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Acme United(ACU) - 2024 Q3 - Quarterly Report
ACUAcme United(ACU)2024-11-08 21:00
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Financial Performance - Net sales for the three months ended September 30, 2024, were 48,166thousand,adecreaseof4.448,166 thousand, a decrease of 4.4% compared to 50,384 thousand for the same period in 2023[7] - Gross profit for the three months ended September 30, 2024, was 18,564thousand,downfrom18,564 thousand, down from 19,503 thousand in 2023, reflecting a gross margin of 38.6%[7] - Operating income for the three months ended September 30, 2024, was 2,926thousand,comparedto2,926 thousand, compared to 3,657 thousand in the prior year, indicating a decline of 20%[7] - Net income for the three months ended September 30, 2024, was 2,226thousand,slightlyupfrom2,226 thousand, slightly up from 2,152 thousand in 2023, resulting in basic earnings per share of 0.60[7]−ComprehensiveincomeforthethreemonthsendedSeptember30,2024,was0.60[7] - Comprehensive income for the three months ended September 30, 2024, was 2,629 thousand, an increase from 1,847thousandin2023,drivenbyforeigncurrencytranslationadjustments[8]−NetincomefortheninemonthsendedSeptember30,2024,increasedto1,847 thousand in 2023, driven by foreign currency translation adjustments[8] - Net income for the nine months ended September 30, 2024, increased to 8,315,000, compared to 6,586,000forthesameperiodin2023,representingagrowthofapproximately26.36,586,000 for the same period in 2023, representing a growth of approximately 26.3%[16] - Gross profit for the nine months ended September 30, 2024, increased to 58,587, up 5.0% from 55,807intheprioryear[4]−OperatingincomeforthethreemonthsendedSeptember30,2024,was55,807 in the prior year[4] - Operating income for the three months ended September 30, 2024, was 2,926, down 20.0% from 3,657inthesameperiodlastyear[4]−BasicearningspershareforthethreemonthsendedSeptember30,2024,remainedstableat3,657 in the same period last year[4] - Basic earnings per share for the three months ended September 30, 2024, remained stable at 0.60, compared to 0.60inthesameperiodof2023[4]−Selling,generalandadministrativeexpensesfortheninemonthsendedSeptember30,2024,were0.60 in the same period of 2023[4] - Selling, general and administrative expenses for the nine months ended September 30, 2024, were 46,728, up 4.5% from 44,711inthesameperiodlastyear[4]CashFlowandInvestments−TotalcashprovidedbyoperatingactivitiesfortheninemonthsendedSeptember30,2024,was44,711 in the same period last year[4] Cash Flow and Investments - Total cash provided by operating activities for the nine months ended September 30, 2024, was 5,604,000, a decrease from 21,662,000in2023,indicatingadeclineofabout74.121,662,000 in 2023, indicating a decline of about 74.1%[16] - Cash used in investing activities totaled 12,343,000 for the nine months ended September 30, 2024, compared to 4,523,000in2023,indicatinganincreaseofabout173.54,523,000 in 2023, indicating an increase of about 173.5%[16] - The company reported a cash balance of 5,702,000 at the end of the period, compared to 6,317,000attheendofthepreviousyear,reflectingadecreaseofabout9.76,317,000 at the end of the previous year, reflecting a decrease of about 9.7%[16] - Cash paid for income taxes was 1,922 million, up from 776millioninthepreviousyear,anincreaseof146.5776 million in the previous year, an increase of 146.5%[16] - Cash paid for interest decreased to 1,443 million from 2,592million,adeclineof44.22,592 million, a decline of 44.2%[16] Debt and Liabilities - Total liabilities increased to 59,156 thousand as of September 30, 2024, from 51,343thousandatDecember31,2023,primarilyduetoanincreaseinlong−termdebt[5]−Thecompanyhadoutstandingborrowingsof51,343 thousand at December 31, 2023, primarily due to an increase in long-term debt[5] - The company had outstanding borrowings of 22,059,000 under its revolving loan agreement as of September 30, 2024, an increase from 13,165,000attheendof2023[35]−Totaldebtoutstandingundertherevolvingcreditfacilityincreasedbyapproximately13,165,000 at the end of 2023[35] - Total debt outstanding under the revolving credit facility increased by approximately 8.9 million, with 22,059,000outstandingasofSeptember30,2024[84]−Long−termdebttoequityratioincreasedto30.122,059,000 outstanding as of September 30, 2024[84] - Long-term debt to equity ratio increased to 30.1% from 23.9%[83] Equity and Dividends - Stockholders' equity rose to 106,317 thousand as of September 30, 2024, compared to 97,898thousandattheendof2023,reflectingretainedearningsgrowth[6]−Thecompanydeclareddividendsof97,898 thousand at the end of 2023, reflecting retained earnings growth[6] - The company declared dividends of 0.15 per share for the three months ended September 30, 2024, compared to 0.14pershareinthesameperiodlastyear[7]ShareholderInformation−Theweightedaveragenumberofcommonsharesoutstandingforbasicearningspersharecalculationswas3,726thousandforthethreemonthsendedSeptember30,2024,comparedto3,578thousandintheprioryear[7]−Thecompanyreportedatotalof3,741,453outstandingsharesofcommonstockasofSeptember30,2024,upfrom3,645,200sharesasofDecember31,2023[13]−TheCompanyissued16,921sharesofcommonstockduringthethreemonthsendedSeptember30,2024,raisingproceedsof0.14 per share in the same period last year[7] Shareholder Information - The weighted average number of common shares outstanding for basic earnings per share calculations was 3,726 thousand for the three months ended September 30, 2024, compared to 3,578 thousand in the prior year[7] - The company reported a total of 3,741,453 outstanding shares of common stock as of September 30, 2024, up from 3,645,200 shares as of December 31, 2023[13] - The Company issued 16,921 shares of common stock during the three months ended September 30, 2024, raising proceeds of 411,000[37] Operational Metrics - The company reported a decrease in selling, general, and administrative expenses to 15,638thousandforthethreemonthsendedSeptember30,2024,from15,638 thousand for the three months ended September 30, 2024, from 15,846 thousand in 2023[7] - Inventory turnover was 2.1 as of September 30, 2024, consistent with the previous year-end[82] - Receivables increased by approximately 5.1million,withdayssalesoutstandingimprovingslightlyfrom55daysto54days[82]−Accountspayableandothercurrentliabilitiesdecreasedbyapproximately5.1 million, with days sales outstanding improving slightly from 55 days to 54 days[82] - Accounts payable and other current liabilities decreased by approximately 4.1 million[82] Acquisitions - The company acquired Elite First Aid for 6,141,000duringtheninemonthsendedSeptember30,2024[16]−TheCompanyacquiredcertainassetsofEliteFirstAid,Inc.forapurchasepriceof6,141,000 during the nine months ended September 30, 2024[16] - The Company acquired certain assets of Elite First Aid, Inc. for a purchase price of 7,141,000 on May 23, 2024[57] - The company recognized revenue from sales of products in two main categories: first aid and medical, and cutting and sharpening, with revenue recognition evaluated through a five-step process[21] Future Outlook - The company expects that cash generated from operating activities, along with available funds under its revolving loan agreement, will be sufficient to finance operations over the next twelve months[86] - The company is currently evaluating the impact of adopting new accounting standards issued by the FASB, including ASU No. 2023-07 and ASU No. 2023-09, which will affect segment reporting and income tax disclosures respectively[18][19]