8-K 1 acme_8k71703.txt FORM 8K ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 8-K ------------------------------------ PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (date of earliest event reported) July 17, 2003 Commission file number Q4823 ACME UNITED CORPORATION (Exact name of registrant as specified in its charter) ------------------ CONNECTICUT 06-0236700 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1931 BLACK ROCK TURNPIKE, Fairfield, Connecticut 06825 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (203) 332-7330 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 3,298,551 shares outstanding as of July 17, 2003 of its $2.50 par value Common Stock. 1 ACME UNITED CORPORATION Page ---- Item 9. Regulation FD Disclosure............................................. 3 Signatures................................................................... 7 2 ACME UNITED CORPORATION Item 9. Regulation FD Disclosure - This disclosure is being furnished under Item 12, "Disclosure of Results of Operations and Financial Condition" ACME UNITED CORPORATION NEWS RELEASE -------------------------------------------------------------------------------- CONTACT: Paul G. Driscoll Acme United Corporation 1931 Black Rock Turnpike Fairfield, CT 06825 Phone: (203) 332-4102 FAX: (203) 576-1547 -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE July 18, 2003 ACME UNITED CORPORATION REPORTS 8% SALES INCREASE AND MORE THAN DOUBLE EARNINGS FAIRFIELD, CONN. - July 18, 2003 - Acme United Corporation (ASE:ACU) today announced net income of $615,000 or $.17 per diluted share for the second quarter ending June 30, 2003 compared to $227,000 or $.06 per diluted share for the comparable period last year. Net income for the first six months ending June 30, 2003 was $693,000, or $.20 per share compared to $349,000, or $.10 per share in the comparable period last year. Net sales for the quarter ending June 30, 2003 were $10.1 million compared to $9.4 million in 2002, an increase of 8%. Net sales in the U.S. increased 8% due to the successful launch of new products. International sales increased by 8%, primarily due to currency gains. Net sales for the first six months ending June 30, 2003 were $17.3 million compared to $16.2 million in 2002, an increase of 7%. Walter C. Johnsen, President and CEO, said, "We are pleased with Acme's performance so far this year. Sales have increased due to new products and market share gains. Our patented titanium scissors have made good inroads at our school and office customers. We continue to see evidence that our new product efforts are being well received, and we expect this to continue to favorably impact results." Gross margins were 38.7% in the second quarter of 2003 versus 35.9% in the comparable period last year due to new product sales and improved productivity. For the first six months of 2003, gross margins were 39.3% compared to 34.1% in 2002. 3 Income before income taxes was $958,000 in the second quarter of 2003 compared with $299,000 in the second quarter of 2002, an increase of $659,000. Pretax income for the first six months was $1.3 million in 2003 compared to $437,000 in 2002. Income tax expense for the second quarter 2003 was $343,000 versus $72,000 in the second quarter of 2002. In 2002 the Company recognized a significant one-time income tax benefit associated with liquidating its UK business. The Company's debt less cash on June 30, 2003 was $5.8 million compared to $7.9 million on June 30, 2002. Acme repurchased 74,700 shares of Common Stock during the second quarter for $266,000. During the first six months of 2003, the Company repurchased 84,700 shares of Common Stock at a cost of $298,000. Mr. Johnsen said that orders continue to be strong, and that he is optimistic about the remainder the year. ACME UNITED CORPORATION is a specialized supplier of cutting devices, measuring instruments, and safety products for school, home, and office use. 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 Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. # # # 4 ACME UNITED CORPORATION CONSOLIDATED STATEMENT OF INCOME SECOND QUARTER REPORT 2003 Quarter Ended Quarter Ended June 30, 2003 June 30, 2002 Amounts in $000's except per share data (Unaudited) (Unaudited) ----------------------------------------------------------------------------- Net Sales $ 10,142 $ 9,398 Pre-Tax Income 958 299 Net Income 615 227 Earnings Per Share Basic 0.18 0.07 Earnings Per Share Diluted 0.17 0.06 Six Months Ended Six Months Ended June 30, 2003 June, 2002 Amounts in $000's except per share data (Unaudited) (Unaudited) ----------------------------------------------------------------------------- Net Sales $ 17,331 $ 16,153 Pre-Tax Income 1,310 437 Net Income 693 349 Earnings Per Share Basic 0.21 0.10 Earnings Per Share Diluted 0.20 0.10 5 ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET SECOND QUARTER REPORT 2003 (Unaudited) Amounts in $000's ----------------- Assets June 30, 2003 June 30, 2002 ------ --------------------------------- Current Assets: Cash $ 252 $ 245 Accounts Receivable, Net 9,447 9,981 Inventories 7,780 7,159 Prepaid and Other current Assets 772 1,593 --------------------------------- Total Current Assets 18,251 18,979 Property and Equipment, Net 2,241 2,448 Other Assets 432 1,347 --------------------------------- Total Assets $ 20,924 $ 22,773 ================================= Liabilities and Stockholders' Equity Current Liabilities Notes Payable $ 208 $ 235 Accounts Payable 2,446 2,255 Other Current Liabilities 2,060 2,320 Current Portion of Long Term Debt 3,793 4,132 --------------------------------- Total Current Liabilities 8,507 8,942 Long-Term debt 2,065 3,807 Other Non Current Liabilities 910 782 --------------------------------- 11,482 13,531 Total Stockholders' Equity 9,442 9,242 --------------------------------- Total Liabilities and Stockholders' Equity $ 20,924 $ 22,773 ================================= 6 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 By /s/ WALTER C. JOHNSEN ------------------------------ Walter C. Johnsen President and Chief Executive Officer Dated: July 17, 2003 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: July 17, 2003 7