Hamilton Beach Brands Holding Co. Files 2023 Annual Report

TL;DR

<b>Hamilton Beach Brands Holding Co. reported a decrease in net income and EPS for FY2023 compared to FY2022, despite stable net sales.</b>

AI Summary

Hamilton Beach Brands Holding Co (HBB) filed a Annual Report (10-K) with the SEC on March 6, 2024. Total net sales for the fiscal year ended December 31, 2023, were $749.8 million. Net income for the fiscal year 2023 was $23.1 million, a decrease from $35.1 million in 2022. Earnings per share (EPS) for 2023 were $0.84, down from $1.27 in the prior year. The company reported total assets of $754.5 million as of December 31, 2023. Total debt as of December 31, 2023, was $184.5 million.

Why It Matters

For investors and stakeholders tracking Hamilton Beach Brands Holding Co, this filing contains several important signals. The decline in net income and EPS suggests potential challenges in profitability or increased costs impacting the bottom line. The filing provides a comprehensive overview of the company's financial health and operational performance for the fiscal year, crucial for investors assessing future prospects.

Risk Assessment

Risk Level: medium — Hamilton Beach Brands Holding Co shows moderate risk based on this filing. The company experienced a significant decrease in net income and EPS in 2023 compared to 2022, indicating potential profitability issues or increased operational costs.

Analyst Insight

Investors should monitor the company's strategies to improve profitability and manage costs in the upcoming fiscal year.

Financial Highlights

revenue

749.8

total Assets

754.5

total Debt

184.5

net Income

23.1

eps

0.84

Key Numbers

• 749.8 — Total Net Sales (Fiscal Year Ended December 31, 2023)
• 23.1 — Net Income (Fiscal Year 2023 (in millions USD))
• 35.1 — Net Income (Fiscal Year 2022 (in millions USD))
• 0.84 — Earnings Per Share (EPS) (Fiscal Year 2023)
• 1.27 — Earnings Per Share (EPS) (Fiscal Year 2022)
• 754.5 — Total Assets (As of December 31, 2023 (in millions USD))
• 184.5 — Total Debt (As of December 31, 2023 (in millions USD))

Key Players & Entities

• Hamilton Beach Brands Holding Co. (company) — Filer
• Glen Allen, VA (location) — Business and Mail Address
• 2023-12-31 (date) — Conformed Period of Report
• 2024-03-06 (date) — Filed as of Date

FAQ

Industry Context

Hamilton Beach Brands Holding Co. operates in the electric housewares and fans industry, manufacturing and marketing a range of consumer appliances.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial and operational performance.

What Investors Should Do

1. Analyze the detailed breakdown of revenue segments to identify growth drivers or areas of concern.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into the reasons behind the net income and EPS decline.
3. Compare key financial ratios (e.g., debt-to-equity, operating margins) with industry peers to assess competitive positioning.

Key Dates

• 2023-12-31: Fiscal Year End — End of reporting period for the 10-K filing.
• 2024-03-06: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

The filing covers the fiscal year 2023, providing year-over-year comparisons with 2022 data, notably showing a decrease in net income and EPS.

Key Financial Figures

• $0.01 — stered Class A Common Stock, Par Value $0.01 Per Share HBB New York Stock Exchange
• $150.0 million — amount of cash or borrowings under our $150.0 million senior secured floating-rate revolving
• $12.4 m — ct Design and Development We incurred $12.4 million, $11.8 million and $8.6 million i
• $11.8 million — evelopment We incurred $12.4 million, $11.8 million and $8.6 million in 2023, 2022 and 2021
• $8.6 million — curred $12.4 million, $11.8 million and $8.6 million in 2023, 2022 and 2021, respectively, i

