-----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, Oq1sms482mBgVIAGDFXHISRb3pUzGJFcHufPPGl/p6dpZ9CoZl7S9rQqCgMtmHp1 qvWk3ZYzO7cFsE9h98uKLg== 0001026608-08-000158.txt : 20080718 0001026608-08-000158.hdr.sgml : 20080718 20080718092811 ACCESSION NUMBER: 0001026608-08-000158 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080718 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080718 DATE AS OF CHANGE: 20080718 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: 08958374 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_8k071808.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): July 18, 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 July 18, 2008, Acme United Corporation (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2008. 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 July 18, 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: July 18, 2008 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: July 18, 2008 (2) EXHIBIT INDEX Exhibit Number Description -------------- ----------- 99.1 Press release dated July 18, 2008. (3) EX-99 2 acme_8k071808ex991.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 July 18, 2008 ----------------------------------- ACME UNITED CORPORATION REPORTS RECORD SECOND QUARTER SALES AND EARNINGS FAIRFIELD, CONN. - July 18, 2008 - Acme United Corporation (AMEX:ACU) today announced that net sales for the quarter ended June 30, 2008 were $22.7 million, compared to $19.0 million in the same period in 2007, an increase of 20% (17% in local currency). Net sales for the six months ended June 30, 2008 were $37.0 million, compared to $31.2 million in the same period in 2007, an increase of 18% (15% in local currency). Net income was $1,730,000 or $.47 per diluted share for the second quarter ended June 30, 2008, compared to $1,522,000 or $.41 per diluted share for the comparable period last year, an increase of 14% in net income and 15% in diluted earnings per share. Net income for the six months ended June 30, 2008 was $2,482,000, or $.68 per diluted share, compared to $2,172,000, or $.59 per diluted share in the comparable period last year, a 14% increase in net income and 15% in diluted earnings per share. Net sales for the quarter ended June 30, 2008 in the U.S. segment increased 23% as a result of market acceptance of new anti-microbial school scissors, rulers, and math kits and iPoint pencil sharpeners. Net sales for the six months ended June 30, 2008 in the U.S. segment increased 21%. Net sales in Canada in the first six months of 2008 increased by 5% in U.S. dollars but declined 6% in local currency due to soft demand in the overall office products market. European net sales in the first six months of 2008 increased 18% in U.S. dollars and 3% in local currency. Gross margins were 39.3% in the second quarter of 2008 versus 42.0% in the comparable period last year. For the first six months of 2008, gross margins were 40.3% compared to 42.6% in the same period in 2007. The gross margin declines were due to increased costs of material, labor, and energy, and the appreciation of the Chinese currency against the U.S. dollar. Also, in the second quarter of 2008, the company gained market share in the highly competitive back to school segment which reduced gross margins. (1) Walter C. Johnsen, Chairman and CEO, said "The second quarter and year to date sales demonstrate the strength of our new products, and the values they deliver to our customers. Acme's base of business has broadened during the past several years, with growth in the mass market, office superstores, independent dealers, and hardware and industrial markets. Our international sales base has also grown. The broadening of our customer base and international sales has offset weakness in some domestic accounts." The Company's bank debt less cash on June 30, 2008 was $11.3 million compared to $9.6 million on June 30, 2007. The increase in bank debt during the twelve month period was primarily due to an increase in borrowings for inventory and accounts receivables for the back to school season as well as share repurchases, partially offset by earnings. Based on anticipated cash flow, the debt level is expected to decline during the second half of the year. During the 12 month period ended June 30, 2008, Acme purchased 67,600 shares of its common stock for approximately $900,000 under its previously announced repurchase program. As of June 30, 2008, there were 182,400 shares that may be purchased under the outstanding stock repurchase programs. ACME UNITED CORPORATION is an innovative supplier of cutting devices, measuring instruments, and safety products for school, home, office and industrial 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 STATEMENTS OF INCOME SECOND QUARTER REPORT 2008 (Unaudited)
Quarter Ended Quarter Ended Amounts in $000's except per share data June 30, 2008 June 30, 2007 - -------------------------------------------------------------------------------------------------------------- Net sales $ 22,708 $ 18,999 Cost of goods sold 13,790 11,020 ---------------- ---------------- Gross profit 8,918 7,979 Selling, general, and administrative expenses 6,121 5,435 ---------------- ---------------- Income from operations 2,797 2,544 Interest expense 90 156 Other expense 24 41 ---------------- ---------------- Pre-tax income 2,683 2,347 Income tax expense 953 825 ---------------- ---------------- Net income $ 1,730 $ 1,522 ================ ================ Shares outstanding - Basic 3,518 3,527 Shares outstanding - Diluted 3,665 3,698 Earnings per share basic $ 0.49 $ 0.43 Earnings per share diluted 0.47 0.41
(3) ACME UNITED CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME SECOND QUARTER REPORT 2008 (cont.) (Unaudited)
Six Months Ended Six Months Ended Amounts in $000's except per share data June 30, 2008 June 30, 2007 - -------------------------------------------------------------------------------------------------------------- Net sales $ 36,977 $ 31,240 Cost of goods sold 22,073 17,927 ---------------- ---------------- Gross profit 14,904 13,313 Selling, general, and administrative expenses 11,039 9,593 ---------------- ---------------- Income from operations 3,865 3,720 Interest expense 187 310 Other (income) expense (162) 14 ---------------- ---------------- Pre-tax income 3,840 3,396 Income tax expense 1,358 1,224 ---------------- ---------------- Net income $ 2,482 $ 2,172 ================ ================ Shares outstanding - Basic 3,519 3,527 Shares outstanding - Diluted 3,666 3,698 Earnings per share basic $ 0.71 $ 0.62 Earnings per share diluted 0.68 0.59
(4) ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS SECOND QUARTER REPORT 2008 (Unaudited)
Amounts in $000's June 30, 2008 June 30, 2007 - --------------------------------------------------------------------------------------------------------- Assets: - ------- Current assets: Cash $ 3,703 $ 3,057 Accounts receivable, net 20,852 18,056 Inventories 21,458 17,079 Prepaid and other current assets 1,121 1,287 ---------------- ---------------- Total current assets 47,134 39,479 Property and equipment, net 2,479 2,506 Other assets 1,927 1,016 ---------------- ---------------- Total assets $ 51,540 $ 43,001 ================ ================ Liabilities and stockholders' equity: - ------------------------------------- Current liabilities Accounts payable 6,623 4,639 Other current liabilities 4,631 4,309 ---------------- ---------------- Total current liabilities 11,253 8,948 Long-term debt 14,992 12,697 Other non current liabilities 551 687 ---------------- ---------------- 26,796 22,332 Total stockholders' equity 24,744 20,669 ---------------- ---------------- Total liabilities and stockholders' equity $ 51,540 $ 43,001 ================ ================
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