The Eastern Company Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
The Eastern Company (NASDAQ:EML) reported Q4 2025 net sales of $57.5M, net income of $1.2M (EPS $0.19) and adjusted Q4 net income of $1.9M (adjusted EPS $0.31). For FY 2025, net sales were $249.0M, net income $6.0M (EPS $0.98) and adjusted net income $8.4M (adjusted EPS $1.37). The company completed a $100M credit facility and reduced debt by $8.7M while implementing $4M annualized cost savings.
Positive
- Maintained profitability with FY 2025 net income of $6.0M
- Implemented $4.0M in annualized cost savings through restructuring
- Negotiated a new $100M credit facility to improve financial flexibility
- Reduced outstanding debt by $8.7M during 2025
Negative
- Q4 2025 net sales declined 13.7% to $57.5M year-over-year
- FY 2025 adjusted EBITDA fell from $26.3M to $19.4M (‑26%)
- FY 2025 net income declined 57% year-over-year to $6.0M
- Backlog decreased 10.5% to $81.1M as of January 3, 2026
Key Figures
Market Reality Check
Peers on Argus
EML was modestly higher pre-release, while key peers like KMT (+2.42%), HLMN (+1.91%), TKR (+0.29%) and TTC (+1.14%) also rose, but no coordinated momentum signal appeared in the scanner.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Negative | -1.9% | Sharp YoY declines in net sales, net income, gross margin and EBITDA. |
| Aug 05 | Q2 2025 earnings | Negative | -1.0% | Sales and earnings down vs 2024 despite restructuring and cost savings. |
| May 06 | Q1 2025 earnings | Neutral | +2.2% | Modest sales decline with positive EPS and EBITDA amid optimization moves. |
| Mar 11 | Q4/FY 2024 earnings | Positive | -1.6% | Strong FY 2024 growth in sales and EPS with higher backlog under new CEO. |
| Nov 01 | Q3 2024 earnings | Positive | -1.0% | Double-digit sales growth and EPS increase with improved gross margin. |
Earnings releases have often seen mild negative reactions, including sell-offs even on strong 2024 results, suggesting cautious sentiment around updates.
Over the past five earnings cycles, Eastern moved from strong growth in 2024 to a more challenging 2025. Q3 and Q2 2025 showed declining sales and earnings versus 2024, despite restructuring actions and cost savings. Earlier in 2025, Q1 results were relatively stable, and full-year 2024 delivered higher sales and EPS. Yet even strong 2024 quarters drew negative price reactions, indicating investors had high expectations. Today’s Q4/FY 2025 report continues that narrative of pressure in core end markets alongside operational restructuring.
Historical Comparison
Across the last five earnings releases, EML’s average next-day move was about -0.67%, with several sell-offs even on strong 2024 results, pointing to cautious earnings sentiment.
Earnings history shows a shift from robust growth and expanding backlog in late 2024 to declining sales, margins, and earnings through 2025, despite restructuring and cost-saving initiatives.
Market Pulse Summary
This announcement outlines weaker Q4 and full-year 2025 results versus 2024, with net sales of $57.5 million in Q4 and $249.0 million for the year, and EPS of $0.19 and $0.98, respectively. Management emphasizes restructuring that targets $4 million in annual savings, mitigation of about $10 million in tariffs, and a new $100 million credit facility. Investors may watch future quarters for margin trends, backlog changes, and progress in core truck and automotive end markets.
Key Terms
adjusted net income financial
adjusted eps financial
adjusted ebitda financial
non-gaap financial
AI-generated analysis. Not financial advice.
Q4 2025 net sales of
$57.5 million ; net income of$1.2 million ; EPS of$0.19 Q4 2025 adjusted net income of
$1.9 million ; Adjusted EPS of$0.31 FY 2025 net sales of
$249.0 million ; net income of$6.0 million ; EPS of$0.98 FY 2025 adjusted net income of
$8.4 million ; Adjusted EPS of$1.37 Balance Sheet Strengthened with New
$100 Million Credit Facility
SHELTON, CT / ACCESS Newswire / March 3, 2026 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced its results of operations for the fourth fiscal quarter and full year ended January 3, 2026.
