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<SEC-DOCUMENT>0001026608-07-000033.txt : 20070302
<SEC-HEADER>0001026608-07-000033.hdr.sgml : 20070302
<ACCEPTANCE-DATETIME>20070302102044
ACCESSION NUMBER:		0001026608-07-000033
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070302
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070302
DATE AS OF CHANGE:		20070302

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ACME UNITED CORP
		CENTRAL INDEX KEY:			0000002098
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				060236700
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07698
		FILM NUMBER:		07665960

	BUSINESS ADDRESS:	
		STREET 1:		60 ROUND HILL ROAD
		CITY:			FAIRFIELD
		STATE:			CT
		ZIP:			06824
		BUSINESS PHONE:		203-254-6060

	MAIL ADDRESS:	
		STREET 1:		60 ROUND HILL ROAD
		CITY:			FAIRFIELD
		STATE:			CT
		ZIP:			06824

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ACME SHEAR CO
		DATE OF NAME CHANGE:	19710713
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>acme_8k030207.txt
<DESCRIPTION>FORM 8-K
<TEXT>
================================================================================


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                               ------------------

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

         Date of report (date of earliest event reported): March 2, 2007


                             ACME UNITED CORPORATION
             (Exact name of registrant as specified in its charter)
                               ------------------

          Connecticut                    001-07698              06-0236700
(State or other jurisdiction of         (Commission          (I.R.S. Employer
 incorporation or organization)         file number)        Identification No.)


60 Round Hill Road, Fairfield, Connecticut                        06824
 (Address of principal executive offices)                       (Zip Code)


       Registrant's telephone number, including area code: (203) 254-6060

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[_]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)

[_]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[_]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On March 2, 2007, Acme United Corporation (the "Company") issued a press release
announcing its financial results for the year ended December 31, 2006. A copy of
the press release is attached as Exhibit 99.1 to this current report.


ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

(c)  Exhibits

Exhibit Number             Description
- --------------             -----------
99.1                       Press release dated March 2, 2007.



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


ACME UNITED CORPORATION

By          /s/ WALTER C. JOHNSEN
         ------------------------------
                Walter C. Johnsen
                 President and
             Chief Executive Officer

Dated:   March 2, 2007



By          /s/ PAUL G. DRISCOLL
         ------------------------------
                Paul G. Driscoll
               Vice President and
              Chief Financial Officer

Dated:  March 2, 2007

<PAGE>

EXHIBIT INDEX


     Exhibit Number             Description
     --------------             -----------
     99.1                       Press release dated March 2, 2007.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>acme_8k030207ex991.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
EXHIBIT 99.1

ACME UNITED CORPORATION            NEWS RELEASE
- --------------------------------------------------------------------------------
                            CONTACT: Paul G. Driscoll
                             Acme United Corporation
                   60 Round Hill Road    Fairfield, CT  06824
                  Phone: (203) 254-6060    FAX: (203) 254-6521
- --------------------------------------------------------------------------------


                       FOR IMMEDIATE RELEASE March 2, 2007
                       -----------------------------------


ACME UNITED CORPORATION REPORTS RECORD ANNUAL NET SALES AND EARNINGS AND
INCREASES DIVIDEND

         FAIRFIELD, CT. - March 2, 2007 - Acme United Corporation (AMEX:ACU)
today announced that net sales for the year ended December 31, 2006 were $56.9
million compared to $49.9 million in 2005, an increase of 14%. Net sales for
2006 in the U.S. segment increased 13% due to the sale of new products,
principally our patented titanium bonded products and award winning iPoint
electronic pencil sharpeners. International sales increased by 16%, and 10% in
local currency compared to 2005. Net sales for the quarter ended December 31,
2006 were $12.1 million, compared to $11.1 million in the same period in 2005,
an increase of 9%.

         Net income for the year ended December 31, 2006 was $3.9 million, or
$1.05 per diluted share, compared to $2.9 million or $.78 per diluted share, in
2005. Excluding a non-recurring charge of $1.5 million recorded in the third
quarter of 2005 which related to the demolition of some former manufacturing
buildings, net income would have been $3.9 million, or $1.02 per diluted share,
in 2005. Pro forma (non-GAAP) results are presented to provide additional
information for comparisons to Acme's results from its ongoing core business in
2006 to 2005. For the fourth quarter ended December 31, 2006, net income was
$396,000, or $.11 per diluted share, compared to $773,000, or $.21 per diluted
share for the same period in 2005.

         Net income for 2006 was reduced by losses in Europe of $1.1 million
compared to $300,000 in 2005. The losses in Europe during the fourth quarter of
2006 were $550,000 compared to $100,000 in 2005. The Company has begun to
improve the product and margin mix in Europe and reduce expenses. The fourth
quarter of 2006 also reflects an increase in spending for new product
development and market research, and the addition of sales and marketing
personnel in the U.S.

                                      (1)
<PAGE>

         Gross margins were 43.2% for 2006 compared to 44.8% in 2005. The
decrease was partially due to increased sales of private brand initiatives,
which typically provide commodity items at very competitive prices, particularly
in Europe. There were also a number of promotional and initial set up expenses
for new business in Europe that reduced margins.

         The Company's bank debt less cash on December 31, 2006 was $6.4 million
compared to $4.5 million on December 31, 2005. The increase in bank debt was
primarily to finance the purchase of $2.9 million of additional inventory to
support sales growth, an increase in accounts receivables of $1.5 million
resulting mainly from higher sales, and the payment of previously accrued costs
of $1.5 million for the demolition of a former manufacturing site, partially
offset by earnings.

