Eastern Co. Files Q2 2024 10-Q

Ticker: EML · Form: 10-Q · Filed: Aug 6, 2024 · CIK: 31107

Sentiment: neutral

Topics: 10-Q, financials, quarterly-report

TL;DR

Eastern Co. Q2 10-Q filed. Financials updated.

AI Summary

Eastern Co. filed its 10-Q for the period ending June 29, 2024, reporting on its financial performance. The company's fiscal year ends on December 30th. Key financial data points and disclosures related to its business operations and financial position are included in this filing.

Why It Matters

This filing provides investors and analysts with an update on Eastern Co.'s financial health and operational performance for the second quarter of 2024.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing financial updates and does not indicate any immediate or significant risks.

Key Numbers

Key Players & Entities

FAQ

What was the total value of derivative assets as of June 29, 2024?

The total value of derivative assets as of June 29, 2024, was $1,000,000.

What was the total value of derivative liabilities as of June 29, 2024?

The total value of derivative liabilities as of June 29, 2024, was $1,000,000.

What is Eastern Co.'s fiscal year end date?

Eastern Co.'s fiscal year ends on December 30th.

What is the SIC code for Eastern Co.?

The Standard Industrial Classification (SIC) code for Eastern Co. is 3420 (Cutlery, Handtools & General Hardware).

When was this 10-Q filing submitted?

This 10-Q filing was submitted on August 6, 2024.

Filing Stats: 4,549 words · 18 min read · ~15 pages · Grade level 13.1 · Accepted 2024-08-06 16:30:57

Key Financial Figures

Filing Documents

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Condensed Consolidated Statements of Operations 3 Condensed Consolidated Statements of Comprehensive Income 4 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8 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 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6 Exhibits 27

SIGNATURES

SIGNATURES 28 - 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 Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net sales $ 73,151,889 $ 68,337,790 $ 141,080,976 $ 140,833,158 Cost of products sold ( 54,941,336 ) ( 53,189,948 ) ( 106,674,324 ) ( 110,187,615 ) Gross margin 18,210,553 15,147,842 34,406,652 30,645,543 Product development expense ( 1,301,487 ) ( 1,431,110 ) ( 2,661,284 ) ( 2,832,309 ) Selling and administrative expenses ( 11,536,949 ) ( 11,289,037 ) ( 23,035,906 ) ( 23,226,674 ) Operating profit 5,372,117 2,427,695 8,709,462 4,586,560 Interest expense ( 829,934 ) ( 781,104 ) ( 1,674,969 ) ( 1,507,110 ) Other (expense) income ( 20,066 ) 252,180 ( 9,712 ) ( 378,520 ) Income before income taxes 4,522,117 1,898,771 7,024,781 2,700,930 Income tax expense ( 1,014,245 ) ( 499,564 ) ( 1,569,336 ) ( 694,409 ) Net income $ 3,507,872 $ 1,399,207 $ 5,455,445 $ 2,006,521 Earnings per share: Basic $ 0.56 $ 0.22 $ 0.88 $ 0.32 Diluted $ 0.56 $ 0.22 $ 0.87 $ 0.32 Cash dividends per share: $ 0.11 $ 0.11 $ 0.22 $ 0.22 See accompanying notes. - 3 - Table of Contents THE EASTERN COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Six Months Ended June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net income $ 3,507,872 $ 1,399,207 $ 5,455,445 $ 2,006,521 Other comprehensive income: Change in foreign currency translation ( 472,078 ) ( 431,042 ) ( 629,078 ) ( 94,457 ) Change in fair value of foreign currency swap, net of tax benefit of: 2024 - $(109,797) and $(17,103) respectively ( 477,378 ) - ( 74,362 ) - Change in fair value of interest rate swap, net of tax benefit of: 2023 - $(274,957) and $(362,648) respectively

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