CORRECTION – Acme United Reports 29% Increase in Net Income for Second Quarter of 2024
Rhea-AI Summary
Acme United (NYSE American: ACU) reported a 29% increase in net income for Q2 2024, with earnings rising to $4.5 million or $1.09 per diluted share. Net sales grew 4% to $55.4 million, and excluding the impact of divested product lines, sales increased by 8%. The company's gross margin improved significantly to 40.8% from 37.5% in the same period last year.
Key highlights include:
- Acquisition of Elite First Aid, Inc., expanding emergency response product line
- Strong market share gains in first aid and Westcott cutting tools
- U.S. segment sales up 10% (excluding divested lines)
- European sales increased 5% in local currency
- Bank debt reduced to $33.1 million from $47.5 million year-over-year
CEO Walter C. Johnsen expressed satisfaction with the company's performance and strategic focus on primary product lines.
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SHELTON, Conn., July 19, 2024 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Acme United Corporation (NYSE American: ACU), please note that in the "CONDENSED CONSOLIDATED STATEMENTS OF INCOME" table, the "Net sales" figure for "Three Months Ended June 30, 2023" should be "53,336", not "55,336" as previously stated, due to a typographical error. No other numbers or calculations were affected. The net sales figure for the three months ended June 30, 2023, was correctly stated as
Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended June 30, 2024 were
Net income was
On May 23, 2024, the Company acquired the assets of Elite First Aid, Inc. (“Elite First Aid”), a leading supplier of tactical, trauma and emergency response products based in Wake Forest, North Carolina. Elite First Aid had revenues in 2023 of approximately
Chairman and CEO Walter C. Johnsen said, “Sales in the second quarter of 2024 were strong. We had significant market share gains and sales growth in first aid. Revenues of Westcott cutting tools increased due to gains in the craft market and growth in back-to-school sales. Our underlying growth was approximately
Mr. Johnsen continued, “We are excited about our acquisition of Elite First Aid, which has significantly strengthened our emergency response product line and expanded our customer base. We also intend to offer the Elite First Aid products to our existing customer base in the coming quarters. I am gratified that the expansion of our product line will enhance our ability to help save lives in trauma situations.”
For the three months ended June 30, 2024, net sales in the U.S. segment increased
European net sales for the three months ended June 30, 2024 increased
Net sales in Canada for the three months ended June 30, 2024 decreased
Gross margin was
The Company’s bank debt less cash as of June 30, 2024 was
Conference Call and Webcast Information
Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Friday, July 19, 2024, at 12:00 p.m. ET. To listen or participate in a question and answer session, dial 877-407-0784. International callers may dial 201-689-8560. The confirmation code is 13747775. You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives.
About Acme United
ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®, Spill Magic®, Westcott®, Clauss®, DMT®, Med-Nap and Elite First Aid. For more information, visit www.acmeunited.com.
Forward Looking Statements
The Company may from time to time make written or oral “forward-looking statements” including statements contained in this report and in other communications by the Company, which are made in good faith pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on our beliefs as well as assumptions made by and information currently available to us. When used in this document, words like “may,” “might,” “will,” “except,” “anticipate,” “believe,” “potential,” and similar expressions are intended to identify forward-looking statements. Actual results could differ materially from our current expectations.
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 that may impact the Company’s business, operations and financial results.
