0000002098 false --12-31 Q2 2022 0000002098 2022-01-01 2022-06-30 xbrli:shares 0000002098 2022-08-05 iso4217:USD 0000002098 2022-06-30 0000002098 2021-12-31 iso4217:USD xbrli:shares 0000002098 2022-04-01 2022-06-30 0000002098 2021-04-01 2021-06-30 0000002098 2021-01-01 2021-06-30 0000002098 us-gaap:CommonStockMember 2021-03-31 0000002098 us-gaap:TreasuryStockMember 2021-03-31 0000002098 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0000002098 us-gaap:RetainedEarningsMember 2021-03-31 0000002098 2021-03-31 0000002098 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000002098 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0000002098 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0000002098 us-gaap:CommonStockMember 2021-06-30 0000002098 us-gaap:TreasuryStockMember 2021-06-30 0000002098 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0000002098 us-gaap:RetainedEarningsMember 2021-06-30 0000002098 2021-06-30 0000002098 us-gaap:CommonStockMember 2022-03-31 0000002098 us-gaap:TreasuryStockMember 2022-03-31 0000002098 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0000002098 us-gaap:RetainedEarningsMember 2022-03-31 0000002098 2022-03-31 0000002098 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-01 2022-06-30 0000002098 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0000002098 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0000002098 us-gaap:CommonStockMember 2022-06-30 0000002098 us-gaap:TreasuryStockMember 2022-06-30 0000002098 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0000002098 us-gaap:RetainedEarningsMember 2022-06-30 0000002098 us-gaap:CommonStockMember 2020-12-31 0000002098 us-gaap:TreasuryStockMember 2020-12-31 0000002098 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0000002098 us-gaap:RetainedEarningsMember 2020-12-31 0000002098 2020-12-31 0000002098 us-gaap:RetainedEarningsMember 2021-01-01 2021-06-30 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-06-30 0000002098 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-06-30 0000002098 us-gaap:CommonStockMember 2021-01-01 2021-06-30 0000002098 us-gaap:CommonStockMember 2021-12-31 0000002098 us-gaap:TreasuryStockMember 2021-12-31 0000002098 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0000002098 us-gaap:RetainedEarningsMember 2021-12-31 0000002098 us-gaap:RetainedEarningsMember 2022-01-01 2022-06-30 0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-06-30 0000002098 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-06-30 0000002098 us-gaap:CommonStockMember 2022-01-01 2022-06-30 0000002098 acu:ProductAMember country:US 2022-04-01 2022-06-30 0000002098 acu:ProductAMember country:CA 2022-04-01 2022-06-30 0000002098 acu:ProductAMember srt:EuropeMember 2022-04-01 2022-06-30 0000002098 acu:ProductAMember 2022-04-01 2022-06-30 0000002098 acu:ProductBMember country:US 2022-04-01 2022-06-30 0000002098 acu:ProductBMember country:CA 2022-04-01 2022-06-30 0000002098 acu:ProductBMember srt:EuropeMember 2022-04-01 2022-06-30 0000002098 acu:ProductBMember 2022-04-01 2022-06-30 0000002098 country:US 2022-04-01 2022-06-30 0000002098 country:CA 2022-04-01 2022-06-30 0000002098 srt:EuropeMember 2022-04-01 2022-06-30 0000002098 acu:ProductAMember country:US 2021-04-01 2021-06-30 0000002098 acu:ProductAMember country:CA 2021-04-01 2021-06-30 0000002098 acu:ProductAMember srt:EuropeMember 2021-04-01 2021-06-30 0000002098 acu:ProductAMember 2021-04-01 2021-06-30 0000002098 acu:ProductBMember country:US 2021-04-01 2021-06-30 0000002098 acu:ProductBMember country:CA 2021-04-01 2021-06-30 0000002098 acu:ProductBMember srt:EuropeMember 2021-04-01 2021-06-30 0000002098 acu:ProductBMember 2021-04-01 2021-06-30 0000002098 country:US 2021-04-01 2021-06-30 0000002098 country:CA 2021-04-01 2021-06-30 0000002098 srt:EuropeMember 2021-04-01 2021-06-30 0000002098 acu:ProductAMember country:US 2022-01-01 2022-06-30 0000002098 