"2025 was a year defined by market headwinds we could not control and operational actions we could," stated Ryan Schroeder, President and CEO. "Our primary end-markets - heavy-duty truck and automotive - remained under pressure throughout the year, resulting in our financial performance for both the fourth quarter and full year falling far short of expectations. What we could control, however, we did. Among other things, we restructured our cost base, generating
"The decisive actions we took over the course of 2025 - the restructuring initiatives, footprint optimization, cost-alignment measures, and improved accountability - were investments in Eastern's future earnings power. Equally important, we remained disciplined stewards of capital throughout the year by reducing outstanding debt by
"We are confident that the restructuring and operational changes implemented in 2025 establish a solid foundation for Eastern's next chapter, which is firmly focused on pursuing disciplined growth. Looking ahead, the Company's strategy is centered on:
Operational excellence and entrepreneurial spirit
Customer intimacy and new product introductions
Disciplined capital deployment
Leadership accountability
Mr. Schroeder concluded, "We enter 2026 with a leaner cost structure and a new
Fourth Quarter and Full Year 2025 Financial Results
The following analysis excludes discontinued operations.
Net sales in the fourth quarter of 2025 decreased
Gross margin as a percentage of net sales was
Selling and administrative expenses in the fourth quarter of 2025 decreased
Net income for the fourth quarter of 2025 was
Adjusted net income from continuing operations (a non-GAAP measure) for the fourth quarter of fiscal 2025 was
Adjusted EBITDA from continuing operations (a non-GAAP measure) for the fourth quarter of fiscal 2025 was
During the fourth quarter of fiscal 2025, the Company repurchased 35,701 shares of common stock under its share repurchase program authorized in April 2025, and repurchased 153,663 shares in fiscal 2025 (constituting approximately
Conference Call and Webcast
The Eastern Company will host a conference call to discuss its results for the fourth quarter and full year of 2025 and related matters on Wednesday, March 4, 2026 at 9:00AM Eastern Time. Participants can access the conference call by phone at 888-506-0062 (toll-free in the US and Canada) or 973-528-0011 (international), using access code 183748. Participants can also join via the web at https://www.webcaster5.com/Webcast/Page/1757/53645.
About The Eastern Company
The Eastern Company manages businesses that design, manufacture and sell engineered solutions for industrial markets. Eastern's businesses operate in industries that offer long-term macroeconomic growth opportunities. The Company operates from locations in the U.S., Canada, Mexico, Taiwan, and China. More information on the Company can be found at www.easterncompany.com.
Safe Harbor for Forward-Looking Statements
Statements contained in this press release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "would," "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," "plan," "potential," "opportunities," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include:
risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on our cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic, and social instability;
the impact of tariffs, trade sanctions or political instability on the availability or cost of raw materials;
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 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, and the impact of market conditions on pension plan funded status;
restrictions on operating flexibility imposed by the agreement governing our credit facility;
the inability to achieve the savings expected from global sourcing of materials;
lower-cost competition;
our ability to design, introduce and sell new or updated products and related components;
market acceptance of our products;
the inability to attain expected benefits from acquisitions or dispositions or the inability to effectively integrate acquired businesses and achieve expected synergies;
costs and liabilities associated with environmental compliance;
the impact of climate change, natural disasters, geopolitical events, and public health crises, including pandemics and epidemics, and any related Company or government policies or actions, including any potential adverse economic impacts resulting from a U.S. federal government shutdown;
military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the possible expansion of such conflicts and geopolitical consequences) or terrorist threats and the possible responses by the U.S. and foreign governments;
failure to protect our intellectual property;
cyberattacks, data breaches or interruptions or failures of our information technology systems; and
materially adverse or unanticipated legal judgments, fines, penalties, or settlements.
The Company is also subject to other risks identified and discussed in Part I, Item 1A, Risk Factors, and in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of the 2025 Form 10-K which was filed with the Securities and Exchange Commission on March 3, 2026, and that may be identified from time to time in our quarterly reports on Form 10-Q, current reports on Form 8-K and other filings we make with the SEC.
Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted, and the Company may alter its business strategies to address changing conditions. Also, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses. The Company undertakes no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law.
Non-GAAP Financial Measures
The non-GAAP financial measures we provide in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.
To supplement the condensed consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Adjusted Net Income from Continuing Operations, Adjusted Net Income, Adjusted Earnings Per Share from Continuing Operations, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures, such as net sales, net income, diluted earnings per share, or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.
