The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jim Marrone - Singular Research - Analyst
: I have two questions. Both of them are related to the tariffs. With my first question, in your prepared remarks, you said that your company is ready
for the upcoming tariffs. And you kind of alluded to the fact that you're already based on expansion with respect to acquisitions over a few years.
So I just was hoping that maybe you can just put a little bit more clarity to those prepared comments. And related to that, how do you plan on
attacking or being prepared for tariffs -- both the tariffs that the US is going to impose as well as the retaliatory tariffs.
Do you plan on your operations in Canada, like selling from within and avoiding cross-border shipments as well as within the US? Or do you plan
to continue cross-border trade. So I'm just curious if I'm looking forward to hearing your comments on that.
Question: Jim Marrone - Singular Research - Analyst
: Yes, that's great. Great insight. However, here's my follow-up. And right, it's not perfect, but you're prepared. So can you perhaps just comment
like if the tariffs were to be imposed, like where exactly will your business hit the most? Will it be based on the input prices becoming higher and
you have to pay higher input prices? Or will it be based on the sales where you're going to be having to sell at higher price points as a result of the
tariff. Can you give us a sense of where the biggest hit is going to be and how that's going to play out.
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FEBRUARY 28, 2025 / 5:00PM, ACU.A - Q4 2024 Acme United Corp Earnings Call
Question: Jim Marrone - Singular Research - Analyst
: Right. And what about on the other end, on the sales side. So like how much of an impact can you imagine having to sell with regards to the goods
that are shipped cross-border as far as the price points of your selling prices being higher as a result of the tariffs? Can you get a sense of how much
impact that could possibly be?
Question: Jeffrey Matthews - RAM Partners LP - Analyst
: That was a great answer, Walter, and leads into my question, which is also about tariffs, but more broadly, we have an economic policy that's kind
of run out of the White House now, and it sort of depends on what side of the bed the President got up on.
And an advantage that you don't have is that if you're a very large company like Apple or Amazon and you can pay $1 million to -- for his -- President's
Inauguration Committee, you now have a seat at the table and he's going to be your friend. And my question is, does the small manufacturer who
could get run over depending on where the tariffs are applied. Does the small manufacturer have a voice at the table here?
Question: Jeffrey Matthews - RAM Partners LP - Analyst
: But you're flexible and you're responsive and you've got your eyes wide open, and I would have expected no less, but I appreciate that answer. My
follow-up is the Canadian acquisition you made, the Red Cross out of bankruptcy. That -- I forget how long ago that was, but could you give an
update on kind of how that is playing out and how it's developing relative to your expectations at the time?
Question: Richard Dearnley - Longport Partners - Analyst
: Paul, why did you stop releasing the European sales numbers?
Question: Richard Dearnley - Longport Partners - Analyst
: Yes, you have US and Canada, but no Europe.
Question: Richard Dearnley - Longport Partners - Analyst
: In the press release?
Question: Richard Dearnley - Longport Partners - Analyst
: I've read it.
Question: Richard Dearnley - Longport Partners - Analyst
: Oh, gosh. Okay. Sorry about that.
Question: Richard Dearnley - Longport Partners - Analyst
: Well, Walter and Paul, if Westcott was $75 million for the year and up 10%, that would suggest a $7 million increase in sales. Sales of the $194 million
was up $3 million. Does that -- are you coming me that First Aid was down for the year?
Question: Richard Dearnley - Longport Partners - Analyst
: And the $30 million of refills, I thought refills were around $40 million?
Question: Jake Patterson - TALANTA Investment Group LLC - Analyst
: Just one question on SG&A. I think second quarter, you guys mentioned you expected it to decline as a percent of sales, a little below 31%, picked
up a good bit here in the fourth quarter. So just kind of just curious if that is still a fair assumption going forward.
Question: Jake Patterson - TALANTA Investment Group LLC - Analyst
: Yes, yes, that's right. Okay. Well, you said -- I think you said a little below 31%. So I was kind of -- what I was interested in.
Question: Jake Patterson - TALANTA Investment Group LLC - Analyst
: Okay. And then I guess like the uptick this year, is there anything you could call out specifically, like growth investments or anything?
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