acu:ProductAMember country:CA 2022-01-01 2022-06-30 0000002098 acu:ProductAMember srt:EuropeMember 2022-01-01 2022-06-30 0000002098 acu:ProductAMember 2022-01-01 2022-06-30 0000002098 acu:ProductBMember country:US 2022-01-01 2022-06-30 0000002098 acu:ProductBMember country:CA 2022-01-01 2022-06-30 0000002098 acu:ProductBMember srt:EuropeMember 2022-01-01 2022-06-30 0000002098 acu:ProductBMember 2022-01-01 2022-06-30 0000002098 country:US 2022-01-01 2022-06-30 0000002098 country:CA 2022-01-01 2022-06-30 0000002098 srt:EuropeMember 2022-01-01 2022-06-30 0000002098 acu:ProductAMember country:US 2021-01-01 2021-06-30 0000002098 acu:ProductAMember country:CA 2021-01-01 2021-06-30 0000002098 acu:ProductAMember srt:EuropeMember 2021-01-01 2021-06-30 0000002098 acu:ProductAMember 2021-01-01 2021-06-30 0000002098 acu:ProductBMember country:US 2021-01-01 2021-06-30 0000002098 acu:ProductBMember country:CA 2021-01-01 2021-06-30 0000002098 acu:ProductBMember srt:EuropeMember 2021-01-01 2021-06-30 0000002098 acu:ProductBMember 2021-01-01 2021-06-30 0000002098 country:US 2021-01-01 2021-06-30 0000002098 country:CA 2021-01-01 2021-06-30 0000002098 srt:EuropeMember 2021-01-01 2021-06-30 0000002098 us-gaap:RevolvingCreditFacilityMember 2022-05-30 0000002098 us-gaap:RevolvingCreditFacilityMember 2022-05-31 xbrli:pure 0000002098 us-gaap:RevolvingCreditFacilityMember acu:SecuredOvernightFinancingRateMember 2022-05-01 2022-05-31 0000002098 us-gaap:RevolvingCreditFacilityMember 2022-05-01 2022-05-31 0000002098 us-gaap:MortgagesMember 2022-01-01 2022-06-30 0000002098 us-gaap:RevolvingCreditFacilityMember 2022-06-30 0000002098 us-gaap:RevolvingCreditFacilityMember 2021-12-31 0000002098 us-gaap:MortgagesMember 2022-06-30 0000002098 acu:MortgagePayableHSBCBankNAMember 2022-06-30 0000002098 acu:MortgagePayableHSBCBankNAMember 2021-12-31 0000002098 acu:UnitedStatesSegmentMember 2022-04-01 2022-06-30 0000002098 acu:UnitedStatesSegmentMember 2021-04-01 2021-06-30 0000002098 acu:UnitedStatesSegmentMember 2022-01-01 2022-06-30 0000002098 acu:UnitedStatesSegmentMember 2021-01-01 2021-06-30 0000002098 acu:CanadaSegmentMember 2022-04-01 2022-06-30 0000002098 acu:CanadaSegmentMember 2021-04-01 2021-06-30 0000002098 acu:CanadaSegmentMember 2022-01-01 2022-06-30 0000002098 acu:CanadaSegmentMember 2021-01-01 2021-06-30 0000002098 acu:EuropeSegmentMember 2022-04-01 2022-06-30 0000002098 acu:EuropeSegmentMember 2021-04-01 2021-06-30 0000002098 acu:EuropeSegmentMember 2022-01-01 2022-06-30 0000002098 acu:EuropeSegmentMember 2021-01-01 2021-06-30 0000002098 acu:UnitedStatesSegmentMember 2022-06-30 0000002098 acu:UnitedStatesSegmentMember 2021-12-31 0000002098 acu:CanadaSegmentMember 2022-06-30 0000002098 acu:CanadaSegmentMember 2021-12-31 0000002098 acu:EuropeSegmentMember 2022-06-30 0000002098 acu:EuropeSegmentMember 2021-12-31 0000002098 us-gaap:OtherNoncurrentLiabilitiesMember 2022-06-01 0000002098 acu:IncomeStatementMember 2022-04-01 2022-06-30 0000002098 acu:IncomeStatementMember 2022-01-01 2022-06-30 0000002098 acu:IncomeStatementMember 2021-04-01 2021-06-30 0000002098 acu:IncomeStatementMember 2021-01-01 2021-06-30 0000002098 acu:IncomeStatementAMember 2022-04-01 2022-06-30 0000002098 acu:IncomeStatementAMember 2022-01-01 2022-06-30 0000002098 acu:IncomeStatementAMember 2021-04-01 2021-06-30 0000002098 acu:IncomeStatementAMember 2021-01-01 2021-06-30 0000002098 acu:LiveSafelyProductsLLCMember 2022-06-01 2022-06-01 0000002098 acu:LiveSafelyProductsLLCMember 2022-06-01 0000002098 srt:MinimumMember acu:LiveSafelyProductsLLCMember 2022-06-01 2022-06-01 0000002098 srt:MaximumMember acu:LiveSafelyProductsLLCMember 2022-06-01 2022-06-01 0000002098 acu:LiveSafelyProductsLLCMember us-gaap:OtherNoncurrentAssetsMember 2022-06-01 0000002098 srt:MinimumMember 2022-01-01 2022-06-30 0000002098 srt:MaximumMember 2022-01-01 2022-06-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2022

