Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 09, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | ACME UNITED CORP | |
Entity Central Index Key | 0000002098 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 3,545,725 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Trading Symbol | ACU | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity File Number | 01-07698 | |
Entity Tax Identification Number | 06-0236700 | |
Entity Address, Address Line One | 1 Waterview Drive | |
Entity Address, City or Town | Shelton | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | 203 | |
Local Phone Number | 254-6060 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | $2.50 par value Common Stock | |
Security Exchange Name | NYSEAMER | |
Entity Incorporation, State or Country Code | CT | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,764 | $ 6,100 |
Accounts receivable, less allowance of $847 in 2023 and $1,061 in 2022 | 32,972 | 32,604 |
Inventories | 58,488 | 63,325 |
Prepaid expenses and other current assets | 4,210 | 2,821 |
Restricted cash | 750 | 750 |
Total current assets | 99,184 | 105,600 |
Property, plant and equipment: | ||
Land | 1,982 | 1,979 |
Buildings | 17,315 | 16,614 |
Machinery and equipment | 31,529 | 31,492 |
Total property, plant and equipment | 50,826 | 50,085 |
Less: accumulated depreciation | 24,429 | 23,669 |
Net property, plant and equipment | 26,397 | 26,416 |
Operating lease right-of-use asset, net | 2,675 | 2,632 |
Goodwill | 8,189 | 8,189 |
Intangible assets, less accumulated amortization | 20,273 | 20,790 |
Other assets - restricted cash | 750 | 750 |
Total assets | 157,468 | 164,377 |
Current liabilities: | ||
Accounts payable | 10,597 | 10,514 |
Operating lease liability - current portion | 1,216 | 1,130 |
Current portion of mortgage payable | 405 | 405 |
Other current liabilities | 11,815 | 10,078 |
Total current liabilities | 24,033 | 22,127 |
Long-term debt | 40,135 | 49,916 |
Mortgage payable, net of current portion | 10,597 | 10,694 |
Operating lease liability - non-current portion | 1,628 | 1,683 |
Deferred income taxes | 305 | 305 |
Other non-current liabilities | 654 | 622 |
Total liabilities | 77,352 | 85,347 |
Commitments and contingencies (see note 2) | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value $2.50: authorized 8,000,000 shares; 5,090,597 shares issued and 3,545,725 shares outstanding in 2023 and 5,083,051 shares issued and 3,538,179 shares outstanding in 2021 | 12,717 | 12,699 |
Additional paid-in capital | 13,914 | 13,448 |
Retained earnings | 71,460 | 70,967 |
Treasury stock, at cost - 1,544,872 shares in 2023 and 2022 | (15,996) | (15,996) |
Accumulated other comprehensive loss: | ||
Translation adjustment | (1,979) | (2,088) |
Total stockholders’ equity | 80,116 | 79,030 |
Total liabilities and stockholders’ equity | $ 157,468 | $ 164,377 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
STOCKHOLDERS' EQUITY | ||
Accounts receivable, allowance | $ 847 | $ 1,061 |
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 5,090,597 | 5,083,051 |
Common stock, shares outstanding | 3,545,725 | 3,538,179 |
Treasury stock, shares | 1,544,872 | 1,544,872 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Condensed Consolidated Statements Of Operations | ||
Net sales | $ 45,838 | $ 43,333 |
Cost of goods sold | 29,557 | 28,365 |
Gross profit | 16,281 | 14,968 |
Selling, general and administrative expenses | 14,093 | 13,597 |
Operating income | 2,188 | 1,371 |
Non-operating items: | ||
Interest expense | 919 | 309 |
Interest income | (17) | (4) |
Interest expense, net | 902 | 305 |
Other income, net | (23) | (2) |
Total other expense, net | 879 | 303 |
Income before income tax expense | 1,309 | 1,068 |
Income tax expense | 319 | 238 |
Net income | $ 990 | $ 830 |
Basic earnings per share | $ 0.28 | $ 0.24 |
Diluted earnings per share | $ 0.28 | $ 0.22 |
Weighted average number of common shares outstanding-denominator used for basic per share computations | 3,541,000 | 3,521,000 |
Weighted average number of dilutive stock options outstanding | 327,000 | |
Denominator used for diluted per share computations | 3,541,000 | 3,848,000 |
Dividends declared per share | $ 0.14 | $ 0.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Condensed Consolidated Statements Of Comprehensive Loss Income [Abstract] | ||
Net income | $ 990 | $ 830 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 109 | 27 |
