ACME UNITED CORP
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
ACU$68.38-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0000950170-24-124031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000950170-25-065598
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 39 previous paragraphs and 40 current paragraphs.
20 unchanged; 13 reworded; 7 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Consolidated net sales for the three months ended March 31, 2025 were $45,958,000 compared to $44,956,000 in the same period in 2024, an increase of 2%.
Current report
Net sales in the U.S. for the three months ended March 31, 2025 increased 3% compared to the same period in 2024. The increase in net sales for the three months ended March 31, 2025 was primarily due to higher sales of first aid and medical products partially offset by lower sales of school and office products. The lower sales of school and office products was primarily due to a large initial order of craft products to a major mass market retailer that took place in the first quarter of 2024.
Current report
European net sales for the three months ended March 31, 2025 decreased 7% in U.S. dollars and 4% in local currency compared to the same period in 2024. The decrease in net sales for the three months ended March 31, 2025 was primarily due to a large promotion in the first quarter of 2024 that did not repeat this year.
Current report
Operating income for the three months ended March 31, 2025 was $2,426,000 compared with $2,558,000 in the same period of 2024.
Current report
Other income, net
Current report
Other income, net was $90,000 in the three months ended March 31, 2025 compared to $44,000 in the same period of 2024.
Current report
A significant portion of the products we sell (and components used in our products) are sourced from suppliers located in China. The United States government has imposed, and may continue to impose or adjust, significant tariffs on a range of Chinese goods. These tariffs have increased our costs of goods sold and could further escalate depending on changes in trade policy, negotiations, or retaliatory measures by China. The indirect impact on demand for our products as a result of these developments has become more uncertain. The Company expects to mitigate the potential impact on our business and operations through strategic sourcing adjustments, price adjustments and supply chain diversification, but there can be no assurance that such efforts will be successful or sufficient. While the impact on our operations to date have not been significant, any further increases of existing tariffs, the imposition of new tariffs, the potential modifications to existing trade agreements and other restrictions on free trade may adversely impact demand for our products, increase our costs, and disrupt our supply chain. These risks, in turn, could have a material adverse effect on our business, results of operations, and financial condition.
Removed paragraphs (6)
Previous report
Consolidated net sales for the three months ended September 30, 2024 were $48,166,000 compared to $50,384,000 in the same period in 2023, a decrease of 4%. Excluding the impact of the Camillus and Cuda hunting and fishing product lines sold on November 1, 2023, sales for the third quarter of 2024 increased 4%, compared to the same period in 2023. Net sales for the nine months ended September 30, 2024 were $148,547,000 compared to $149,559,000 in the same period in 2023, a decrease of 1%. Excluding Camillus and Cuda, sales for the nine months ended September 30, 2024 increased 5% compared to the same period in 2023. These results reflect the fact that revenues and earnings of the Camillus and Cuda business historically have been seasonal, with the largest shipments occurring in the third quarter in connection with the hunting season, holiday sales and promotions. This disproportionately impacted the sales and earnings for the third quarter of 2024.
Previous report
Net sales in the U.S. for the three months ended September 30, 2024 decreased 6% compared to the same period in 2023. Excluding the impact of Camillus and Cuda, net sales for the third quarter of 2024 increased 3% compared to the same period of 2023. Net sales for the nine months ended September 30, 2024 decreased 1% compared to the same period in 2023. Excluding the impact of Camillus and Cuda, net sales for the nine months ended September 30, 2024 increased 5% compared to the same period of 2023. The increase in net sales for the nine months ended September 30, 2024 was primarily related to market share gains in the craft channel, the kitchen sharpener market as well as first aid products.
Previous report
European net sales for the three months ended September 30, 2024 increased 10% in both U.S. dollars and local currency compared to the same period in 2023. Excluding the impact of Camillus and Cuda, net sales for the third quarter of 2024 increased 15% compared to the same period of 2023. Net sales for the nine months ended September 30, 2024 increased 6% in both U.S. dollars and local currency compared to the same period in 2023. Excluding the impact of Camillus and Cuda, net sales for the nine months ended September 30, 2024 increased 10% compared to the same period of 2023. The increases in net sales for the three and nine months ended September 30, 2024 was due to market share gains in the office channel.
Previous report
Operating income for the three months ended September 30, 2024 was $2,926,000 compared with $3,657,000 in the same period of 2023. Operating income for the nine months ended September 30, 2024 was $11,859,000 compared with $11,096,000 in the same period of 2023.
Previous report
Other (income) expense, net
Previous report
Other income, net was $17,000 in the three months ended September 30, 2024 compared to other expense, net of $55,000 in the same period of 2023. Other income, net in the nine months ended September 30, 2024 was $90,000 compared to other expense, net of $9,000 in the same period of 2023.
