Acme United Immediately On Track for Record Breaking 2021
Acme United (US: ACU – $44.70) is a leading consumer products company with a focus on first aid and safety products, as well as cutting solutions, for commercial and industrial markets worldwide. Acme’s financials in the first quarter of 2021 basically continued their strong performance that we witnessed in 2020, with revenues up in all operating units, costs under control, and earnings increasing sharply.
The Company reached sales of $43.5 million for the quarter ended March 31, 2021, compared to $35.8 million in the first quarter of 2020, an increase of 22%. Revenues included approximately $0.9 million from sales of Med-Nap, which Acme acquired late 2020.
Net income for the first quarter of 2021 was $2,046,000 or $0.52 per diluted share compared to net income of $1,277,000, or $0.36 per diluted share for the same period of 2020, a very impressive rise of 60% in net income and 44% in earnings per share.
All of the Company’s major brands and product lines contributed to this success. The sales increase came primarily from Westcott craft tools and safety cutters in the mass market and online. Sales of First Aid and safety products were strong as well.
Although no guidance is given at the moment, the Company is optimistic about the next three quarters of 2021 and beyond. The brands keep picking up new distribution and winning new accounts. In addition, when America reopens, the Company will be able to immediately supply its existing office superstores and distributors with cutting tools and first aid supplies as it has built enough inventory.
Acme United’s Chairman and CEO Walter C. Johnsen mentioned during the first quarter conference call, “We continue to gain market share and new placements with existing customers. We have introduced new Westcott craft cutting tools and first aid items, and we have new production coming on stream at DMT and Med-Nap. Our cash flow is strong, and we are reducing debt in anticipation of future acquisitions.”
We reiterate our buy recommendation for Acme United Corp. with a price target of $61.57, which is 37% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $39.52||Latest Company Report (pdf)|
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