Adjusted Net Income from Continuing Operations is defined as net income from continuing operations excluding, when incurred, gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses because we do not believe these expenses are reflective of our ongoing operations. Adjusted Net Income from Continuing Operations is a tool that can assist management and investors in comparing our performance on a consistent basis across periods by removing the impact of certain items that management believes do not directly reflect our underlying operating performance.
Adjusted Net Income is defined as net income excluding, when incurred, gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses because we do not believe these expenses are reflective of our ongoing operations. Adjusted Net Income is a tool that can assist management and investors in comparing our performance on a consistent basis across periods by removing the impact of certain items that management believes do not directly reflect our underlying operating performance.
Adjusted Earnings Per Share from Continuing Operations is defined as earnings per share from continuing operations excluding, when incurred, certain per share gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses because we do not believe these expenses are reflective of our ongoing operations. We believe that Adjusted Earnings Per Share from Continuing Operations provides important comparability of underlying operational results, allowing investors and management to access operating performance on a consistent basis from period to period.
Adjusted EBITDA from Continuing Operations is defined as net income from continuing operations before interest expense, provision for income taxes, and depreciation and amortization and excluding, when incurred, the impacts of certain losses or gains that we do not believe reflect our ongoing operations, including, for example, impairment losses, gains/losses on sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. This measure also excludes credit agreement refinancing expenses because we do not believe these expenses are reflective of our ongoing operations. Adjusted EBITDA from Continuing Operations is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization and excluding, when incurred, the impacts of certain losses or gains that we do not believe reflect our ongoing operations, including, for example, impairment losses, gains/losses on sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. This measure also excludes credit agreement refinancing expenses because we do not believe these expenses are reflective of our ongoing operations. Adjusted EBITDA is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.
Management uses such measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors, and to establish operational goals and forecasts that are used in allocating resources. These financial measures should not be considered in isolation from, or as a replacement for, U.S. GAAP financial measures.
We believe that presenting non-GAAP financial measures in addition to U.S. GAAP financial measures provides investors greater transparency to the information used by our management for its financial and operational decision-making. We further believe that providing this information better enables our investors to understand our operating performance and to evaluate the methodology used by management to evaluate and measure such performance.
Investor Relations Contacts
The Eastern Company
Ryan Schroeder or Nicholas Vlahos
203-729-2255
THE EASTERN COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Year Ended | ||||||||
January 3, | December 28, | |||||||
2026 | 2024 | |||||||
Net sales | $ | 248,970,345 | $ | 272,751,967 | ||||
Cost of products sold | (192,011,802 | ) | (205,484,807 | ) | ||||
Gross margin | 56,958,543 | 67,267,160 | ||||||
Product development expense | (4,064,474 | ) | (4,888,496 | ) | ||||
Selling and administrative expenses | (42,220,760 | ) | (42,229,660 | ) | ||||
Operating profit | 10,673,309 | 20,149,004 | ||||||
Interest expense | (2,684,603 | ) | (2,721,318 | ) | ||||
Other expense | (499,257 | ) | (353,366 | ) | ||||
