Eastern Co. Files 10-Q for Period Ending March 30, 2024

TL;DR

<b>Eastern Co. filed its Q1 2024 10-Q, detailing financial instruments, benefit plans, and debt obligations.</b>

AI Summary

EASTERN CO (EML) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Eastern Co. filed a 10-Q report for the period ending March 30, 2024. The filing includes data related to various financial instruments and benefit plans. Specific details on stock options and share purchases are provided. Information on debt instruments, including Medium Term Notes and Credit Agreements, is present. The report covers defined benefit pension and other postretirement plans.

Why It Matters

For investors and stakeholders tracking EASTERN CO, this filing contains several important signals. This filing provides a quarterly update on Eastern Co.'s financial health and operational details, crucial for investors to assess performance and risks. The inclusion of specific data on stock options, share repurchases, and debt instruments offers insights into capital allocation and financial leverage.

Risk Assessment

Risk Level: low — EASTERN CO shows low risk based on this filing. The filing is a standard 10-Q report, providing routine financial disclosures without immediate indicators of significant new risks.

Analyst Insight

Review the detailed financial statements and disclosures within the 10-Q to understand Eastern Co.'s current financial position and any changes from previous periods.

Key Numbers

• 2024-03-30 — Period of Report (CONFORMED PERIOD OF REPORT)
• 2024-05-06 — Filing Date (FILED AS OF DATE)
• 3420 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION: CUTLERY, HANDTOOLS & GENERAL HARDWARE)
• CT — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• EASTERN CO (company) — FILER
• EML (company) — tk
• 203-729-2255 (dollar_amount) — BUSINESS PHONE

FAQ

Industry Context

Eastern Co. operates in the CUTLERY, HANDTOOLS & GENERAL HARDWARE industry. This filing provides a snapshot of its financial activities for the first quarter of 2024.

Regulatory Implications

As a publicly traded company, Eastern Co. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) to ensure transparency for investors.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow trends.
2. Review disclosures related to debt and credit facilities to understand leverage and liquidity.
3. Examine details on employee benefit plans, particularly pension and postretirement obligations.

Key Dates

• 2024-03-30: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides an update on the company's financial performance and condition between annual reports.)

Defined Benefit Plans

Retirement plans where the employer promises a specific benefit amount to employees upon retirement. (These plans represent significant long-term liabilities and require careful financial management and disclosure.)

Stock Options

The right granted to an employee to purchase a company's stock at a predetermined price. (Key component of executive compensation and employee incentives, impacting share count and dilution.)

Year-Over-Year Comparison

This is a 10-Q filing for the first quarter of 2024, providing an update on the company's financial status since its last annual report (10-K) or previous quarterly filings.

Key Financial Figures

• $96,724 — , net of tax cost (benefit) of: 2024 - $96,724 ; 2023 - $(87,691) 403,016 ( 277,68
• $71,355 — enefit costs, net of taxes of: 2024 - $71,355 ; 2023 - $74,360 243,336 252,668 T
• $74,360 — of taxes of: 2024 - $71,355 ; 2023 - $74,360 243,336 252,668 Total other compre
• $59 million — ith Santander Bank, N.A. (approximately $59 million). The term loan portion of the credit f

Filing Documents

• eml_10q.htm (10-Q) — 617KB
• eml_ex31.htm (EX-31) — 26KB
• eml_ex32.htm (EX-32) — 7KB
• 0001654954-24-005629.txt (&nbsp;) — 3306KB
• eml-20240330.xsd (EX-101.SCH) — 37KB
• eml-20240330_lab.xml (EX-101.LAB) — 235KB
• eml-20240330_cal.xml (EX-101.CAL) — 52KB
• eml-20240330_pre.xml (EX-101.PRE) — 185KB
• eml-20240330_def.xml (EX-101.DEF) — 83KB
• eml_10q_htm.xml (XML) — 384KB

Financial Statements

Financial Statements 3 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 24 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 26. Item 5. Other Information 25 Item 6 Exhibits 26

Signatures

Signatures 27 2 Table of Contents PART 1 – FINANCIAL INFORMATION

– FINANCIAL STATEMENTS

ITEM 1 – FINANCIAL STATEMENTS THE EASTERN COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 30, 2024 April 1, 2023 Net sales $ 67,929,087 $ 72,495,367 Cost of products sold ( 51,732,988 ) ( 56,997,668 ) Gross margin 16,196,099 15,497,699 Product development expense ( 1,359,797 ) ( 1,401,199 ) Selling and administrative expenses ( 11,498,958 ) ( 11,937,637 ) Operating profit 3,337,344 2,158,863 Interest expense ( 845,035 ) ( 726,006 ) Other income (expense) 10,354 ( 630,699 ) Income before income taxes 2,502,663 802,158 Income tax expense ( 555,091 ) ( 194,845 ) Net income $ 1,947,572 $ 607,313 Earnings per share: Basic $ 0.31 $ 0.10 Diluted $ 0.31 $ 0.10 Cash dividends per share: $ 0.11 $ 0.11 See accompanying notes. 3 Table of Contents THE EASTERN COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 30, 2024 April 1, 2023 Net income $ 1,947,572 $ 607,313 Other comprehensive income: Change in foreign currency translation ( 157,000 ) 336,585 Change in fair value of foreign currency swap, net of tax cost (benefit) of: 2024 - $96,724 ; 2023 - $(87,691) 403,016 ( 277,687 ) Change in pension and postretirement benefit costs, net of taxes of: 2024 - $71,355 ; 2023 - $74,360 243,336 252,668 Total other comprehensive income 489,352 311,566 Comprehensive income $ 2,436,924 $ 918,879 See accompanying notes. 4 Table of Contents THE EASTERN COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS March 30, 2024 December 30, 2023 (unaudited) ASSETS Current Assets Cash and cash equivalents $ 7,356,444 $ 8,299,453 Marketable Securities 2,127,735 986,477 Accounts receivable, less allowances: 2024 - $ 541,103 ; 2023 - $ 564,816 42,881,758 37,057,488 Inventories 55,847,071 59,272,207 C

View Full Filing

View this 10-Q filing on SEC EDGAR