Wed, May 7, 8:02 PM (4 days ago)
**ACME UNITED CORPORATION (ACU, NYSE American)** **Q1 2025 Financial Performance Summary** **Revenue and Profit Margins:** - Q1 2025 revenue increased by 2% to $45,958,000 from $44,956,000 in Q1 2024. - Gross profit margin was 39.0% in Q1 2025, up from 38.7% in Q1 2024. - Operating income decreased by 5.2% to $2,426,000 from $2,558,000 in the prior year. - Net income was $1,653,000, a slight increase from $1,636,000 in Q1 2024. **Cash Flow:** - Net cash used in operating activities was $(3,337,000) in Q1 2025, compared to $(10,168,000) in Q1 2024. - Net cash provided by financing activities was $1,691,000, down from $9,510,000 in the prior year. - Net change in cash and cash equivalents was $(2,953,000), with cash ending at $3,446,000. **Earnings Changes:** - Basic earnings per share (EPS) were $0.44, down from $0.45 in Q1 2024. - Diluted EPS was $0.41, up from $0.39 in the prior year. **Segment Performance:** - U.S. segment revenue increased by 3%, driven by higher sales of first aid and medical products. - Canadian segment revenue increased by 5% in USD and 12% in local currency. - European segment revenue decreased by 7% in USD and 4% in local currency due to a large promotion in Q1 2024 that did not repeat. **Financial Condition and Future Operations:** - Working capital increased by $4.2 million, with a current ratio of 4.83. - Long-term debt to equity ratio was 27.9%, up from 25.7% in Q4 2024. - The company expects to mitigate tariff impacts through strategic sourcing and price adjustments. - Management identified a material weakness in IT general controls, which is expected to be remediated by the end of 2025. **Uncertainties:** - Tariffs on Chinese goods and global economic conditions pose risks. - Supply chain disruptions and labor costs are ongoing concerns. - The company faces competition and technological changes, particularly in online marketing and sales.