Market Newsdesk

Boston, April 19, 2021 (GLOBE NEWSWIRE) — Duck Creek Technologies (Nasdaq: DCT) announced today that it has expanded its Partner Ecosystem program through a new relationship with CARFAX, owner of the world’s largest vehicle history database and provider of crucial vehicle history data to 23 of the top 25 largest auto insurers. The company’s predictive information is now integrated with the Duck Creek Platform, helping insurance carriers attract and retain the best customers while avoiding losses.

“CARFAX data helps insurers measure road exposure  and avoid losses with predictive information,” said Dan Hill, National Sales Director in the CARFAX Banking & Insurance Group. “Duck Creek’s customers need the most accurate information possible to make informed underwriting decisions. Our studies show that using registration type and length of ownership in rating can produce a 7-point lower loss ratio, and we look forward to working with Duck Creek to help insurers reduce risk with better data.”

CARFAX data is beneficial for commercial auto as well as personal auto coverage, and all of it undergoes rigorous quality assurance testing to improve accuracy and eliminate duplicate or irrelevant records. Duck Creek customers now have access to CARFAX data through an Anywhere Enabled Integration available on Duck Creek’s Content Exchange. Plus, CARFAX has a team of experienced actuaries ready to assist with data evaluation and implementation at no charge.

“Providing competitive pricing is vitally important to P&C carriers, perhaps nowhere more than in auto insurance lines, and the largest and highest-quality data set available is necessary for the underwriting decisions that make that pricing possible,” said Elizabeth Del Ferro, Vice President, Partner GTM at Duck Creek Technologies. “CARFAX offers personal and commercial auto insurers an unparalleled quantity and quality of actionable data that can provide a distinct competitive advantage, and Duck Creek is thrilled to welcome them into our rapidly-growing partner ecosystem.”

About CARFAX

CARFAX, a part of IHS Markit (NYSE: INFO), is the vehicle history expert for used car buyers, sellers, lenders, insurers and the automotive industry. With over 25 billion records, CARFAX has the most accident and damage information. CARFAX has vehicle history data on all used cars and light/ medium trucks model year 1981 or newer and has over 112,000 data sources including government, public, and corporate sources. CARFAX provides the data insurance carriers value in their underwriting and rating processes, helping them attract and retain more of their target insurance customers. To learn more about the CARFAX Banking & Insurance Group, visit www.CarfaxForInsurers.com or call 800-789-6232.

About Duck Creek

Duck Creek Technologies (Nasdaq: DCT) is a leading provider of core system solutions to the P&C and General insurance industry. By accessing Duck Creek OnDemand, the company’s enterprise Software-as-a-Service solution, insurance carriers are able to navigate uncertainty and capture market opportunities faster than their competitors. Duck Creek’s functionally-rich solutions are available on a standalone basis or as a full suite, and all are available via Duck Creek OnDemand. For more information, visit www.duckcreek.com.

Media Contact:
Paul Rechichi
Racepoint Global
617-624-3295
[email protected]

Sam A. Shay
Duck Creek Technologies
+1 (857) 201-5784
[email protected]

FAYETTEVILLE, Ark., April 19, 2021 (GLOBE NEWSWIRE) — White River Bancshares Company (OTCQX: WRIV), (the “Company”) the holding company for Signature Bank of Arkansas (the “Bank”), today reported net income increased 23.0% to $1.55 million, or $1.60 per diluted share, in the first quarter of 2021, compared to $1.26 million, or $1.30 per diluted share, in the fourth quarter of 2020 and increased 109.1% compared to $742,000, or $0.77 per diluted share, in the first quarter of 2020. All financial results are unaudited.

“We produced record results for the first quarter of 2021, with strong top and bottom-line revenue growth, double digit loan and deposit growth and an improving net interest margin, compared to the first quarter a year ago,” said Gary Head, President and Chief Executive Officer. “Despite the ongoing challenges created by the COVID-19 pandemic, and the related economic conditions, we made progress in several areas of the business, as we continued to support our customers, communities and employees. We are proud of our team and their accomplishments, as it is the investment in our people that drives our success.”

“Deposit balances ended the quarter at record levels, with a second round of Paycheck Protection Program (“PPP”) loans and two additional federal stimulus payments contributing to strong quarterly deposit growth,” said Scott Sandlin, Chief Strategy Officer. “The investment we have made in our digital platform is helping us grow new client relationships and gather low-cost deposits. Additionally, we continue to lower the cost of deposits by bringing in more business and personal checking accounts and reducing our reliance on higher-cost CDs.”

