Quarterly Report (10-q)
09 Novembre 2022 - 10:02PM
Edgar (US Regulatory)
0000002098 false --12-31 Q3 2022
0000002098 2022-01-01 2022-09-30 xbrli:shares 0000002098 2022-11-04
iso4217:USD 0000002098 2022-09-30 0000002098 2021-12-31 iso4217:USD
xbrli:shares 0000002098 2022-07-01 2022-09-30 0000002098 2021-07-01
2021-09-30 0000002098 2021-01-01 2021-09-30 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:RetainedEarningsMember 2021-07-01
2021-09-30 0000002098
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-01
2021-09-30 0000002098 us-gaap:AdditionalPaidInCapitalMember
2021-07-01 2021-09-30 0000002098 us-gaap:CommonStockMember
2021-07-01 2021-09-30 0000002098 us-gaap:CommonStockMember
2021-09-30 0000002098 us-gaap:TreasuryStockMember 2021-09-30
0000002098 us-gaap:AdditionalPaidInCapitalMember 2021-09-30
0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2021-09-30 0000002098 us-gaap:RetainedEarningsMember 2021-09-30
0000002098 2021-09-30 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 2022-06-30 0000002098 us-gaap:RetainedEarningsMember
2022-07-01 2022-09-30 0000002098
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-07-01
2022-09-30 0000002098 us-gaap:AdditionalPaidInCapitalMember
2022-07-01 2022-09-30 0000002098 us-gaap:CommonStockMember
2022-07-01 2022-09-30 0000002098 us-gaap:CommonStockMember
2022-09-30 0000002098 us-gaap:TreasuryStockMember 2022-09-30
0000002098 us-gaap:AdditionalPaidInCapitalMember 2022-09-30
0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-09-30 0000002098 us-gaap:RetainedEarningsMember 2022-09-30
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
2021-09-30 0000002098
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01
2021-09-30 0000002098 us-gaap:AdditionalPaidInCapitalMember
2021-01-01 2021-09-30 0000002098 us-gaap:CommonStockMember
2021-01-01 2021-09-30 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 2022-09-30
0000002098 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-01-01 2022-09-30 0000002098
us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-09-30
0000002098 us-gaap:CommonStockMember 2022-01-01 2022-09-30
0000002098 acu:ProductAMember country:US 2022-07-01 2022-09-30
0000002098 acu:ProductAMember country:CA 2022-07-01 2022-09-30
0000002098 acu:ProductAMember srt:EuropeMember 2022-07-01
2022-09-30 0000002098 acu:ProductAMember 2022-07-01 2022-09-30
0000002098 acu:ProductBMember country:US 2022-07-01 2022-09-30
0000002098 acu:ProductBMember country:CA 2022-07-01 2022-09-30
0000002098 acu:ProductBMember srt:EuropeMember 2022-07-01
2022-09-30 0000002098 acu:ProductBMember 2022-07-01 2022-09-30
0000002098 country:US 2022-07-01 2022-09-30 0000002098 country:CA
2022-07-01 2022-09-30 0000002098 srt:EuropeMember 2022-07-01
2022-09-30 0000002098 acu:ProductAMember country:US 2021-07-01
2021-09-30 0000002098 acu:ProductAMember country:CA 2021-07-01
2021-09-30 0000002098 acu:ProductAMember srt:EuropeMember
2021-07-01 2021-09-30 0000002098 acu:ProductAMember 2021-07-01
2021-09-30 0000002098 acu:ProductBMember country:US 2021-07-01
2021-09-30 0000002098 acu:ProductBMember country:CA 2021-07-01
2021-09-30 0000002098 acu:ProductBMember srt:EuropeMember
2021-07-01 2021-09-30 0000002098 acu:ProductBMember 2021-07-01
2021-09-30 0000002098 country:US 2021-07-01 2021-09-30 0000002098
country:CA 2021-07-01 2021-09-30 0000002098 srt:EuropeMember
2021-07-01 2021-09-30 0000002098 acu:ProductAMember country:US
2022-01-01 2022-09-30 0000002098 acu:ProductAMember country:CA
2022-01-01 2022-09-30 0000002098 acu:ProductAMember
srt:EuropeMember 2022-01-01 2022-09-30 0000002098
acu:ProductAMember 2022-01-01 2022-09-30 0000002098
acu:ProductBMember country:US 2022-01-01 2022-09-30 0000002098
