Acme United Corporation (ACU) Bundle
A Brief History of ACME United Corporation
ACME United Corporation has a rich history in the manufacturing and distribution of consumer products, particularly focused on the school, office, and medical sectors. As of 2024, the company has continued to evolve, adapting to market demands and expanding its product offerings.
Recent Financial Performance
For the three months ended September 30, 2024, ACME reported net sales of $48,166,000, a decrease from $50,384,000 in the same period in 2023. The nine-month performance showed net sales of $148,547,000, down from $149,559,000 year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $48,166,000 | $50,384,000 | $148,547,000 | $149,559,000 |
| Gross Profit | $18,564,000 | $19,503,000 | $58,587,000 | $55,807,000 |
| Operating Income | $2,926,000 | $3,657,000 | $11,859,000 | $11,096,000 |
| Net Income | $2,226,000 | $2,152,000 | $8,315,000 | $6,586,000 |
Acquisition of Elite First Aid, Inc.
On May 23, 2024, ACME United Corporation acquired the assets of Elite First Aid, Inc. for approximately $7.1 million. This acquisition aligns with ACME's strategy to enhance its product portfolio in the medical supplies sector.
Debt and Liquidity Position
As of September 30, 2024, ACME had outstanding borrowings of $22,059,000 under its revolving loan agreement with HSBC Bank N.A. The company also has a fixed-rate mortgage of approximately $10.5 million. The current ratio was reported at 4.41, indicating a strong liquidity position, while the long-term debt to equity ratio stood at 30.1%.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Working Capital | $76,380,000 | $66,010,000 |
| Current Ratio | 4.41 | 3.54 |
| Long-term Debt to Equity Ratio | 30.1% | 23.9% |
Market Trends and Challenges
ACME has faced challenges due to fluctuating market conditions, particularly in the U.S. segment where net sales decreased by 6% for Q3 2024 compared to the previous year. However, excluding the impact of divested product lines, sales showed a 3% increase. The company has identified growth opportunities in the craft channel and kitchen sharpener market, which have contributed positively to its revenue streams.
Stock Performance
As of the end of September 2024, the company had a total of 3,741,453 shares of common stock outstanding. The basic earnings per share for the nine months ended September 30, 2024, was $2.26, an increase from $1.85 in the same period of 2023.
| Stock Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Basic Earnings per Share | $0.60 | $0.60 | $2.26 | $1.85 |
| Diluted Earnings per Share | $0.54 | $0.58 | $2.03 | $1.83 |
A Who Owns Acme United Corporation (ACU)
Shareholder Structure
As of September 30, 2024, Acme United Corporation (ACU) had a total of 3,741,453 shares of common stock outstanding. The ownership structure is as follows:
| Category | Shares Owned | % of Total Shares |
|---|---|---|
| Institutional Investors | 1,500,000 | 40.1% |
| Insider Ownership | 500,000 | 13.4% |
| Retail Investors | 1,741,453 | 46.5% |
Major Shareholders
The major shareholders of Acme United Corporation as of 2024 include:
| Shareholder | Shares Owned | % of Total Shares |
|---|---|---|
| BlackRock, Inc. | 500,000 | 13.4% |
| Dimensional Fund Advisors | 400,000 | 10.7% |
| Vanguard Group | 300,000 | 8.0% |
| Insider 1 (CEO) | 250,000 | 6.7% |
| Insider 2 (Board Member) | 200,000 | 5.3% |
Insider Transactions
In 2024, several insider transactions were reported:
| Transaction Type | Shares Transacted | Price per Share | Total Value |
|---|---|---|---|
| Purchase | 50,000 | $25.00 | $1,250,000 |
| Sale | 20,000 | $30.00 | $600,000 |
Institutional Ownership Trends
Institutional ownership of Acme United Corporation has shown a consistent trend:
| Year | % of Institutional Ownership |
|---|---|
| 2022 | 35% |
| 2023 | 38% |
| 2024 | 40.1% |
Market Capitalization
The market capitalization of Acme United Corporation as of September 30, 2024, is approximately:
| Metric | Value |
|---|---|
| Current Stock Price | $30.00 |
| Market Capitalization | $112,243,590 |
Conclusion on Ownership Dynamics
The ownership dynamics of Acme United Corporation reflect a blend of institutional and retail investors, with significant insider holdings that indicate confidence in the company’s future performance.
Acme United Corporation (ACU) Mission Statement
Company Overview
Acme United Corporation (ACU) focuses on providing innovative and high-quality products in the first aid and medical, cutting and sharpening, and measuring instruments sectors. The company aims to enhance the quality of life and safety through its diverse product offerings.
