-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N/g9wafY2xM0xZZTAjHnnI2TZurHBQIgV91Xlbjp2K22ZUvxSWAy6Y3Ew7OK5U/M 050XM3RiHn8t3nUo39IsLw== 0001026608-08-000033.txt : 20080229 0001026608-08-000033.hdr.sgml : 20080229 20080229112345 ACCESSION NUMBER: 0001026608-08-000033 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080229 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080229 DATE AS OF CHANGE: 20080229 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07698 FILM NUMBER: 08653459 BUSINESS ADDRESS: STREET 1: 60 ROUND HILL ROAD CITY: FAIRFIELD STATE: CT ZIP: 06824 BUSINESS PHONE: 203-254-6060 MAIL ADDRESS: STREET 1: 60 ROUND HILL ROAD CITY: FAIRFIELD STATE: CT ZIP: 06824 FORMER COMPANY: FORMER CONFORMED NAME: ACME SHEAR CO DATE OF NAME CHANGE: 19710713 8-K 1 acme_8k022908.txt 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (date of earliest event reported): February 29, 2008 ACME UNITED CORPORATION (Exact name of registrant as specified in its charter) ------------------ Connecticut 001-07698 06-0236700 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) file number) Identification No.) 60 Round Hill Road, Fairfield, Connecticut 06824 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (203) 254-6060 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) (1) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On February 29, 2008, Acme United Corporation (the "Company") issued a press release announcing its financial results for the year ended December 31, 2007. A copy of the press release is attached as Exhibit 99.1 to this current report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Exhibit Number Description - -------------- ----------- 99.1 Press release dated February 29, 2008. 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 hereunto duly authorized. ACME UNITED CORPORATION By /s/ WALTER C. JOHNSEN ------------------------------ Walter C. Johnsen Chairman and Chief Executive Officer Dated: February 29, 2008 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: February 29, 2008 (2) EXHIBIT INDEX Exhibit Number Description -------------- ----------- 99.1 Press release dated February 29, 2008. (3) EX-99 2 acme_8k022908ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 ACME UNITED CORPORATION NEWS RELEASE - -------------------------------------------------------------------------------- CONTACT: Paul G. Driscoll Acme United Corporation 60 Round Hill Road Fairfield, CT 06824 Phone: (203) 254-6060 FAX: (203) 254-6521 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE February 29, 2008 ----------------------------------------- ACME UNITED CORPORATION REPORTS FOURTH QUARTER NET SALES INCREASE OF 23% AND NET INCOME INCREASE OF 38% AND RECORD FULL YEAR RESULTS FAIRFIELD, CONN. - February 29, 2008 - Acme United Corporation (AMEX:ACU) today announced that net sales for the quarter ended December 31, 2007 were $14.9 million compared to $12.1 million in the same period in 2006, an increase of 23% . Net sales for the year ended December 31, 2007 were $63.2 million compared to $56.9 million in the same period in 2006, an increase of 11% (10% in local currency). Net income for the fourth quarter ended December 31, 2007 was $546,000, or $.15 per diluted share, compared to $396,000, or $.11 per diluted share, for the comparable period last year, an increase of 38%. Net income for the year ended December 31, 2007 was $4,022,258, or $1.09 per diluted share, compared to $3,885,662, or $1.05 per diluted share, in the comparable period last year, an increase of 4%. Net sales for the year ended December 31, 2007, in the U.S. segment increased 10% compared to 2006 as the result of sales of new products, including the iPoint electric pencil sharpener and market share gains. Net sales in Canada for the year ended December 31, 2007 increased by 11% in U.S. dollars and 5% in local currency compared to 2006 primarily due to higher sales of the iPoint electric pencil sharpeners. Net sales in Europe for the year ended December 31, 2007 increased by 21% in U.S. dollars and 11% in local currency compared to 2006 due to higher sales of manicure items and expanded distribution of office products. Gross margins were 42% for 2007 compared to 43% in 2006. The gross margin decline in 2007 was due to product mix and increased cost