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from:                       to                 

Commission file number: 01-07698

ACME UNITED CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

 

Connecticut

 

06-0236700

State or Other Jurisdiction of

 

I.R.S. Employer Identification No.

Incorporation or Organization

 

 

 

 

 

1 Waterview Drive, Shelton, Connecticut

 

06484

Address of Principal Executive Offices

 

Zip Code

 

Registrant's telephone number, including area code: (203) 254-6060

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol

Name of each exchange on which registered

$2.50 par value Common Stock

ACU

NYSE American

Indicate by check mark whether the registrant (l) 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       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (sec. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes       No  

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one).

 

Large accelerated filer

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

Smaller Reporting Company

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(s) of the Exchange Act

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes       No  

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 USC. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. Yes       No  

 

Registrant had 3,525,002 shares of its $2.50 par value Common Stock outstanding as of August 5, 2022.

1


ACME UNITED CORPORATION

INDEX

 

 

 

Page

Number

 

 

 

Part I — FINANCIAL INFORMATION:

3

Item 1:

Financial Statements (Unaudited)

3

 

Condensed Consolidated Balance Sheets at June 30, 2022 and December 31, 2021

3

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021

5

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021

6

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021

7

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021

9

 

Notes to Condensed Consolidated Financial Statements

10

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3: 

Quantitative and Qualitative Disclosures about Market Risk

21

Item 4: 

Controls and Procedures

21

 

 

 

Part II — OTHER INFORMATION:

22

Item 1:   

Legal Proceedings

22

Item 1A:

Risk Factors

22

Item 2:   

Unregistered Sales of Equity Securities and Use of Proceeds

22

Item 3:   

Defaults Upon Senior Securities

22

Item 4:   

Mine Safety Disclosures

22

Item 5:   

Other Information

22

Item 6:  

Exhibits

22

Signatures

23

 

2


 

Part I - FINANCIAL INFORMATION

 

Item 1: Financial Statements

 

ACME UNITED CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(all amounts in thousands)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

(Note 1)

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,760

 

 

$

4,843

 

Accounts receivable, less allowance of $922 in 2022 and $1,007 in 2021

 

