Acme United (ACU) Tops Q1 EPS by 3c, Revenues Beat

Acme United (NYSE: ACU) reported Q1 EPS of $0.36, $0.03 better than the analyst estimate of $0.33. Revenue for the quarter came in at $35.78 million versus the consensus estimate of $32.47 million.

• Net income was $1,277,000 or $0.36 per diluted share for the quarter ended March 31, 2020 compared to $807,000, or $0.24 per diluted share, for the comparable period last year, an increase of 58% in net income and 50% in diluted earnings per share.

Chairman and CEO Walter C. Johnsen said, “During the COVID-19 pandemic, all of Acme’s production and distribution facilities have remained open and we have shipped record levels of our first aid and safety supplies, including first aid kits, antiseptic wipes, medications and refills. I am very proud of our worldwide teams who quickly executed with purpose in the current health crisis. They pulled together whether operating remotely or running our five manufacturing and warehouse locations in the U.S., two plants and warehouses in Canada, and our facility in Germany. Our colleagues in Asia worked tirelessly to meet production demands and schedules. Each of our team members contributed to helping us successfully supply safety products to our global customers.”

Mr. Johnsen added, “I would like to recognize the hard work and dedication of the First Aid Central team in Laval, Canada. They stepped up to an unforeseen crisis shortly after the acquisition and achieved record sales during the first quarter. We applaud them and look forward to continuing this promising start.”

Mr. Johnsen continued, “Among our highest priorities is the protection of the health and well-being of our employees. In order to protect our employees and ensure continuity of operations, we have implemented a number of safety measures at our production and warehousing sites including health monitoring, use of protective gear including masks and gloves, staggering shifts, social distancing and regular deep cleaning.”

Mr. Johnsen concluded, "Acme United had an excellent first quarter. We believe that we are in a strong position to move forward with a solid balance sheet and ample liquidity including $16.1 million in availability at March 31, 2020 under our $50 million line of credit with HSBC Bank, N.A.

“Nevertheless, we recognize that, like many other businesses, we may face significant challenges resulting from the COVID-19 pandemic including uncertainties around the duration and magnitude of the COVID-19 outbreak. These include, for example, revenue uncertainty with retailers whose stores are closed or whose traffic has significantly declined. The Company’s sales of first aid and safety products and on-line revenues may not be sufficient to offset potential declines in our office product lines or may also decline from recent high levels. Accordingly, as a result of these uncertainties, we are not providing financial guidance for 2020 at this time."

For earnings history and earnings-related data on Acme United (ACU) click here.

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