acu:ProductBMember country:CA 2022-01-01 2022-09-30 0000002098
acu:ProductBMember srt:EuropeMember 2022-01-01 2022-09-30
0000002098 acu:ProductBMember 2022-01-01 2022-09-30 0000002098
country:US 2022-01-01 2022-09-30 0000002098 country:CA 2022-01-01
2022-09-30 0000002098 srt:EuropeMember 2022-01-01 2022-09-30
0000002098 acu:ProductAMember country:US 2021-01-01 2021-09-30
0000002098 acu:ProductAMember country:CA 2021-01-01 2021-09-30
0000002098 acu:ProductAMember srt:EuropeMember 2021-01-01
2021-09-30 0000002098 acu:ProductAMember 2021-01-01 2021-09-30
0000002098 acu:ProductBMember country:US 2021-01-01 2021-09-30
0000002098 acu:ProductBMember country:CA 2021-01-01 2021-09-30
0000002098 acu:ProductBMember srt:EuropeMember 2021-01-01
2021-09-30 0000002098 acu:ProductBMember 2021-01-01 2021-09-30
0000002098 country:US 2021-01-01 2021-09-30 0000002098 country:CA
2021-01-01 2021-09-30 0000002098 srt:EuropeMember 2021-01-01
2021-09-30 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 2022-09-30
0000002098 srt:MinimumMember us-gaap:SubsequentEventMember
2022-11-08 2022-11-08 0000002098 srt:MaximumMember
us-gaap:SubsequentEventMember 2022-11-08 2022-11-08 0000002098
srt:MinimumMember us-gaap:SubsequentEventMember 2022-11-08
0000002098 srt:MaximumMember us-gaap:SubsequentEventMember
2022-11-08 0000002098 us-gaap:RevolvingCreditFacilityMember
2022-09-30 0000002098 us-gaap:RevolvingCreditFacilityMember
2021-12-31 0000002098 us-gaap:MortgagesMember 2022-09-30 0000002098
acu:MortgagePayableHSBCBankNAMember 2022-09-30 0000002098
acu:MortgagePayableHSBCBankNAMember 2021-12-31 0000002098
acu:UnitedStatesSegmentMember 2022-07-01 2022-09-30 0000002098
acu:UnitedStatesSegmentMember 2021-07-01 2021-09-30 0000002098
acu:UnitedStatesSegmentMember 2022-01-01 2022-09-30 0000002098
acu:UnitedStatesSegmentMember 2021-01-01 2021-09-30 0000002098
acu:CanadaSegmentMember 2022-07-01 2022-09-30 0000002098
acu:CanadaSegmentMember 2021-07-01 2021-09-30 0000002098
acu:CanadaSegmentMember 2022-01-01 2022-09-30 0000002098
acu:CanadaSegmentMember 2021-01-01 2021-09-30 0000002098
acu:EuropeSegmentMember 2022-07-01 2022-09-30 0000002098
acu:EuropeSegmentMember 2021-07-01 2021-09-30 0000002098
acu:EuropeSegmentMember 2022-01-01 2022-09-30 0000002098
acu:EuropeSegmentMember 2021-01-01 2021-09-30 0000002098
acu:UnitedStatesSegmentMember 2022-09-30 0000002098
acu:UnitedStatesSegmentMember 2021-12-31 0000002098
acu:CanadaSegmentMember 2022-09-30 0000002098
acu:CanadaSegmentMember 2021-12-31 0000002098
acu:EuropeSegmentMember 2022-09-30 0000002098
acu:EuropeSegmentMember 2021-12-31 0000002098 2022-06-01 0000002098
us-gaap:OtherCurrentLiabilitiesMember 2022-09-30 0000002098
us-gaap:OtherNoncurrentLiabilitiesMember 2022-09-30 0000002098
acu:IncomeStatementMember 2022-07-01 2022-09-30 0000002098
acu:IncomeStatementMember 2022-01-01 2022-09-30 0000002098
acu:IncomeStatementMember 2021-07-01 2021-09-30 0000002098
acu:IncomeStatementMember 2021-01-01 2021-09-30 0000002098
acu:IncomeStatementAMember 2022-07-01 2022-09-30 0000002098
acu:IncomeStatementAMember 2022-01-01 2022-09-30 0000002098
acu:IncomeStatementAMember 2021-07-01 2021-09-30 0000002098
acu:IncomeStatementAMember 2021-01-01 2021-09-30 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:OtherCurrentAssetsMember
2022-06-01 0000002098 acu:LiveSafelyProductsLLCMember
us-gaap:OtherNoncurrentAssetsMember 2022-06-01 0000002098
srt:MinimumMember 2022-01-01 2022-09-30 0000002098
srt:MaximumMember 2022-01-01 2022-09-30
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: September 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 3,534,729 shares of its $2.50 par value Common Stock
outstanding as of November 4, 2022.
