ACU Acme United Corp

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (date of earliest event reported): February 28, 2025

 

ACME UNITED CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Connecticut	001-07698	06-0236700
(State or other jurisdiction of incorporation or organization)	(Commission file number)	(I.R.S. Employer Identification No.)
1 Waterview Dr, Shelton, Connecticut		06484
(Address of principal executive offices)		(Zip Code)

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $2.50 par value per share		ACU		NYSE American

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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(a) of the Exchange Act. ☐

 

 

 

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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On February 28, 2025, Acme United Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this current report.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits

 

Exhibit Number		Description
99.1		Press release dated February 28, 2025.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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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 hereunto duly authorized.

 

ACME UNITED CORPORATION
By	/s/ Walter C. Johnsen
	Walter C. Johnsen
	Chairman and
	Chief Executive Officer
Dated: February 28, 2025
By	/s/ Paul G. Driscoll
	Paul G. Driscoll
	Vice President and
	Chief Financial Officer
Dated: February 28, 2025

 

 

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ACME UNITED CORPORATION NEWS RELEASE

CONTACT: Paul G. Driscoll Acme United Corporation 1 Waterview Drive Shelton, CT 06484

Phone: (203) 254-6060

 

FOR IMMEDIATE RELEASE February 28, 2025

 

 

ACME UNITED REPORTS 10% INCREASE IN NET SALES FOR

THE FOURTH QUARTER OF 2024. NET INCOME ON AN ADJUSTED BASIS INCREASED 9% IN THE FOURTH QUARTER AND 23% FOR THE YEAR

 

SHELTON, CT – February 28, 2025 – Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended December 31, 2024 were $45.9 million compared to $41.9 million in the fourth quarter of 2023, an increase of 10%. Net sales for the year ended December 31, 2024 were $194.5 million compared to $191.5 million in 2023, an increase of 2%. Excluding the impact of the sale of the Camillus and Cuda hunting and fishing product lines on November 1, 2023, net sales for 2024 increased 6% compared to 2023.

 

Net income for the quarter ended December 31, 2024 was $1.70 million, or $0.41 per diluted share, compared to $1.56 million, or $0.40 per diluted share (as adjusted) for the same period in 2023 an increase of 9% in net income and 3% in diluted earnings per share. Including the net gain recognized on the sale of assets of the Camillus and Cuda business lines on November 1, 2023, net income was $11.2 million, or $2.87 per diluted share for the quarter ended December 31, 2023. Net income for the year ended December 31, 2024 was $10.02 million, or $2.45 per diluted share, compared to $8.15 million, or $2.23 per diluted share (as adjusted), for 2023, an increase of 23% in net income and 10% in diluted earnings per share. Including the net gain recognized on the sale of assets of Camillus and Cuda, net income was $17.8 million, or $4.86 per diluted share, for the year ended December 31, 2023.

 

Chairman and CEO Walter C. Johnsen said, “Acme United delivered a strong year in 2024. Our net sales increased 6% from our core businesses and grew overall despite the sale of the Cuda and Camillus product lines for $19.8 million in November 2023. We successfully reduced costs and implemented productivity improvements that enabled us not

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only to offset the contribution from the business we sold, but also to generate 23% net income growth.

 

“Our acquisition of Elite First Aid in May 2024 has given us the products and knowledge to save lives with first responder kits and supplies. This acquisition has been fully integrated into our operations, and we are aggressively working to expand its distribution and sales in 2025.”

 

Mr. Johnsen added that the Company has strong liquidity and is positioned for further acquisitions and growth in 2025.

 

For the three months ended December 31, 2024, net sales in the U.S. segment increased 12% compared to the 2023 period. For the year ended December 31, 2024, net sales in the U.S. segment increased 2% compared to 2023. Excluding Camillus and Cuda, net sales for the year ended December 31, 2024 increased 7% compared to 2023. The sales increases for the three- and twelve-month periods were due to market share gains across multiple product lines.

 

European net sales for the three months ended December 31, 2024 decreased 1% in both U.S. dollars and local currency compared to the fourth quarter of 2023. Net sales for the year ended December 31, 2024 increased 5% in both U.S. dollars and local currency compared to 2023. Excluding Camillus and Cuda, net sales for the year ended December 31, 2024 increased 8% compared to 2023 due to market share gains in the office channel.

Net sales in Canada for the three months ended December 31, 2024 decreased 3% in U.S. dollars and were constant in local currency compared to the same period in 2023. Net sales for the year ended December 31, 2024 decreased 5% in U.S. dollars and 3% in local currency compared to 2023. Excluding Camillus and Cuda, net sales for the year ended December 31, 2024 increased 1% compared to 2023. Sales of first aid products were strong, while sales of school and office products continued to be adversely impacted by a soft economy.

 

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Gross margin was 38.7% in the three months ended December 31, 2024 versus 39.1% in the comparable period last year. Gross margin was 39.3% for the year ended December 31, 2024 compared to 37.7% in 2023. The increase for the year was primarily due to productivity improvements in the Company’s manufacturing and distribution facilities.

