In This Article:
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Net Sales: $194.5 million in 2024, a 2% increase from 2023.
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Net Income: $10 million in 2024, a 23% increase from $8.1 million in 2023.
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Earnings Per Share (EPS): $2.45 in 2024, up 10% from $2.23 in 2023.
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Gross Margin: 39.3% for 2024, compared to 37.7% in 2023.
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EBITDA: $20 million in 2024.
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First Aid Business Revenue: Approximately $120 million in 2024.
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Westcott and DMT Sharpening Revenue: Approximately $75 million in 2024, a 10% increase from 2023.
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SG&A Expenses: $62 million in 2024, 32% of sales.
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Interest Expense: Decreased to $1.9 million in 2024 from $3 million in 2023.
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Free Cash Flow: Approximately $5 million generated in 2024.
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Bank Debt Less Cash: $21.5 million as of December 31, 2024.
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Acme United Corp (ACU) achieved record net sales of $194.4 million and record EBITDA of $20 million in 2024.
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Net income increased by 23% to $10 million in 2024 compared to $8.1 million in 2023.
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The First Aid business performed strongly with revenues of approximately $120 million, and the introduction of SmartCompliance first aid cabinets with RFID technology enhanced automatic replenishment capabilities.
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The Westcott cutting and DMT sharpening business saw a 10% increase in net revenues, reaching approximately $75 million.
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Productivity initiatives resulted in over $2 million in annual savings, including cost reductions and automation improvements.
Negative Points
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Acme United Corp (ACU) faced supply chain disruptions and anticipates future challenges with tariffs in 2025.
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Net sales in Europe declined by 1% in local currency for the quarter, indicating regional challenges.
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The gross margin decreased slightly in the fourth quarter of 2024 to 38.7% from 39.1% in 2023.
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SG&A expenses increased to $62 million or 32% of sales in 2024, up from $59 million or 31% of sales in 2023.
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Sales of school and office products declined, impacting overall sales growth.
Q & A Highlights
Q: How is Acme United preparing for upcoming tariffs, and what strategies are in place to mitigate their impact? A: Walter Johnsen, CEO, explained that Acme United has been preparing for tariffs over the past eight years by diversifying its sourcing and production. The company has acquired manufacturing sites in the U.S. and Canada and has implemented a dual sourcing strategy in countries like Egypt, Thailand, and India. This diversification helps mitigate the impact of tariffs. Additionally, Acme United plans to adjust costs with suppliers, implement productivity improvements, and apply price increases to offset tariff costs.