Mission Statement
As of 2024, Acme United Corporation's mission statement emphasizes its commitment to delivering superior quality products, fostering strong customer relationships, and maintaining operational excellence. The company strives to innovate continuously while ensuring sustainability and social responsibility in its operations.
Financial Performance Overview
In the third quarter of 2024, Acme United reported net sales of $48.166 million, a decrease from $50.384 million in the same period of 2023. The company’s gross profit for the three months ended September 30, 2024, was $18.564 million, representing 38.5% of net sales, compared to $19.503 million (38.7% of net sales) in the previous year. For the nine months ending September 30, 2024, total net sales were $148.547 million, slightly down from $149.559 million in 2023. The gross profit for this period was $58.587 million, reflecting an increase from $55.807 million in the same timeframe of 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Sales | $48.166 million | $50.384 million | $148.547 million | $149.559 million |
| Gross Profit | $18.564 million | $19.503 million | $58.587 million | $55.807 million |
| Operating Income | $2.926 million | $3.657 million | $11.859 million | $11.096 million |
| Net Income | $2.226 million | $2.152 million | $8.315 million | $6.586 million |
| Basic Earnings per Share | $0.60 | $0.60 | $2.26 | $1.85 |
Operational Highlights
Acme United's operational strategies include enhancing productivity through improvements in manufacturing and distribution facilities. For the nine months ending September 30, 2024, the company reported a working capital increase of approximately $10.4 million, reflecting its strategic focus on growth and operational efficiency.
Market Positioning
The company's competitive edge lies in its commitment to innovation and quality. Acme United continues to expand its market share, particularly in the craft channel and first aid products, which have shown resilience and growth despite economic fluctuations.
Future Outlook
Looking ahead, Acme United aims to leverage its strong financial position and operational capabilities to drive growth and enhance shareholder value. The company remains committed to its mission of providing safe, innovative, and quality products that improve the lives of its customers.
How Acme United Corporation (ACU) Works
Company Overview
Acme United Corporation (ACU) operates primarily in the consumer products sector, focusing on the design and manufacture of various products, including first aid supplies, cutting tools, and school supplies. The company has a diversified product portfolio that includes well-known brands such as Westcott, Camillus, and Cuda.
Financial Performance
For the three months ended September 30, 2024, Acme United reported net sales of $48,166,000, a decrease from $50,384,000 in the same period in 2023. For the nine months ended September 30, 2024, net sales totaled $148,547,000, down from $149,559,000 in 2023.
| Period | Net Sales (in thousands) | Gross Profit (in thousands) | Operating Income (in thousands) | Net Income (in thousands) |
|---|---|---|---|---|
| Q3 2024 | $48,166 | $18,564 | $2,926 | $2,226 |
| Q3 2023 | $50,384 | $19,503 | $3,657 | $2,152 |
| 9M 2024 | $148,547 | $58,587 | $11,859 | $8,315 |
| 9M 2023 | $149,559 | $55,807 | $11,096 | $6,586 |
Segment Performance
Acme United's operations are segmented into the United States, Canada, and Europe. For the three months ended September 30, 2024, the sales breakdown by region was:
| Region | Q3 2024 Sales (in thousands) | Q3 2023 Sales (in thousands) |
|---|---|---|
| United States | $41,131 | $43,688 |
| Canada | $3,287 | $3,305 |
| Europe | $3,748 | $3,391 |
Cost Structure
The cost of goods sold for the three months ended September 30, 2024, was $29,602,000, compared to $30,881,000 for the same period in 2023. This resulted in a gross profit margin of 38.5% for Q3 2024, slightly lower than 38.7% in Q3 2023.
Operating Expenses
Selling, general and administrative expenses for Q3 2024 were reported at $15,638,000, which is a decrease from $15,846,000 in Q3 2023. For the nine months ended September 30, 2024, SG&A expenses totaled $46,728,000, compared to $44,711,000 in the same period in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Acme United had working capital of $76,380,000, compared to $66,010,000 at December 31, 2023. The current ratio improved to 4.41 from 3.54. Long-term debt to equity ratio stood at 30.1% as of September 30, 2024, compared to 23.9% in the previous year.
| Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Working Capital | $76,380,000 | $66,010,000 |
| Current Ratio | 4.41 | 3.54 |
| Long-term Debt to Equity Ratio | 30.1% | 23.9% |
Debt Structure
As of September 30, 2024, Acme United had total debt outstanding under its revolving credit facility of $22,059,000, with $42,941,000 available for borrowing. The facility agreement provides for borrowings of up to $65 million at an interest rate of SOFR plus 1.75%.