 

The Company’s bank debt less cash as of December 31, 2024 was $21.5 million compared to $19.0 million as of December 31, 2023. During the year ended December 31, 2024, the Company paid approximately $6.1 million for the acquisition of the assets of Elite First Aid Inc., distributed $2.2 million in dividends on its common stock and generated approximately $5.0 million in free cash flow.

 

Conference Call and Webcast Information

Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Friday, February 28, 2025, 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 13751131. 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,”

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“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) 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; (iv) the continuing adverse impact of inflation, including product costs, and interest rates; (v) potential adverse effects on the Company, its customers, and suppliers resulting from the conflicts in Ukraine and the Middle East; (vi) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, strikes, port closures or otherwise; (vii) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (viii) currency; (ix) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (x) changes in client needs and consumer spending habits; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; and (xiii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

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		Three Months Ended				Three Months Ended
Amounts in 000's except per share data		December 31, 2024				December 31, 2023
Net sales		$	45,943			$	41,942
Cost of goods sold			28,178				25,538
Gross profit			17,765				16,404
Selling, general, and administrative expenses			15,483				14,311
Operating income			2,282				2,093
Interest expense			462				501
Interest income			(35	)			(41	)
Interest expense, net			427				460
Gain on Sale of Assets			-				(12,564	)
Other (income) expense, net			(8	)			31
Total other income, net			(8	)			(12,533	)
Income before income tax expense			1,863				14,166
Income tax expense			153				2,958
Net income		$	1,710			$	11,208
Shares outstanding - Basic			3,748				3,610
Shares outstanding - Diluted			4,155				3,909
Earnings per share - Basic		$	0.46			$	3.10
Earnings per share - Diluted			0.41				2.87
Reconciliation to reported Net Income (GAAP)
Net income as reported (GAAP)			1,710				11,208
Gain on Sale of business, net of tax			-				(9,644	)
Net income as adjusted			1,710				1,564
Adjusted Earnings per share - Basic	$		0.46		$		0.43
Adjusted earnings per share - Diluted			0.41				0.40

 

 

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		Year Ended				Year Ended
Amounts in 000's except per share data		December 31, 2024				December 31, 2023
Net sales		$	194,490			$	191,501
Cost of goods sold			118,139				119,291
Gross profit			76,351				72,210
Selling, general, and administrative expenses			62,211				59,022
Operating income			14,140				13,188
Interest expense			2,083				3,096
Interest income			(141	)			(119	)
Interest expense, net			1,942				2,977
Gain on Sale Assets			-				(12,564	)
Other (income) expense, net			(95	)			41
Total other (income) expense, net			(95	)			(12,523	)
Income before income tax expense			12,293				22,734
Income tax expense			2,270				4,941
Net income		$	10,023			$	17,793
Shares outstanding - Basic			3,701				3,572
Shares outstanding - Diluted			4,099				3,658
Earnings per share - Basic		$	2.71			$	4.98
Earnings per share - Diluted			2.45				4.86
Reconciliation to reported Net Income (GAAP)
Net income as reported (GAAP)			10,023				17,793
Gain on Sale of business			-				(9,644	)
Net income as adjusted			10,023				8,149
Adjusted Earnings per share - Basic	$		2.71		$		2.28
Adjusted earnings per share - Diluted			2.45				2.23

 

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Amounts in 000's		December 31, 2024				December 31, 2023
Assets:
Current assets:
Cash and cash equivalents		$	6,399			$	4,796
Accounts receivable, net			28,236				26,234
Inventories			56,254				55,470
Prepaid expenses and other current assets			4,571				4,773
Restricted cash			-				750
Total current assets			95,460				92,023
Property, plant and equipment, net			31,653				28,026
Operating lease right of use asset			4,826				2,002
Intangible assets, less accumulated amortization			20,323				19,001
Goodwill			9,908				8,189
Total assets		$	162,170			$	149,241
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable		$	9,005			$	12,102
Operating lease liability - short term			1,564				1,099
Mortgage payable - short term			437				419
Other accrued liabilities			11,866				12,392
Total current liabilities			22,872				26,012
Long term debt			17,606				13,105
Mortgage payable, net of current portion			9,868				10,284
Operating lease liability - long term			3,367				1,026
Other non-current liabilities			1,477				916
Total liabilities			55,190				51,343
Total stockholders' equity			106,980				97,898
Total liabilities and stockholders' equity		$	162,170			$	149,241

 

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v3.25.0.1

Document and Entity Information	Feb. 28, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 28, 2025
Entity Registrant Name	ACME UNITED CORP
Entity Central Index Key	0000002098
Entity Emerging Growth Company	false
Entity File Number	001-07698
Entity Incorporation, State or Country Code	CT
Entity Tax Identification Number	06-0236700
Entity Address, Address Line One	1 Waterview Dr
Entity Address, City or Town	Shelton
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06484
City Area Code	203
Local Phone Number	254-6060
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $2.50 par value per share
Trading Symbol	ACU
Security Exchange Name	NYSEAMER

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