1
ACME UNITED CORPORATION
INDEX
2
Part I -
FINANCIAL INFORMATION
Item 1:
Financial Statements
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(all amounts in thousands)
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
(unaudited)
|
|
|
(Note 1)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
4,218
|
|
|
$
|
4,843
|
|
|
Accounts receivable, less allowance of $938 in 2022 and $1,007 in
2021
|
|
|
40,149
|
|
|
|
34,221
|
|
|
Inventories
|
|
|
66,210
|
|
|
|
53,552
|
|
|
Prepaid expenses and other current assets
|
|
|
3,989
|
|
|
|
2,635
|
|
|
Restricted cash
|
|
|
750
|
|
|
|
-
|
|
|
Total current assets
|
|
|
115,316
|
|
|
|
95,251
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
1,969
|
|
|
|
1,761
|
|
|
Buildings
|
|
|
16,282
|
|
|
|
13,456
|
|
|
Machinery and equipment
|
|
|
30,514
|
|
|
|
29,760
|
|
|
|
|
|
48,765
|
|
|
|
44,977
|
|
|
Less: accumulated depreciation
|
|
|
22,723
|
|
|
|
20,950
|
|
|
Net property, plant and equipment
|
|
|
26,042
|
|
|
|
24,027
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease right-of-use asset, net
|
|
|
2,891
|
|
|
|
3,130
|
|
|
Goodwill
|
|
|
8,189
|
|
|
|
4,800
|
|
|
Intangible assets, less accumulated amortization
|
|
|
21,296
|
|
|
|
17,231
|
|
|
Other assets - restricted cash
|
|
|
750
|
|
|
|
-
|
|
|
Total assets
|
|
$
|
174,484
|
|
|
$
|
144,439
|
|
See Notes to Condensed Consolidated Financial Statements.
3
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
(all amounts in thousands, except par value and share amounts)
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
(unaudited)
|
|
|
(Note 1)
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
11,771
|
|
|
$
|
8,977
|
|
|
Operating lease liability - current portion
|
|
|
1,142
|
|
|
|
1,000
|
|
|
Current portion of mortgage payable
|
|
|
389
|
|
|
|
389
|
|
|
Other current liabilities
|
|
|
11,138
|
|
|
|
9,909
|
|
|
Total current liabilities
|
|
|
24,440
|
|
|
|
20,275
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
57,131
|
|
|
|
33,037
|
|
|
Mortgage payable, net of current portion
|
|
|
10,803
|
|
|
|
11,081
|
|
|
Operating lease liability - non-current portion
|
|
|
1,949
|
|
|
|
2,365
|
|
|
Other non-current liabilities
|
|
|
1,180
|
|
|
|
599
|
|
|
Total liabilities
|
|
|
95,503
|
|
|
|
67,357
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies (see note 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Common stock, par value $2.50:
|
|
|
|
|
|
|
|
|
|
authorized 8,000,000 shares;
|
|
|
|
|
|
|
|
|
|
5,079,601 shares issued and 3,534,729 shares
outstanding in 2022 and
|
|
|
|
|
|
|
|
|
|
5,065,518 shares
issued and 3,520,646 shares outstanding in 2021
|
|
|
12,690
|
|
|
|
12,655
|
|
|
Additional paid-in capital
|
|
|
13,058
|
|
|
|
11,930
|
|
|
Retained earnings
|
|
|
72,060
|
|
|
|
69,873
|
|
|
Treasury stock, at cost - 1,544,872 shares in 2022 and 2021
|
|
|
(15,996
|
)
|
|
|
(15,996
|
)
|
|
Accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
Translation adjustment
|
|
|
(2,831
|
)
|
|
|
(1,380
|
)
|
|
Total stockholders’ equity
|
|
|
78,981
|
|
|
|
77,082
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
174,484
|
|
|
$
|
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 September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Net sales
|
|
$
|
49,744
|
|
|
$
|
47,923
|
|
|
$
|
149,849
|
|
|
$
|
136,295
|
|
|
Cost of goods sold
|
|
|
33,819
|
|
|
|
30,918
|
|
|
|
100,374
|
|
|
|
87,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
15,925
|
|
|
|
17,005
|
|
|
|
49,475
|
|
|
|
48,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
14,972
|
|
|
|
14,044
|
|
|
|
43,176
|
|
|
|