Income from continuing operations before income taxes | 7,489,449 | 17,074,320 | ||||||
Income taxes | (1,522,345 | ) | (3,858,796 | ) | ||||
Net income from continuing operations | $ | 5,967,104 | $ | 13,215,524 | ||||
Discontinued Operations | ||||||||
Loss from operations of discontinued units | $ | (520,006 | ) | $ | (2,821,898 | ) | ||
Gain (loss) on classification as held for sale | 2,016,696 | (23,087,775 | ) | |||||
Income tax (expense) benefit | (331,009 | ) | 4,164,932 | |||||
Net income (loss) on discontinued operations | $ | 1,165,681 | $ | (21,744,741 | ) | |||
Net income (loss) | $ | 7,132,785 | $ | (8,529,217 | ) | |||
Earnings per share from continuing operations: | ||||||||
Basic | $ | 0.98 | $ | 2.13 | ||||
Diluted | $ | 0.98 | $ | 2.13 | ||||
Earnings (loss) per share from discontinued operations: | ||||||||
Basic | $ | 0.19 | $ | (3.50 | ) | |||
Diluted | $ | 0.19 | $ | (3.50 | ) | |||
Total earnings (loss) per share: | ||||||||
Basic | $ | 1.17 | $ | (1.37 | ) | |||
Diluted | $ | 1.17 | $ | (1.37 | ) | |||
Cash dividends per share: | $ | 0.44 | $ | 0.44 | ||||
THE EASTERN COMPANY
CONSOLIDATED BALANCE SHEETS
January 3, | December 28, | |||||||
2026 | 2024 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 7,412,019 | $ | 14,010,388 | ||||
Marketable Securities | - | 2,051,301 | ||||||
Accounts receivable, less allowances: 2025- | 30,128,669 | 35,515,632 | ||||||
Inventories: | ||||||||
Raw materials and component parts | 21,526,667 | 21,070,522 | ||||||
Work in process | 7,135,539 | 7,120,460 | ||||||
Finished goods | 27,681,550 | 27,018,616 | ||||||
56,343,756 | 55,209,598 | |||||||
Current portion of note receivable | 33,844 | 286,287 | ||||||
Prepaid expenses and other assets | 5,349,486 | 3,477,717 | ||||||
Current assets held for sale | - | 5,071,828 | ||||||
Total Current Assets | 99,267,774 | 115,622,751 | ||||||
Property, Plant and Equipment | ||||||||
Land | 664,344 | 579,344 | ||||||
Buildings | 9,786,364 | 7,293,565 | ||||||
Machinery and equipment | 49,712,848 | 48,447,779 | ||||||
Accumulated depreciation | (33,246,213 | ) | (28,810,628 | ) | ||||
Property, Plant and Equipment, net | 26,917,343 | 27,510,060 | ||||||
Other Assets | ||||||||
Goodwill | 58,631,336 | 58,509,384 | ||||||
Trademarks | 5,082,767 | 3,946,455 | ||||||
Patents, technology and other intangibles net of accumulated amortization | 5,269,204 | 8,765,612 | ||||||
Long term note receivable, less current portion | - | 162,102 | ||||||
Deferred income taxes | 5,528,496 | 6,611,518 | ||||||
Right of use assets | 15,979,696 | 14,180,865 | ||||||
Total Other Assets | 90,491,499 | 92,175,936 | ||||||
TOTAL ASSETS | $ | 216,676,616 | $ | 235,308,747 | ||||
THE EASTERN COMPANY
CONSOLIDATED BALANCE SHEETS
January 3, | December 28, | |||||||
2026 | 2024 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 16,426,259 | $ | 19,650,970 | ||||
Accrued compensation | 4,203,720 | 5,478,581 | ||||||
Other accrued expenses | 2,349,400 | 9,577,019 | ||||||
Current portion of operating lease liability | 3,729,769 | 3,072,668 | ||||||
Current portion of financing lease liability | 908,332 | 761,669 | ||||||
Current portion of long-term debt | - | 3,603,935 | ||||||
Other current liabilities | - | 505,376 | ||||||
Current liabilities held for sale | - | 2,144,573 | ||||||
Total Current Liabilities | 27,617,480 | 44,794,791 | ||||||
Other long-term liabilities | 464,902 | 546,395 | ||||||
Operating lease liability, less current portion | 12,235,188 | 11,108,197 | ||||||
Financing lease liability, less current portion | 3,080,446 | 3,052,073 | ||||||
Long-term debt, less current portion | 33,902,353 | 38,640,576 | ||||||
Accrued postretirement benefits | 332,165 | 410,476 | ||||||
Accrued pension cost | 14,398,753 | 16,064,840 | ||||||
Long-term liabilities held for sale | - | - | ||||||
Total Liabilities | 92,031,287 | 114,617,348 | ||||||
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 | ||||||||
Issued: 9,179,288 shares in 2025 and 9,146,996 shares in 2024 | ||||||||
Outstanding: 6,041,767 shares in 2025 and 6,163,138 shares in 2024 | 36,337,100 | 35,443,009 | ||||||
Treasury Stock: 3,137,521 shares in 2025 and 2,983,858 shares in 2024 | (30,067,777 | ) | (26,338,309 | ) | ||||
