Message #8 From:
Stock News Bot Date: October 24, 2006 06:00:00 AM
ACU News Acme United Corporation Reports 16% Net Sales Increase for the Third Quarter
FAIRFIELD, Conn.--(BUSINESS WIRE)--Acme United Corporation (AMEX:ACU) today announced that net sales for
the quarter ended September 30, 2006 were $15.5 million compared to
$13.4 million in the same period in 2005, an increase of 16% . Net sales
for the nine months ended September 30, 2006 were $44.8 million compared
to $38.9 million in the same period in 2005, an increase of 15% (14% at
constant currency).
Net income was $1,225,000 or $.33 per diluted share for the third
quarter ended September 30, 2006 compared to $200,000 or $.05 per
diluted share for the comparable period last year. Excluding a
non-recurring pre-tax charge of $1.5 million in the third quarter of
2005 relating to the demolition of a former manufacturing site, net
income for that period would have been $1,130,000 or $.29 per diluted
share, representing an increase in 2006 of 8% in net income (+14% per
diluted share). Net income for the nine months ended September 30, 2006
was $3,490,000, or $.94 per diluted share compared to $2,164,000, or
$.57 per diluted share in the comparable period last year. Excluding the
non-recurring charge in the third quarter 2005, net income would have
been $3,094,000 or $.81 per diluted share representing an increase in
2006 of 13% in net income (+16% per diluted share). Non-GAAP, or pro
forma results, are presented to provide an opportunity to make
meaningful comparisons to results in prior periods.
Net sales for the nine months ended September 30, 2006 in the U.S.
segment increased 15% as a result of new products, expansion into the
pencil sharpener category and market share gains. Sales in Europe and
Canada increased by 17% in U.S. dollars and 11% in local currency.
Gross margins were 42.6% in the third quarter of 2006 versus 46.0% in
the comparable period last year. For the first nine months of 2006 gross
margins were 43.8% compared to 45.7% in the same period in 2005. The
gross margin declines were due to higher sales of items in the highly
competitive back to school market, as well as the introduction of new
private label programs in the U.S. and Europe.
Walter C. Johnsen, President and CEO, said, “We
continue to see the results of new product innovation and attention to
customer needs. Our iPoint electronic pencil sharpeners have been very
well received, and the award winning Teacher's Choice scissors were
among our best sellers during back to school. Acme's patented titanium
kitchen shears are demonstrating strong sell through at major retailers
throughout the United States. We look forward to introducing additional
new cutting, measuring, and safety items this fall."
The Company’s bank debt less cash on September
30, 2006 was $9.3 million compared to $6.1 million on September 30,
2005. The increase in bank debt during the twelve month period was
primarily due to the purchase of additional inventory of $3.9 million,
increased accounts receivables of $3.4 million resulting from back to
school favorable terms, the demolition of a former manufacturing site
for $1.5 million partially offset by earnings.
ACME UNITED CORPORATION is a specialized supplier of cutting
devices, measuring instruments, and safety products for school, home,
office and industrial use.
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 Company’s
plans and results of operations will be affected by the Company’s
ability to manage its growth, and (iii) other risks and uncertainties
indicated from time to time in the Company’s
filings with the Securities and Exchange Commission.
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
THIRD QUARTER REPORT 2006
Quarter Ended
Quarter Ended
September 30, 2006
September 30, 2005
Amounts in $000's except per share data
(Unaudited)
(Unaudited)
Net sales
$
15,532
$
13,400
Gross profit
6,624
6,166
Selling, general, and administrative expenses
4,506
4,159
Non-recurring charge
-
1,500
Other (income) expense
(35)
86
Interest expense
207
83
Pre-tax income
1,946
338
Income tax expense
721
138
Net income
1,225
200
Earnings per diluted share
0.33
0.05
Reconciliation to reported net income (GAAP)
Pre-tax income as reported (GAAP)
1,946
338
Non-recurring charge
-
1,500
Pre-tax income as adjusted
1,946
1,838
Income tax expense as adjusted
721
708
Net income as adjusted
1,225
1,130
Earnings per diluted share before non-recurring charge
0.33
0.29
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
THIRD QUARTER REPORT 2006
Nine Months Ended
Nine Months Ended
September 30, 2006
September 30, 2005
Amounts in $000's except per share data
(Unaudited)
(Unaudited)
Net sales
$
44,774
$
38,887
Gross profit
19,604
17,758
Selling, general, and administrative expenses
13,760
12,455
Non-recurring charge
(149)
232
Other (income) expense
-
1,500
Interest expense
462
139
Pre-tax income
5,531
3,432
Income tax expense
2,041
1,268
Net income
3,490
2,164
Earnings per diluted share
0.94
0.57
Reconciliation to reported net income (GAAP)
Pre-tax income as reported (GAAP)
5,531
3,432
Non-recurring charge
-
1,500
Pre-tax income as adjusted
5,531
4,932
Income tax expense as adjusted
2,041
1,838
Net income as adjusted
3,490
3,094
Earnings per diluted share before non-recurring charge
