Investor Presentation - Acme United Corporation

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(NYSE American: ACU) Investor Presentation September 2020

Transcript of Investor Presentation - Acme United Corporation

Page 1: Investor Presentation - Acme United Corporation

(NYSE American: ACU)

Investor PresentationSeptember 2020

Page 2: Investor Presentation - Acme United Corporation

Forward-looking statements in this presentation, including without limitation, statements related tothe Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, aremade 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 uncertaintiesincluding the impact that the global COVID-19 pandemic has had and will continue to have on theCompany’s business, operations and financial results. These risks and uncertainties further include,without limitation, the following: (i) changes in the Company’s plans, strategies, objectives,expectations and intentions, which may be made at any time at the discretion of the Company; (ii)the impact of uncertainties in global economic conditions, including the impact on the Company’ssuppliers and customers; (iii) changes in client needs and consumer spending habits; (iv) the impactof competition, (v) the impact of technological changes including specifically the growth of onlinemarketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including itsability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectivelymanage its inventory in a rapidly changing business environment; (viii) currency fluctuations; (ix)international trade policies and their impact on demand for our products and our competitiveposition, including the imposition of new tariffs or changes in existing tariff rates; and (x) other risksand uncertainties indicated from time to time in the Company’s filings with the Securities andExchange Commission.

Safe Harbor Statement

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Page 3: Investor Presentation - Acme United Corporation

NYSE American: ACU

Leader in innovative safety solutions and cutting technology

On track for 10th consecutive year of record sales

Driving growth through innovation

Premier and diversified customer base

Successful history of acquisitions

Strong balance sheet enhances ability to take advantage of opportunities

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Corporate Overview▪ Growth fueled by a combination of brands, technology and expanding distribution

▪ Successful series of opportunistic acquisitions in two adjacent areas over 50 years

▪ Leverage growth through shared technologies, cross-brand collaboration and cross-selling that drive value across ACU’s platform

20111995 2000

First Aid Kits

Industrial First Aid

Firs

t Aid

& S

afe

ty

AcmeMedical

Instruments & Packs

Founded 1867

2014

Industrial First Aid

2017

Industrial Safety

1995

Scissors &

Rulers

Industrial Shears

Knives

Cuttin

g S

olu

tions

Titanium coating begins

2002 2004 2007 2012 2015

Rulers

2016

Fishing Tools

Sharpeners

2020

Personal & Industrial First Aid

Cohesive Shared Customer Base

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Acquisition of First Aid Central

▪ Canadian first aid & safety supplier acquired in January 2020

▪ Complete line of first aid kits, refills & safety products for a broad range of customers

▪ Expanded ACU’s distribution capabilities, product offerings and online presence

▪ 2019 revenues of C$4.3 million

▪ Acquisition accretive to date in 2020

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Impact of COVID-19▪ Shipping record levels of a wide array of products

▪ Fishing tools, hunting knives, craft scissors, sharpening tools, first aid & safety products

▪ Operating safely throughout the pandemic

▪ Managing challenges of worldwide supply chain

▪ Operating domestic and international production and distribution centers

▪ Sales and office associates successfully working remotely

▪ Developing new products to meet customers’ new needs

▪ Improving content online and enhancing online search and contact capabilities

▪ Expanding workforce to meet demand

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Acme United International Footprint

China:• Guangzhou: Engineering,

quality control, logistics• Yang Jiang: Production • Ningbo: Quality control,

logistics

Hong Kong• HQ of Acme United (Asia

Pacific)

Canada• Toronto, ON: HQ• Mt. Forest, ON:

Distribution center• Laval, QC: First Aid

Central production

Europe• Solingen, GY: HQ and distribution

United States

• Vancouver, WA: First Aid production

• Santa Ana, CA: Spill Magic production

• Rocky Mount, NC: Distribution center

• Smyrna, TN: Spill Magic production

• Fairfield, CT: Corporate HQ

• Marlboro, MA: DMT production

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Expanding Distribution

Diversified distribution network;strong growth in e-commerce channel

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Hardware, Industrial

6%

Office59%

Sporting Goods

1%

Mass Market33%

E-Commerce1%

2010

Hardware, Industrial

32%

Office16%Sporting

Goods3%

Mass Market33%

E-Commerce16%

1H 2020

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Financial Results

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Net Sales

$ Millions

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On track for tenth consecutive year of record sales in 2020, driven by new products and market share gains

