Acme United’s Board Approves New Stock Repurchase Program And Dividend – Stock Reaches $10 Per Share
On Wednesday, Acme United Corporation (ACU – $10.00) announced excellent news when its Board of Directors approved a new stock repurchase program of up to 200,000 common shares. This new program goes on top of 49,335 shares that may still be repurchased under its previous program, which was announced in December of 2008.
To get this in perspective, 249,335 shares represent more than 7.5% of ACU’s total shares outstanding. The shares will be repurchased when the stock is soft or when a good opportunity presents itself in the market. A reduction in shares outstanding is positive for shareholders as it increases earnings per share.
Acme’s Board also declared a cash dividend of 5 cents per share. The dividend is payable on November 10, 2009 to stockholders of record on the close of business on October 20, 2009.
Walter C. Johnsen, Chairman and CEO said, “Acme United is generating strong cash flow despite soft sales and earnings. Our debt continues to decline and we feel we are well positioned to take advantage of growth opportunities. We believe purchasing our stock is an attractive use of cash for our shareholders.”
During the past 12 months Acme United’s management significantly reduced debt and continued to invest in product development. At the same time, it repurchased over 250,000 shares of its common stock and paid well over $650,000 dividends to its shareholders. The Company has the cash and liquidity to do this and it’s their way of rewarding loyal shareholders.
Investors clearly showed their appreciation of the Board’s decision as the stock closed at $10.00 per share for the first time since November 10, 2008. We continue to believe Acme United’s shares can be bought as a safe investment which will produce a solid return.
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