Acme United Q1 Sales Up 16%, Earnings Up 400%
Acme United Corporation (ACU – $11.50) announced strong sales and earnings growth for its first quarter ending march 31, 2010. Sales were $13.1 million, compared to $11.3 million in the first quarter of 2009, an increase of 16%. Net income was $214,000 or $.07 per diluted share for the quarter ended March 31, 2010 compared to $42,000 or $.01 per diluted share for the comparable period last year.
Mr. Johnsen, Acme United’s Chairman and CEO, didn’t give an outlook for 2010, but he did say during the conference call that sales in April are strong so far and that he’s optimistic for the coming quarters.
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|Most important income statement data for the quarters ending March 31, 2010 and March 31, 2009. Source: Company Filings|
First Quarter 2010
For the first quarter of 2010, the Company showed growth in all its business segments. In the U.S., sales increased by 13% compared with Q1 2009. In Canada revenues increased with 22% in U.S. dollars and 2% in local currency and in Europe sales were up by 26% in U.S. dollars and 20% in local currency. The main growth drivers were sales of new products like the iPoint pencil sharpeners, non-stick scissors and Speed Pak utility knives.
The Company’s balance sheet remained fairly stable compared with December 31, 2009. However, compared with a year ago, it improved significantly. Cash is up $2.2 million, inventories are down by $3.2 million thanks to the implementation of a new inventory management system and long-term debt is down by almost $3 million. This brings bank debt less cash to $3.4 million on March 31, 2010, down from $8.6 million on March 31, 2009.
All these balance sheet improvements were accomplished during the past 12 months. At the same time, 175,000 shares of the Company’s common stock were repurchased for a total of approximately $1.5 million and $650,000 was paid in dividends.
Acme United benefits from introducing new, innovative products in the market place. Additionally, distribution increases as more mass markets retailers carry the products.
New items continue to be introduced later this year. On top of that, we also expect a solid sales contribution from Camillus knives in the coming quarters.
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