Three Months Ended
| ||
April 3,
2021
|
March 28,
2020
| |
Net sales
|
$73,097,875
|
$65,325,616
|
Cost of products sold
|
(55,839,321)
|
(50,663,943)
|
Gross margin
|
17,258,554
|
14,661,673
|
Product development expense
|
(838,825)
|
(775,444)
|
Selling and administrative expenses
|
(10,485,520)
|
(10,024,958)
|
Operating profit
|
5,934,209
|
3,861,271
|
Interest expense
|
(702,859)
|
(827,664)
|
Other income
|
2,426,741
|
744,793
|
Income before income taxes
|
7,658,091
|
3,778,400
|
Income taxes
|
(1,817,264)
|
(882,583)
|
Net income
|
$5,840,827
|
$2,895,817
|
Earnings per share:
| ||
Basic
|
$0.93
|
$0.46
|
Diluted
|
$0.93
|
$0.46
|
Cash dividends per share:
|
$0.11
|
$0.11
|
ASSETS
| ||
April 3,
2021
|
January 2,
2021
| |
(unaudited)
| ||
Current Assets
| ||
Cash and cash equivalents
|
$17,464,669
|
$16,101,635
|
Marketable securities
|
29,224
|
28,951
|
Accounts receivable, less allowances: 2021 - $618,000; 2020 - $545,000
|
42,228,264
|
37,749,129
|
Inventories
|
53,960,426
|
53,112,393
|
Current portion of note receivable
|
459,863
|
398,414
|
Prepaid expenses and other assets
|
5,341,214
|
4,345,250
|
Total Current Assets
|
119,483,660
|
111,735,772
|
Property, Plant and Equipment
|
86,539,328
|
88,198,093
|
Accumulated depreciation
|
(47,244,599)
|
(48,246,120)
|
Property, Plant and Equipment, Net
|
39,294,729
|
39,951,973
|
Goodwill
|
76,921,385
|
76,895,015
|
Trademarks
|
5,404,284
|
5,404,284
|
Patents and other intangibles, net of accumulated amortization
|
25,958,715
|
27,096,006
|
Long term notes receivable, less current portion
|
1,547,503
|
1,677,277
|
Right of Use Assets
|
12,882,498
|
12,768,027
|
Other Assets
|
122,714,385
|
123,840,609
|
TOTAL ASSETS
|
$281,492,774
|
$275,528,354
|
LIABILITIES AND SHAREHOLDERS' EQUITY
| ||
April 3,
2021
|
January 2,
2021
| |
(unaudited)
| ||
Current Liabilities
| ||
Accounts payable
|
$25,357,557
|
$23,507,719
|
Accrued compensation
|
2,520,725
|
3,675,223
|
Other accrued expenses
|
4,785,793
|
4,121,568
|
Current portion of lease liability
|
3,039,689
|
2,923,761
|
Current portion of long-term debt
|
7,062,689
|
6,437,689
|
Total Current Liabilities
|
42,766,453
|
40,665,960
|
Deferred income taxes
|
2,899,074
|
2,899,075
|
Other long-term liabilities
|
1,144,127
|
1,144,127
|
Lease liability
|
9,871,835
|
9,883,168
|
Long-term debt, less current portion
|
80,468,737
|
82,255,803
|
Accrued postretirement benefits
|
1,168,262
|
1,185,139
|
Accrued pension cost
|
32,443,297
|
33,188,623
|
Total Liabilities
|
170,761,785
|
171,221,895
|
Shareholders' Equity
| ||
Voting Preferred Stock, no par value:
| ||
Authorized and unissued: 1,000,000 shares
| ||
Nonvoting Preferred Stock, no par value:
| ||
Authorized and unissued: 1,000,000 shares
| ||
Common Stock, no par value, Authorized: 50,000,000 shares
|
31,779,299
|
31,501,041
|
Issued: 9,003,230 shares in 2021 and 8,996,625 shares in 2020
| ||
Outstanding: 6,253,501 shares in 2021 and 6,246,896 shares in 2020
| ||
Treasury Stock: 2,749,729 shares in 2021 and 2,749,729 shares in 2020
|
(20,537,962)
|
(20,537,962)
|
Retained earnings
|
128,356,468
|
122,840,131
|
Accumulated other comprehensive loss:
| ||
Foreign currency translation
|
874,810
|
953,864
|
Unrealized loss on marketable securities, net of tax
|
(4,302)
|
(4,507)
|
Unrealized loss on interest rate swap, net of tax
|
(974,045)
|
(1,387,085)
|
Unrecognized net pension and postretirement benefit costs, net of tax
|
(28,763,279)
|
(29,059,023)
|
Accumulated other comprehensive loss