Comprehensive income | $ 1,099 | $ 857 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning Balance at Dec. 31, 2021 | $ 77,082 | $ 12,655 | $ (15,996) | $ 11,930 | $ (1,380) | $ 69,873 |
Beginning Balance, shares at Dec. 31, 2021 | 3,520,646 | |||||
Net income | 830 | 830 | ||||
Other comprehensive income | 27 | 27 | ||||
Stock compensation expense | 400 | 400 | ||||
Distributions to shareholders | (458) | (458) | ||||
Cash settlement of stock options | (108) | (108) | ||||
Ending Balance at Mar. 31, 2022 | 77,773 | $ 12,655 | (15,996) | 12,222 | (1,353) | 70,245 |
Ending Balance, shares at Mar. 31, 2022 | 3,520,646 | |||||
Beginning Balance at Dec. 31, 2022 | $ 79,030 | $ 12,699 | (15,996) | 13,448 | (2,088) | 70,967 |
Beginning Balance, shares at Dec. 31, 2022 | 3,538,179 | 3,538,179 | ||||
Net income | $ 990 | 990 | ||||
Other comprehensive income | 109 | 109 | ||||
Stock compensation expense | 424 | 424 | ||||
Distributions to shareholders | (497) | (497) | ||||
Issuance of common stock | 61 | $ 12 | 49 | |||
Issuance of common stock (shares) | 5,000 | |||||
Net share settlement of stock options | (1) | $ 6 | (7) | |||
Net share settlement of stock options, (shares) | 2,546 | |||||
Ending Balance at Mar. 31, 2023 | $ 80,116 | $ 12,717 | $ (15,996) | $ 13,914 | $ (1,979) | $ 71,460 |
Ending Balance, shares at Mar. 31, 2023 | 3,545,725 | 3,545,725 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 990 | $ 830 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 720 | 652 |
Amortization of intangible assets | 517 | 374 |
Non-cash lease adjustment | (12) | |
Stock compensation expense | 424 | 400 |
Provision for bad debt | 26 | |
Amortization of deferred financing costs | 9 | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (666) | (389) |
Inventories | 4,987 | (7,139) |
Prepaid expenses and other assets | (1,405) | (1,143) |
Accounts payable | 73 | 1,885 |
Other accrued liabilities | 2,013 | (955) |
Total adjustments | 6,686 | (6,309) |
Net cash provided by (used in) operating activities | 7,676 | (5,479) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (701) | (518) |
Net cash used in investing activities | (701) | (518) |
Cash flows from financing activities: | ||
Net borrowings of long-term debt | (9,787) | 7,114 |
Cash settlement of stock options | (108) | |
Repayments on mortgage | (101) | (98) |
Proceeds from issuance of common stock | 61 | |
Distributions to shareholders | (497) | (458) |
Net cash (used in) provided by financing activities | (10,324) | 6,450 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 13 | 11 |
Net change in cash, cash equivalents and restricted cash | (3,336) | 464 |
Cash, cash equivalents and restricted cash at beginning of period | 7,600 | 4,843 |
Cash, cash equivalents and restricted cash at end of period | 4,264 | 5,307 |
Supplemental cash flow information: | ||
Cash paid for income taxes | 122 | |
Cash paid for interest | $ 919 | $ 286 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying condensed consolidated financial statements include all adjustments necessary to present fairly the financial position, results of operations and cash flows of Acme United Corporation (the “Company”). These adjustments are of a normal, recurring nature. However, the financial statements do not include all the disclosures normally required by accounting principles generally accepted in the United States or those normally made in the Company's Annual Report on Form 10-K. Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for such disclosures. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in the Company’s 2022 Annual Report on Form 10-K. The Company has evaluated events and transactions subsequent to March 31, 2023 and through the date these condensed consolidated financial statements were issued. Recently Adopted Accounting Standards In June 2016 , the FASB issued ASU 2016 - 13, Financial Instruments-Credit Losses (“ASU 2016 - 13” ), which provides new authoritative guidance with respect to the measurement of credit losses on financial instruments. This update changes the impairment model for most financial assets and certain other instruments by introducing a current expected credit loss (“CECL”) model. The CECL model is a more forward-looking approach based on expected losses rather than incurred losses, requiring entities to estimate and record losses expected over the remaining contractual life of an asset. ASU 2016 - 13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for smaller reporting companies. The Company adopted ASU 2016-13 on January 1, 2023. The adoption did not have an impact on our condensed consolidated financial statements. