-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, k072CPlmZehbQZ56+o8Qglbw5nk3Eu6ldeEBEixQk7ebZIt1Ux4w2HskLv8At1KR FMf/fUU0p365xta2l6AgQg== 0000002098-95-000004.txt : 19950814 0000002098-95-000004.hdr.sgml : 19950814 ACCESSION NUMBER: 0000002098-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACME UNITED CORP CENTRAL INDEX KEY: 0000002098 STANDARD INDUSTRIAL CLASSIFICATION: CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420] IRS NUMBER: 060236700 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07698 FILM NUMBER: 95561153 BUSINESS ADDRESS: STREET 1: 75 KINGS HIGHWAY CUTOFF CITY: FAIRFIELD STATE: CT ZIP: 06430 BUSINESS PHONE: 2033327330 FORMER COMPANY: FORMER CONFORMED NAME: ACME SHEAR CO DATE OF NAME CHANGE: 19710713 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM l0-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number Q4823 ACME UNITED CORPORATION ____________________________________________________________ (Exact name of registrant as specified in its charter) Connecticut 06-0236700 _______________________________ ___________________ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 75 Kings Highway Cutoff, Fairfield, Connecticut 06430 _______________________________________________ __________ (Address of principal executive offices) (Zip Code) (203) 332-7330 __________________________________________________ Registrant's telephone number, including area code ________________________________________________________________ Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Registrant had 3,337,620 shares outstanding as of August 11, 1995 of its $ 2.50 par value Common Stock. PART 1 - FINANCIAL INFORMATION ITEM 1 FINANCIAL STATEMENTS ACME UNITED CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets ASSETS
June 30 December 31 1995 1994 (Unaudited) _____________ _____________ Current Assets: Cash and cash equivalents $ 352,937 $ 450,480 Accounts and other receivables 10,944,703 7,893,838 Inventories: Finished goods 12,662,800 11,227,978 Work in process 5,607,000 5,246,507 Raw materials & supplies 4,467,558 4,525,053 Deferred income taxes 357,075 356,874 Prepaid expenses and other current assets 618,400 747,758 _____________ _____________ Total current assets 35,010,473 30,448,488 Plant, Property and Equipment: Land 809,308 756,625 Buildings 4,791,799 4,580,669 Machinery and equipment 16,460,477 16,063,066 Additions 537,538 - _____________ _____________ Total plant, property and equipment 22,599,122 21,400,360 Less, accumulated depreciation 13,796,489 12,852,430 _____________ _____________ Net plant, property and equipment 8,802,633 8,547,930 Licensing agreements 1,494,099 1,705,416 Other assets 1,231,084 1,330,109 Goodwill 839,372 856,480 _____________ _____________ Total assets $ 47,377,661 $ 42,888,423 ============= ============= See notes to financial statements
ACME UNITED CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets LIABILITIES
June 30 December 31 1995 1994 (Unaudited) _____________ _____________ Current Liabilities: Accounts payable $ 2,644,104 $ 2,473,125 Notes payable due within one year 5,664,970 4,000,069 Accrued liabilities: Pension 527,125 470,400 Employee benefit claims 487,828 435,041 Other accrued liabilities 2,273,247 2,035,705 _____________ _____________ Total current liabilities 11,597,274 9,414,340 Deferred income taxes 789,120 1,003,893 Long term debt 16,530,925 14,387,590 _____________ _____________ Total liabilities 28,917,319 24,805,823 STOCKHOLDERS' EQUITY Common stock, par value $2.50: authorized 4,000,000 shares; Issued 3,384,620, outstanding 3,337,620 8,461,550 8,461,550 Treasury Stock, 47,000 shares (357,631) (357,631) Additional paid-in capital 2,145,119 2,145,119 Retained earnings 9,147,487 8,973,803 Translation adjustment (936,183) (1,140,241) _____________ _____________ Total stockholders' equity 18,460,342 18,082,600 _____________ _____________ Total liabilities and stockholders' equity $ 47,377,661 $ 42,888,423 ============= ============= See notes to financial statements
ACME UNITED CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations Unaudited
