Eastern Company Files 2023 Annual Report on Form 10-K

TL;DR

<b>Eastern Company has filed its 2023 10-K report detailing financial performance and operational data for the fiscal year ending December 30, 2023.</b>

AI Summary

EASTERN CO (EML) filed a Annual Report (10-K) with the SEC on March 12, 2024. Eastern Company reported its fiscal year 2023 results, ending December 30, 2023. The company's fiscal year 2023 financial activities occurred between January 1, 2023, and December 30, 2023. The filing includes data related to accounts receivable and customer concentration risk for the periods ending December 31, 2022, and December 30, 2023. Information on geographical components, including United States and Foreign segments, for both 2022 and 2023 is presented. The report details contributions to pension and other postretirement benefit plans for the fiscal years 2022 and 2023.

Why It Matters

For investors and stakeholders tracking EASTERN CO, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Eastern Company's financial health, operational segments, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. The detailed breakdown of financial data, including revenue segments, debt levels, and asset management, offers insights into the company's performance and its ability to navigate market conditions.

Risk Assessment

Risk Level: — EASTERN CO shows moderate risk based on this filing. The company's financial reporting includes data on customer concentration risk, indicating potential reliance on a few key clients which could pose a medium-term risk if those relationships deteriorate.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Eastern Company's performance and potential challenges.

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed period of report)
• 2024-03-12 — Filing Date (As of date)
• 3420 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• EASTERN CO (company) — Filer name
• EML (company) — Ticker symbol
• CT (company) — State of incorporation
• 203-729-2255 (dollar_amount) — Business phone number
• 2023-12-30 (date) — Fiscal year end
• 2024-03-12 (date) — Filing date

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company faces risks related to customer concentration, as indicated by data on accounts receivable for 2022 and 2023.

Key Dates

• 2023-12-30: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-03-12: Filing Date — Date the 10-K report was officially submitted to the SEC.

Glossary

London Interbank Offered Rate (LIBOR)

A benchmark interest rate used for many financial products globally. (Relevant for understanding potential impacts on variable interest rates for lines of credit.)

Customer Concentration Risk

The risk associated with having a significant portion of revenue or receivables from a small number of customers. (Indicates potential vulnerability if key customers reduce business or terminate relationships.)

Filing Documents

• eml_10k.htm (10-K) — 1773KB
• eml_ex109.htm (EX-10.9) — 69KB
• eml_ex21.htm (EX-21) — 8KB
• eml_ex23.htm (EX-23) — 2KB
• eml_ex31.htm (EX-31) — 23KB
• eml_ex32.htm (EX-32) — 6KB
• eml_ex97.htm (EX-97) — 28KB
• 0001654954-24-003010.txt (&nbsp;) — 8586KB
• eml-20231230.xsd (EX-101.SCH) — 64KB
• eml-20231230_lab.xml (EX-101.LAB) — 456KB
• eml-20231230_cal.xml (EX-101.CAL) — 70KB
• eml-20231230_pre.xml (EX-101.PRE) — 388KB
• eml-20231230_def.xml (EX-101.DEF) — 234KB
• eml_10k_htm.xml (XML) — 1600KB

Business

Business 4. Item 1A.

Risk Factors

Risk Factors 6. Item 1B. Unresolved Staff Comments 16. Item 1C. Cybersecurity 16. Item 2.

Properties

Properties 17. Item 3.

Legal Proceedings

Legal Proceedings 18. Item 4. Mine Safety Disclosures 18. PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19. Item 6. Reserved 19. 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 20. Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31. Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 32. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 66. Item 9A.

Controls and Procedures

Controls and Procedures 66. Item 9B. Other Information 68. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 68. PART III Item 10. Directors, Executive Officers, and Corporate Governance 69. Item 11.

Executive Compensation

Executive Compensation 69. 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 70. Item 13. Certain Relationships and Related Transactions, and Director Independence 70. Item 14. Principal Accountant Fees and Services 70. PART IV Item 15. Exhibits and Financial Statement Schedules 71. Exhibit Index 72. Item 16. Form 10-K Summary 73.

Signatures

Signatures 74. 2 Table of Contents SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 the impact of higher raw material and component costs and cost inflation, supply chain disruptions and shortages, particularly with respect to steel, plastics, scrap iron, zinc, copper, and electronic components; delays in delivery of our products to our customers; the impact of global economic conditions and rising interest rates, and more specifically conditions in the automotive, construction, aerospace, energy, oil and gas, transportation, electronic, and general industrial markets, including the impact, length and degree of economic downturns on the customers and markets we serve and demand for our products, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, the potential impact of bank failures on our ability to access financing or capital markets, and the impact of market conditions on pension plan funded stat

BUSINESS

ITEM 1 BUSINESS General Development of Business The Eastern Company was incorporated under the laws of the State of Connecticut in October 1912, succeeding a co-partnership established in October 1858. The businesses of the Company design, manufacture and sell unique engineered solutions for industrial markets. Today, the Company maintains fifteen physical locations across North America and Asia. BUSINESS HIGHLIGHTS On June 29, 2023, the Company acquired certain assets of Sureflex, Inc. ("Sureflex"). Sureflex, which manufactures tractor-trailer electrical connection cable assemblies, is part of Eastern's Velvac subsidiary. On May 1, 2023, the Company announced plans to close Associated Toolmakers, Limited, its European mold tooling service facility based in the U.K. The closure was completed in the second quarter of 2023. On October 19, 2022, the Company sold its Argo EMS business ("Argo"). Argo supplied printed circuit boards and other electronic assemblies to original equipment manufacturers in various industries, including measurement systems, semiconductor equipment manufacturing, and industrial control, medical, and military products. Description of Business The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to industrial markets. We believe Eastern's businesses operate in industries with long-term macroeconomic growth opportunities. Eastern manages the financial, operational, and strategic performance of its businesses to increase cash generation, operating earnings, and long-term shareholder value. Among other things, Eastern monitors the financial and operational performance of each of its businesses and instills consistent financial discipline. Eastern's management analyzes and pursues prudent organic growth strategies and works to execute attractive external growth and acquisition opportunities. In addition, Eastern recruits and retains talented managers to operate its businesses.

RISK FACTORS

ITEM 1A RISK FACTORS The Company's business is subject to a variety of risks and uncertainties, including, without limitation, the risks and uncertainties described below. In addition to the other information contained in this Form 10-K and the Company's other filings with the SEC, these risk factors should be considered carefully in evaluating the Company's business. If any of these risks, or any risks not presently known to the Company or currently deemed immaterial by the Company, materialize, the Company's business, reputation, stock price, financial condition or results of operations could be materially adversely affected, and the Company may not be able to achieve its goals or expectations. This section should be read in conjunction with Part II, Item 7, " Management's Discussion and Analysis of Financial Condition and Results of Operations " and the consolidated financial statements and accompanying notes in Item 8, Financial Statements and Supplementary Data of this Form 10-K. Risks Related to Competition and Global Operations The Company's business is subject to risks associated with conducting business overseas. International operations have been and could in the future be adversely affected by changes in political and economic conditions, trade protection measures, restrictions on repatriation of earnings, differing intellectual property rights and changes in regulatory requirements that restrict the sales of products or increase costs. Changes in exchange rates between the U.S. dollar and foreign currencies could result in increases or decreases in earnings and may adversely affect the value of the Company's assets outside the United States. Increased pricing in response to fluctuations in foreign currency exchange rates may offset portions of the currency impacts but could also have a negative impact on demand for the Company's products, which would affect sales and profits. Some of the Company's competitors import products from Asia and Latin A

View Full Filing

View this 10-K filing on SEC EDGAR