Shares outstanding - Diluted | 3,721 | 3,692 | ||||||
| Earnings per share - Basic | $ | 0.60 | $ | 0.02 | ||||
| Earnings per share - Diluted | 0.58 | 0.02 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| THIRD QUARTER REPORT 2023 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | Nine Months Ended | |||||||
| Amounts in 000's except per share data | September 30, 2023 | September 30, 2022 | ||||||
| Net sales | $ | 149,559 | $ | 149,849 | ||||
| Cost of goods sold | 93,752 | 100,374 | ||||||
| Gross profit | 55,807 | 49,475 | ||||||
| Selling, general, and administrative expenses | 44,711 | 43,176 | ||||||
| Operating income | 11,096 | 6,299 | ||||||
| Interest expense | 2,595 | 1,459 | ||||||
| Interest income | (78 | ) | (16 | ) | ||||
| Interest expense, net | 2,517 | 1,443 | ||||||
| Other expense, net | 9 | 354 | ||||||
| Total other expense, net | 9 | 354 | ||||||
| Income before income tax expense | 8,569 | 4,502 | ||||||
| Income tax expense | 1,984 | 870 | ||||||
| Net income | $ | 6,585 | $ | 3,632 | ||||
| Shares outstanding - Basic | 3,558 | 3,525 | ||||||
| Shares outstanding - Diluted | 3,597 | 3,781 | ||||||
| Earnings per share - Basic | $ | 1.85 | $ | 1.03 | ||||
| Earnings per share - Diluted | 1.83 | 0.96 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| THIRD QUARTER REPORT 2023 | ||||||||
| (Unaudited) | ||||||||
| Amounts in 000's | September 30, 2023 | September 30, 2022 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,567 | $ | 4,218 | ||||
| Accounts receivable, net | 33,855 | 40,149 | ||||||
| Inventories | 54,575 | 66,210 | ||||||
| Prepaid expenses and other current assets | 3,779 | 3,989 | ||||||
| Restricted cash | 750 | 750 | ||||||
| Total current assets | 98,526 | 115,316 | ||||||
| Property, plant and equipment, net | 27,708 | 26,042 | ||||||
| Operating lease right of use asset | 2,300 | 2,891 | ||||||
| Intangible assets, less accumulated amortization | 19,546 | 21,296 | ||||||
| Goodwill | 8,189 | 8,189 | ||||||
| Other assets | - | 750 | ||||||
| Total assets | $ | 156,269 | $ | 174,484 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,976 | $ | 11,771 | ||||
| Operating lease liability - short term | 1,165 | 1,142 | ||||||
| Mortgage payable - short term | 415 | 389 | ||||||
| Other accrued liabilities | 13,873 | 11,138 | ||||||
| Total current liabilities | 25,429 | 24,440 | ||||||
| Long term debt | 32,934 | 57,131 | ||||||
| Mortgage payable, net of current portion Mortgage payable - long term | 10,393 | 10,803 | ||||||
| Operating lease liability - long term | 1,279 | 1,949 | ||||||
| Other non-current liabilities | 327 | 1,180 | ||||||
| Total liabilities | 70,363 | 95,503 | ||||||
| Total stockholders' equity | 85,906 | 78,981 | ||||||
| Total liabilities and stockholders' equity | $ | 156,269 | $ | 174,484 | ||||
FAQ
What were the net sales for Q3 2023?
What was the net income for Q3 2023?
What did Acme United Corporation acquire?
When is the acquisition expected to be accretive?