Reworded paragraphs (13)
Previous wording
These risks and uncertainties include, without limitation, the following: (i) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (ii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iii) the continuing adverse impact of inflation, including product costs, transportation costs and interest rates; (iv) potential adverse effects on the Company, its customers, and suppliers resulting from the wars in Ukraine and the Middle East; (v) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, port closures, port strikes or otherwise; (vi) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (vii) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates (viii) changes in client needs and consumer spending habits; (ix) currency fluctuations; (x) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (xiv) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; ; and (xv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
Current wording
These risks and uncertainties include, without limitation, the following: (i) The impact on the demand for certain of the Company’s products and its competitive position of the new 145% tariff on the goods sourced from China and other current and future changes in tariffs by the U.S. government (ii) changes in the Company’s plans, strategies, objectives, expectations and intentions, which may be made at any time at the discretion of the Company; (iii) the impact of uncertainties in global economic conditions, including the impact on the Company’s suppliers and customers; (iv) the continuing adverse impact of inflation, including product costs, transportation costs and interest rates; (v) potential adverse effects on the Company, its customers, and suppliers resulting from the wars in Ukraine and the Middle East; (vi) additional disruptions in the Company’s supply chains, whether caused by pandemics, natural disasters, including trucker shortages, port closures, port strikes or otherwise; (vii) labor related costs the Company has and may continue to incur, including costs of acquiring and training new employees and rising wages and benefits; (viii) changes in client needs and consumer spending habits; (ix) currency fluctuations; (x) the Company’s ability to effectively manage its inventory in a rapidly changing business environment; (xi) the impact of competition; (xii) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (xiii) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; ; and (xiv) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.
Previous wording
Net sales in Canada for the three months ended September 30, 2024 decreased 1% in U.S. dollars but increased 2% in local currency compared to the same period in 2023. Excluding the impact of Camillus and Cuda, net sales for the third quarter of 2024 increased 6% compared to the same period of 2023. Net sales for the nine months ended September 30, 2024 decreased 5% in U.S. dollars and 4% in local currency, compared to the same period in 2023. Excluding the impact of Camillus and Cuda, net sales for the nine months ended September 30, 2024 were constant compared to the same period of 2023. Sales of first aid products were strong, however sales of school and office products declined due to a continuing soft economy.
Current wording
Net sales in Canada for the three months ended March 31, 2025 increased 5% in U.S. dollars and 12% in local currency compared to the same period in 2024. Sales of first aid products were strong, however sales of school and office products declined due to a continuing soft economy.
Previous wording
Gross profit for the three months ended September 30, 2024 was $18,564,000 (38.5% of net sales) compared to $19,503,000 (38.7% of net sales) in the same period in 2023. Gross profit for the nine months ended September 30, 2024 was $58,587,000 (39.4% of net sales) compared to $55,807,000 (37.3% of net sales) in the same period in 2023. The increase in gross profit for the nine months ended September 30, 2024 was primarily due to productivity improvements in the Company's manufacturing and distribution facilities.
Current wording
Gross profit for the three months ended March 31, 2025 was $17,917,000 (39.0% of net sales) compared to $17,396,000 (38.7% of net sales) in the same period in 2024. The increase in gross profit for the three months ended March 31, 2025 was primarily due to higher sales.
Previous wording
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 with $15,846,000 (31.5% of net sales) in the same period in 2023, a decrease of $208,000. SG&A expenses for the nine months ended September 30, 2024 were $46,728,000 (31.5% of net sales) compared with $44,711,000 (29.9% of net sales) in the same period in 2023, an increase of $2,017,000. The increase in SG&A expenses for the nine months ended September 30, 2024 was primarily related to higher personnel related expenses.
Current wording
Selling, general and administrative ("SG&A") expenses for the three months ended March 31, 2025 were $15,491,000 (33.7% of net sales) compared with $14,838,000 (33.0% of net sales) in the same period in 2024, an increase of $653,000. The increase in SG&A expenses for the three months ended March 31, 2025 was primarily related to higher personnel related expenses.
Previous wording
Operating income in the U.S. segment decreased by $611,000 for the three months ended September 30, 2024 compared to the same period in 2023. Operating income in the U.S. segment increased by $1,230,000 for the nine months ended September 30, 2024 compared to the same period in 2023. The increase in operating income for the nine months ended September 30, 2024 was primarily due to productivity improvements at our manufacturing and distribution facilities.
Current wording
Operating income in the U.S. segment increased by $20,000 for the three months ended March 31, 2025 compared to the same period in 2024.
Previous wording
Operating income in the Canadian segment increased by $25,000 for the three months ended September 30, 2024 compared to the same period in 2023. Operating income in the Canadian segment decreased $192,000 for the nine months ended September 30, 2024 compared to the same period in 2023. The decrease in operating income for the nine months ended September 30, 2024 were primarily due to lower net sales of school and office products.
Current wording
Operating income in the Canadian segment increased by $2,000 for the three months ended March 31, 2025 compared to the same period in 2024.