“From the beginning of the pandemic, we were active with our customers in the PPP offered through the Small Business Administration (“SBA”),” said Brant Ward, Chief Operating Officer. “After the SBA’s first round of the PPP concluded on August 8, 2020, we originated $20.7 million in PPP loans, helping 274 local businesses in our markets in Arkansas. The first round of PPP generated total PPP loan fees receivable of approximately $680,000. As of March 31, 2021, we have received payment from the SBA for 166 borrowers totaling $7.8 million.”

“On December 27, 2020, additional COVID-19 stimulus relief was signed into law that allowed for a further round of PPP lending,” Ward continued. “The program offered new PPP loans for companies that did not receive PPP funds in 2020 in addition to a second draw loan targeted at hard-hit businesses that had already used their initial PPP proceeds. We immediately began helping our customers with this second round of PPP lending during the first quarter of 2021, and, at March 31, 2021, we had originated $7.7 million in new PPP loans during this second round of funding. Approximately $402,000 of the income recognized during the first quarter of 2021 was related to origination fees from these second round PPP loans. We will continue to help our customers until the program concludes at the end of May.”

“In addition to PPP loans, we added additional programs to support our customers experiencing financial hardship as a result of the pandemic. These assistances included payment forbearance agreements with some customers for periods of up to six months. At the peak of our assistance, at June 30, 2020, we had deferred payment on 120 loans totaling $79.7 million. As of March 31, 2021, only 9 loans totaling $1.8 million were still in deferral,” said Jeff Maland, Chief Risk Officer. “We are optimistic about the underlying quality of deferred loans, as most are longtime customer relationships who carry a strong guarantor support. Additionally, we feel the loan portfolio is well positioned to handle any future economic impact from the pandemic, with less than 1% of the total portfolio in hotels, restaurants, and energy loans as of the end of the first quarter.”

The table below presents selected information on loans that remained on COVID-19 deferrals at the periods indicated.

	% of Total Loan Portfolio			Deferred Loan Balance			Number of Loans
				(In thousands)
June 30, 2020	14.25	%		$	79,691		120
September 30, 2020	2.05				12,003		28
December 31, 2020	0.31				1,915		12
March 31, 2021	0.28				1,836		9

First Quarter 2021 Financial Highlights:

• First quarter net income increased 109.1% to $1.55 million, or $1.60 per diluted share, compared to $742,000, or $0.77 per diluted share, in the first quarter of 2020.
• There was no provision for loan losses in the first quarter. This compares to a $458,000 provision in the preceding quarter and $677,000 provision in the first quarter of 2020.
• First quarter net interest margin (“NIM”) improved to 3.82%, compared to 3.50% in the preceding quarter and 3.64% in the first quarter a year ago.
• Net loans increased 13.8% to $635.0 million at March 31, 2021, compared to $558.2 million at March 31, 2020.
• Total deposits increased 15.3% to $682.6 million at March 31, 2021, compared to $592.1 million a year ago.
• Non-interest-bearing deposits increased 58.3% to $189.0 million at March 31, 2021, compared to $119.4 million a year ago.
• Nonperforming assets were almost nil, or 0.00% of total assets, at March 31, 2021, and at December 31, 2020. This compares to nonperforming assets of $1.5 million, or 0.21% of total assets, at March 31, 2020.
• Book value per common share increased to $77.63 at March 31, 2021, from $72.25 a year ago.
• Total risk-based capital ratio was 12.95% and Tier 1 leverage ratio was 10.90% for the Bank at March 31, 2021.

Income Statement

The Company’s net interest margin was 3.82% in the first quarter of 2021, an 18-basis point improvement compared to 3.64% in the first quarter of 2020, and a 32 basis point improvement compared to 3.50% in the prior quarter.

First quarter net interest income was $7.0 million, compared to $6.0 million in the first quarter of 2020. Total interest income remained relatively unchanged at $8.2 million in the first quarter of 2021, from the first quarter of 2020. Total interest expense decreased by 41.4% to $1.3 million in the first quarter of 2021, from $2.2 million during the first quarter of 2020.  

Non-interest income increased 62.3% to $1.7 million in the first quarter of 2021, compared to $1.1 million in the first quarter a year ago. The Company benefitted from higher wealth management fee income and substantially higher secondary market fee income compared to the first quarter in the prior year.

Non-interest expense increased to $6.6 million in the first quarter of 2021, compared to $5.4 million in the first quarter of 2020. Higher professional services related to a one-time expense associated with a conversion fee for digital, core and EFT platforms contributed to the increase during the first quarter of 2021. Higher salaries and benefits also contributed to the increase compared to a year ago.

Balance Sheet Review

Total assets increased by 13.3% to $806.0 million at March 31, 2021, from $711.6 million at March 31, 2020, and increased 7.5% compared to $749.9 million at December 31, 2020. Cash and cash equivalents increased to $60.8 million at March 31, 2021 from $53.3 million a year ago. Investment securities increased to $68.9 million at March 31, 2021 from $64.2 million a year ago.