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitment and Contingencies | 2. Commitment and Contingencies There are no pending material legal proceedings to which the Company is a party, or, to the actual knowledge of the Company, contemplated by any governmental authority. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 3 . Nature of Goods and Services The Company recognizes revenue from the sales of a broad line of products that are grouped into two main categories: (a) first aid and medical; and (b) cutting, sharpening and measuring. The cutting, sharpening and measuring category includes scissors, knives, paper trimmers, pencil sharpeners and other sharpening tools. The first aid and medical category includes first aid kits and refills, over-the-counter medications and a variety of medical products. Revenue recognition is evaluated through the following five steps: (i) identification of the contract or contracts with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. When Performance Obligations Are Satisfied A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue is generated by the sale of the Company’s products to its customers. Sales contracts (purchase orders) generally have a single performance obligation that is satisfied at a point in time, upon shipment or delivery, depending on the terms of the underlying contract. Revenue is measured based on the consideration specified in the contract. The amount of consideration we receive and revenue we recognize is impacted by incentives ("customer rebates"), including sales rebates, which are generally tied to sales volume levels, in-store promotional allowances, shared media and customer catalogue allowances and other cooperative advertising arrangements; freight allowance programs offered to our customers; and allowance for returns and discounts. We generally recognize customer rebate costs as a deduction to gross sales at the time that the associated revenue is recognized. Significant Payment Terms Payment terms for each customer are dependent on the agreed upon contractual repayment terms. Payment terms typically are between 30 and 90 days and vary depending on the size of the customer and its risk profile to the Company. Some customers receive discounts for early payment. Product Returns The Company accepts product returns in the normal course of business. The Company estimates reserves for returns and the related refunds to customers based on historical experience. Reserves for returned merchandise are included as a component of “Accounts receivable” in the condensed consolidated balance sheets. Practical Expedient Usage and Accounting Policy Elections For the Company’s contracts that have an original duration of one year or less, the Company uses the practical expedient in ASC 606-10-32-18 applicable to such contracts and does not consider the time value of money in relation to significant financing components. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements. Per ASC 606-10-25-18B, the Company has elected to account for shipping and handling activities that occur after the customer has obtained control as a fulfilment activity instead of a performance obligation. Furthermore, shipping and handling activities performed before transfer of control of the product also do not constitute a separate and distinct performance obligation. The effect of applying this practical expedient election did not have an impact on the Company’s condensed consolidated financial statements. The Company has elected to exclude from the transaction price those amounts which relate to sales and other taxes that are assessed by governmental authorities and that are imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from a customer. Applying the practical expedient in ASC 340-40-25-4, Other Assets and Deferred Costs, Disaggregation of Revenues The following table represents external net sales disaggregated by product category, by segment (amounts in thousands): For the three months ended March 31, 2023 United States Canada Europe Total Cutting, Sharpening and Measuring $ 14,083 $ 1,405 $ 3,361 $ 18,849 First Aid and Medical 24,770 1,852 367 26,989 Total Net Sales $ 38,853 $ 3,257 $ 3,728 $ 45,838 For the three months ended March 31, 2022 United States Canada Europe Total Cutting, Sharpening and Measuring $ 15,333 $ 1,593 $ 3,558 $ 20,484 First Aid and Medical 20,408 2,022 419 22,849 Total Net Sales $ 35,741 $ 3,615 $ 3,977 $ 43,333 |