39,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
953
|
|
|
|
2,961
|
|
|
|
6,299
|
|
|
|
9,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
722
|
|
|
|
230
|
|
|
|
1,459
|
|
|
|
682
|
|
|
Interest income
|
|
|
(8
|
)
|
|
|
(2
|
)
|
|
|
(16
|
)
|
|
|
(11
|
)
|
|
Interest expense, net
|
|
|
714
|
|
|
|
228
|
|
|
|
1,443
|
|
|
|
671
|
|
|
PPP loan forgiveness
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,508
|
)
|
|
Other expense, net
|
|
|
209
|
|
|
|
68
|
|
|
|
354
|
|
|
|
213
|
|
|
Total other expense (income), net
|
|
|
209
|
|
|
|
68
|
|
|
|
354
|
|
|
|
(3,295
|
)
|
|
Income before income tax expense
|
|
|
30
|
|
|
|
2,665
|
|
|
|
4,502
|
|
|
|
12,341
|
|
|
Income tax (benefit) expense
|
|
|
(34
|
)
|
|
|
619
|
|
|
|
870
|
|
|
|
1,019
|
|
|
Net income
|
|
$
|
64
|
|
|
$
|
2,046
|
|
|
$
|
3,632
|
|
|
$
|
11,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.02
|
|
|
$
|
0.58
|
|
|
$
|
1.03
|
|
|
$
|
3.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.02
|
|
|
$
|
0.50
|
|
|
$
|
0.96
|
|
|
$
|
2.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding-denominator
used for basic
per share computations
|
|
|
3,530
|
|
|
|
3,542
|
|
|
|
3,525
|
|
|
|
3,449
|
|
|
Weighted average number of dilutive stock options outstanding
|
|
|
162
|
|
|
|
516
|
|
|
|
256
|
|
|
|
520
|
|
|
Denominator used for diluted per share computations
|
|
|
3,692
|
|
|
|
4,058
|
|
|
|
3,781
|
|
|
|
3,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.41
|
|
|
$
|
0.39
|
|
See Notes to Condensed Consolidated Financial Statements.
5
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)
INCOME
(UNAUDITED)
(all amounts in thousands)
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
Net income
|
|
$
|
64
|
|
|
$
|
2,046
|
|
|
$
|
3,632
|
|
|
$
|
11,322
|
|
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
(904
|
)
|
|
|
(310
|
)
|
|
|
(1,451
|
)
|
|
|
(330
|
)
|
|
Comprehensive (loss) income
|
|
$
|
(840
|
)
|
|
$
|
1,736
|
|
|
$
|
2,181
|
|
|
$
|
10,992
|
|
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 September 30, 2021
|
|
Outstanding Shares of Common Stock
|
|
|
Common Stock
|
|
|
Treasury
Stock
|
|
|
Additional Paid-In Capital
|
|
|
Accumulated
Other Comprehensive Loss
|
|
|
Retained Earnings
|
|
|
Total
|
|
|
Balances, June 30, 2021
|
|
3,529,208
|
|
|
$
|
12,576
|
|
|
$
|
(14,522
|
)
|
|
$
|
10,829
|
|
|
$
|
(846
|
)
|
|
$
|
66,415
|
|
|
|
74,452
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,046
|
|
|
|
2,046
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(310
|
)
|
|
|
|
|
|
|
(310
|
)
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
455
|
|
|
|
|
|
|
|
|
|
|
|
455
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(463
|
)
|
|
|
(463
|
)
|
|
Issuance of common stock
|
|
30,479
|
|
|
|
77
|
|
|
|
|
|
|
|
291
|
|
|
|
|
|
|
|
|
|
|
|
368
|
|
|
Balances September 30, 2021
|
|
3,559,687
|
|
|
$
|
12,653
|
|
|
$
|
(14,522
|
)
|
|
$
|
11,575
|
|
|
$
|
(1,156
|
)
|
|
$
|
67,998
|
|
|
$
|
76,548
|
|
For the three months ended September 30, 2022
|
|
Outstanding Shares of Common Stock
|
|
|
Common Stock
|
|
|
Treasury
Stock
|
|
|
Additional Paid-In Capital
|
|
|
Accumulated
Other Comprehensive Loss
|
|
|
Retained Earnings
|
|
|
Total
|
|
|
Balances, June 30, 2022
|
|
3,521,373
|
|
|
$
|
12,657
|
|
|
$
|
(15,996
|
)
|
|
$
|
12,598
|
|
|
$
|
(1,927
|
)
|
|
$
|
72,491
|
|
|
$
|
79,823
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
|
|
64
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(904
|
)
|
|
|
|
|
|
|
(904
|
)
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
637
|
|
|
|
|
|
|
|
|
|
|
|
637
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(495