 

46,991

 

 

 

34,221

 

Inventories

 

 

65,039

 

 

 

53,552

 

Prepaid expenses and other current assets

 

 

3,647

 

 

 

2,635

 

Total current assets

 

 

117,437

 

 

 

95,251

 

Property, plant and equipment:

 

 

 

 

 

 

 

 

Land

 

 

1,977

 

 

 

1,761

 

Buildings

 

 

16,088

 

 

 

13,456

 

Machinery and equipment

 

 

30,493

 

 

 

29,760

 

 

 

 

48,558

 

 

 

44,977

 

Less: accumulated depreciation

 

 

22,281

 

 

 

20,950

 

   Net property, plant and equipment

 

 

26,277

 

 

 

24,027

 

 

 

 

 

 

 

 

 

 

Operating lease right-of-use asset, net

 

 

2,787

 

 

 

3,130

 

Goodwill

 

 

8,189

 

 

 

4,800

 

Intangible assets, less accumulated amortization

 

 

21,625

 

 

 

17,231

 

Other assets - restricted cash

 

 

1,500

 

 

 

-

 

Total assets

 

$

177,815

 

 

$

144,439

 

 

 

See Notes to Condensed Consolidated Financial Statements.

3


ACME UNITED CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

(all amounts in thousands, except share amounts)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

(Note 1)

 

LIABILITIES

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

21,421

 

 

$

8,977

 

Operating lease liability - current portion

 

 

1,080

 

 

 

1,000

 

Current portion of mortgage payable

 

 

389

 

 

 

389

 

Other accrued liabilities

 

 

10,129

 

 

 

9,909

 

Total current liabilities

 

 

33,019

 

 

 

20,275

 

Non-current liabilities:

 

 

 

 

 

 

 

 

Long-term debt

 

 

50,263

 

 

 

33,037

 

Mortgage payable, net of current portion

 

 

10,897

 

 

 

11,081

 

Operating lease liability - non-current portion

 

 

1,944

 

 

 

2,365

 

Other non-current liabilities

 

 

1,869

 

 

 

599

 

Total liabilities

 

 

97,992

 

 

 

67,357

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (see note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, par value $2.50:

 

 

 

 

 

 

 

 

authorized 8,000,000 shares;

 

 

 

 

 

 

 

 

   5,066,245 shares issued and 3,521,373 shares outstanding in 2022 and

 

 

 

 

 

 

 

 

        5,065,518 shares issued and 3,520,646 shares outstanding in 2022 and 2021

 

 

12,657

 

 

 

12,655

 

Additional paid-in capital

 

 

12,598

 

 

 

11,930

 

Retained earnings

 

 

72,491

 

 

 

69,873

 

Treasury stock, at cost - 1,544,872 shares in 2022 and 2021

 

 

(15,996

)

 

 

(15,996

)

Accumulated other comprehensive loss:

 

 

 

 

 

 

 

 

Translation adjustment

 

 

(1,927

)

 

 

(1,380

)

Total stockholders’ equity

 

 

79,823

 

 

 

77,082

 

Total liabilities and stockholders’ equity

 

$

177,815

 

 

$

144,439

 

 

 

 

See Notes to Condensed Consolidated Financial Statements.

 

4


 

ACME UNITED CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(all amounts in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net sales

 

$

56,773

 

 

$

44,847

 

 

$

100,106

 

 

$

88,372

 

Cost of goods sold

 

 

38,225

 

 

 

28,694

 

 

 

66,590

 

 

 

56,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

18,548

 

 

 

16,153

 

 

 

33,516

 

 

 

31,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

14,572

 

 

 

12,364

 

 

 

28,169

 

 

 

24,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

3,976

 

 

 

3,789

 

 

 

5,347

 

 

 

6,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

428

 

 

 

226

 

 

 

737

 

 

 

452

 

Interest income

 

 

(5

)

 

 

(3

)

 

 

(8

)

 

 

(9

)