Loans, net of allowance for loan losses, increased 13.8% to $635.0 million at March 31, 2021, compared to $558.2 million a year ago, and increased 4.4% compared to $608.4 million three months earlier.   Through the close of the first round of the program on August 8, 2020, the Bank had funded approximately 274 PPP loans totaling $20.7 million to both existing and new customers. As of March 31, 2021, $11.0 million in PPP loans from round one, and $7.7 million in new PPP loans from round two, remained on the books.

Deposit balances remained at record levels, with a second round of PPP and two additional federal stimulus payments contributing to strong quarterly deposit growth. Total deposits increased 15.3% to $682.6 million at March 31, 2021, compared to $592.1 million a year ago and increased 8.7% compared to $627.8 million at December 31, 2020, with non-interest bearing deposits increasing 58.3% to $189.0 million at March 31, 2021, compared to $119.4 million a year ago.

FHLB advances totaled $17.0 million at March 31, 2021 from $19.9 million at March 31, 2020. Total stockholders’ equity increased 7.3% to $75.2 million at March 31, 2021 from $70.1 million at March 31, 2020 and increased 1.4% when compared to $74.2 million at December 31, 2020. Book value per common share increased to $77.63 at March 31, 2021 from $72.25 at March 31, 2020, and $76.58 at December 31, 2020.

Credit Quality

Due to excellent credit quality and a strong allowance for loan losses, the Company reported no provision for loan losses in the first quarter of 2021. This compares to a $458,000 provision for loan losses during the fourth quarter of 2020, and $677,000 in the first quarter of 2020. “Our credit quality remains exemplary, and we believe our current reserve level is adequate to cover potential loan losses,” said Head.

There were no nonperforming loans at March 31, 2021, or at December 31, 2020. This compared to $1.5 million in nonperforming loans at March 31, 2020. Additionally, there were no nonperforming assets at March 31, 2021, or at December 31, 2020, compared with $1.5 million in nonperforming assets at March 31, 2020. Total non-performing assets were 0.00% of total assets at March 31, 2021, 0.00% at December 31, 2020, and 0.21% at March 31, 2020.

The allowance for loan losses was $8.7 million, or 1.37% of total loans, at March 31, 2021, when excluding the $18.7 million of PPP loans, which are 100% guaranteed by the SBA. This compared to $7.4 million, or 1.33% of total loans, at March 31, 2020. Net loan recoveries were $10,000 in the first quarter of 2021, compared to net charge-offs of $194,000 in the fourth quarter of 2020, and net loan recoveries of $15,000 in the first quarter of 2020.

As of March 31, 2021, the Bank had 9 loans totaling $1.8 million within the deferral process.

Capital

The Bank’s capital ratios continued to exceed regulatory “well-capitalized” requirements, with a Tier 1 leverage ratio of 10.90%, Common equity tier 1 capital ratio of 11.73%, Tier 1 risk-based capital ratio of 11.73% and Total capital ratio of 12.95%, at March 31, 2021.

About White River Bancshares Company

White River Bancshares Company is the single bank holding company for Signature Bank of Arkansas. Both are headquartered in Fayetteville, Arkansas. The Bank has locations in Fayetteville, Springdale, Bentonville, Rogers and Brinkley, Arkansas. Founded in 2005, Signature Bank of Arkansas provides a full line of financial services to small businesses, families and farms. White River Bancshares Company (OTCQX: WRIV), trades on the OTCQX® Best Market.  

About the Region

White River Bancshares Company is located in thriving Northwest Arkansas in the Fayetteville-Springdale-Rogers MSA. The region is home to the corporate headquarters for Walmart Stores Inc, Sam’s Club, Tyson Foods, Simmons Foods, and J.B. Hunt Transport. Hundreds of other market-leading companies including Procter & Gamble, Johnson & Johnson, Coca-Cola and Rubbermaid maintain offices in the region in order to maintain their relationships with the locally-based Fortune 500 companies. Northwest Arkansas is also home to the state’s flagship public educational institution, The University of Arkansas and its Sam M. Walton College of Business. The region has seen significant growth in its medical and arts infrastructures with the continued expansion of Washington Regional Medical System, Northwest Medical System, Mercy Health System of Northwest Arkansas and Arkansas Children’s Hospital Northwest. Crystal Bridges Museum of American Art and the Walton Arts Center have led the expansion of the arts. Northwest Arkansas has been repeatedly recognized in recent years as one of the best places to live in the country and remains one of the nation’s fastest-growing regions.

