Acme United Corporation (ACU) Q4 2024 Earnings Report

Summary of key quarterly and annual metrics with context:
- Q4 2024 revenue: $45.93 million, up ~9.5–10% YoY from $41.93 million in Q4 2023. QoQ change not disclosed in the release, but quarterly data show sequential strength in main segments.
- Q4 2024 gross margin: 38.7%, slightly below Q4 2023 (39.1%), reflecting ongoing input costs and product mix dynamics while productivity gains buffered margin erosion.
- Full-year 2024 revenue: $194.5 million, up 2% year over year. Excluding the Camillus/CUDA dispositions (sold in late 2023), 2024 sales rose ~6%, driven by market share gains in First Aid and Westcott/DMT categories.
- Full-year 2024 gross margin: 39.3%, up from 37.7% in 2023, aided by productivity improvements in manufacturing and distribution.
- SG&A: Q4 2024 SG&A was $15.5 million (34% of sales), unchanged on a rate basis versus Q4 2023. Full-year SG&A was $62 million (32% of sales) vs $59 million (31% of sales) in 2023, reflecting investments to support growth alongside inflationary pressures.
- Interest expense: 2024 interest expense declined to $1.9 million from $3.0 million in 2023, driven by lower average debt.
- Net income and EPS: Q4 2024 net income was $1.71 million ($0.41 diluted EPS). The year ended December 31, 2024 produced net income of $10.0 million and diluted EPS of $2.45, vs. $8.1 million and $2.23 in 2023.
- Cash flow: Net cash provided by operating activities was $6.37 million; free cash flow was $4.67 million. Cash at period-end was $6.40 million. The company generated meaningful free cash flow despite ongoing capital investments and acquisitions.
- Balance sheet and leverage: Total assets $162.17 million; total debt $32.40 million; net debt around $26.01 million; cash and cash equivalents $6.40 million; current ratio 4.17 and quick ratio 1.71, indicating strong near-term liquidity. The company maintained a robust equity base with total stockholders’ equity of $106.98 million.
- Cash usage and investments: Over the twelve months, Acme acquired the assets of a lease First Aid operation for $6.1 million, paid $2.2 million in dividends, and generated approximately $5 million in free cash flow. Capex was about $1.70 million for the period, with acquisitions contributing to growth.
- Market valuation signals: Price to earnings around 22.8x, price-to-sales ~3.39x, price-to-book ~1.46x, dividend yield ~0.36%. Enterprise value metrics imply a balanced risk-reward profile given the growth drivers and near-term tariff exposure.