|
(28,866,816)
|
(29,496,751)
|
Total Shareholders' Equity
|
110,730,989
|
104,306,459
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$281,492,774
|
$275,528,354
|
Three Months Ended
| ||
April 3,
2021
|
March 28,
2020
| |
Operating Activities
| ||
Net income
|
$5,840,827
|
$2,895,817
|
Adjustments to reconcile net income to net cash provided by operating activities:
| ||
Depreciation and amortization
|
2,192,622
|
2,055,782
|
Unrecognized pension and postretirement benefits
|
(674,262)
|
(678,305)
|
(Gain) loss on sale of equipment and other assets
|
(1,600,288)
|
(437,446)
|
Provision for doubtful accounts
|
73,097
|
156,286
|
Stock compensation expense
|
278,258
|
238,293
|
Changes in operating assets and liabilities:
| ||
Accounts receivable
|
(4,551,399)
|
(2,273,864)
|
Inventories
|
(1,015,663)
|
(994,546)
|
Prepaid expenses and other
|
(744,138)
|
341,582
|
Other assets
|
(156,726)
|
(415,415)
|
Accounts payable
|
2,063,182
|
2,766,829
|
Accrued compensation
|
(1,159,489)
|
(1,585,976)
|
Other accrued expenses
|
1,554,036
|
(564,572)
|
Net cash provided by operating activities
|
2,100,057
|
1,504,465
|
Investing Activities
| ||
Marketable securities
|
(273)
|
11,151
|
Payments received from notes receivable
|
68,325
|
-
|
Proceeds from sale of equipment
|
1,994,017
|
445,212
|
Purchases of property, plant and equipment
|
(919,589)
|
(828,115)
|
Net cash provided by/used in investing activities
|
1,142,480
|
(371,752)
|
Financing Activities
| ||
Principal payments on long-term debt
|
(1,162,045)
|
(1,221,423)
|
Lease payments
|
(9,875)
|
-
|
Purchase common stock for treasury
|
-
|
(368,864)
|
Dividends paid
|
(684,702)
|
(686,614)
|
Net cash used in financing activities
|
(1,856,622)
|
(2,276,901)
|
Effect of exchange rate changes on cash
|
(22,881)
|
(343,436)
|
Net change in cash and cash equivalents
|
1,363,034
|
(1,487,624)
|
Cash and cash equivalents at beginning of period
|
16,101,635
|
17,996,505
|
Cash and cash equivalents at end of period
|
$17,464,669
|
$16,508,881
|
Supplemental disclosure of cash flow information:
| ||
Interest
|
$685,520
|
$827,664
|
Income taxes
|
21,100
|
21,000
|
Non-cash investing and financing activities
| ||
Right of use asset
|
114,471
|
(489,822)
|
Lease liability
|
(104,595)
|
489,822
|
($000's)
| ||
April 3,
2021
|
March 28,
2020
| |
Net Income as reported per generally accepted accounting principles (GAAP)
|
$5,841
|
$2,896
|
Earnings Per Share as reported under generally accepted accounting principles (GAAP):
| ||
Basic
|
$0.93
|
$0.46
|
Diluted
|
$0.93
|
$0.46
|
Adjustments for one-time items:
| ||
Gain on sale of Eberhard Hardware Ltd building, net of tax
|
(1,353)A
|
-
|
Total adjustments for one-time items
| ||
(Non-GAAP)
|
(1,353)
|
-
|
Adjusted Net Income (related to one-time items)
|
$4,488
|
$2,896
|
Adjusted earnings per share (related to one-time items); (Non-GAAP)
| ||
Basic
|
$0.72
|
$0.46
|
Diluted
|
$0.71
|
$0.46
|
($000's)
| ||
April 3,
2021
|
March 28,
2020
| |
Net Income/(loss) as reported per generally accepted accounting principles (GAAP)
|
$5,841
|
$2,896
|
Interest expense
|
703
|
828
|
Provision for income taxes
|
1,817
|
883
|
Depreciation and amortization
|
2,193
|
2,056
|
Gain on sale of Eberhard Hardware Ltd Building
|
(1,841)A
|
-
|
Adjusted EBITDA
|
$8,713
|
$6,662
|
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Disclaimer
The Eastern Company published this content on 28 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2021 14:33:02 UTC.