Acme United Corporation Reports Fourth Quarter Results.Business Editors FAIRFIELD, Conn.--(BUSINESS WIRE)--Feb. 28, 2003 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 for the year 2002 of $655,000 or $.18 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 compared to $1.3 million or $.36 per share in 2001. For the fourth quarter of 2002, net income was $39,000 or $.01 per diluted share compared to $180,000, or $.06 per share in 2001. 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 in 2002 were $30.9 million versus $33.1 million in 2001. The majority of the sales decline for 2002 was due to discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: product lines in England. Sales in the U.S. market were down 3%. Net sales for the fourth quarter of 2002 were $6.9 million compared to $8.0 in the same quarter of 2001. The decrease in sales for the fourth quarter of 2002 was principally due to emergency demand for first aid kits, latex latex, emulsion of a polymer (e.g., rubber) in water (see colloid). Natural latexes are produced by a number of plants, are usually white in color, and often contain, in addition to rubber, various gums, oils, and waxes. gloves and dust masks last year. 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, "The sales and earning for 2002 reflect a tough economic and competitive environment. However, we are gaining market share in both the commercial and mass markets in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. The new products particularly titanium titanium (tītā`nēəm, tĭ–) [from Titan], metallic chemical element; symbol Ti; at. no. 22; at. wt. 47.88; m.p. 1,675°C;; b.p. 3,260°C;; sp. gr. 4.54 at 20°C;; valence +2, +3, or +4. scissors scissors Cutting instrument or tool consisting of a pair of opposed metal blades that meet and cut when the handles at their ends are brought together. Modern scissors are of two types: the more usual pivoted blades have a rivet or screw connection between the cutting ends are selling well, and we expect growth in 2003." 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 was completed in the third quarter of 2002, and the European product line was brought in line with Acme's strategic direction. The restructuring costs associated with the 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 were $555,000. Gross profit was 33.8% of net sales in 2002 compared to 32.5% of net sales in 2001. 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 34.4% of net sales in 2002 compared to 32.5% in 2001. The introduction of new products and productivity gains on existing products were the main reasons for the improved gross margins. In 2002 the company recognized income tax benefits associated with the liquidation of the UK business. The net income tax credit for the year 2002 was $562,000 compared to an income tax expense of $432,000 for the year 2001. Total inventory has been reduced to $6.7 million from $8.8 million. Total debt less cash has declined to $4.5 million compared to $5.5 million on December 31, 2001. Mr. Johnsen said that Acme is stronger today than a year ago. The company is more focused and has an exciting array of products to be introduced in 2003. The balance sheet is stronger, the liquidity and cost of capital is more attractive, and the Company is better positioned to take advantage of market and competitive opportunities. ACME UNITED CORPORATION is a specialized 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
YEAR END REPORT 2002
Quarter Ended Quarter Ended
December 31, December 31,
2002 2001
Amounts in $000's except per share data (Unaudited) (Unaudited)
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Net Sales $6,910 $8,012 *
Net Income 39 180
Earnings Per Share Basic 0.01 0.07
Earnings Per Share Diluted 0.01 0.06
Year Ended Year Ended
December 31, December 31,
2002 2001
Amounts in $000's except per share data (Unaudited) (Unaudited)
----------------------------------------------------------------------
Net Sales $30,929 $33,082 *
Net Income 655 1,280
Earnings Per Share Basic 0.19 0.37
Earnings Per Share Diluted 0.18 0.36
*As reclassified for adoption of EITF 00-25
ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
YEAR END REPORT 2002
(Unaudited)
Amounts in $000's
-----------------
Assets December 31, December 31,
------ 2002 2001
---------------------------
Current Assets:
Cash $598 $172
Accounts Receivable, Net 6,410 6,439
Inventories 6,675 8,803
Prepaid and Other current Assets 1,249 1,047
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Total Current Assets 14,932 16,461
Property and Equipment, Net 2,281 2,259
Other Assets 401 1,453
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Total Assets $17,614 $20,173
Liabilities and Stockholders Equity
Current Liabilities
Notes Payable $362 $464
Accounts Payable 1,296 2,039
Other Current Liabilities 2,027 2,821
Current Portion of Long Term Debt 2,731 2,377
---------------------------
Total Current Liabilities 6,416 7,701
Long-Term debt 2,033 2,875
Other Non Current Liabilities 685 925
---------------------------
9,134 11,501
Total Stockholders Equity 8,480 8,672
---------------------------
Total Liabilities and Stockholders Equity $17,614 $20,173
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