ACME United Corp (ACU) has reported 21.94 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $1.47 million, or $0.40 a share in the quarter, compared with $1.21 million, or $0.33 a share for the same period last year. Revenue during the quarter grew 6.72 percent to $31.91 million from $29.90 million in the previous year period. Gross margin for the quarter expanded 264 basis points over the previous year period to 37.17 percent. Total expenses were 93.29 percent of quarterly revenues, down from 93.34 percent for the same period last year. This has led to an improvement of 5 basis points in operating margin to 6.71 percent.
Operating income for the quarter was $2.14 million, compared with $1.99 million in the previous year period.
Chairman and chief executive officer Walter C. Johnsen said, "Our Westcott school, home, and office product lines all continued to gain market share and we delivered record back-to-school sales. In addition, we gained new first aid placement at a number of large food service chains , a promising source of new business, and grew our industrial first aid kit business. The Clauss, Camillus, and Cuda product families added new products and customers, and DMT, whose sharpening tool business we acquired in February 2016 , exceeded our expectations as we expanded the business and distribution through our broad customer base.
Working capital increasesACME United Corp has recorded an increase in the working capital over the last year. It stood at $58.95 million as at Sep. 30, 2016, up 15.78 percent or $8.04 million from $50.91 million on Sep. 30, 2015. Current ratio was at 5.42 as on Sep. 30, 2016, up from 4.65 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 127 days for the quarter from 205 days for the last year period. Days sales outstanding went down to 76 days for the quarter compared with 78 days for the same period last year.
Days inventory outstanding has decreased to 87 days for the quarter compared with 166 days for the previous year period. At the same time, days payable outstanding went down to 37 days for the quarter from 39 for the same period last year.
Debt increases substantially
ACME United Corp has witnessed an increase in total debt over the last one year. It stood at $39.71 million as on Sep. 30, 2016, up 39.07 percent or $11.16 million from $28.55 million on Sep. 30, 2015. Acme United Corp has witnessed an increase in long-term debt over the last one year. Total debt was 39.96 percent of total assets as on Sep. 30, 2016, compared with 32.97 percent on Sep. 30, 2015. Debt to equity ratio was at 0.87 as on Sep. 30, 2016, up from 0.65 as on Sep. 30, 2015. Interest coverage ratio improved to 8.66 for the quarter from 13.36 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