Retained earnings | 137,997,382 | 133,545,670 | ||||||
Accumulated other comprehensive loss: | ||||||||
Foreign currency translation | (1,437,363 | ) | (2,276,590 | ) | ||||
Unrealized gain (loss) on foreign currency swap, net of tax | 570,097 | (505,376 | ) | |||||
Unrecognized net pension and postretirement benefit costs, net of tax | (18,754,110 | ) | (19,177,005 | ) | ||||
Accumulated other comprehensive loss | (19,621,376 | ) | (21,958,971 | ) | ||||
Total Shareholders' Equity | 124,645,329 | 120,691,399 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 216,676,616 | $ | 235,308,747 | ||||
THE EASTERN COMPANY
Consolidated Statements of Cash Flows
Year Ended | ||||||||
January 3, | December 28, | |||||||
Operating Activities | ||||||||
Net income (loss) | $ | 7,132,785 | $ | (8,529,217 | ) | |||
Less: Gain (loss) from discontinued operations | 1,165,681 | (21,744,741 | ) | |||||
Net income from continuing operations | $ | 5,967,104 | $ | 13,215,524 | ||||
Adjustments to reconcile net income from continuing operations to net cash provided | ||||||||
by operating activities: | ||||||||
Depreciation and amortization | 6,586,040 | 5,888,050 | ||||||
Reduction in carrying amount of ROU assets | (2,900,200 | ) | (2,883,273 | ) | ||||
Unrecognized pension and postretirement benefits | (1,197,126 | ) | (1,613,436 | ) | ||||
Loss on refinancing of credit agreement | 526,602 | - | ||||||
Loss on sale of equipment and other assets | 365,257 | 162,918 | ||||||
Provision for doubtful accounts | 95,767 | 2,430 | ||||||
Stock compensation expense | 894,091 | 1,492,150 | ||||||
Deferred taxes | 1,080,040 | (4,700,137 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 7,858,798 | (1,322,130 | ) | |||||
Inventories | (268,522 | ) | 3,126,444 | |||||
Prepaid expenses and other | (466,822 | ) | 1,790,094 | |||||
Other assets | (209,825 | ) | (236,304 | ) | ||||
Accounts payable | (4,500,112 | ) | (4,000,280 | ) | ||||
Accrued compensation | (1,094,203 | ) | 244,229 | |||||
Change in operating lease liability | 2,900,200 | 2,883,289 | ||||||
Other accrued expenses | (6,771,706 | ) | 5,336,482 | |||||
Net cash provided by operating activities | 8,865.383 | 19,386,050 | ||||||
Investing Activities | ||||||||
Marketable securities | 2,222,059 | (956,728 | ) | |||||
Business acquisition | (421,039 | ) | - | |||||
Payments received from notes receivable | 14,545 | 499,811 | ||||||
Proceeds from sale of business | 1,593,646 | |||||||
Proceeds from sale of building and equipment | 51,727 | 2,278,540 | ||||||
Purchases of property, plant and equipment | (3,969,860 | ) | (9,709,673 | ) | ||||
Net cash used in investing activities | (508,922 | ) | (7,888,050 | ) | ||||
Financing Activities | ||||||||
Proceeds from short term borrowings (revolver) | - | 3,000,000 | ||||||
Principal payments on short-term borrowings (revolver) | - | (1,750,000 | ) | |||||
Financing fees paid | (299,521 | ) | - | |||||
Proceeds from new long-term debt refinancing | 36,015,894 | - | ||||||
Principal payments on long-term debt | (44,750,000 | ) | (3,087,289 | ) | ||||
Financing leases, net | (853,224 | ) | 2,801,516 | |||||
Purchase common stock for treasury | (3,729,468 | ) | (3,057,841 | ) | ||||
Dividends paid | (2,681,073 | ) | (2,730,281 | ) | ||||
Net cash used in financing activities | (16,297,392 | ) | (4,823,895 | ) | ||||
Discontinued Operations | ||||||||
Cash provided by operating activities | - | 1,165,057 | ||||||
Cash used in investing activities | - | (583,242 | ) | |||||
Cash provided by discontinued operations | - | 581,815 | ||||||
Effect of exchange rate changes on cash | 509,421 | (711,844 | ) | |||||
Net change in cash and cash equivalents | (7,431,511 | ) | 6,544,076 | |||||
Cash and cash equivalents at beginning of year | 14,843,529 | 8,299,453 | ||||||
Cash and cash equivalents at end of year1 | $ | 7,412,019 | $ | 14,843,529 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest | $ | 2,890,146 | $ | 3,224,798 | ||||
Income taxes | 1,924,358 | 5,166,195 | ||||||
Non-cash investing and financing activities | ||||||||
Right of use asset | 1,652,686 | 2,883,273 | ||||||
Lease liability | 1,491,392 | 36,569 | ||||||