Three months ended Six months ended __________________________ __________________________ June 30 June 30 June 30 June 30 1995 1994 1995 1994 ____________ ____________ ____________ ____________ Net Sales $14,470,395 $14,244,816 $27,367,286 $26,721,194 Other income 15,126 80,250 38,332 129,652 ____________ ____________ ____________ ____________ 14,485,521 14,325,066 27,405,618 26,850,846 Costs and expenses: Cost of goods sold 10,290,173 10,305,125 19,566,365 19,502,480 Selling, general and administrative expense 3,387,458 3,399,065 6,731,457 6,592,502 Interest expense 496,274 374,472 952,962 731,434 ____________ ____________ ____________ ____________ 13,076,879 14,078,662 27,250,784 26,826,416 ____________ ____________ ____________ ____________ Income before income taxes 311,616 246,404 154,834 24,430 Provision (benefit) for income taxes 70,028 43,612 (18,850) (41,667) ____________ ____________ ____________ ____________ Net income $ 241,588 $ 202,792 $ 173,684 $ 66,097 ============ ============ ============ ============ Weighted average common and dilutive common equivalent shares 3,355,122 3,337,620 3,359,489 3,337,620 ============ ============ ============ ============ Income per common share $ .07 $ .06 $ .05 $ .02 ============ ============ ============ ============ See notes to financial statements
ACME UNITED CORPORATION Consolidated Statement of Cash Flows Unaudited
Six months ended __________________________ June 30 June 30 1995 1994 ____________ ____________ Cash flows from operating activities: Net income $ 173,684 $ 66,097 Adjustments for non-cash transactions: Depreciation 706,342 629,267 Amortization 280,651 278,006 Deferred tax charges/(credits) (256,065) (86,086) (Gain) on sale of property, plant and equipment (6,436) - Change in assets and liabilities: (Increase) in accounts receivable (2,608,765) (1,521,489) (Increase) in inventory (1,247,993) (566,015) (Increase) in prepaid expenses and other current assets 144,990 (85,408) Decrease in other assets 46,025 24,437 Increase/(decrease) in accounts payable 59,825 (1,068,849) Increase in income taxes payable 132,915 286,148 (Decrease) in other liabilities (162,026) (104,198) ____________ ____________ Total adjustments (2,910,537) (2,214,187) ____________ ____________ Net cash used by operations (2,736,853) (2,148,090) ____________ ____________ Cash flow from investing activities: Capital expenditures (538,014) (617,693) Proceeds from sales of property, plant and equipment 6,459 6,940 ____________ ____________ Net cash used for investing activities (531,555) (610,753) ____________ ____________ Cash flows from financing activities: Net borrowings 3,159,955 2,575,400 ____________ ____________ Net cash provided by financing activities 3,159,955 2,575,400 ____________ ____________ Effect of exchange rate changes on cash 10,910 (1,362) ____________ ____________ Net change in cash and cash equivalents (97,543) (184,805) Cash and cash equivalents at beginning of period 450,480 318,660 ____________ ____________ Cash and cash equivalents at end of period $ 352,937 $ 133,855 ============ ============ See notes to financial statements
ACME UNITED CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. In the opinion of Management, the accompanying consolidated financial statements contain all adjustments necessary to present fairly the financial position as of June 30, 1995 and December 31, 1994 and the results of its operations for the three and six month periods ended June 30, 1995 and 1994 and changes in the cash flows for the three and six months then ended. The financial statements reflect all recurring adjustments but do not include all of the disclosures normally required by generally accepted accounting principles or those normally made in the annual Form 10-K filing. Please refer to the Company's annual report for year ended December 31, 1994 for such disclosures. 2. The results of operations for the three and six months ended June 30, 1995 are not necessarily indicative of the results to be expected for the full year. 3. Net Income per share is based on the weighted average number of common shares and dilutive common equivalent shares (common stock options) outstanding using the treasury stock method. