EXHIBIT 99.1
ACME UNITED CORPORATION NEWS RELEASE
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CONTACT: Paul G. Driscoll
Acme United Corporation
60 Round Hill Road Fairfield, CT 06824
Phone: (203) 254-6060 FAX: (203) 254-6521
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FOR IMMEDIATE RELEASE February 27, 2009
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ACME UNITED CORPORATION REPORTS RECORD 2008 SALES AND EARNINGS
FAIRFIELD, CONN. - February 27, 2009 - Acme United Corporation (NYSE
Alternext US:ACU) today announced that net sales for the year ended December 31,
2008 were $68.7 million, compared to $63.2 million in the same period in 2007,
an increase of 9% (8% in local currency). Net income for the year ended December
31, 2008 was $4,467,000, or $1.24 per diluted share, compared to $4,022,000, or
$1.09 per diluted share, in the comparable period last year, an increase of 11%
in net income and 14% in earnings per share.
Net sales for the fourth quarter ended December 31, 2008 were $12.6
million compared to $14.9 million in the same period in 2007, a decrease of 15%
(12% in local currency). Net income for the fourth quarter ended December 31,
2008 was $634,000, or $.18 per diluted share, compared to $546,000, or $.15 per
diluted share, for the comparable period last year, an increase of 16% in net
income and 20% in earnings per share. Included in other income in the fourth
quarter ended December 31, 2008 was a $265,000 ($164,000 after tax) gain on the
sale of property.
Net sales for the year ended December 31, 2008, in the U.S. segment
increased 10% compared to 2007 as a result of market share gains in all
distribution channels. Net sales in Canada for the year ended December 31, 2008
were relatively constant in U.S. dollars compared to the same period in 2007 but
declined 3% in local currency. European net sales for the year ended December
31, 2008 increased 12% in U.S. dollars and 4% in local currency compared to the
same period in 2007.
Gross margins were 40.2% for 2008 compared to 41.9% in 2007. The gross
margin decline in 2008 was primarily due to strong growth in the highly
competitive school market.
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Walter C. Johnsen, Chairman and CEO said, "The results for 2008
represent strong growth in our market shares, expansion of our distribution
channels, and improvement in Europe. We experienced softer sales in the fourth
quarter than we expected, but we were able to adjust expenses. I am especially
pleased with the recent placement of our new products, including the iPoint
family of pencil sharpeners, Microban school and office products and Speed Pak
utility knives, which are expected to contribute new revenues in 2009."
The Company's bank debt less cash on December 31, 2008 was $6.5 million
compared to $5.2 million on December 31, 2007, an increase of $1.3 million.
During 2008, the Company repurchased 235,000 shares of its common stock for $2.5
million and paid $600,000 in dividends on its common stock, which were offset by
cash flow from operations of $3.3 million.
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 impact of current
uncertainties in global economic conditions and the ongoing financial crisis
affecting the domestic and foreign banking system and financial markets,
including the impact on the Company's suppliers and customers (iii) the
Company's plans and results of operations will be affected by the Company's
ability to manage its growth, and (iv) other risks and uncertainties indicated
from time to time in the Company's filings with the Securities and Exchange
Commission.
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
YEAR END REPORT 2008
(Unaudited)
Quarter Ended Quarter Ended
Amounts in $000's except per share data December 31, 2008 December 31, 2007
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Net sales $ 12,584 $ 14,852
Cost of goods sold 7,701 9,053
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Gross profit 4,883 5,799
Selling, general, and administrative expenses 4,088 4,919
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Income from operations 795 880
Interest expense, net 89 136
Other income, net 169 129
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Pre-tax income 875 873
Income tax expense 241 327
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Net income $ 634 $ 546
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Shares outstanding - Basic 3,415 3,548
Shares outstanding - Diluted 3,511 3,697
Earnings per share basic $ 0.19 $ 0.15
Earnings per share diluted 0.18 0.15
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
YEAR END REPORT 2008 (cont.)
(Unaudited)
Year Ended Year Ended
Amounts in $000's except per share data December 31, 2008 December 31, 2007
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Net sales $ 68,719 $ 63,173
Cost of goods sold 41,062 36,680
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Gross profit 27,657 26,493
Selling, general, and administrative expenses 20,778 19,741
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Income from operations 6,879 6,752
Interest expense, net 396 655
Other income, net 193 206
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Pre-tax income 6,676 6,303
Income tax expense 2,209 2,281
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Net income $ 4,467 $ 4,022
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Shares outstanding - Basic 3,486 3,536
Shares outstanding - Diluted 3,612 3,697
Earnings per share basic $ 1.28 $ 1.14
Earnings per share diluted 1.24 1.09
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ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
YEAR END REPORT 2008
(Unaudited)
Amounts in $000's December 31, 2008 December 31, 2007
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Assets:
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Current assets:
Cash $ 5,225 $ 4,988
Accounts receivable, net 10,564 12,727
Inventories 21,769 18,935
Prepaid and other current assets 1,088 1,210
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Total current assets 38,646 37,860
Property and equipment, net 2,269 2,479
Long term receivable 2,000
Other assets 2,509 1,883
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Total assets $ 45,424 $ 42,222
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Liabilities and stockholders' equity:
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Current liabilities
Accounts payable $ 3,669 $ 4,575
Other current liabilities 5,157 3,907
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Total current liabilities 8,826 8,482
Long-term debt 11,750 10,187
Other non current liabilities 1,960 507
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22,536 19,176
Total stockholders' equity 22,888 23,046
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Total liabilities and stockholders' equity $ 45,424 $ 42,222
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