Interest expense, net

 

 

423

 

 

 

223

 

 

 

729

 

 

 

443

 

PPP loan forgiveness

 

 

-

 

 

 

(3,508

)

 

 

-

 

 

 

(3,508

)

Other expense (income), net

 

 

148

 

 

 

68

 

 

 

147

 

 

 

145

 

Total other expense (income), net

 

 

148

 

 

 

(3,440

)

 

 

147

 

 

 

(3,363

)

Income before income tax expense

 

 

3,405

 

 

 

7,006

 

 

 

4,471

 

 

 

9,677

 

Income tax expense (benefit)

 

 

667

 

 

 

(224

)

 

 

903

 

 

 

400

 

Net income

 

$

2,738

 

 

$

7,230

 

 

$

3,568

 

 

$

9,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.78

 

 

$

2.16

 

 

$

1.01

 

 

$

2.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.71

 

 

$

1.82

 

 

$

0.93

 

 

$

2.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding-denominator used for basic

   per share computations

 

 

3,521

 

 

 

3,347

 

 

 

3,521

 

 

 

3,410

 

Weighted average number of dilutive stock options outstanding

 

 

320

 

 

 

617

 

 

 

323

 

 

 

551

 

Denominator used for diluted per share computations

 

 

3,841

 

 

 

3,964

 

 

 

3,844

 

 

 

3,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.14

 

 

$

0.13

 

 

$

0.27

 

 

$

0.26

 

 

 

 

See Notes to Condensed Consolidated Financial Statements.

5


ACME UNITED CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(all amounts in thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

 

$

2,738

 

 

$

7,230

 

 

$

3,568

 

 

$

9,277

 

Other comprehensive (loss) income :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(574

)

 

 

168

 

 

 

(547

)

 

 

(20

)

Comprehensive income

 

$

2,164

 

 

$

7,398

 

 

$

3,021

 

 

$

9,257

 

 

See Notes to Condensed Consolidated Financial Statements.

6


ACME UNITED CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

(all amounts in thousands, except share amounts)

 

 

 

    

For the three months ended June 30, 2021

 

 

Outstanding Shares of Common Stock

 

 

Common Stock

 

 

Treasury

Stock

 

 

Additional Paid-In Capital

 

 

Accumulated

Other Comprehensive (Loss) Gain

 

 

Retained Earnings

 

 

Total

 

Balances, March 31, 2021

 

3,356,614

 

 

$

12,145

 

 

$

(14,522

)

 

$

8,375

 

 

$

(1,014

)

 

$

59,643

 

 

 

64,627

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,230

 

 

 

7,230

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

168

 

 

 

 

 

 

 

168

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

580

 

 

 

 

 

 

 

 

 

 

 

580

 

Distributions to shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(458

)

 

 

(458

)

Issuance of common stock

 

172,594

 

 

 

431

 

 

 

 

 

 

 

2,085

 

 

 

 

 

 

 

 

 

 

 

2,516

 

Cash settlement of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

(211

)

 

 

 

 

 

 

 

 

 

 

(211

)

Balances June 30, 2021

 

3,529,208

 

 

$

12,576

 

 

$

(14,522

)

 

$

10,829

 

 

$

(846

)

 

$

66,415

 

 

$

74,452

 

 

 

For the three months ended June 30, 2022

 

 

Outstanding Shares of Common Stock

 

 

Common Stock

 

 

Treasury

Stock

 

 

Additional Paid-In Capital

 

 

Accumulated

Other Comprehensive (Loss) Gain

 

 

Retained Earnings

 

 

Total

 

Balances, March 31, 2022

 

3,520,646

 

 

$

12,655

 

 

$

(15,996

)

 

$

12,222

 

 

$

(1,353

)

 

$

70,245

 

 

$

77,773

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,738

 

 

 

2,738

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(574

)

 

 

 

 

 

 

(574

)

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

368

 

 

 

 

 

 

 

 

 

 

 

