8-K 1 acme_8k42204.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) April 22, 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 3,818,812 shares outstanding as of April 22, 2004 of its $2.50 par value Common Stock. (1) ACME UNITED CORPORATION Page ---- Item 2.02 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 April 22, 2004 ACME UNITED CORPORATION REPORTS 19% SALES INCREASE AND STRONG EARNINGS FAIRFIELD, CONN. - April 22, 2004 - Acme United Corporation (ASE:ACU) today announced $392,000 or $.11 per diluted share for the first quarter ended March 31, 2004 compared to $78,000 or $.02 per share for the comparable period last year. Net sales for the quarter ended March 31, 2004 were $8.6 million compared to $7.2 million in 2003, an increase of 19% (15% at constant currency). Net sales in the U.S. increased 16% due to the launch of new products and market share gains. International sales increased by 30%, and 11% in local currency. Gross margins were 43.4% in 2004 versus 40.1% in 2003. The improvement is primarily due to new products and productivity gains. Income before income taxes was $710,000 in the first quarter of 2004 compared with $352,000 in the first quarter of 2003, an increase of $358,000. Pre-tax income increased by $120,000 for North America. The European operations lost $140,000 in the first quarter of 2004 compared to $378,000 in 2003, an improvement of $238,000. The results in 2003 included a one-time expense of $175,000 for settlement of a lawsuit. The profitability in Europe is improving due to higher sales and reduced expenses. Walter C. Johnsen, President and CEO said, "I am pleased that every division of the Company reported increased sales in real terms. Acme has begun direct shipments from its Hong Kong subsidiary, and is adding new service levels to support the growing customer base. We expect the losses in Europe to continue to narrow." The Company's debt less cash on March 31, 2004 was $3.6 million compared to $4.7 million on March 31, 2003. (3) 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 FIRST QUARTER REPORT 2004
Quarter Ended Quarter Ended March 31, 2004 March 31, 2003 Amounts in $000's except per share data (Unaudited) (Unaudited) ---------------------------------------------------------------------------------------------------- Net Sales $ 8,567 $ 7,189 Gross Profit 3,719 2,882 Selling, General, and Administrative Expenses 2,969 2,301 Other (Income) Expense 40 229 Pre-Tax Income (loss) 710 352 Income Tax Expense 318 274 Net Income 392 78 Earnings Per Share Basic 0.12 0.02 Earnings Per Share Diluted 0.11 0.02
(5) ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET FIRST QUARTER REPORT 2004 (Unaudited)
Amounts in $000's ----------------- Assets March 31, 2004 March 31, 2003 ------ ----------------------------------------- Current Assets: Cash $ 892 $ 789 Accounts Receivable, Net 6,687 6,059 Inventories 8,336 7,212 Prepaid and Other current Assets 873 1,030 ----------------------------------------- Total Current Assets 16,788 15,090 Property and Equipment, Net 2,361 2,269 Other Assets 456 401 ----------------------------------------- Total Assets $ 19,605 $ 17,760 ========================================= Liabilities and Stockholders' Equity Current Liabilities Notes Payable $ 183 $ 0 Accounts Payable 1,721 1,206 Other Current Liabilities 1,870 1,587 Current Portion of Long Term Debt 1,745 3,397 ----------------------------------------- Total Current Liabilities 5,519 6,190 Long-Term debt 2,542 2,061 Other Non Current Liabilities 759 732 ----------------------------------------- 8,820 8,983 Total Stockholders' Equity 10,785 8,777 ----------------------------------------- Total Liabilities and Stockholders' Equity $ 19,605 $ 17,760 =========================================
(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: April 22, 2004 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: April 22, 2004 (7)