Acme United(US:ACU) Newsfilterยท2024-03-01 14:00Core Points - Acme United Corporation reported a net sales decrease of 1% for the year ended December 31, 2023, totaling $191.5 million compared to $194.0 million in 2022 [1] - The company sold its Camillus and Cuda product lines for $19.8 million on November 1, 2023, resulting in an after-tax gain of approximately $9.6 million [1][2] - The company achieved a record free cash flow of $24 million in 2023, alongside a significant reduction in debt by $13 million [3][6] Financial Performance - Net income for the year ended December 31, 2023, was $17.8 million, or $4.86 per diluted share, including the sale of Camillus and Cuda [2] - Excluding the sale, net income was $8.2 million, or $2.23 per diluted share, compared to $3.0 million, or $0.82 per diluted share in 2022 [2][13] - For the fourth quarter of 2023, net income including the sale was $11.2 million, or $2.87 per diluted share, while excluding the sale, it was $1.6 million, or $0.40 per diluted share [2][12] Sales Performance - U.S. segment net sales decreased by 6% in Q4 2023 compared to the same period in 2022, with a 2% decline when excluding the sold product lines [3] - European net sales for Q4 2023 declined by 8% in U.S. dollars and 13% in local currency, attributed to a soft economy [4] - Canadian net sales increased by 11% in U.S. dollars and 12% in local currency for Q4 2023, driven by higher sales of first aid products [4] Operational Efficiency - Gross margin improved to 39.1% in Q4 2023 from 31.9% in Q4 2022, and for the year, it increased to 37.7% from 32.8% [5] - The company successfully reduced inventory by $5 million and implemented cost-saving initiatives that generated approximately $6.5 million in savings [3][5] Future Outlook - The company anticipates growth in 2024 from new first aid customers and additional placements of cutting tools in craft and mass markets [3] - Acme United plans to continue seeking accretive acquisitions to enhance its business [3]