Debt and Shareholders' Equity
Debt and Shareholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Debt [Abstract] | |
Debt Disclosure [Text Block] | 4. Debt and Shareholders’ Equity Long-term debt consists of (i) borrowings under the Company’s revolving loan agreement with HSBC Bank, N.A.(“HSBC”) and (ii) amounts outstanding under the fixed rate mortgage on the Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA. The revolving loan agreement provides for borrowings of up to $65 million at an interest rate of Secured Overnight Financing Rate (“SOFR”) plus 1.75%; interest is payable monthly. The credit facility has an expiration date of May 31, 2026. The Company must pay a facility fee, payable quarterly, in an amount equal to one eighth of one percent (.125%) per annum of the average daily unused portion of the revolving credit line. The facility is intended to provide liquidity for growth, share repurchases, dividends, acquisitions, and other business activities. Under the revolving loan agreement, the Company is required to maintain specific amounts of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year. On November 8, 2022, the revolving loan agreement was amended to increase the ratio of funded debt to EBITDA. The amendment is in effect for four quarters commencing in the third quarter of 2022 and includes an increase in the funded debt to EBITDA ratio for those four quarters ranging from a low of 4.75 to 1 to a high of 5.75 to 1. The amendment also increases the interest rate from SOFR +1.75% up to a high of SOFR + 2.35% on a basis that varies on a quarterly basis with the funded debt to EBITDA ratio. As of March 31, 2023, the Company was in compliance with the covenants under the revolving loan agreement, as amended. As of March 31, 2023 and December 31, 2022 , the Company had outstanding borrowings of $40,135,000 and $49,916,000 , respectively, under the Company’s revolving loan agreement with HSBC . The Company’s manufacturing and distribution facilities in Rocky Mount, NC and Vancouver, WA were financed by a fixed rate mortgage with HSBC at a fixed interest rate of 3.8%. The Company entered into the agreement on December 1, 2021. Commencing on January 1, 2022, payments of principal and interest are due monthly, with all amounts outstanding due on maturity on December 1, 2031. As of March 31, 2023 and December 31, 2022, long-term debt related to the mortgage consisted of the following (amounts in ‘000’s): March 31, 2023 December 31, 2022 Mortgage payable - HSBC Bank N.A. $ 11,133 $ 11,233 Less debt issuance costs (131 ) (134 ) 11,002 11,099 Less current maturities 405 405 Long-term mortgage payable less current maturities $ 10,597 $ 10,694 During the three months ended March 31, 2023, the Company issued a total of 5,000 shares of common stock and received aggregate proceeds of $61,350 upon exercise of employee stock options. Also, during the three months ended March 31, 2023, the Company issued 2,546 shares of common stock to optionees who had elected a net share settlement of certain of their respective options. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | 5. Segment Information The Company reports financial information based on the organizational structure used by the Company’s chief operating decision maker for making operating and investment decisions and for assessing performance. The Company’s reportable business segments consist of: (1) United States; (2) Canada; and (3) Europe. As described below, the activities of the Company’s Asian operations are closely linked to those of the U.S. operations; accordingly, the Company’s chief operating decision maker reviews the financial results of both, on a consolidated basis, and as such, the results of the Asian operations have been aggregated with the results of the United States operations to form one reportable segment called the “United States segment” or “U.S. segment”. Each reportable segment derives its revenue from the sales of first aid and medical products, cutting and sharpening devices and measuring instruments for school, office, home, hardware, sporting and industrial use. Domestic sales orders are filled primarily from the Company’s distribution centers in North Carolina, Washington, Massachusetts, Tennessee, Florida, New Hampshire and California. The Company is responsible for the costs of shipping, insurance, customs clearance, duties, storage and distribution related to such products. Orders filled from the Company’s