73.384.4

89.6

107.2 109.8

124.6130.6

137.3 142.5

79.8

$0

$18

$36

$54

$72

$90

$108

$126

$144

2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20

+11%

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EBITDA

$5.3

$6.4$7.05

$9.0$9.2

$10.8 $10.7 $10.6

$11.8

$8.1

$0

$2

$4

$6

$8

$10

$12

$14

2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20

$ Millions

Strong and growing EBITDA

11

+16%

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Net Income

$2.8$3.5

$4.0

$4.8 $4.8

$5.9$5.3

$4.6

$5.5

$4.5

$0

$1

$2

$3

$4

$5

$6

$7

2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20

+29%

$ Millions

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Earnings Per Share

0.911.13

1.221.36 1.3

1.64

1.421.3

1.6

1.28

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

$2.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 1H20

+27%

EPS on record-setting pace in 1H 2020

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Dividend History

$0.26$0.28

$0.31

$0.34$0.37

$0.40$0.43

$0.44

$0.48

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

2011 2012 2013 2014 2015 2016 2017 2018 2019

Strong and consistent dividend growth

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Dividends Per Share

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Focus on Innovation

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Smart Compliance Complete

▪ Physical safety solution pairs with virtual SafetyHub

▪ Complete safety solution center

▪ Preparing for advancements in IoT

▪ Push-to-open feature

▪ Gaining placement at major industrial sites

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SafetyHub App Overview

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▪ Fast, easy way to requisition and manage safety items

▪ Set push notifications to check cabinet, perform physical inventory and establish annual budgets

▪ Creates an OSHA log and ensures compliance

▪ Manages facility items that need to be replenished, serviced or calibrated

▪ SmartData provides business intelligence and benchmarks consumption

Targeting $700MM Van Service Market

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Glide Technology Scissor Expansion▪ Cascade technology down to

mid-tier scissors

▪ Westcott tradition of first-to-market innovations

▪ Glide first mechanical technology in 50+ years

▪ Composite fulcrum and patent-pending utility patent available across premium cutting technologies

▪ Adjustable tension for cutting materials or user preference

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No tool adjustment

Low friction proprietary fulcrum

Adjustable tension

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Specialized Ceramic Cutters

▪ Continue penetration into industrial cutting

▪ Multi-depth settings

▪ Premium features and retail price points

▪ Sliding handle, utility patent pending

▪ Rear depth dial, utility patent pending

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Guide cuts tops off boxes

Sliding handle

General purpose cutter

Dial-in depth setting

Multi position depth

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Craft Market Expansion

Trade up the customer with unique technologies

Improve profitability with uniqueness and innovation

Improve customer loyalty

Build-the-basket with coordinated colors and patterns

Expand into adjacent product categories

▪ Continue the strong growth in Sewing and Paper Crafting categories

▪ Leverage retail partnerships for growth in office and BTS

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DMT Sharpeners

Highest concentration of diamonds

Most consistent diamond dispersion

Flattest sharpening surface

World’s finest sharpeners

▪ Best hand tools for sharpening in the industry

▪ Expanding in the home and culinary markets

▪ Strong performance in 1H 2020

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Oversize Bow

▪ Black titanium blades

▪ Serrated carbide edge for superior edge retention

▪ Oversized bows for leverage and comfort

▪ Knife edges for precision cutting

▪ Available in 8”, 9”, and 10”

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Growth Drivers

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Growth Drivers - First Aid & Safety

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▪ New first aid programs at large industrial, food service and other distributors

▪ Growing refill business

▪ Acquisition of First Aid Central in January 2020

▪ Expanding product placement of Spill Magic

▪ Cross sell all safety products into customer base

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Growth Drivers - Cutting

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▪ Leverage technologies

▪ Patented titanium-nitride coatings

▪ Proprietary non-stick coatings

▪ Safety cutting tools with ceramic blades

▪ Antimicrobial plastics for school and office

▪ Enhanced carbonitride-titanium industrial tools

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Financial Goals▪ Generate solid revenue growth

▪ Drive e-commerce

▪ Continue developing and introducing new products

▪ Increasing inventory to reduce supply chain risk and take advantage of opportunities

▪ Drive ongoing profits and reduce debt to fund future acquisitions and growth

▪ Continue ACU’s history of regularly increasing dividends

▪ Seek additional tuck-in acquisitions

Acme United is well positioned to deliver strong financial results and long-term growth

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Company ContactWalter Johnsen, Chairman & [email protected]

Investor RelationsHarriet Fried, [email protected]