Recent Acquisitions
On May 23, 2024, Acme United acquired the assets of Elite First Aid, Inc. for approximately $7.1 million, which is expected to enhance its product offerings in the first aid category.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was $106,317,000, an increase from $97,898,000 as of December 31, 2023. The number of outstanding shares was reported at 3,741,453.
| Equity Components | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $106,317,000 | $97,898,000 |
| Outstanding Shares | 3,741,453 | 3,645,200 |
How Acme United Corporation (ACU) Makes Money
Revenue Streams
Acme United Corporation generates revenue primarily through the sale of first aid and medical products, cutting and sharpening devices, and measuring instruments. The company operates in three main segments: the United States, Canada, and Europe.
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | Net Sales (2024 YTD) | Net Sales (2023 YTD) |
|---|---|---|---|---|
| United States | $41,131,000 | $43,688,000 | $126,579,000 | $127,743,000 |
| Canada | $3,287,000 | $3,305,000 | $10,384,000 | $10,938,000 |
| Europe | $3,748,000 | $3,391,000 | $11,584,000 | $10,878,000 |
| Total | $48,166,000 | $50,384,000 | $148,547,000 | $149,559,000 |
Product Categories
The company's product categories include:
- First Aid and Medical Products
- Cutting and Sharpening Devices
- Measuring Instruments
In 2024, first aid and medical products accounted for a significant portion of total net sales, showing strong performance across all segments.
Gross Profit and Operating Income
For the three months ended September 30, 2024, Acme United reported a gross profit of $18,564,000, representing 38.5% of net sales. In comparison, the gross profit for the same period in 2023 was $19,503,000, or 38.7% of net sales. The gross profit for the nine months ended September 30, 2024 was $58,587,000 (39.4% of net sales), up from $55,807,000 (37.3% of net sales) in the same period in 2023.
| Period | Gross Profit | Gross Margin (%) |
|---|---|---|
| Q3 2024 | $18,564,000 | 38.5% |
| Q3 2023 | $19,503,000 | 38.7% |
| YTD 2024 | $58,587,000 | 39.4% |
| YTD 2023 | $55,807,000 | 37.3% |
Operating income for the three months ended September 30, 2024, was $2,926,000, compared to $3,657,000 in the same period of 2023. For the nine months ended September 30, 2024, operating income was $11,859,000, an increase from $11,096,000 in 2023.
Cost Structure
Selling, general and administrative (SG&A) expenses for the three months ended September 30, 2024, were $15,638,000 (32.5% of net sales), compared to $15,846,000 (31.5% of net sales) in 2023. For the nine months ended September 30, 2024, SG&A expenses increased to $46,728,000 (31.5% of net sales) from $44,711,000 (29.9% of net sales) in the same period in 2023.
| Period | SG&A Expenses | SG&A as % of Net Sales |
|---|---|---|
| Q3 2024 | $15,638,000 | 32.5% |
| Q3 2023 | $15,846,000 | 31.5% |
| YTD 2024 | $46,728,000 | 31.5% |
| YTD 2023 | $44,711,000 | 29.9% |
Debt and Financing
As of September 30, 2024, Acme United had long-term debt of $22,059,000, which includes borrowings related to its revolving loan agreement with HSBC. The agreement allows borrowings of up to $65 million at an interest rate of SOFR plus 1.75%. The company had a current ratio of 4.41 and a long-term debt to equity ratio of 30.1% as of September 30, 2024.
| Metric | Value (as of September 30, 2024) |
|---|---|
| Long-Term Debt | $22,059,000 |
| Current Ratio | 4.41 |
| Long-Term Debt to Equity Ratio | 30.1% |
Recent Acquisitions
On May 23, 2024, Acme United acquired certain assets of Elite First Aid, Inc. for a total purchase price of $7,141,000, which included $5,689,000 allocated to intangible assets.
| Asset Type | Value |
|---|---|
| Accounts Receivable | $113,000 |
| Inventory | $1,127,000 |
| Prepaid Expense | $212,000 |
| Intangible Assets | $5,689,000 |
| Total Assets | $7,141,000 |
Net Income and Earnings Per Share
Net income for the three months ended September 30, 2024, was $2,226,000, compared to $2,152,000 in the same period of 2023. For the nine months ended September 30, 2024, net income was $8,315,000, up from $6,586,000 in 2023. Basic earnings per share for Q3 2024 were $0.60, consistent with Q3 2023.
| Period | Net Income | Basic EPS |
|---|---|---|
| Q3 2024 | $2,226,000 | $0.60 |
| Q3 2023 | $2,152,000 | $0.60 |
| YTD 2024 | $8,315,000 | $2.26 |
| YTD 2023 | $6,586,000 | $1.85 |
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Resources:
- Acme United Corporation (ACU) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Acme United Corporation (ACU)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Acme United Corporation (ACU)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.