Previous wording
Operating income in the European segment decreased by $145,000 and $275,000 for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease in operating income for the three and nine months ended September 30, 2024 was primarily due to planned increases in headcount to support growth in the business.
Current wording
Operating income in the European segment decreased by $154,000 for the three months ended March 31, 2025, compared to the same period in 2024. The decrease in operating income for the three months ended March 31, 2025 was primarily due to lower sales.
Previous wording
Interest expense, net for the three months ended September 30, 2024 was $535,000 compared with $784,000 in the same period of 2023, a $249,000 decrease. Interest expense, net for the nine months ended September 30, 2024 was $1,517,000 compared with $2,517,000 in the same period of 2023, a $1,000,000 decrease. The decreases in interest expense for the three and nine months ended September 30, 2024 resulted from lower average outstanding borrowings.
Current wording
Interest expense, net for the three months ended March 31, 2025 was $397,000 compared with $443,000 in the same period of 2024, a $46,000 decrease. The decrease in interest expense for the three months ended March 31, 2025 resulted from lower average outstanding borrowings as well as lower average interest rates on the debt outstanding.
Previous wording
The effective income tax rate for the three and nine months ended September 30, 2024 was 8% and 20% compared to 24% and 23% in the same periods of 2023. The lower effective income tax rate for the three and nine months ended September 30, 2024 was primarily due to excess tax benefits resulting from the exercise of stock options.
Current wording
The effective income tax rate for the three months ended March 31, 2025 was 22% compared to 24% in the same period of 2024.
Previous wording
During the first nine months of 2024, working capital increased approximately $10.4 million. As a result of the acquisition of Elite First Aid, Inc., inventory increased approximately $0.5 million during the nine-month period. Inventory turnover, calculated using a twelve-month average inventory balance, was 2.1 at September 30, 2024 and December 31, 2023. Receivables increased approximately $5.1 million at September 30, 2024 compared to December 31, 2023. The average number of days sales outstanding in accounts receivable was 54 days at September 30, 2024 compared to 55 days at December 31, 2023. Accounts payable and other current liabilities decreased by approximately $4.1 million at September 30, 2024 compared to December 31, 2023.
Current wording
During the first three months of 2025, working capital increased approximately $4.2 million. Inventory turnover, calculated using a twelve-month average inventory balance, was 2.1 at March 31, 2025 and December 31, 2024. Receivables increased approximately $2.6 million at March 31, 2025 compared to December 31, 2024. The average number of days sales outstanding in accounts receivable was 53 days at March 31, 2025 compared to 54 days at December 31, 2024. Accounts payable and other current liabilities decreased by approximately $2.8 million at March 31, 2025 compared to December 31, 2024.
Previous wording
During the first nine months of 2024, total debt outstanding under the Company’s revolving credit facility increased by approximately $8.9 million, compared to total debt thereunder at December 31, 2023. As of September 30, 2024, $22,059,000 was outstanding and $42,941,000 was available for borrowing under the Company’s credit facility.
Current wording
During the first three months of 2025, total debt outstanding under the Company’s revolving credit facility increased by approximately $2.8 million, compared to total debt thereunder at December 31, 2024. As of March 31, 2025, $20,457,000 was outstanding and $44,543,000 was available for borrowing under the Company’s credit facility.
Previous wording
The Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA were financed by a fixed rate mortgage with HSBC Bank, N.A. at a rate of 3.8%. The Company entered into the agreement on December 1, 2021. Payments of principal and interest are due monthly, with all amounts outstanding due on maturity on December 1, 2031. At September 30, 2024, there was approximately $10.5 million outstanding on the mortgage.
Current wording
The Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA were financed by a fixed rate mortgage with HSBC Bank, N.A. at a rate of 3.8%. The Company entered into the agreement on December 1, 2021. Payments of principal and interest are due monthly, with all amounts outstanding due on maturity on December 1, 2031. At March 31, 2025, there was approximately $10.3 million outstanding on the mortgage.
Previous wording
On May 23, 2024, the Company acquired the assets of Elite First Aid, Inc ("Elite First Aid") for approximately $7.1 million, . Based in Wake Forest, NC, Elite First Aid is a leading supplier of tactical, trauma and emergency medical products.
Current wording
On May 23, 2024, the Company acquired the assets of Elite First Aid, Inc ("Elite First Aid") for approximately $7.1 million of which $1.0 million is subject to holdbacks as follows: (a) $500,000, the payment of which is contingent upon certain revenue milestones during an consecutive 12-month period from May 31, 2024 to December 31, 2025; and (b) $500,000, which is subject to a 13 month holdback as a non-exclusive source of recovery primarily to satisfy certain types of indemnification claims under the Asset Purchase Agreement. Based in Wake Forest, NC, Elite First Aid is a leading supplier of tactical, trauma and emergency medical products.