Acme United(ACU) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for Q2 2024 reached $55,425,000, a 3.9% increase from$ 53,336,000 in Q2 2023[13] - Net income for Q2 2024 was $4,452,000, compared to$ 3,443,000 in Q2 2023, reflecting a 29.2% year-over-year growth[15] - Basic earnings per share increased to $1.21 in Q2 2024 from$ 0.97 in Q2 2023, representing a 24.8% increase[13] - Operating income for Q2 2024 was $6,375,000, compared to$ 5,250,000 in Q2 2023, showing a 21.4% increase[13] - Comprehensive income for the first half of 2024 was $5,662,000, compared to$ 4,655,000 in the same period of 2023, reflecting a 21.6% increase[15] - Net income for the six months ended June 30, 2024, was $6,089 million, an increase of 37.4% compared to$ 4,432 million for the same period in 2023[27] Assets and Liabilities - Total assets as of June 30, 2024, were $173,541,000, up from$ 149,241,000 at the end of 2023, indicating a 16.3% growth[11] - Long-term debt increased to $26,419,000 in June 2024 from$ 13,105,000 in December 2023, marking a 101.5% rise[11] - Total liabilities increased to $69,584,000 as of June 30, 2024, from$ 51,343,000 at the end of 2023, reflecting a 35.5% increase[11] - Retained earnings rose to $91,689,000 in June 2024, up from$ 86,716,000 in December 2023, a growth of 5.7%[11] Cash Flow and Investments - Cash and cash equivalents decreased to $3,791,000 in June 2024 from$ 4,796,000 in December 2023, a decline of 20.9%[9] - Cash flows from operating activities resulted in a net cash used of $3,270 million for the six months ended June 30, 2024, compared to a net cash provided of$ 10,543 million for the same period in 2023[27] - Cash flows from investing activities totaled $10,992,000 for the six months ended June 30, 2024, compared to$ 3,021,000 in the same period of 2023[22] - The company acquired Elite First Aid for $6,141,000 during the first half of 2024, contributing to cash used in investing activities of$ 10,992,000[22] Sales Performance - Total net sales for the three months ended June 30, 2024, reached $55,425 million, up from$ 53,336 million in the same period of 2023, representing a growth of 3.9%[40] - Net sales in the U.S. for Q2 2024 increased 5% compared to Q2 2023; excluding sold product lines, the increase was 9%[75] - Net sales in Canada for Q2 2024 decreased by 7% in both U.S. dollars and local currency compared to Q2 2023, with a 4% decrease when excluding Camillus and Cuda[77] - European net sales for Q2 2024 increased by 4% in U.S. dollars (5% in local currency) compared to Q2 2023, with a 9% increase when excluding Camillus and Cuda[78] Expenses and Profitability - Gross profit for Q2 2024 was $22,627,000 (40.8% of net sales), up from$ 20,022,000 (37.5% of net sales) in Q2 2023, driven by productivity improvements[79] - SG&A expenses for Q2 2024 were $16,252,000 (29.3% of net sales), an increase of$ 1,480,000 from Q2 2023, primarily due to higher personnel-related expenses[79] - Interest expense, net for Q2 2024 decreased to $539,000 from$ 832,000 in Q2 2023, reflecting lower average outstanding borrowings[81] Shareholder Returns - The company declared dividends of $0.15 per share in Q2 2024, up from$ 0.14 per share in Q2 2023[13] - The Company issued a total of 30,370 shares of common stock during the three months ended June 30, 2024, generating proceeds of $649,000[43] Debt and Financing - As of June 30, 2024, total debt outstanding under the revolving credit facility was$ 26,466,000, with $38,534,000 available for borrowing[85] - The effective income tax rate for Q2 2024 was 24%, up from 23% in Q2 2023, primarily due to higher earnings in jurisdictions with higher tax rates[83] - The Company is required to maintain specific funded debt to EBITDA ratios and a fixed charge coverage ratio under the revolving loan agreement[84] - The Company was in compliance with the covenants under the revolving loan agreement as of June 30, 2024[84]