(Source: Business Wire)
Acme United Corporation (NYSE AMEX:ACU) today announced that net sales
for the third quarter ended September 30, 2009 were $15.3 million
compared to $19.2 million in the comparable period of 2008, a decrease
of 20% (19% local currency). Net income was $728,000, or $.22 per
diluted share, for the quarter ended September 30, 2009 compared to
$1,351,000 or $.37 per diluted share for the comparable period last
year, a decrease of 46% in net income and 41% in diluted earnings per
share.
Third quarter 2009 earnings included pre-tax income of $458,000 due to
completion below estimated costs of a major portion of the remediation
of the Bridgeport property which was sold in December 2008. The
Company's contingency reserve for the remaining environmental and
monitoring costs is approximately $950,000. Without the achieved cost
reduction, net income would have been $433,000 for the third quarter.
Net sales for the nine months ended September 30, 2009 were $45.7
million, compared to $56.1 million in the same period in 2008, a
decrease of 19% (16% in local currency). Net income for the nine months
ended September 30, 2009 was $2,111,000, or $.63 per diluted share
compared to $3,833,000, or $1.05 per diluted share in the comparable
period last year, a 45% decrease in net income and 40% in diluted
earnings per share. The lower net income is primarily the result of
reduced sales, partially offset by savings from our cost savings plan.
Net sales for the quarter ended September 30, 2009 in the U.S. segment
decreased 26% compared to the same period in 2008. Contributing to the
decline was an unexpected order in the third quarter 2008 of
approximately $1.2 million to a major retailer for product for the back
to school market which did not reoccur this year. Net sales for the nine
months ended September 30, 2009 in the U.S. segment decreased 22%
compared to the same period in 2008. Net sales in Canada for the three
and nine months ended September 30, 2009 decreased by 7% and 14%,
respectively, in U.S. dollars but declined 2% for both periods
respectively, in local currency compared to the same periods in 2008.
European net sales for the three and nine months ended September 30,
2009 increased 10% and 1%, respectively, in U.S. dollars compared to the
same periods in 2008 and increased 16% and 12% respectively, in local
currency. Revenues in Europe grew primarily due to higher sales of
office and manicure products.
Gross margins were 36% in the third quarter of 2009 versus 41% in the
comparable period last year. For the first nine months of 2009, gross
margins were 37% compared to 41% in the same period in 2008. The gross
margin decline for the three and nine month periods was primarily due to
fixed costs spread over lower sales, the weaker Canadian dollar which
raised the cost of products in our Canadian segment and product mix.
Walter C. Johnsen, Chairman and CEO said, "We have been aggressively
seeking new sales opportunities, continuing to reduce expenses, and
improving our balance sheet. We are seeing commitments from our
customers for new products and programs for the coming year, and are
encouraged."
Mr. Johnsen added that during the past 12 months, the Company
repurchased about 7% of its outstanding stock, increased its dividend
and reduced net debt by approximately 60%. He noted that the Company is
very well positioned for future growth opportunities.
The Company's bank debt less cash on September 30, 2009 was $2.8 million
compared to $7.5 million on September 30, 2008. During the 12 month
period ended September 30, 2009, Acme purchased 266,791 shares of its
common stock for approximately $2.3 million and paid $700,000 in
dividends. On October 7, 2009 the company's Board of
Directors approved a new stock repurchase program of up to 200,000
common shares. The Company may also repurchase 49,335 shares under its
repurchase program previously announced on December 19, 2008.
ACME UNITED CORPORATION is a leading worldwide supplier of
innovative cutting, measuring and safety products to the school, home,
office, hardware 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) currency fluctuations (iv) the Company's plans and results of
operations will be affected by the Company's ability to manage its
growth, and (v) 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
THIRD QUARTER REPORT 2009
(Unaudited)
Quarter Ended Quarter Ended
Amounts in $000's except per share data September 30, 2009 September 30, 2008
Net sales $ 15,269 $ 19,158
Cost of goods sold 9,771 11,288
Gross profit 5,498 7,870
Selling, general, and administrative expenses 4,864 5,651
Income from operations 634 2,219
Interest expense 38 135
Interest income 31 15
Net interest expense 7 120
Other income (expense) 461 (138 )
Total other income (expense) 454 (258 )
Pre-tax income 1,088 1,961
Income tax expense 360 610
Net income $ 728 $ 1,351
Shares outstanding - Basic 3,290 3,515
Shares outstanding - Diluted 3,353 3,650
Earnings per share basic $ 0.22 $ 0.38
Earnings per share diluted 0.22 0.37
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
THIRD QUARTER REPORT 2009 (cont.)
(Unaudited)
Nine Months Ended Nine Months Ended
Amounts in $000's except per share data September 30, 2009 September 30, 2008
Net sales $ 45,727 $ 56,135
Cost of goods sold 28,827 33,361
Gross profit 16,900 22,774
Selling, general, and administrative expenses 14,166 16,690
Income from operations 2,734 6,084
Interest expense 124 389
Interest income 97 83
Net interest expense 27 306
Other income 480 23
Total other income (expense) 453 (283 )
Pre-tax income 3,187 5,801
Income tax expense 1,076 1,968
Net income $ 2,111 $ 3,833
Shares outstanding - Basic 3,318 3,517
Shares outstanding - Diluted 3,362 3,654
Earnings per share basic $ 0.64 $ 1.09
Earnings per share diluted 0.63 1.05
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
THIRD QUARTER REPORT 2009
(Unaudited)
Amounts in $000's September 30, 2009 September 30, 2008
Assets:
Current assets:
Cash $ 6,599 $ 5,485
Accounts receivable, net 11,846 16,045
Inventories 17,850 20,240
Prepaid and other current assets 1,207 951
Total current assets 37,502 42,721
Property and equipment, net 2,159 2,402
Long term receivable 1,905 -
Other assets 2,505 1,976
Total assets $ 44,071 $ 47,099
Liabilities and stockholders' equity:
Current liabilities
Accounts payable $ 3,305 $ 3,734
Other current liabilities 4,680 4,427
Bank debt due June 30, 2010 9,324 -
Total current liabilities 17,308 8,161
Bank debt due June 30, 2010 - 12,994
Other non current liabilities 1,990 542
19,299 21,697
Total stockholders' equity 24,772 25,402
Total liabilities and stockholders' equity $ 44,071 $ 47,099
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