On March 3, Acme United Corporation announced that net sales for the quarter ended December 31, 2020 were $40.9 million compared to $33.9 million in the fourth quarter of 2019, an increase of 21%. Net sales for the year ended December 31, 2020 were $164.0 million, compared to $142.5 million in the year ended December 31, 2019, an increase of 15%.

Acme United’s revenues in the fourth quarter and year ended December 31, 2020 included approximately $1.2 million and $4.6 million, respectively, from the sales of First Aid Central products. The Company acquired the assets of Canadian-based First Aid Central, Inc. on January 7, 2020.

Net income was $2,043,000 or $0.54 per diluted share for the quarter ended December 31, 2020, compared to $977,000, or $0.28 per diluted share, for the comparable period last year, an increase of 109% in net income and 93% in diluted earnings per share. Net income for the year ended December 31, 2020 was $8.1 million, or $2.31 per diluted share, compared to $5.5 million, or $1.60 per diluted share, for the prior year, an increase of 47% in net income and 44% in diluted earnings per share.

Chairman and CEO Walter C. Johnsen said, “Despite the pandemic, we delivered record sales and earnings, and made two strategic acquisitions during 2020. All of our business units and subsidiaries had outstanding performance. Our associates overcame COVID-19 related supply chain and production issues, worked safely through a difficult environment, and developed a pipeline of new products that will be shipped in 2021.”

Net sales in Canada, excluding First Aid Central products, for the fourth quarter of 2020 increased 23% in both U.S. dollars and local currency compared to the same period in 2019 primarily due higher sales of Camillus knives and DMT sharpeners. Net sales for the year ended December 31, 2020 decreased 4% in U.S. dollars and 3% in local currency compared to the same period in 2019.

Gross margin was 36.8% in the fourth quarter of 2020 versus 36.3% in the comparable period last year. Gross margin was 36.3% in the year ended December 31, 2020, compared to 36.5% in 2019.

Included in other expense in the fourth quarter of 2020 is a one-time charge of $750,000 for the termination of the Company’s Defined Benefit Pension Plan. The Company settled all outstanding liabilities related to the plan by purchasing annuities or paying lump sums to the participants. The charge represents accumulated losses on plan assets which would have been amortized over its remaining life. The Company will save approximately $75,000 annually in administrative costs, and has transferred the pension risk.

On December 16, 2020 the Company acquired the assets of Med-Nap LLC., a leading manufacturer of alcohol prep pads, alcohol wipes, benzalkonium chloride wipes (BZK), antiseptic wipes, castile soap, and lens cleaning products for $9.3 million. Med-Nap had revenues in 2020 of approximately $4.8 million and EBITDA of approximately $1.0 million.

The Company’s debt less cash on December 31, 2020 was $41.3 million compared to $30 million on December 31, 2019. During the year, the Company paid approximately $11.4 million for the acquisition of the assets of First Aid Central and Med-Nap LLC, distributed $1.6 million in dividends on its common stock, and generated $3.2 million in free cash flow. Inventory increased approximately $10 million due primarily to anticipated growth in our business as well as the acquisition of product to offset the impact of potential supply chain interruptions related to COVID-19.

Source: Acme United