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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 22, 2004
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 3,818,812 shares outstanding as of April 22, 2004 of its $2.50
par value Common Stock.
(1)
ACME UNITED CORPORATION
Page
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Item 2.02 Results of Operations and Financial Condition.............. 3
Signatures........................................................... 7
(2)
ACME UNITED CORPORATION NEWS RELEASE
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CONTACT: Paul G. Driscoll
Acme United Corporation
1931 Black Rock Turnpike Fairfield, CT 06825
Phone: (203) 332-7330 FAX: (203) 576-1547
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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.
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(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)
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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
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Assets March 31, 2004 March 31, 2003
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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
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Total Current Assets 16,788 15,090
Property and Equipment, Net 2,361 2,269
Other Assets 456 401
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Total Assets $ 19,605 $ 17,760
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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
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Total Current Liabilities 5,519 6,190
Long-Term debt 2,542 2,061
Other Non Current Liabilities 759 732
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8,820 8,983
Total Stockholders' Equity 10,785 8,777
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Total Liabilities and Stockholders' Equity $ 19,605 $ 17,760
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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 22, 2004
By /s/ PAUL G. DRISCOLL
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Paul G. Driscoll
Vice President and
Chief Financial Officer
Dated: April 22, 2004
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