|
)
|
|
|
(495
|
)
|
|
Issuance of common stock
|
|
5,239
|
|
|
|
13
|
|
|
|
|
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
68
|
|
|
Net share settlement of stock options
|
|
8,117
|
|
|
|
20
|
|
|
|
|
|
|
|
(232
|
)
|
|
|
|
|
|
|
|
|
|
|
(212
|
)
|
|
Balances September 30, 2022
|
|
3,534,729
|
|
|
$
|
12,690
|
|
|
$
|
(15,996
|
)
|
|
$
|
13,058
|
|
|
$
|
(2,831
|
)
|
|
$
|
72,060
|
|
|
$
|
78,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, 2021
|
|
|
Outstanding
Shares of
Common
Stock
|
|
|
Common
Stock
|
|
|
Treasury
Stock
|
|
|
Additional
Paid-In
Capital
|
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
Retained
Earnings
|
|
|
Total
|
|
|
Balances, January 1, 2021
|
|
|
3,338,913
|
|
|
$
|
12,101
|
|
|
$
|
(14,522
|
)
|
|
$
|
7,931
|
|
|
$
|
(826
|
)
|
|
$
|
58,033
|
|
|
$
|
62,717
|
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,322
|
|
|
|
11,322
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(330
|
)
|
|
|
|
|
|
|
(330
|
)
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,341
|
|
|
|
|
|
|
|
|
|
|
|
1,341
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,357
|
)
|
|
|
(1,357
|
)
|
|
Issuance of common stock
|
|
|
220,774
|
|
|
|
552
|
|
|
|
|
|
|
|
2,514
|
|
|
|
|
|
|
|
|
|
|
|
3,066
|
|
|
Cash settlement of stock options
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(211
|
)
|
|
|
|
|
|
|
|
|
|
|
(211
|
)
|
|
Balances September 30, 2021
|
|
|
3,559,687
|
|
|
$
|
12,653
|
|
|
$
|
(14,522
|
)
|
|
$
|
11,575
|
|
|
$
|
(1,156
|
)
|
|
$
|
67,998
|
|
|
$
|
76,548
|
|
7
For the nine months ended September 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,632
|
|
|
|
3,632
|
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,451
|
)
|
|
|
|
|
|
|
(1,451
|
)
|
|
Stock compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,405
|
|
|
|
|
|
|
|
|
|
|
|
1,405
|
|
|
Distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,445
|
)
|
|
|
(1,445
|
)
|
|
Issuance of common stock
|
|
|
5,966
|
|
|
|
15
|
|
|
|
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
78
|
|
|
Cash settlement of stock options
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(108
|
)
|
|
|
|
|
|
|
|
|
|
|
(108
|
)
|
|
Net share settlement of stock options
|
|
|
8,117
|
|
|
|
20
|
|
|
|
|
|
|
|
(232
|
)
|
|
|
|
|
|
|
|
|
|
|
(212
|
)
|
|
Balances September 30, 2022
|
|
|
3,534,729
|
|
|
$
|
12,690
|
|
|
$
|
(15,996
|
)
|
|
$
|
13,058
|
|
|
$
|
(2,831
|
)
|
|
$
|
72,060
|
|
|
$
|
78,981
|
|
See Notes to Condensed Consolidated Financial Statements.
8
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(all amounts in thousands)
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
|
|
2022
|
|
|
2021
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,632
|
|
|
$
|
11,322
|
|
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
2,006
|
|
|
|
1,809
|
|
|
Amortization of intangible assets
|
|
|
1,298
|
|
|
|
1,111
|
|
|
Non-cash lease expense
|
|
|
-
|
|
|
|
170
|
|
|
Stock compensation expense
|
|
|
1,405
|
|
|
|
1,341
|
|
|
Provision for bad debt
|
|
|
75
|
|
|
|
79
|
|
|
PPP loan forgiveness
|
|
|
-
|
|
|
|
(3,508
|
)
|
|
Amortization of deferred financing costs
|
|
|
11
|
|
|
|
-
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(5,836
|
)
|
|
|
(9,060
|
)
|
|
Inventories
|
|
|
(12,807
|
)
|
|
|
1,678
|
|
|
Prepaid expenses and other assets
|
|
|
(1,393
|
)
|
|
|
(859
|
)
|
|
Accounts payable
|
|
|
3,048
|
|
|
|
(959
|
)
|
|
Other accrued liabilities
|
|
|
954
|
|
|
|
(145
|
)
|
|
Total adjustments
|
|
|
(11,239
|
)
|
|
|
(8,343
|
)
|
|
Net cash (used in) provided by operating activities
|
|
|
(7,607
|
)
|
|
|
2,979
|
|
|
|
|
|
|
|