Acme United Corporation has shared details from the quarter ended June 30, 2022. Highlights are as follows:

  • Net sales were $56.8 million compared to $44.8 million in the second quarter of 2021, an increase of 27%
  • Net income was $2.7 million, or $0.71 per diluted share, compared to $7.2 million or $1.82 per diluted share, for the same period in 2021, a decrease of 62% in net income and 61% in diluted earnings per share. 
  • The decreases result from the impact in the second quarter of 2021 of the forgiveness of the Company’s PPP loan in the amount of $3.5 million and a non-recurring tax credit of $0.9 million related to stock-based compensation expense.

The company also shared details of the six months ended June 30, 2022 and highlights are as follows:

  • Net sales were $100.1 million, compared to $88.4 million in the same period in 2021, an increase of 13%.
  • Net income was $3.6 million, or $0.93 per diluted share, compared to $9.3 million, or $2.34 per diluted share, for the same period in 2021, a decrease of 62% in net income and 60% in diluted earnings per share. 
  • The declines compared to adjusted net income and adjusted diluted earnings per share in 2021 were mainly due to lower gross margins as a percentage of sales in the respective periods.

On June 1, 2022, Acme acquired the assets of Live Safely Products, LLC (d/b/a “Safety Made”), for approximately $11 million, including $1.5 million which is contingent upon meeting certain financial targets. Safety Made, a leading manufacturer of first aid kits for the promotional products industry and based in Keane, NH, had revenues in 2021 of approximately $4.9 million and EBITDA of approximately $1.2 million.

Chairman and CEO Walter C. Johnsen said, “Acme United had record sales in the second quarter as our team successfully addressed unprecedented economic and operational challenges.” Mr. Johnsen continued, “We are now seeing some improvement in our supply chain, and we intend to reduce our inventory gradually over the coming quarters. While the overall operating environment remains challenging, we continue to target revenues of approximately $200 million in 2022. We continue to drive internal growth while seeking to identify potential acquisitions. In the second quarter, we also increased our credit facility with HSBC by $15 million, to $65 million. The increase will further support our growth initiatives.”

Net sales in Canada for the three months ended June 30, 2022, decreased 3% in U.S. dollars and were constant in local currency compared to the same period in 2021. Net sales for the six months ended June 30, 2022, increased 2% in U.S. dollars and 4% in local currency compared to the first half of 2021.

To read the full financial results, visit the Acme United Corporation website. 

Source: Acme United Corporation