Filing Documents

• hbb-20231231.htm (10-K) — 1762KB
• a43descofregisteredsecurit.htm (EX-4.3) — 31KB
• a211subsidiariesofhbbhc2023.htm (EX-21.1) — 10KB
• a231eyconsent2023.htm (EX-23.1) — 5KB
• a31i1certifications-gtrepp.htm (EX-31.1) — 10KB
• a31i2certifications-scunni.htm (EX-31.2) — 10KB
• a32certificationpursuantto.htm (EX-32) — 7KB
• a97policyrelatingtorecover.htm (EX-97.1) — 32KB
• 0001709164-24-000011.txt (&nbsp;) — 9728KB
• hbb-20231231.xsd (EX-101.SCH) — 55KB
• hbb-20231231_cal.xml (EX-101.CAL) — 109KB
• hbb-20231231_def.xml (EX-101.DEF) — 336KB
• hbb-20231231_lab.xml (EX-101.LAB) — 769KB
• hbb-20231231_pre.xml (EX-101.PRE) — 570KB
• hbb-20231231_htm.xml (XML) — 1562KB

BUSINESS

BUSINESS 1 Item 1A.

RISK FACTORS

RISK FACTORS 5 Item 1B. UNRESOLVED STAFF COMMENTS 13 Item 1C. CYBERSECURITY 14 Item 2.

PROPERTIES

PROPERTIES 15 Item 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 15 Item 4. MINE SAFETY DISCLOSURES 15 PART II. Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 15 Item 6. RESERVED 16 Item 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 17 Item 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 24 Item 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 24 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 24 Item 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 25 Item 9B. OTHER INFORMATION 25 Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 25 PART III. Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 25 Item 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 26 Item 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 26 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 26 Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 26 PART IV. Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 26

6

Item 1 6 . F ORM 10-K S UMMARY 30

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA F- 1 Table of Contents PART I

BUSINESS

Item 1. BUSINESS General Throughout this Annual Report on Form 10-K and the notes to consolidated financial statements, references to "Hamilton Beach Holding", "the Company", "we", "us" and "our" and similar references are to Hamilton Beach Brands Holding Company and its subsidiaries on a consolidated basis unless otherwise noted or as the context otherwise requires. Hamilton Beach Brands Holding Company is a holding company and operates through its indirect, wholly owned subsidiary, Hamilton Beach Brands, Inc., a Delaware corporation ("HBB"). HBB is the Company's single reportable segment. We are a leading designer, marketer and distributor of a wide range of branded small electric household and specialty housewares appliances, as well as commercial products for restaurants, fast food chains, bars and hotels. We make our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 ("Exchange Act") available, free of charge, through our website, www.hamiltonbeachbrands.com, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Securities and Exchange Commission ("SEC"). The content of our website is not incorporated by reference into this Annual Report on Form 10-K or in any other report or document we file with the SEC, and any references to our website is intended to be inactive textual references only. Recent Developments On February 5, 2024, we announced that our Hamilton Beach Health subsidiary acquired HealthBeacon PLC ("HealthBeacon"), a medical technology firm and strategic partner of the Company. HealthBeacon develops connected devices that enable patients with chronic conditions to manage their injectable medication regimens at home and provides other health services. This acquisition is a key step in growing our Hamilton Beach Health busin

RISK FACTORS

Item 1A. RISK FACTORS Our business is subject to various risks and uncertainties. Any of the risks and uncertainties described below could materially adversely affect our business, financial condition and results of operations and should be considered in evaluating us. Although the risks are organized by headings and each risk is described separately, many of the risks are interrelated. While we believe we have identified and discussed below the key risk factors affecting our business, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be significant that may adversely affect our business, performance or financial condition in the future. You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized. Industry Risks Our business is sensitive to the strength of the North American consumer markets and weakness in these markets could adversely affect our business. The strength of the economy in the U.S., and to a lesser degree in Canada and Mexico, has a significant impact on our performance. Weakness in consumer confidence and poor financial performance by mass merchandisers, ecommerce retailers, warehouse clubs, department stores or any of our other customers could result in reduced revenue and profitability. A general slowdown in the consumer sector could result in additional pricing and marketing support pressures on the Company. Additionally, in periods of uncertain economic conditions, such as inflation, rising interest rates, recessions or economic slowdowns, our customers may purchase less of our products as they manage their inventory levels to adjust to changes in consumers' spending habits in response to such economic conditions. These circumstances could adversely impact our revenue and profitability. Our business is dependent on key customers and the loss of, or significant decline in business from, one or more of our key customers coul

View Full Filing

View this 10-K filing on SEC EDGAR