Acme United Corp. (NYSE MKT:ACU) Q2 2019 Earnings Conference Call - Final Transcript
Jul 19, 2019 • 09:00 am ET
Good day, and welcome to the Acme United Corporation's Second Quarter 2019 Earnings Conference Call. At this time, I would like to turn the conference over to Walter Johnsen. Please go ahead, sir.
Walter C. Johnsen
Good morning. Welcome to the second quarter 2019 earnings conference call for Acme United Corporation. I'm Walter C. Johnsen, Chairman and CEO. With me is Paul Driscoll, our Chief Financial Officer, who will first read a Safe Harbor statement. Paul?
Paul G. Driscoll
Forward-looking statements in this conference call including, without limitation, statements related to the company's plans, strategies, objectives, expectations, intentions and adequacy of resources are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, the following: one, the company's plans, strategies, objectives, expectations and intentions are subject to change any time at the discretion of the company; two, the company's plans and results of operation will be affected by the company's ability to manage its growth; and three, other risks and uncertainties indicated from time-to-time in the company's filings with the Securities and Exchange Commission.
Walter C. Johnsen
Thank you, Paul. Acme United reported net sales of $40.2 million for the second quarter of 2019, up 1% from last year. Net income for the quarter was $2.7 million compared to $2.4 million in the second quarter last year, an increase of 10%. Earnings per share were $0.77 compared to $0.67 last year, up 15%. Our sales during the quarter benefited from strong performance of our Cuda fishing tools and first aid and safety products. Our DMT diamond sharpeners, which as I mentioned last quarter have been gaining a strong following worldwide, had production constraints which prevented growth. Sales of the Westcott back-to-school line were softer than last year.
We are very pleased with the new Westcott glide scissors for precision cutting which have been well received by end users. While revenues in the US were approximately even, sales in Europe increased 22% with growth in Westcott office products, new first aid customers, and excellent execution of our online strategies. Revenues in Canada were 10% below last year due to a decline in the office channel. We completed an expansion of our production at DMT at the end of June. This increases our capacity and we are beginning to fill back orders. Demand for the DMT products have been particularly strong with our industrial and hardware accounts and in Europe. In the US, the tariffs on sharpening tools imported from China make our US production of these items much more price competitive in the large mid-range market. We look forward to additional growth at DMT now that we have new capacity.
Our productivity continues to improve at major distribution operations in Rocky Mount, North Carolina into new software and continued training. As you may recall, this was a major initiative we undertook in 2018. We are now handling our online and seasonal shipments much more efficiently than in prior years and we