of goods sold on purchases from China due to higher raw material and labor costs and depreciation of the U.S. dollar. Costs also increased due to the reduction of an export tax credit in China. (1) Walter C. Johnsen, Chairman and CEO said, "The results in the fourth quarter and the year represent strong growth in our market shares, expansion of our distribution channels, and improvement in Europe. I am especially pleased with the recent placement of our new products, including the iPoint razor pencil sharpener and Microban school and office products, which are expected to generate robust sales in 2008." The effective income tax rate improved to 36% in 2007 compared to 39% in 2006 primarily due to the decreased losses in 2007 in Europe where there is no recorded tax benefit for losses. The European business is improving due to operational improvements and sales growth. The Company's bank debt less cash on December 31, 2007 was $5.2 million compared to $6.4 million on December 31, 2006, a decrease of $1.2 million. This change primarily resulted from the Company's payments of $600,000 for acquisitions and $500,000 for shareholder dividends, which was offset by the Company's generation of $2.7 million in cash flow from operations. ACME UNITED CORPORATION is an innovative supplier of cutting devices, measuring instruments and safety products for school, home, office, industrial and hardware use. Its leading brands include Westcott(R), Clauss(R) and PhysiciansCare (R). 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. # # # (2) ACME UNITED CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME YEAR END REPORT 2007
Quarter Ended Quarter Ended December 31, 2007 December 31, 2006 Amounts in $000's except per share data (Unaudited) (Unaudited) - -------------------------------------------------------------------------------------------------------------- Net sales $ 14,852 $ 12,089 Gross profit 5,799 4,979 Selling, general, and administrative expenses 4,919 4,110 Interest expense 136 154 Other income 129 103 Pre-tax income 873 818 Income tax expense 327 422 Net income 546 396 Shares outstanding - Basic 3,548 3,508 Shares outstanding - Diluted 3,697 3,726 Earnings per share basic $ 0.15 $ 0.11 Earnings per share diluted 0.15 0.11
(3) ACME UNITED CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME YEAR END REPORT 2007
Year Ended Year Ended Amounts in $000's except per share data December 31, 2007 December 31, 2006 - -------------------------------------------------------------------------------------------------------------- Net sales $ 63,173 $ 56,863 Gross profit 26,493 24,583 Selling, general, and administrative expenses 19,741 17,870 Interest expense 655 616 Other income 206 252 Pre-tax income 6,303 6,349 Income tax expense 2,281 2,463 Net income 4,022 3,886 Shares outstanding - Basic 3,536 3,495 Shares outstanding - Diluted 3,697 3,712 Earnings per share basic $ 1.14 $ 1.11 Earnings per share diluted 1.09 1.05
(4) ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET YEAR END REPORT 2007
Amounts in $000's December 31, 2007 December 31, 2006 - -------------------------------------------------------------------------------------------------------------- Assets: - ------- Current assets: Cash $ 4,988 $ 3,838 Accounts receivable, net 12,727 10,852 Inventories 18,935 15,677 Prepaid and other current assets 1,210 1,120 ---------------------------------------------------- Total current assets 37,860 31,487 Property and equipment, net 2,479 2,540 Other assets 1,883 994 ---------------------------------------------------- Total assets $ 42,222 $ 35,021 ==================================================== Liabilities and stockholders' equity: - ------------------------------------- Current liabilities Accounts payable 4,575 2,358 Other current liabilities 3,907 3,669 ---------------------------------------------------- Total current liabilities 8,482 6,027 Long-term debt 10,187 10,218 Other non current liabilities 507 645 ---------------------------------------------------- 19,176 16,890 Total stockholders' equity 23,046 18,131 ---------------------------------------------------- Total liabilities and stockholders' equity $ 42,222 $ 35,021 ====================================================
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