         Walter C. Johnsen, Chairman and CEO, said, "Acme United had a record
year in revenues and earnings in 2006. We won the prestigious Good Design award
for our iPoint Pencil Sharpener from the Chicago Athenaeum. Our European team
rolled out a 12 country sales initiative. We continue to build our business in
North America and Europe, and look forward to a very successful year in 2007."

         The Board of Directors has approved a 33% increase in the quarterly
dividend from $.03 to $.04 per share. The dividend is payable on April 27, 2007
to stockholders of record on the close of business on April 6, 2007.


         ACME UNITED CORPORATION is a specialized supplier of cutting devices,
measuring instruments, and safety products for school, home, office and
industrial use.

         Forward-looking statements in this report, 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: (i) the Company's
plans, strategies, objectives, expectations and intentions are subject to change
at any time at the discretion of the Company; (ii) the Company's plans and
results of operations will be affected by the Company's ability to manage its
growth, and (iii) other risks and uncertainties indicated from time to time in
the Company's filings with the Securities and Exchange Commission.

                                     # # #

                                      (2)
<PAGE>
<TABLE>
                             ACME UNITED CORPORATION
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                              YEAR END REPORT 2006
<CAPTION>

                                                                       Quarter Ended             Quarter Ended
                                                                     December 31, 2006         December 31, 2005
Amounts in $000's except per share data                                 (Unaudited)               (Unaudited)
- -------------------------------------------------------------------------------------------------------------------

<S>                                                                      <C>                       <C>
Net sales                                                                $  12,089                 $  11,059
Gross profit                                                                 4,979                     4,596
Selling, general, and administrative expenses                                4,110                     3,058
Other  expense, net                                                             51                       205
Pre-tax income                                                                 818                     1,333
Income tax expense                                                             422                       560
Net income                                                                     396                       773

     Shares outstanding - Basic                                              3,508                     3,486
     Shares outstanding - Diluted                                            3,726                     3,752

Earnings per share - Basic                                                    0.11                      0.22
Earnings per share - Diluted                                                  0.11                      0.21
</TABLE>

                                      (3)
<PAGE>
<TABLE>
                             ACME UNITED CORPORATION
                   CONDENSED CONSOLIDATED STATEMENT OF INCOME
                              YEAR END REPORT 2006
<CAPTION>

                                                                         Year Ended                Year Ended
Amounts in $000's except per share data                              December 31, 2006         December 31, 2005
- -------------------------------------------------------------------------------------------------------------------

<S>                                                                      <C>                       <C>
Net sales                                                                $  56,863                 $  49,946
Gross profit                                                                24,583                    22,355
Selling, general, and administrative expenses                               17,870                    15,512
Other  expense, net                                                            364                       577
Non-recurring charge                                                             -                     1,500
Pre-tax income                                                               6,349                     4,766
Income tax expense                                                           2,463                     1,829
Net income                                                                   3,886                     2,937

     Shares outstanding - Basic                                              3,495                     3,509
     Shares outstanding - Diluted                                            3,712                     3,789

Earnings per share - Basic                                                    1.11                      0.84
Earnings per share - Diluted                                                  1.05                      0.78


Reconciliation to reported Net Income (GAAP):
     Pre-tax income as reported (GAAP)                                       6,349                     4,766
     Non-recurring charge                                                        -                     1,500
     Pre-tax income as adjusted                                              6,349                     6,266
     Income tax expense as adjusted                                          2,463                     2,399
     Net income as adjusted (Non-GAAP)                                       3,886                     3,867
     Earnings per share before non-recurring charge - Basic                   1.11                      1.10
     Earnings per share before non-recurring charge - Diluted                 1.05                      1.02
</TABLE>

                                      (4)
<PAGE>
<TABLE>
                             ACME UNITED CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEET
                              YEAR END REPORT 2006
<CAPTION>

Amounts in $000's
- -----------------
                                                                     December 31, 2006         December 31, 2005
                                                                ---------------------------------------------------
<S>                                                                      <C>                       <C>
Assets
- ------
Current assets:
     Cash                                                                $   3,838                 $   1,076
     Accounts receivable, net                                               10,852                     9,392
     Inventories                                                            15,677                    12,530
     Prepaid and other current assets                                        1,120                       867
                                                                ---------------------------------------------------
Total current assets                                                        31,487                    23,865

     Property and equipment, net                                             2,540                     2,786
     Other assets                                                              994                     1,543
                                                                ---------------------------------------------------
Total assets                                                             $  35,021                 $  28,194
                                                                ===================================================

Liabilities and Stockholders' Equity
Current liabilities:
     Accounts payable                                                        2,358                     2,174
     Other current liabilities                                               3,564                     5,356
                                                                ---------------------------------------------------
Total current liabilities                                                    5,922                     7,530
Long-term debt                                                              10,226                     5,587
Other non-current liabilities                                                  742                     1,012
                                                                ---------------------------------------------------
Total liabilities                                                           16,890                    14,129
Total stockholders' equity                                                  18,131                    14,065
                                                                ---------------------------------------------------
Total liabilities and stockholders' equity                               $  35,021                 $  28,194
                                                                ===================================================
</TABLE>

                                      (5)
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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