Forward Looking Statements

This press release contains statements about future events. These forward-looking statements, which are based on certain assumptions of management of the Company and the Bank and describe our future plans, strategies and expectations, can generally be identified by use of forward-looking terminology such as “may,” “will,” “believe,” “plan,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or the negative of those terms. Our ability to predict results of future events and the actual effect of future plans or strategies are inherently uncertain and actual results may differ materially from those predicted in such forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects or that could affect the outcome of such forward-looking statements include, but are not limited to, changes in interest rates; the economic health of the local real estate market; general economic conditions; credit deterioration in our loan portfolio that would cause us to increase our allowance for loan losses; legislative or regulatory changes; technological developments; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of our loan and securities portfolios; demand for loan products in our market areas; deposit flows and costs of capital; competition; retention and recruitment of qualified personnel; demand for financial services in our market areas; and changes in accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

WHITE RIVER BANCSHARES COMPANY
CONSOLIDATED BALANCE SHEETS
March 31, 2021, December 31, 2020 and March 31, 2020
UNAUDITED		March 31, 2021				December 31, 2020				March 31, 2020
ASSETS
Cash and due from banks		$	60,216,957			$	22,904,291			$	52,796,917
Federal funds sold			573,134				100,089				489,448
Total cash and cash equivalents			60,790,091				23,004,380				53,286,365
Investment securities			68,937,591				73,100,506				64,231,594
Loans held for sale			7,782,522				10,871,270				2,641,614
Loans, net of allowance for loan losses			634,992,334				608,391,471				558,187,421
Premises and equipment, net			24,669,345				25,140,669				24,530,411
Foreclosed assets held for sale			100				100				100
Accrued interest receivable			1,883,499				2,705,354				2,072,301
Deferred income taxes			1,848,883				1,518,115				1,575,948
Other investments			2,894,085				2,891,285				2,873,285
Other assets			2,161,705				2,320,711				2,228,236
		$	805,960,155			$	749,943,861			$	711,627,275
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	– non-interest bearing	$	188,958,889			$	172,016,886			$	119,398,336
	– interest bearing		253,269,377				203,407,688				166,153,663
Savings deposits			22,126,159				21,051,019				14,027,963
Time deposits	– under $250M		116,989,664				125,998,519				166,663,942
	– $250M and over		101,253,092				105,309,981				125,835,712
Total deposits			682,597,181				627,784,093				592,079,616
Federal Home Loan Bank advances			16,950,930				17,056,909				19,869,137
Notes payable			10,779,101				10,772,790				10,753,991
Accrued interest payable			425,731				382,474				876,692
Other liabilities			19,982,625				19,733,128				17,963,323
Total liabilities			730,735,568				675,729,394				641,542,759
Stockholders’ equity:
Common stock			9,763				9,763				9,763
Surplus			88,082,809				88,010,761				87,752,461
Accumulated deficit			(12,921,378	)			(14,474,203	)			(17,555,735	)
Treasury stock, at cost			(431,865	)			(431,865	)			(387,022	)
Accumulated other comprehensive income			485,258				1,100,011				265,049
Total stockholders’ equity			75,224,587				74,214,467				70,084,516
		$	805,960,155			$	749,943,861			$	711,627,275

WHITE RIVER BANCSHARES COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2021, December 31, 2020 and March 31, 2020
	For the Three Months Ended
UNAUDITED	March 31, 2021			December 31, 2020				March 31, 2020
Interest income:
Loans, including fees	$	7,858,931		$	7,463,396			$	7,735,747
Investment securities		365,802			331,474				359,413
Federal funds sold and other		5,383			3,392				83,925
Total interest income		8,230,116			7,798,262				8,179,085
Interest expense:
Deposits		1,002,824			1,326,327				1,891,372
Federal Home Loan Bank advances		103,749			103,809				117,248
Notes payable		167,874			167,745				167,870
Federal funds purchased and other		2,109			1,309				32
Total interest expense		1,276,556			1,599,190				2,176,522
Net interest income		6,953,560			6,199,072				6,002,563
Provision for loan losses		–			458,000				677,000
Net interest income after provision for loan losses		6,953,560			5,741,072				5,325,563
Non-interest income:
Service charges and fees on deposits		126,264			130,374				174,174
Wealth management fee income		506,039			474,031				468,305
Secondary market fee income		921,857			894,411				288,749
Loss on sales and write-downs of foreclosed assets		–			(185,550	)			(1,917	)
Other		181,328			192,133				140,020
Total non-interest income		1,735,488			1,505,399				1,069,331
Non-interest expense:
Salaries and benefits		4,032,581			3,641,192				3,670,178
Occupancy and equipment		644,033			684,502				649,038
Data processing		586,399			367,253				315,592
Marketing and business development		69,808			209,519				126,936
Professional services		936,803			433,752				392,376
Other		343,918			140,323				250,563
Total non-interest expense		6,613,542			5,476,541				5,404,683
Income before income taxes		2,075,506			1,769,930				990,211
Income tax provision		522,681			507,097				247,736
Net income	$	1,552,825		$	1,262,833			$	742,475
Basic earnings per common share	$	1.60		$	1.30			$	0.77
Diluted earnings per common share	$	1.60		$	1.30			$	0.77

