(Source: Business Wire)
Acme United Corporation (NYSE AMEX:ACU) today announced that net sales for the quarter ended March 31, 2009 were $11.3 million, compared to $14.3 million in the comparable period of 2008, a decrease of 21% (19% in local currency). The sales decline was due to a reduction in orders from many of the Company's customers as the result of the contracting global economy.
Net income was $42,000 or $.01 per diluted share for the first quarter ended March 31, 2009 compared to $753,000 or $.21 per diluted share for the comparable period last year. The lower net income is primarily the result of lower sales.
Net sales for the first quarter 2009 in the U.S. segment decreased 22% compared to the same period in 2008. Net sales in Canada in the first quarter of 2009 decreased 24% in U.S. dollars and 5% in local currency. European sales in the first quarter of 2009 decreased 8% in U.S. dollars but increased 6% in local currency compared to the first quarter in 2008. Sales in Europe increased due to increased distribution of manicure products.
Gross margins were 38.1% in the first quarter of 2009 compared to 42.0% in the first quarter of 2008. The margin in 2009 declined mainly due to product mix, the weaker Canadian dollar which raised the cost of products in our Canadian segment, and fixed costs spread over lower sales.
Walter C. Johnsen, President and CEO said, "Our sales declines were across the school, home, office, and industrial markets. Nearly all our customers purchased less in the first quarter of 2009 compared to last year. We have cut many expenses including incentive pay, travel, telecommunications and legal fees, but continue to fund our next generation of products."
Mr. Johnsen added that there was some strengthening of sales in March, and that back to school orders appear to be good. He said that the Company added a number of major new customers during the past 6 months in the hardware, industrial and mass markets which are expected to generate incremental sales during 2009. While revenues were down for the quarter, Mr. Johnsen was encouraged by the new customers and the quality of new products, and he believes the Company is well positioned to execute its business plan in the current economic environment.
The Company's bank debt less cash on March 31, 2009 was $8.6 million compared to $7.9 million on March 31, 2008. During the 12 month period ended March 31, 2009, Acme purchased 208,065 shares of its common stock for approximately $1.9 million and paid $600,000 in dividends. During the first quarter of 2009, the Company repurchased 30,000 shares for $215,000. As of March 31, 2009, there were 124,335 shares that may be purchased under the outstanding stock repurchase programs.
ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office and industrial markets.
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, without limitation, the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the impact of current uncertainties in global economic conditions and the ongoing financial crisis affecting the domestic and foreign banking system and financial markets, including the impact on the Company's suppliers and customers (iii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iv) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission.
ACME UNITED CORPORATION CONSOLIDATED STATEMENTS OF INCOME FIRST QUARTER REPORT 2009 (unaudited) Quarter Ended Quarter Ended Amounts in 000's except per share data March 31, 2009 March 31, 2008 Net sales $ 11,297 $ 14,269 Cost of goods sold 7,000 8,283 Gross profit 4,299 5,986 Selling, general, and administrative expenses 4,216 4,918 Income from operations 82 1,068 Interest expense, net 7 96 Other (expense) income, net (13 ) 186 Pre-Tax income 63 1,158 Income tax expense 21 405 Net income 42 753 Shares outstanding - Basic 3,343 3,517 Shares outstanding - Diluted 3,402 3,666 Earnings per share - basic 0.01 0.21 Earnings per share - diluted 0.01 0.21 -------------------------------------------------------------------------------
ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS FIRST QUARTER REPORT 2009 (Unaudited) Amounts in $000's March 31, 2009 March 31, 2008 Assets Current assets: Cash $ 3,283 $ 4,815 Accounts receivable, net 9,625 12,482 Inventories 21,734 20,076 Prepaid and other current assets 1,245 1,228 Total current assets 35,888 38,601 Property and equipment, net 2,339 2,536 Long term receivable 1,933 - Other assets 2,512 1,879 Total assets $ 42,672 $ 43,016 Liabilities and stockholders' equity Current liabilities Accounts payable $ 2,824 $ 3,912 Other current liabilities 3,767 2,903 Total current liabilities 6,591 6,815 Long-term debt 11,880 12,711 Other non-current liabilities 1,944 537 Total liabilities 20,415 20,062 Total stockholders' equity 22,257 22,954 Total liabilities and stockholders' equity $ 42,672 $ 43,016 -------------------------------------------------------------------------------
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