inventory are generally for less than container-sized lots. Direct import sales are products sold by the Company’s Asian subsidiary, directly to major U.S. retailers, who take ownership of the products in Asia. These sales are completed by delivering products to the customers’ common carriers at the shipping points in Asia. Direct import sales are made in larger quantities than domestic sales, typically full containers. Direct import sales represented approximately 6% The chief operating decision maker evaluates the performance of each operating segment based on segment revenues and operating income. Segment revenues are defined as total revenues, including both external customer revenue and inter-segment revenue. Segment operating earnings are defined as segment revenues, less cost of goods sold and operating expenses. Identifiable assets by segment are those assets used in the respective reportable segment’s operations. Inter-segment amounts are eliminated to arrive at consolidated financial results. The following table sets forth certain financial data by segment for the three months ended March 31, 2023 and 2022: Financial data by segment: (in thousands) Three Months Ended March 31, Sales to external customers: 2023 2022 United States $ 38,853 $ 35,741 Canada 3,257 3,615 Europe 3,728 3,977 Consolidated $ 45,838 $ 43,333 Operating income: United States $ 1,781 $ 811 Canada 217 386 Europe 190 174 Consolidated $ 2,188 $ 1,371 Interest expense, net 902 305 Other income, net (23 ) (2 ) Consolidated income before income taxes $ 1,309 $ 1,068 Assets by segment: (in thousands) March 31, December 31, 2023 2022 United States $ 136,010 $ 144,466 Canada 10,720 9,078 Europe 10,738 10,833 Consolidated $ 157,468 $ 164,377 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 6. Stock Based Compensation The Company recognizes share-based compensation at the fair value of the equity instrument on the grant date. Compensation expense is recognized over the required service period, which is generally the vesting period of the equity instrument. Share-based compensation expense was approximately $424,000 for the three months ended March 31, 2023 compared to approximately $400,000 for the three months ended March 31, 2022. As of March 31, 2023, there was a total of $3,214,002 of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested share-based payments granted to the Company’s employees. As of that date, the remaining unamortized expense was expected to be recognized over a weighted average period of approximately three years. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements The carrying value of the Company’s bank debt is a reasonable estimate of fair value because of the nature of its payment terms and maturity. The Company’s contingent liability related to the acquisition of Safety Made is recorded at its fair value of approximately $1.4 million, of which $750,000 is recorded in other current liabilities and $630,000 is recorded in other non-current liabilities on the condensed consolidated balance sheet as of March 31, 2023. Changes in the fair value of the liability are recorded in earnings. There was an increase in the liability of $50,000 during the three month period ended March 31, 2023. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 8. Leases The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2026. Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Operating lease cost was $0.3 million for the three months ended March 31, 2023 and 2022, of which $0.1 million was included in cost of goods sold and $0.2 Information related to leases (in thousands): Three Months Ended Three Months Ended Operating cash flow information: March 31, 2023 March 31, 2022 Operating lease cost $ 334 $ 311 Operating lease - cash flow $ 346 $ 322 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ 341 $ 211 March 31, 2023 March 31, 2022 Weighted-average remaining lease term 3.0 years 3.0 years Weighted-average discount rate 5 % 5 % Future minimum lease payments under non-cancellable leases as of March 31, 2023: 2023 (remaining) $ 1,005 2024 1,041 2025 813 2026 165 Total future minimum lease payments $ 3,024 Less: imputed interest (180 ) Present value of lease liabilities - current 1,216 Present value of lease liabilities - non-current $ 1,628 |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities | 9. Other Accrued Liabilities Other current and non-current accrued liabilities consisted of (in thousands): March 31, December 31, 2023 2022 Customer rebates $ 5,972 $ 5,534 Contingent liability - Safety Made 1,380 1,330 Accrued compensation 1,556 791 Dividend payable 496 495 Income tax payable 776 534 Other 2,288 2,016 Total: $ 12,469 $ 10,700 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Mar. 31, 2023 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | 10. Cash, Cash Equivalents and Restricted Cash (in thousands): March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,764 $ 6,100 Restricted Cash - current 750 750 Restricted Cash - non-current 750 750 Total cash, cash equivalents and restricted cash $ 4,264 $ 7,600 Restricted cash, which is reported within other short-term and long term assets in the condensed consolidated balance sheets consists of the contingent payment held in escrow related to the acquisition of Safety Made. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 11. Intangible Assets and Goodwill The Company’s intangible assets and goodwill consisted of (in thousands): March 31, December 31, 2023 2022 Tradename $ 10,008 $ 10,008 Customer list 18,502 18,502 Non-compete 1,248 1,248 Slice license agreement 380 380 Patents 2,272 2,272 Subtotal 32,409 32,409 Less: Accumulated amortization 12,136 11,619 Intangible assets $ 20,273 $ 20,790 Goodwill $ 8,189 $ 8,189 Total: $ 28,462 $ 28,979 The useful lives of the identifiable intangible assets range from 5 years to 15 years. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 12. Inventories Inventories consisted of (in thousands): March 31, December 31, 2023 2022 Finished goods $ 41,187 $ 45,371 Work in process 334 408 Materials and supplies 16,967 17,546 $ 58,488 $ 63,325 Inventories are stated at the lower of cost or net realizable value, determined by the first-in, first-out method. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenues | The following table represents external net sales disaggregated by product category, by segment (amounts in thousands): For the three months ended March 31, 2023 United States Canada Europe Total Cutting, Sharpening and Measuring $ 14,083 $ 1,405 $ 3,361 $ 18,849 First Aid and Medical 24,770 1,852 367 26,989 Total Net Sales $ 38,853 $ 3,257 $ 3,728 $ 45,838 For the three months ended March 31, 2022 United States Canada Europe Total Cutting, Sharpening and Measuring $ 15,333 $ 1,593 $ 3,558 $ 20,484 First Aid and Medical 20,408 2,022 419 22,849 Total Net Sales $ 35,741 $ 3,615 $ 3,977 $ 43,333 |
Debt and Shareholders' Equity (
Debt and Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Long Term Debt And Stockholders Equity [Abstract] | |
Schedule of Long-Term Debt | As of March 31, 2023 and December 31, 2022, long-term debt related to the mortgage consisted of the following (amounts in ‘000’s): March 31, 2023 December 31, 2022 Mortgage payable - HSBC Bank N.A. $ 11,133 $ 11,233 Less debt issuance costs (131 ) (134 ) 11,002 11,099 Less current maturities 405 405 Long-term mortgage payable less current maturities $ 10,597 $ 10,694 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Information Tables [Abstract] | |
Financial Data By Segment Table | The following table sets forth certain financial data by segment for the three months ended March 31, 2023 and 2022: Financial data by segment: (in thousands) Three Months Ended March 31, Sales to external customers: 2023 2022 United States $ 38,853 $ 35,741 Canada 3,257 3,615 Europe 3,728 3,977 Consolidated $ 45,838 $ 43,333 Operating income: United States $ 1,781 $ 811 Canada 217 386 Europe 190 174 Consolidated $ 2,188 $ 1,371 Interest expense, net 902 305 Other income, net (23 ) (2 ) Consolidated income before income taxes $ 1,309 $ 1,068 Assets by segment: (in thousands) March 31, December 31, 2023 2022 United States $ 136,010 $ 144,466 Canada 10,720 9,078 Europe 10,738 10,833 Consolidated $ 157,468 $ 164,377 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases Tables [Abstract] | |
Information Related to Leases | Information related to leases (in thousands): Three Months Ended Three Months Ended Operating cash flow information: March 31, 2023 March 31, 2022 Operating lease cost $ 334 $ 311 Operating lease - cash flow $ 346 $ 322 Non-cash activity: ROU assets obtained in exchange for lease liabilities $ 341 $ 211 March 31, 2023 March 31, 2022 Weighted-average remaining lease term 3.0 years 3.0 years Weighted-average discount rate 5 % 5 % |