White River Bancshares Company
Selected Financial Data					Three Months Ended
UNAUDITED	March 31, 2021				December 31, 2020				March 31, 2020
Selected Financial Condition Data: End of Period Balances
Assets	$	805,960,155			$	749,943,861			$	711,627,275
Investment Securities		68,937,591				73,100,506				64,231,594
Loans, gross		651,470,670				627,948,824				568,217,563
Allowance for Loan Losses		8,695,814				8,686,083				7,388,528
Deposits		682,597,181				627,784,093				592,079,616
FHLB Advances		16,950,930				17,056,909				19,869,137
Notes Payable		10,779,101				10,772,790				10,753,991
Common Shareholders’ Equity		75,224,587				74,214,467				70,084,516
Selected Financial Condition Data: Average Balances
Assets	$	768,712,888			$	735,449,136			$	696,324,277
Earning Assets		738,370,954				705,226,210				663,389,661
Investment Securities		70,606,315				71,221,639				58,681,569
Loans, gross		639,404,515				616,463,713				572,011,997
Deposits		639,422,194				612,098,458				577,553,407
FHLB Advances & Other Borrowings		22,992,223				18,780,682				18,510,101
Notes Payable		10,775,151				10,769,161				10,750,063
Common Shareholders’ Equity		74,657,832				73,485,866				69,760,807
Selected Operating Results:
Interest Income	$	8,230,116			$	7,798,262			$	8,179,085
Interest Expense		1,276,556				1,599,190				2,176,522
Net Interest Income		6,953,560				6,199,072				6,002,563
Provision for Loan Losses		–				458,000				677,000
Net Interest Income After Provision for Loan Losses		6,953,560				5,741,072				5,325,563
Noninterest Income		1,735,488				1,505,399				1,069,331
Noninterest Expense		6,613,542				5,476,541				5,404,683
Income Before Income Taxes		2,075,506				1,769,930				990,211
Income Tax Provision		522,681				507,097				247,736
Net Income	$	1,552,825			$	1,262,833			$	742,475
Basic Net Income per Common Share	$	1.60			$	1.30			$	0.77
Diluted Net Income per Common Share		1.60				1.30				0.77
Dividends Paid per Common Share		–				–				–
Book Value Per Common Share		77.63				76.58				72.25
Common Shares Outstanding		969,065				969,065				969,998
Diluted Common Shares Outstanding		969,065				969,065				969,998
Basic Weighted Average Common Shares Outstanding		969,065				969,069				969,998
Diluted Weighted Average Common Shares Outstanding		969,065				969,069				969,998
Selected Ratios:
Return on Average Assets		0.82	%			0.68	%			0.43	%
Return on Average Common Shareholders’ Equity		8.44	%			6.84	%			4.28	%
Average Common Shareholders’ Equity to Average Assets		9.71	%			9.99	%			10.02	%
Net Interest Margin		3.82	%			3.50	%			3.64	%
Efficiency		76.11	%			71.08	%			76.42	%
Selected Asset Quality:
Net (Recoveries) Charge-offs	$	(9,731	)		$	194,071			$	(15,031	)
Classified Assets		4,538,064				4,439,839				1,769,453
Nonperforming Loans		–				–				1,509,590
Nonperforming Assets		100				100				1,509,690
Total Nonperforming Loans to Total Loans		0.00	%			0.00	%			0.27	%
Total Nonperforming Loans to Total Assets		0.00	%			0.00	%			0.21	%
Total Nonperforming Assets to Total Assets		0.00	%			0.00	%			0.21	%

Contact:		Scott Sandlin, Chief Strategy Officer 479-684-3754

SHELTON, Conn., April 19, 2021 (GLOBE NEWSWIRE) — Acme United Corporation (NYSE American: ACU) today announced that net sales for the quarter ended March 31, 2021 were $43.5 million compared to $35.8 million in the first quarter of 2020, an increase of 22%.

Net income was $2,046,000 or $0.52 per diluted share for the quarter ended March 31, 2021 compared to $1,277,000, or $0.36 per diluted share, for the comparable period last year, an increase of 60% in net income and 44% in diluted earnings per share.

Chairman and CEO Walter C. Johnsen said, “Net sales in first quarter of 2021 continued the strong performance we achieved in 2020, with revenues in all of our operating units increasing. We had particularly strong sales of our Westcott cutting tools and DMT sharpeners, and our European business had a record first quarter. Sales in Canada at First Aid Central continued to grow. First quarter 2021 revenues included approximately $0.9 million from the sales of Med-Nap products.”