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE CONSOLIDATED STATEMENTS OF OPERATION RESULTS OF OPERATIONS Net Sales Consolidated net sales increased $226,000 or 2% and $646,000 or 2% for the three and six month periods ended June 30, 1995 as compared to the similar periods in 1994. Net sales for consumer operations increased $340,000 or 3% and $843,000 or 5% for the three and six month periods in 1995 over 1994 which can be attributed to a 6% and 11% sales increase in U.S. Consumer operations for the three and six months, respectively. Net sales for medical operations decreased $115,000 or 3% and $197,000 or 2% for the three and six month periods in 1995 over 1994 mainly due to a volume decrease in some wound care products. Net sales from U.S. operations were $9,546,000 and $18,068,000 for the three and six month periods ended June 30, 1995, an increase of $256,000 or 3% and $929,000 or 5%, respectively. Foreign operations net sales were $4,924,000 and $9,300,000 for the three and six month periods which resulted in a decrease of $30,000 or 1% and $283,000 or 3%, respectively, compared to 1994. Foreign sales were positively impacted on translation by approximately $900,000, primarily on the strength of the German mark and British pound. Gross Profit Margin The consolidated gross profit margin for the three and six month periods ended June 30, 1995 was 29%, as compared to 28% and 27%, respectively, in 1994. The medical operation margins were 37% for the three and six month periods in 1995 as compared to 38% and 37% for the same periods in 1994 which can be attributed to product sales mix and the decision not to pass on higher costs on selected products because of competitive market conditions. The consumer operation margins were 26% and 25% for the three and six month periods in 1995, compared to 23% and 22%, respectively, which can be attributed to product sales mix, lower manufacturing costs and price increases. Selling, General and Administrative Expenses Selling, general and administrative expenses decreased $12,000 and increased $139,000 or 2% for the three and six month periods ended June 30, 1995 over 1994. The Company has selectively reduced costs in 1995 which has been offset by inflationary increases and the effect of a stronger German mark and British pound on the translation of results. Interest Expense Interest expense increased $122,000 and $222,000 for the three and six month periods ended June 30, 1995 as compared to 1994 which is attributable to increased average borrowings and higher interest rates on the U.S. revolving line of credit. Provision for Income Taxes The effective tax rate for the three and six month periods ended June 30, 1995 was 22% and negative 12% as compared to 18% and negative 171% for 1994. The consolidated effective tax rates vary from year to year because income (loss) before taxes vary from year to year by country of operation and the statutory rates and laws vary by country of operation. Liquidity and Capital Commitments The Company's working capital, current ratio and long term debt to equity ratio are as follows: June 30, 1995 December 31, 1994 _________________ _________________ Working capital $23,413,000 $21,035,000 Current ratio 3.02 to 1 3.23 to 1 Long term debt to equity ratio .90 .80 Capital expenditures were $538,000 and $618,000 for the six month periods ended June 30, 1995 and 1994. The 1995 capital expenditures are expected to be approximately $1,200,000. The Company has a $13,000,000 U.S. revolving line of credit due to expire in March l997 and foreign overdraft arrangements due to expire at various times in 1995. Based on maintaining the U.S. revolving line of credit and foreign overdraft arrangements, current cash balances and cash flow from operations, the Company believes it can meet capital expenditure and other planned financial commitments in 1995. PART II - OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) No Form 8-K was filed by the Company during the three months ended June 30, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ______________________________ ACME UNITED CORPORATION (Registrant) Date: August 11, 1995 Stephen T. Bajda ______________________________ Stephen T. Bajda Senior Vice President-Finance Date: August 11, 1995 Richard L. Windt ______________________________ Richard L. Windt Controller EX-27 2
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