368

 

Distributions to shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(492

)

 

 

(492

)

Issuance of common stock

 

727

 

 

 

2

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

10

 

Balances June 30, 2022

 

3,521,373

 

 

$

12,657

 

 

$

(15,996

)

 

$

12,598

 

 

$

(1,927

)

 

$

72,491

 

 

$

79,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the six months ended June 30, 2021  

     

 

 

Outstanding

Shares of

Common

Stock

 

 

Common

Stock

 

 

Treasury

Stock

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Retained

Earnings

 

 

Total

 

Balances, December 31, 2020

 

 

3,338,913

 

 

$

12,101

 

 

$

(14,522

)

 

$

7,931

 

 

$

(826

)

 

$

58,033

 

 

$

62,717

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,277

 

 

 

9,277

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20

)

 

 

 

 

 

 

(20

)

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

886

 

 

 

 

 

 

 

 

 

 

 

886

 

Distributions to shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(895

)

 

 

(895

)

Issuance of common stock

 

 

190,295

 

 

 

475

 

 

 

 

 

 

 

2,223

 

 

 

 

 

 

 

 

 

 

 

2,698

 

Cash settlement of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(211

)

 

 

 

 

 

 

 

 

 

 

(211

)

Balances June 30, 2021

 

 

3,529,208

 

 

$

12,576

 

 

$

(14,522

)

 

$

10,829

 

 

$

(846

)

 

$

66,415

 

 

$

74,452

 

 

 

 

 

 

 

 

7


 

 

 

For the six months ended June 30, 2022

 

 

 

 

Outstanding

Shares of

Common

Stock

 

 

Common

Stock

 

 

Treasury

Stock

 

 

Additional

Paid-In

Capital

 

 

Accumulated

Other

Comprehensive

Loss

 

 

Retained

Earnings

 

 

Total

 

Balances, December 31, 2021

 

 

3,520,646

 

 

$

12,655

 

 

$

(15,996

)

 

$

11,930

 

 

$

(1,380

)

 

$

69,873

 

 

$

77,082

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,568

 

 

 

3,568

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(547

)

 

 

 

 

 

 

(547

)

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

768

 

 

 

 

 

 

 

 

 

 

 

768

 

Distributions to shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(950

)

 

 

(950

)

Issuance of common stock

 

 

727

 

 

 

2

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

10

 

Cash settlement of stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(108

)

 

 

 

 

 

 

 

 

 

 

(108

)

Balances June 30, 2022

 

 

3,521,373

 

 

$

12,657

 

 

$

(15,996

)

 

$

12,598

 

 

$

(1,927

)

 

$

72,491

 

 

$

79,823

 

 

See Notes to Condensed Consolidated Financial Statements.

8


ACME UNITED CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(all amounts in thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

3,568

 

 

$

9,277

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

1,339

 

 

 

1,176

 

Amortization of intangible assets

 

 

744

 

 

 

742

 

Non-cash lease expense

 

 

-

 

 

 

43

 

Stock compensation expense

 

 

768

 

 

 

886

 

Provision for bad debt

 

 

50

 

 

 

54

 

PPP loan forgiveness

 

 

-

 

 

 

(3,508

)

Amortization of deferred financing costs

 

 

8

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(12,468

)

 

 

(9,072

)

Inventories

 

 

(11,021

)

 

 

2,007

 

Prepaid expenses and other  assets

 

 

(991

)

 

 

(593

)

Accounts payable

 

 

12,651

 

 

 

346

 

Other accrued liabilities

 

 

182

 

 

 

(1,215

)

Total adjustments

 

 

(8,739

)

 

 

(9,134

)

Net cash (used in) provided by  operating activities

 

 

(5,171

)

 

 

143

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property, plant and equipment

 

 

(2,761

)

 

 

(3,351

)

  Acquisition of Safety Made

 

 

(9,609

)

 

 

-

 

Net cash used in investing activities

 

 

(12,370

)