Mr. Johnsen added, “We continue to gain market share and new placements with existing customers. We have introduced new Westcott craft cutting tools and first aid items, and we have new production coming on stream at DMT and Med-Nap. We are optimistic about the next three quarters of 2021 and beyond.”

For the first quarter of 2021, net sales in the U.S. segment increased 18% compared to the same period in 2020. The sales growth was primarily attributable to growth in sales of Westcott cutting tools and strong sales of first aid and safety products.

European net sales for the first quarter of 2021 increased 42% in U.S. dollars and 31% in local currency compared to the first quarter of 2020, mainly due to growth in the e-commerce channel across all product lines, and continued growth of DMT sharpening products.

Net sales in Canada for the first quarter of 2021 increased 38% in U.S. dollars and 31% in local currency compared to the same period in 2020, due to higher sales of First Aid Central products, principally in the e-commerce channel.

Gross margin was 35.8% in the first quarter of 2021 versus 37.8% in the comparable period last year. The lower gross margin was mainly due to product mix and higher ocean freight costs as a result of a scarcity of shipping containers and congestion at global ports.   

The Company’s bank debt less cash on March 31, 2021 was $43.4 million compared to $32.9 million on March 31, 2020. During the twelve-month period ended March 31, 2021, the Company paid approximately $9.3 million for the acquisition of the assets of Med-Nap LLC., distributed $1.7 million in dividends on its common stock, and generated $1.5 million in free cash flow. Inventory increased approximately $12 million due primarily to anticipated growth in our business as well as the acquisition of product to offset the impact of potential supply chain interruptions related to COVID-19.

Conference Call and Webcast Information

Acme United will hold a conference call to discuss its quarterly results, which will be broadcast on Monday, April 19, 2021, at 12:00 p.m. EDT. To listen or participate in a question and answer session, dial 800-367-2403. International callers may dial 334-777-6978. The confirmation code is 7892281.   You may access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.acmeunited.com. A replay may be accessed under Investor Relations, Audio Archives.

About Acme United

ACME UNITED CORPORATION is a leading worldwide supplier of innovative safety solutions and cutting technology to the school, home, office, hardware, sporting goods and industrial markets. Its leading brands include First Aid Only®, First Aid Central®, PhysiciansCare®, Pac-Kit®,Spill Magic®, Westcott®, Clauss®, Camillus®, Cuda®, DMT®, and Med-Nap. For more information, visit www.acmeunited.com.  

Forward Looking Statements

Forward-looking statements in this report, including without limitation, statements related to the Company’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made 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 uncertainties including the impact that the global COVID-19 pandemic has had and will continue to have on the Company’s business, operations and financial results. These include, the extent of the COVID-19 pandemic, including the duration, spread, severity, and any recurrence of the COVID-19 pandemic including through any new variant strains of the underlying virus; the effectiveness and availability of vaccines; the duration and scope of pandemic-related government orders and restrictions on commercial and other activities, including retail store, office, school and restaurant closures; the duration and scope of the Company’s actions to maintain employee health at our offices, production facilities and distribution centers; the extent of the impact of the COVID-19 pandemic on overall demand for the Company’s products; the pace of recovery when an effective vaccine is widely available or when the pandemic otherwise subsides and the heightened impact the pandemic has on many of the risks described herein, including, without limitation, risks relating to the on-going world-wide economic downturn, and potential disruptions in our supply chain, any of which could adversely impact the Company’s ability to manufacture, source or distribute it products, both domestically and internationally.

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, whether caused by COVID-19 or otherwise, including the impact on the Company’s suppliers and customers; (iii) changes in client needs and consumer spending habits, including COVID-19 related changes; (iv) the impact of competition; (v) the impact of technological changes including, specifically, the growth of online marketing and sales activity; (vi) the Company’s ability to manage its growth effectively, including its ability to successfully integrate any business it might acquire; (vii) the Company’s ability to effectively manage its inventory in a rapidly changing business environment, including additional inventory acquired to respond to COVID-19 related uncertainties; (viii) currency fluctuations; (ix) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; and (x) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

CONTACT: Paul G. Driscoll	Acme United Corporation	1 Waterview Drive	Shelton, CT 06484
	Phone: (203) 254-6060

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FIRST QUARTER REPORT 2021
(Unaudited)
						Quarter Ended				Quarter Ended
Amounts in 000’s except per share data						March 31, 2021				March 31, 2020
Net sales					$	43,525			$	35,775
Cost of goods sold						27,938				22,244
Gross profit						15,583				13,531
Selling, general and administrative expenses						12,619				11,521
Operating income						2,964				2,010
Interest expense						226				322
Interest income						(5)				(8)
	Net interest expense					221				314
Other expense, net						78				44
Income before income tax expense						2,665				1,652
Income tax expense						623				375
Net income					$	2,046			$	1,277
	Shares outstanding – basic					3,347				3,349
	Shares outstanding – diluted					3,911				3,519
Earnings per share – basic					$	0.61			$	0.38
Earnings per share – diluted						0.52				0.36