1 includes cash from assets held for sale of
Reconciliation of Non-GAAP Measures
Adjusted Net Income from Continuing Operations and Adjusted Earnings per Share from Continuing Operations Calculation
For the Three and Twelve Months ended January 3, 2026 and December 28, 2024
(
Three Months Ended | Twelve Months Ended | ||||||||||||||||
January 3, | December 28, | January 3, | December 28, | ||||||||||||||
Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $ | 1,185 | $ | 1,597 | $ | 5,967 | $ | 13,216 | |||||||||
Earnings per share from continuing operations as reported under generally accepted accounting principles (GAAP): | |||||||||||||||||
Basic | 0.19 | 0.26 | 0.98 | 2.13 | |||||||||||||
Diluted | 0.19 | 0.26 | 0.98 | 2.13 | |||||||||||||
Adjustments: | |||||||||||||||||
Severance and accrued compensation | 1,368 | a | 1,368 | a | |||||||||||||
Personnel and facilities restructuring | 350 | b | 2,523 | b | |||||||||||||
Credit Agreement refinancing | 527 | c | 527 | c | |||||||||||||
Non-GAAP tax impact of adjustments (1) | (181 | ) | (342 | ) | (628 | ) | (342 | ) | |||||||||
Total adjustments | 696 | 1,026 | 2,421 | 1,026 | |||||||||||||
Adjusted net income from continuing operations (non-GAAP) | $ | 1,881 | $ | 2,623 | $ | 8,388 | $ | 14,242 | |||||||||
Adjusted earnings per share from continuing operations (non-GAAP): | |||||||||||||||||
Basic | $ | 0.31 | $ | 0.42 | $ | 1.37 | $ | 2.29 | |||||||||
Diluted | $ | 0.31 | $ | 0.42 | $ | 1.37 | $ | 2.29 | |||||||||
(1) Estimate of the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pretax amount in order to calculate the non-GAAP provision for income taxes
a) Expenses associated with accrued compensation and severance related to the elimination of the former Chief Operating Officer position and the departure of two former Chief Executive Officers
b) Expenses associated with severance and facilities related costs.
c) Writeoff of fees associated with former credit agreement.
Reconciliation of Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA from Continuing Operations Calculation
For the Three and Twelve Months ended January 3, 2026 and December 28, 2024
(
Three Months Ended | Twelve Months Ended | ||||||||||||||||
January 3, | December 28, | January 3, | December 28, | ||||||||||||||
Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $ | 1,185 | $ | 1,597 | $ | 5,967 | $ | 13,216 | |||||||||
Interest expense | 665 | 672 | 2,685 | 2,721 | |||||||||||||
Provision for income taxes | 100 | 466 | 1,522 | 3,859 | |||||||||||||
Depreciation and amortization | 1,736 | 1,622 | 6,586 | 5,888 | |||||||||||||
Severance and accrued compensation | - | 1,368 | a | - | 1,368 | a | |||||||||||
Personnel and facilities restructuring | 350 | c | - | 2,522 | c | - | |||||||||||
Credit Agreement refinancing | 527 | d | 527 | d | |||||||||||||
Adjusted EBITDA from continuing operations | $ | 4,563 | $ | 5,725 | $ | 19,809 | $ | 27,052 | |||||||||
Net income (loss) as reported per generally accepted accounting principles (GAAP) | $ | 1,185 | $ | 1,313 | $ | 7,133 | $ | (8,529 | ) | ||||||||
Interest expense | 665 | 840 | 2,832 | 3,401 | |||||||||||||
Provision for income taxes | 100 | 679 | 1,853 | (474 | ) | ||||||||||||
Depreciation and amortization | 1,736 | 1,622 | 6,586 | 7,440 | |||||||||||||
Severance and accrued compensation | 1,368 | a | 1,368 | a | |||||||||||||
Personnel and facilities restructuring | 350 | c | 2,522 | c | |||||||||||||
Credit Agreement refinancing | 527 | d | 527 | d | |||||||||||||
Loss on classification as held for sale | - | - | (2,017 | ) | b | 23,088 | b | ||||||||||
Adjusted EBITDA | $ | 4,563 | $ | 5,822 | $ | 19,436 | $ | 26,294 | |||||||||
a) Expenses associated with accrued compensation and severance related to the elimination of the former Chief Operating Officer position and the departure of two former Chief Executive Officers
b) Impact of classifying Big 3 Mold business as held for sale
c) Expenses associated with severance and facilities related costs
d) Writeoff of fees associated with former credit agreement.
SOURCE: The Eastern Company
View the original press release on ACCESS Newswire
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