Future Minimum Lease Payments | Future minimum lease payments under non-cancellable leases as of March 31, 2023: 2023 (remaining) $ 1,005 2024 1,041 2025 813 2026 165 Total future minimum lease payments $ 3,024 Less: imputed interest (180 ) Present value of lease liabilities - current 1,216 Present value of lease liabilities - non-current $ 1,628 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Other current and non-current accrued liabilities consisted of (in thousands): March 31, December 31, 2023 2022 Customer rebates $ 5,972 $ 5,534 Contingent liability - Safety Made 1,380 1,330 Accrued compensation 1,556 791 Dividend payable 496 495 Income tax payable 776 534 Other 2,288 2,016 Total: $ 12,469 $ 10,700 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents and Restricted Cash | March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,764 $ 6,100 Restricted Cash - current 750 750 Restricted Cash - non-current 750 750 Total cash, cash equivalents and restricted cash $ 4,264 $ 7,600 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | The Company’s intangible assets and goodwill consisted of (in thousands): March 31, December 31, 2023 2022 Tradename $ 10,008 $ 10,008 Customer list 18,502 18,502 Non-compete 1,248 1,248 Slice license agreement 380 380 Patents 2,272 2,272 Subtotal 32,409 32,409 Less: Accumulated amortization 12,136 11,619 Intangible assets $ 20,273 $ 20,790 Goodwill $ 8,189 $ 8,189 Total: $ 28,462 $ 28,979 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of (in thousands): March 31, December 31, 2023 2022 Finished goods $ 41,187 $ 45,371 Work in process 334 408 Materials and supplies 16,967 17,546 $ 58,488 $ 63,325 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net sales | $ 45,838 | $ 43,333 |
Cutting, Sharpening and Measuring | ||
Net sales | 18,849 | 20,484 |
First Aid and Medical | ||
Net sales | 26,989 | 22,849 |
United States | ||
Net sales | 38,853 | 35,741 |
United States | Cutting, Sharpening and Measuring | ||
Net sales | 14,083 | 15,333 |
United States | First Aid and Medical | ||
Net sales | 24,770 | 20,408 |
Canada | ||
Net sales | 3,257 | 3,615 |
Canada | Cutting, Sharpening and Measuring | ||
Net sales | 1,405 | 1,593 |
Canada | First Aid and Medical | ||
Net sales | 1,852 | 2,022 |
Europe | ||
Net sales | 3,728 | 3,977 |
Europe | Cutting, Sharpening and Measuring | ||
Net sales | 3,361 | 3,558 |
Europe | First Aid and Medical | ||
Net sales | $ 367 | $ 419 |
Debt and Shareholders' Equity_2
Debt and Shareholders' Equity (Details Narrative) | 3 Months Ended | ||
Nov. 08, 2022 | Mar. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | |
Long Term Debt And Stockholders Equity [Line Items] | |||
Aggregate proceeds from exercise of employee stock options | $ 61,350 | ||
Common Stock | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Issuance of common stock (shares) | shares | 5,000 | ||
Stock issued during period shares new issues related to net share settlement | shares | 2,546 | ||
Maximum | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Credit facility interest rate | SOFR + 2.35% | ||
Increased ratio of funded debt to EBITDA | 5.75 | ||
Minimum | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Credit facility interest rate | SOFR +1.75% | ||
Increased ratio of funded debt to EBITDA | 4.75 | ||
Revolving Credit Facility | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Credit facility interest rate | Secured Overnight Financing Rate (“SOFR”) plus 1.75% | ||
Revolving agreement expiration date | May 31, 2026 | ||
Facility fee per annum | 0.125% | ||
Outstanding borrowings under revolving loan agreement | $ 40,135,000 | $ 49,916,000 | |
Revolving Credit Facility | Maximum | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Credit facility borrowing capacity | $ 65,000,000 | ||
Revolving Credit Facility | Secured Overnight Financing Rate (?SOFR?) | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Interest rate | 1.75% | ||
First Aid Only Distribution Center | |||
Long Term Debt And Stockholders Equity [Line Items] | |||
Covenant terms and compliance | Under the revolving loan agreement, the Company is required to maintain specific amounts of funded debt to EBITDA, a fixed charge coverage ratio and must have annual net income greater than $0, measured as of the end of each fiscal year | ||
Fixed interest rate | 3.80% | ||
Mortgage maturity date | December 1, 2031 |
Debt and Shareholders' Equity -
Debt and Shareholders' Equity - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 40,135 | $ 49,916 |
Mortgage Payable - HSBC Bank N.A. | ||
Debt Instrument [Line Items] | ||
Mortgage payable - HSBC Bank N.A. | 11,133 | 11,233 |
Less debt issuance costs | (131) | (134) |