ACME UNITED CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
FIRST QUARTER REPORT 2021
(Unaudited)
Amounts in $000’s
						March 31, 2021				March 31, 2020
Assets
Current assets:
	Cash and cash equivalents				$	3,857			$	4,272
	Accounts receivable, net					31,592				27,413
	Inventories					49,389				36,250
	Prepaid expenses and other current assets					2,477				1,926
Total current assets						87,315				69,861
	Plant, property and equipment, net					21,137				14,097
	Operating lease right of use asset					3,961				2,711
	Intangible assets, less accumulated amortization					18,361				15,478
	Goodwill					4,800				5,886
	Other assets					–				89
Total assets					$	135,574			$	108,122
Liabilities and stockholders’ equity
Current liabilities:
	Accounts payable				$	8,151			$	5,186
	Operating lease liability – short term					1,074				1,003
	Mortgage payable – short term					267				267
	Other current liabilities					11,290				6,955
Total current liabilities						20,786				13,411
	Long-term debt					40,626				33,853
	Long term debt –  PPP loan					3,508				–
	Mortgage payable – long term					2,844				3,111
	Operating lease liability – long term					3,044				1,765
	Other non-current liabilities					144				157
Total liabilities						70,952				52,297
Total stockholders’ equity						64,626				55,825
Total liabilities and stockholders’ equity					$	135,574			$	108,122

Austin, TX, April 19, 2021 (GLOBE NEWSWIRE) — The Chief Executive Officer of QSAM Biosciences Inc. (OTCQB: QSAM), Douglas Baum, provided the following letter to shareholders today:

Dear Shareholders:

We are pleased to report that 2020 was pivotal year for QSAM Biosciences as we established the foundation for significant advancements in 2021, several of which have already been achieved. We want to take this opportunity to summarize some of the more material items that we believe will help build value for our shareholders in the years ahead, and which are also detailed in our Form 10-K filed with the SEC on April 15, 2021.

During 2020 and the first quarter of 2021 we accomplished the following:

Secured promising
drug
technology to treat bone cancer: In April 2020, we licensed on a worldwide, exclusive basis a novel and patented radiopharmaceutical called CycloSam^®, meant to target cancers that develop in or metastasize to the bone. CycloSam is a significantly improved version of another FDA approved and commercialized radiopharmaceutical developed by the same inventors, but with the possibility of broader commercial indications. Preliminary results of early studies support a potentially favorable safety and efficacy profile of CycloSam. As a result of this, as well as a number of animal studies and one human trial conducted this past summer, and the streamlined manufacturing process that is already in place, we are optimistic about the chances of advancing CycloSam through the FDA process over the coming years.

Established a team of seasoned biotech
experts: In November we appointed as our new Executive Chairman, C. Richard Piazza, who has more than 45 years of healthcare experience in both medical devices and pharmaceutical/biotech development and has led several technology companies to market success including numerous FDA approvals in both sectors. The company also appointed me, Douglas Baum, as our new CEO. I personally bring over 28 years of experience in the bioscience and biotech industries, overseeing 15 product approvals through the FDA. In February 2021, we appointed a new independent director, Dr. Charles J. Link Jr., who brings decades of biotech and drug development experience to QSAM, including serving as CEO, CSO, Chairman, and founder of NewLink Genetics, a NASDAQ-listed immunotherapy company focused on developing novel immuno-oncology product candidates.

Completed $2.5 million in new equity funding: In November we commenced our Series B preferred stock offering, and by January 2021 had closed on $2.5 million in funding (inclusive of $156,000 in debt conversion) to support our clinical trials and operations through 2021. In connection with this offering, we also issued short-term warrants that, if exercised, could provide another $2 million in funding around the end of the second quarter of 2021.

Significantly reduced our debt and divested our legacy business: In November we signed a separation agreement which transferred to a related party called Earth Property Holdings (EPH) our soil business and assets in return for the extinguishment of almost $1 million in debt and the conversion into common stock of a $117,000 note. By the end of 2020, we had converted approximately an additional $3.3 million of promissory notes, accrued compensation and other liabilities into common stock; and by March 31, 2021, we had eliminated the remaining amount of approximately $1.5 million in debt, leaving just $35,000 in convertible debentures currently on our books. In connection with the equity raise completed in January, our balance sheet as of the present date has never been stronger.

Building upon this solid foundation, through 2021 we expect to demonstrate advancements from the achievement of several important milestones, including:

• Filing and ultimate clearance of our IND with the FDA to start clinical trials with CycloSam;
• Dosing of the first patient in the Phase 1 trials with CycloSam;
• Announcement of initial Phase 1 results of CycloSam (possibly in 2022);
• Expansion of our intellectual property portfolio with newly issued patents;
• Possible acquisition of a second radiopharmaceutical asset to expand our product pipeline; and
• Adding additional biotech expertise to our team.

