Acme United Corp (NYSE MKT:ACU) Q3 2019 Earnings Conference Call Transcript

Oct 18, 2019 • 12:00 pm ET

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Acme United Corp (NYSE MKT:ACU) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day and welcome to the Acme United Corporation's Third Quarter 2019 Earnings Conference Call. At this time, I would like to turn the conference over to Walter Johnsen, Chairman and Chief Executive Officer. Please go ahead, sir.

Executive
Walter C. Johnsen

Good morning. Welcome to the third 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 the safe harbor statement. Paul?

Executive
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 at 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.

Executive
Walter C. Johnsen

Thank you Paul. Acme United had a strong quarter of 2000 -- third quarter of 2019. Our sales were $37 million, an increase of 7% over 2018. Our net income was $1.1 million, an increase of 31%. Our earnings per share were $0.30 compared to $0.23 last year, a 30% increase. We had excellent performance in the US from our First Aid and safety business. Our SmartCompliance first aid kits, which provide comprehensive safety product to employers had particularly strong sales. The sales increase demonstrates how much employers value of the fast, easy to requisition, manage and track items that we are offering. We began starting several new industrial distributors and had growth with many of our large industrial customers.

Our first aid retail business with our safety hub replenishment software continued to generate exceptional results, which is encouraging and demonstrates the potential strength of this business in the future. Westcott school and office business had a solid back-to-school performance with online sales, as we expanded categories and products with e-commerce retailers. We also had substantial growth with the mass market. The office superstore market in the US was weaker than last year, reflecting overall trends that I've talked about in past quarters, but it is a decreasing proportion of our business. Our Camillus hunting, Cuda fishing, Clauss industrial cutting and DMT sharpening product lines had good performance. As you may recall, we recently increased the production capability of our DMT diamond sharpening business, which is helping to propel our growth.

Our international business was excellent. In Canada, sales increased due to a strong back-to-school and our European business had a record quarter. We are gaining market share in Europe in the office products market and generating excellent sales online with all customers. We've been benefiting from the cost savings program that we instituted a