Acme United Corporation Announces Third Quarter Earnings.Business Editors FAIRFIELD Fairfield. 1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. , Conn.--(BUSINESS WIRE)--Oct. 23, 2002 Acme (company, jargon) ACME - /ak'mee/ 1. A Company that Makes Everything. The canonical imaginary business. Possibly also derived from the word "acme" meaning "highest point". 2. A program for MS-DOS. United Corporation (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :ACU ACU See: Asian currency units ) announced today net income of $270,000 or $.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the third quarter ending September September: see month. 30, 2002 compared to $405,000 or $.11 per share for the comparable period last year. For the first nine months, Acme reported net income of $619,000 or $.17 per share compared to $1.1 million, or $.30 per share in 2001. Walter Wal·ter , Bruno 1876-1962. German conductor noted for his interpretations of Mozart and Mahler. Noun 1. Walter - German conductor (1876-1962) Bruno Walter C. Johnsen, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "Acme made substantial business progress in all functional areas. The Company continued to invest heavily in new products, and we are pleased with the market reception of our current introductions. During the last quarter, new products accounted for over 18 percent of gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. . In a challenging economic environment, Acme continued to gain market share." In March 2002, Acme announced that it intended to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the its subsidiary in the United Kingdom, and consolidate operations into its German facility. The consolidation has now been completed, and the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. product line has been brought in line with Acme's strategic direction. The financial impact of the UK liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy and losses for the first nine months was $776,000, which has been charged to operations. No further losses from these actions are anticipated. Mr. Johnsen also said, "Acme's UK subsidiary has lost approximately $2.8 million since 1995, and $495,000 during 2001. The liquidation of the subsidiary has now been completed. Acme generated tax savings from the UK closure of $374,000 during the third quarter. We look forward to the earnings benefits going forward." Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter were $7.9 million compared to $8.3 million in 2001. Net sales were $24.0 million for the first nine months of 2002 versus $25.1 million last year. Without the impact of the revenue decline in the UK due to the liquidation, sales were approximately the same as the prior year. Gross profit continues to improve due to the introduction of new products and improved operating efficiencies. Gross profit was 33.2% of net sales for the first nine months of 2002 compared to 31.3% for the same period last year. Excluding restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , gross profit was 34.0% of net sales for the first nine months of 2002. Selling, general and administrative expenses for the third quarter of 2002 increased by $600,000 compared to the same period last year. The increase in these expenses was due to additional market research, new product development, and one-time personnel costs. Interest expense for the first nine months of 2002 decreased by $134,000 compared to the same period last year due to a decline in debt and lower interest rates. During the third quarter of 2002, Acme completed a three-year, $10.0 million senior loan with Wachovia National Bank for use in its global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. . The facility will reduce interest costs and fees, and provide increased flexibility. Acme expensed $66,000 during the quarter in connection with its previous loan. The Company's balance sheet on September 30, 2002 was stronger than at the same time last year. Total inventory was reduced to $6.6 million from $8.7 million. Total debt declined to $6.7 million from $8.3 million on September 30, 2001. Shareholders equity increased to $9.3 million from $8.5 million. ACME UNITED CORPORATION is a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. supplier of cutting devices, measuring instruments, and safety products for school, home, and office use. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 2002
Quarter Quarter
Ended Ended
September 30, September 30,
2002 2001
Amounts in $000's except per share data (Unaudited) (Unaudited)
Net Sales $ 7,867 $ 8,265 *
Net Income 270 405
Earnings Per Share Basic 0.08 0.12
Earnings Per Share Diluted 0.08 0.11
* As reclassified for adoption of EITF 00-25
ACME UNITED CORPORATION
CONSOLIDATED STATEMENT OF INCOME
THIRD QUARTER REPORT 2002
Nine Months Nine Months
Ended Ended
September 30, September 30,
2002 2001
Amounts in $000's except per share data (Unaudited) (Unaudited)
Net Sales $24,020 $25,070 *
Net Income 619 1,100
Earnings Per Share Basic 0.18 0.31
Earnings Per Share Diluted 0.17 0.30
* As reclassified for adoption of EITF 00-25
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
THIRD QUARTER REPORT 2002
(Unaudited)
Amounts in $000's
September 30, September 30,
Assets 2002 2001
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Current Assets:
Cash $ 594 $ 639
Accounts Receivable, Net 7,927 8,820
Inventories 6,592 8,697
Prepaid and Other current Assets 988 816
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Total Current Assets 16,101 18,972
Property and Equipment, Net 2,440 2,256
Other Assets 1,384 1,585
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Total Assets $ 19,925 $ 22,813
Liabilities and Stockholders Equity
Current Liabilities
Notes Payable $ 448 $ 56
Accounts Payable 1,457 2,404
Other Current Liabilities 1,945 3,121
Current Portion of Long Term Debt 2,578 3,346
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Total Current Liabilities 6,428 8,927
Long-Term debt 3,635 4,911
Other Non Current Liabilities 499 428
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10,562 14,266
Total Stockholders Equity 9,363 8,547
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Total Liabilities and Stockholders Equity $ 19,925 $ 22,813
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