Observations from our 10-K financial statements

On April 15, we filed our Form 10-K for the year ended December 31, 2020. The financial statements included therein contain certain items that we would like to further explain, as we had several unusual transactions during the year.

We recorded no revenue in either 2020 or 2019, even though our legacy business managing soil manufacturing facilities received income in both years. We determined that this legacy business constituted “discontinued operations” and, as a result, past income has been reclassified as such on our Statement of Operations. We do not expect revenue this year, as we commence clinical trials for our drug candidate; however, we do believe that these efforts, if successful, will create more value for our technology and our Company as a whole.

We recorded a net loss in 2020 of $4,898,123, which was considerably higher than our net loss of $717,919 in 2019. The major contributing factors to this loss in 2020 were non-cash items such as the change (increase) in the fair value of our Bridge Notes due to our higher stock price and proximity to maturity ($3,170,236), a loss from the conversion of debt into equity due to the delta between the conversion price and the market price of our stock at such times ($834,903), and accrued interest from Bridge Notes and other debt that was ultimately converted to equity ($490,402). These non-cash losses were offset by a gain of approximately $1 million from forgiveness of the debt due to EPH.

Since virtually all our debt was eliminated in the first quarter of 2021, including all Bridge Notes, we do not expect these non-cash expenses to be a significant financial item in future periods. In the first quarter of 2021, we expect to report almost $2 million in cash and minimal debt on our balance sheet. We do, however, expect operating expenses including R&D (which totaled $1.3 million in 2020), will increase in future periods as we enter the clinical trial stage of our drug development.

Finally, in 2020 we had a 25:1 reverse stock split, and all share numbers and prices have been adjusted to reflect this change. This tends to skew losses or gains on a per share base, historical stock prices and other items tied to total shares outstanding. As of April 14, 2021, we had 27,497,850 common shares outstanding.

Overall, we are very pleased with the results we have achieved in the last year and believe this success will be matched and exceeded toward our goals in the year ahead. Once again, thank you for your support and shared enthusiasm for the important future of QSAM.

Sincerely,

Douglas R. Baum
Chief Executive Officer

About QSAM Biosciences:

QSAM Biosciences, Inc. holds the worldwide license for CycloSam^® (Samaium-153 DOTMP), a clinical-stage novel radiopharmaceutical meant to treat different types of bone cancer and related diseases. QSAM’s initial technology is Samarium-153 DOTMP, aka CycloSam^®, a clinical-staged bone targeting radiopharmaceutical​ developed by IsoTherapeutics Group LLC, leaders in the nuclear medicine space who also developed FDA-approved and commercially available Quadramet^® (Samarium-153 EDTMP), indicated for pain palliation. CycloSam was assigned to IsoTherapeutics Group’s subsidiary, IGL Pharma, Inc.

CycloSam^® has already demonstrated preliminary safety and efficacy in animal studies and a single patient FDA-cleared successful human trial performed in 2020. This nuclear technology uses low specific activity Samarium-153 (resulting in far less europium) and DOTMP, a chelator which is believed to eliminate off-target migration and targets sites of high bone turn over making it an ideal agent to treat osteosarcoma or other bone metastases. Osteosarcoma is the most common malignant bone tumor among children and adolescents. Because of its ability to deliver radiation to the skeletal system, it is also believed to be an effective agent to perform bone marrow ablation as pre-conditioning for bone marrow transplantation. This drug candidate utilizes an FDA approved radioisotope combined with a novel chelant that has demonstrated increased efficacy and decreased side effects in animal models. Further, CycloSam^® utilizes a streamlined, just-in-time manufacturing process. Given these factors, management believes there is a strong pathway to commercialization.

CycloSam^® is cleared by the FDA under an investigator initiated IND to commence human dosing in patients with osteosarcoma and bone metastasis. CycloSam^® was also cleared by FDA and successfully used under a single-patient IND to perform bone marrow ablation prior to allogenic marrow transplantation (BMA/T) in 2020.

Legal Notice Regarding Forward-Looking Statements: This news release contains “Forward-looking Statements”. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to our ability to fully commercialize our technology, risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new products and markets, the time and expense involved in such development activities, the ability to secure additional financing, the ability to consummate acquisitions and ultimately integrate them, the level of demand and market acceptance of our products, and changes in our business strategies. This is not an offering of securities and securities may not be offered or sold absent registration or an applicable exemption from the registration requirements

Contact

David L. Kugelman
Atlanta Capital Partners LLC
T: (404) 856-9157
[email protected]
www.atlcp.com