These risks and uncertainties include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) the continuing adverse impact of inflation, including product costs, and interest rates; (iv) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (v) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, port closures or otherwise; (vi) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (vii) currency fluctuations including, for example, the fluctuation of the dollar against the euro; (viii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (ix) changes in client needs and consumer spending habits; (x) the impact of competition; (xi) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (xii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (xiii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
| CONTACT: | Paul G. Driscoll | Acme United Corporation | 1 Waterview Drive | Shelton, CT 06484 |
| Phone: (203) 254-6060 |
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| SECOND QUARTER REPORT 2024 | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | Three Months Ended | |||||||
| Amounts in 000's except per share data | June 30, 2024 | June 30, 2023 | ||||||
| Net sales | $ | 55,425 | $ | 53,336 | ||||
| Cost of goods sold | 32,798 | 33,314 | ||||||
| Gross profit | 22,627 | 20,022 | ||||||
| Selling, general, and administrative expenses | 16,252 | 14,772 | ||||||
| Operating income | 6,375 | 5,250 | ||||||
| Interest expense | 578 | 860 | ||||||
| Interest income | (39 | ) | (28 | ) | ||||
| Interest expense, net | 539 | 832 | ||||||
| Other income, net | (28 | ) | (23 | ) | ||||
| Total other income, net | (28 | ) | (23 | ) | ||||
| Income before income tax expense | 5,864 | 4,441 | ||||||
| Income tax expense | 1,412 | 998 | ||||||
| Net income | $ | 4,452 | $ | 3,443 | ||||
| Shares outstanding - Basic | 3,679 | 3,555 | ||||||
| Shares outstanding - Diluted | 4,088 | 3,591 | ||||||
| Earnings per share - Basic | $ | 1.21 | $ | 0.97 | ||||
| Earnings per share - Diluted | 1.09 | 0.96 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
| SECOND QUARTER REPORT 2024 (cont.) | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended | Six Months Ended | |||||||
| Amounts in 000's except per share data | June 30, 2024 | June 30, 2023 | ||||||
| Net sales | $ | 100,382 | $ | 99,175 | ||||
| Cost of goods sold | 60,358 | 62,872 | ||||||
| Gross profit | 40,024 | 36,303 | ||||||
| Selling, general, and administrative expenses | 31,090 | 28,865 | ||||||
| Operating income | 8,934 | 7,438 | ||||||
| Interest expense | 1,054 | 1,779 | ||||||
| Interest income | (72 | ) | (45 | ) | ||||
| Interest expense, net | 982 | 1,734 | ||||||
| Other income, net | (72 | ) | (46 | ) | ||||
| Total other income, net | (72 | ) | (46 | ) | ||||
| Income before income tax expense | 8,024 | 5,750 | ||||||
| Income tax expense | 1,935 | 1,318 | ||||||
| Net income | $ | 6,089 | $ | 4,432 | ||||
| Shares outstanding - Basic | 3,664 | 3,548 | ||||||
| Shares outstanding - Diluted | 4,143 | 3,548 | ||||||
| Earnings per share - Basic | $ | 1.66 | $ | 1.25 | ||||
| Earnings per share - Diluted | 1.47 | 1.25 | ||||||
| ACME UNITED CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| SECOND QUARTER REPORT 2024 | ||||||||
| (Unaudited) | ||||||||
| Amounts in 000's | June 30, 2024 | June 30, 2023 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,791 | $ | 3,401 | ||||
| Accounts receivable, net | 40,074 | 39,796 | ||||||
| Inventories | 56,621 | 55,944 | ||||||
| Prepaid expenses and other current assets | 5,662 | 4,330 | ||||||
| Total current assets | 106,148 | 103,471 | ||||||
| Property, plant and equipment, net | 30,570 | 27,263 | ||||||
| Operating lease right of use asset | 5,176 | 2,374 | ||||||
| Intangible assets, less accumulated amortization | 31,647 | 27,969 | ||||||
| Other assets | - | 750 | ||||||
| Total assets | $ | 173,541 | $ | 161,827 | ||||
| Liabilities and stockholders' equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,319 | $ | 10,724 | ||||
| Operating lease liability - short term | 1,589 | 1,122 | ||||||
| Mortgage payable - short term | 429 | 411 | ||||||
| Other accrued liabilities | 15,656 | 13,013 | ||||||
| Total current liabilities | 27,992 | 25,271 | ||||||
| Long term debt | 26,419 | 39,979 | ||||||
| Mortgage payable - long term | 10,073 | 10,485 | ||||||
| Operating lease liability - long term | 3,684 | 1,407 | ||||||
| Other non-current liabilities | 1,415 | 1,033 | ||||||
| Total liabilities | 69,583 | 78,175 | ||||||
| Total stockholders' equity | 103,958 | 83,652 | ||||||
| Total liabilities and stockholders' equity | $ | 173,541 | $ | 161,827 | ||||
FAQ
What was Acme United's net income for Q2 2024?
How much did Acme United's net sales grow in Q2 2024?
What was Acme United's earnings per share for Q2 2024?
Did Acme United make any acquisitions in 2024?
What was Acme United's gross margin in Q2 2024?
