8-K 1 acme_8k3204.txt FORM 8-K ================================================================================ 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) March 3, 2004 Commission file number Q4823 ACME UNITED CORPORATION (Exact name of registrant as specified in its charter) ------------------ CONNECTICUT 06-0236700 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) 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 3,340,551 shares outstanding as of March 3, 2004 of its $2.50 par value Common Stock. (1) ACME UNITED CORPORATION Page ---- Item 12. Results of Operations and Financial Condition................ 3 Signatures............................................................ 7 (2) ACME UNITED CORPORATION NEWS RELEASE -------------------------------------------------------------------------------- CONTACT: Paul G. Driscoll Acme United Corporation 1931 Black Rock Turnpike Fairfield, CT 06825 Phone: (203) 332-7330 FAX: (203) 576-1547 -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE March 3, 2004 ACME UNITED CORPORATION REPORTS 13% SALES INCREASE AND STRONG EARNINGS FAIRFIELD, CONN. - March 3, 2004 - Acme United Corporation (ASE:ACU) today announced net income for the year 2003 of $1.2 million or $.34 per diluted share compared to $659,000 or $.19 per share in 2002. For the fourth quarter of 2003, net income was $227,000 or $.06 per diluted share compared to $40,000, or $.01 per share in 2002. Net sales in 2003 were $35.0 million versus $30.9 million in 2002, an increase of 13% (10% at constant currency). Net sales in the U.S. increased 16% due to the launch of new products, market share gains and new customers. International sales increased by 5% due to currency gains. Net sales for the fourth quarter of 2003 were $8.1 million compared to $6.9 in the same quarter of 2002, an increase of 18% (14% at constant currency). Walter C. Johnsen, President and CEO, said, "I am particularly pleased with our new product successes and market share gains. Products introduced during the past 36 months accounted for 23% of 2003 revenues and continue to gain momentum. We are entering 2004 with confidence." Gross margins were 37.6% in 2003 versus 33.8% in 2002. The improvement is primarily due to new products and productivity gains. Income before income taxes was $2.3 million in 2003 compared with $97,000 in 2002. Excluding restructuring costs related to liquidating the UK business, income before income taxes was $653,000 in 2002. Income tax expense for 2003 was $1.1 million versus a tax benefit of $562,000 in 2002. In 2002 the Company recognized a significant one-time income tax benefit associated with the UK liquidation. (3) The Company's debt less cash on December 31, 2003 was $3.5 million compared to $4.5 million on December 31, 2002. In 2003, the Company repurchased 118,200 shares, or approximately 3% of the outstanding shares, at a cost of $470,000. 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 YEAR END REPORT 2003
Quarter Ended Quarter Ended December 31, 2003 December 31, 2002 Amounts in $000's except per share data (Unaudited) (Unaudited) ----------------------------------------------------------------------------------------------------- Net Sales $ 8,106 $ 6,863 Gross Profit 3,160 2,462 Selling, General, and Administrative Expenses 2,793 2,505 Other (Income) Expense (101) 193 Pre-Tax Income (loss) 468 (236) Income Tax Expense (Benefit) 241 (276) Net Income 227 40 Earnings Per Share Basic 0.07 0.01 Earnings Per Share Diluted 0.06 0.01 Year Ended Year Ended December 31, 2003 December 31, 2002 Amounts in $000's except per share data (Unaudited) (Unaudited) ----------------------------------------------------------------------------------------------------- Net Sales $ 34,975 $ 30,884 Gross Profit 13,133 10,433 Selling, General, and Administrative Expenses 10,646 9,877 Other (Income) Expense 144 459 Pre-Tax Income 2,342 97 Income Tax Expense (Benefit) 1,120 (562) Net Income 1,222 659 Earnings Per Share Basic 0.37 0.19 Earnings Per Share Diluted 0.34 0.19
(5) ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET YEAR END REPORT 2003 (Unaudited)
Amounts in $000's ----------------- Assets December 31, 2003 December 31, 2002 ------ --------------------------------------------- Current Assets: Cash $ 1,391 $ 598 Accounts Receivable, Net 7,075 6,410 Inventories 8,179 6,675 Prepaid and Other current Assets 546 1,249 --------------------------------------------- Total Current Assets 17,191 14,932 Property and Equipment, Net 2,385 2,281 Other Assets 447 401 --------------------------------------------- Total Assets $ 20,023 $ 17,614 ============================================= Liabilities and Stockholders' Equity Current Liabilities Notes Payable $ 141 $ 362 Accounts Payable 1,743 1,296 Other Current Liabilities 2,495 2,027 Current Portion of Long Term Debt 2,035 2,731 --------------------------------------------- Total Current Liabilities 6,414 6,416 Long-Term debt 2,752 2,033 Other Non Current Liabilities 678 685 --------------------------------------------- 9,844 9,134 Total Stockholders' Equity 10,179 8,480 --------------------------------------------- Total Liabilities and Stockholders' Equity $ 20,023 $ 17,614 =============================================
(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: March 3, 2004 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: March 3, 2004 (7)