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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported) April 25, 2003
Commission file number Q4823
ACME UNITED CORPORATION
(Exact name of registrant as specified in its charter)
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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 3,373,251 shares outstanding as of April 25, 2003 of its $2.50
par value Common Stock.
(1)
ACME UNITED CORPORATION
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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 ANNOUNCES FIRST QUARTER EARNINGS
FAIRFIELD, CONN. - April 25, 2003 - Acme United Corporation (ASE:ACU) today
announced net income of $78,000 or $.02 per diluted share for the first quarter
ending March 31, 2003 compared to $122,000 or $.03 per share for the comparable
period last year.
Net sales for the quarter ending March 31, 2003 were $7.2 million
compared to $6.8 million in 2002, an increase of 6%. Net sales in the U.S.
increased 13% due to the successful launch of new products. International sales
decreased by 10% due to discontinued product lines in the UK and Germany.
Gross margins increased to 40% in the first quarter of 2003 versus 32%
in the comparable period last year due to new product sales and improved
productivity.
Income before income taxes was $352,000 in the first quarter of 2003
compared with $137,000 in the first quarter of 2002, an increase of $215,000.
Pretax income for North America was $730,000 compared to $312,000 in 2002. The
European operations lost $378,000 including a one-time expense of $175,000 for
settlement of a lawsuit in April 2003. The pretax loss in Europe for the first
quarter of 2002 was $175,000.
Income tax expense for the first quarter 2003 was $274,000 compared to
$15,000 in the first quarter of 2002, a $259,000 increase. In 2002 the Company
recognized a significant one-time income tax benefit associated with liquidating
its UK business. Consolidated income before taxes for the first quarter 2003
included the losses in Europe, which has resulted in a high effective income tax
rate.
The Company's balance sheet on March 31, 2003 was stronger than at the
same time last year. Total inventory was reduced to $7.2 million from $8.3
million. Total debt less cash was $4.7 million compared to $6.7 million on March
31, 2002.
Walter C. Johnsen, President and CEO said, "The first quarter of 2003
showed good business progress. Our net sales and gross margin increases were the
result of investments made during the past several years to develop patented new
products. Acme has a three-year pipeline of innovative cutting, measuring, and
safety items in various stages of planning and development, and we anticipate
seeing their impact during the coming months and years.
"The improved balance sheet provides flexibility to take advantage of
market and competitive opportunities. Total net debt declined $2.0 million from
the first quarter 2002, which represents a reduction of $.57 per share in the
past 12 months. We expect to continue to generate free cash flow during the
year."
(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.
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(4)
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
FIRST QUARTER REPORT 2003
Quarter Ended Quarter Ended
March 31, 2003 March 31, 2002
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $ 7,189 $ 6,755
Pre-Tax Income 352 137
Net Income 78 122
Earnings Per Share Basic 0.02 0.03
Earnings Per Share Diluted 0.02 0.03
(5)
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
FIRST QUARTER REPORT 2003
(Unaudited)
Amounts in $000's
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Assets March 31, 2003 March 31, 2002
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Current Assets:
Cash $ 789 $ 127
Accounts Receivable, Net 6,059 7,278
Inventories 7,212 8,348
Prepaid and Other current Assets 1,030 1,205
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Total Current Assets 15,090 16,958
Property and Equipment, Net 2,269 2,267
Other Assets 401 1,419
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Total Assets $ 17,760 $ 20,644
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Liabilities and Stockholders Equity
Current Liabilities
Notes Payable $ - $ 437
Accounts Payable 1,206 1,506
Other Current Liabilities 1,587 2,556
Current Portion of Long Term Debt 3,397 6,151
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Total Current Liabilities 6,190 10,650
Long-Term debt 2,061 283
Other Non Current Liabilities 732 922
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8,983 11,855
Total Stockholders Equity 8,777 8,789
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Total Liabilities and Stockholders Equity $ 17,760 $ 20,644
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(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
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Walter C. Johnsen
President and
Chief Executive Officer
Dated: April 25, 2003
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: April 25, 2003
(7)