Long-term mortgage payable | 11,002 | 11,099 |
Less current maturities | 405 | 405 |
Long-term debt | $ 10,597 | $ 10,694 |
Segment Information (Details Na
Segment Information (Details Narrative) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Information Details Narrative [Abstract] | ||
Direct import sales to total net sales ratio | 6% | 6% |
Segment Information - Financial
Segment Information - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Sales to external customers | $ 45,838 | $ 43,333 | |
Operating income | 2,188 | 1,371 | |
Interest expense, net | 902 | 305 | |
Other income, net | (23) | (2) | |
Consolidated income before income taxes | 1,309 | 1,068 | |
Assets | 157,468 | $ 164,377 | |
United States Segment | |||
Sales to external customers | 38,853 | 35,741 | |
Operating income | 1,781 | 811 | |
Assets | 136,010 | 144,466 | |
Canada Segment | |||
Sales to external customers | 3,257 | 3,615 | |
Operating income | 217 | 386 | |
Assets | 10,720 | 9,078 | |
Europe Segment | |||
Sales to external customers | 3,728 | 3,977 | |
Operating income | 190 | $ 174 | |
Assets | $ 10,738 | $ 10,833 |
Stock Based Compensation (Detai
Stock Based Compensation (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Share-based compensation expense | $ 424,000 | $ 400,000 |
Unrecognized compensation cost | $ 3,214,002 | |
Unrecognized compensation cost recognition period | 3 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Business acquisition, contingent liability | $ 1,400,000 |
Increase in fair value liability | 50,000 |
Other Current Liabilities | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Business acquisition, contingent liability | 750,000 |
Other Noncurrent Liabilities | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Business acquisition, contingent liability | $ 630,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Lessee Lease Description [Line Items] | ||
Operating lease expense | $ 0.3 | $ 0.3 |
Cost of Goods Sold | ||
Lessee Lease Description [Line Items] | ||
Operating lease expense | 0.1 | 0.1 |
Selling, General and Administrative Expenses | ||
Lessee Lease Description [Line Items] | ||
Operating lease expense | $ 0.2 | $ 0.2 |
Leases - Information Related to
Leases - Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases Details [Abstract] | ||
Operating lease cost | $ 334 | $ 311 |
Operating lease - cash flow | 346 | 322 |
ROU assets obtained in exchange for lease liabilities | $ 341 | $ 211 |
Weighted-average remaining lease term | 3 years | 3 years |
Weighted-average discount rate | 5% | 5% |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Future Minimum Lease Payments: | ||
2023 (remaining) | $ 1,005 | |
2024 | 1,041 | |
2025 | 813 | |
2026 | 165 | |
Total future minimum lease payments | 3,024 | |
Less: imputed interest | (180) | |
Present value of lease liabilities - current | 1,216 | $ 1,130 |
Present value of lease liabilities - non-current | $ 1,628 | $ 1,683 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables And Accruals [Abstract] | ||
Customer rebates | $ 5,972 | $ 5,534 |
Contingent liability - Safety Made | 1,380 | 1,330 |
Accrued compensation | 1,556 | 791 |
Dividend payable | 496 | 495 |
Income tax payable | 776 | 534 |
Other | 2,288 | 2,016 |
Total: | $ 12,469 | $ 10,700 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Summary of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 2,764 | $ 6,100 | ||
Restricted cash | 750 | 750 | ||
Restricted Cash - non-current | 750 | 750 | ||
Total cash, cash equivalents and restricted cash | $ 4,264 | $ 7,600 | $ 5,307 | $ 4,843 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Tradename | $ 10,008 | $ 10,008 |
Customer list | 18,502 | 18,502 |
Non-compete | 1,248 | 1,248 |
Slice license agreement | 380 | 380 |
Patents | 2,272 | 2,272 |
Subtotal | 32,409 | 32,409 |
Less: Accumulated amortization | 12,136 | 11,619 |
Intangible assets | 20,273 | 20,790 |
Goodwill | 8,189 | 8,189 |
Total: | $ 28,462 | $ 28,979 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Details Narrative) | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Finite Lived Intangible Assets [Line Items] | |
Identifiable intangible assets, useful lives | 5 years |
Maximum | |
Finite Lived Intangible Assets [Line Items] | |
Identifiable intangible assets, useful lives | 15 years |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 41,187 | $ 45,371 |
Work in process | 334 | 408 |
Materials and supplies | 16,967 | 17,546 |
Inventories | $ 58,488 | $ 63,325 |