The Eastern Company (EML) 6 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the Eastern Company's Third Quarter Fiscal Year 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Marianne Barr, Treasurer of the Eastern company. Marianne, over to you.

Good morning, and thank you, everyone, for joining us this morning for a review of the Eastern Company's results for the third quarter of 2024. call and Mitarotonda, Vlahos. the the Board of on Directors of company's me are Chair James Eastern's With CFO, Nicholas company press closed. earnings issued after The market the release yesterday an release, If not of company's release www.easterncompany.com, anyone website, the the you find Financial yet the the will has where under Investors please seen section visit News.

expenses, limitation, that today's company's of without consist about These the to regarding call other could to uncertainties business those income future and trends prospects, some expenses, these that performance statements significantly forward-looking differ taxes risks the business forward-looking and you outlook. in cause information margin, and or statements. of note projected gross will subject statements results from Please actual will are during forward-looking and and financial operating hear revenue, statements including,

undertake circumstances We events reflect update obligation call. or the review no statements any to forward-looking to that after occur or

and our XX-K risk regarding and to XXXX. uncertainties, Form year these refer more XXXX the with XX-Q for filed filings For SEC XX, the SEC on fiscal with November SEC risks X, information on XXXX, please the March in including filed discussed factors Form

useful most call non-GAAP in Eastern's the results. release. be In call, today's of found we of each press to measures believe comparable will can addition reconciliation during from to measures performance. in A considered substitute for in a supplemental today's GAAP earnings isolation or the non-GAAP GAAP the measures addition, that as discussed we be discuss directly measure are These non-GAAP during should as of financial measures not and

the turn introduction, that I'll over call to With Jim.

who there believes well quarter Board those Company to are with and the be taken time, appointed Operationally, new strengthen bottom be participating as phone, take to us top third and margins. substantial taken a Actions more same period good to by and joining line Directors Marianne, have Eastern significant the are you, improve the in At were to the gross of improvements to year-over-year we the progress that morning leader results. strong Eastern's pricing via and web. level. And actions next to a made. for was Eastern those Thank as

into about of significant step I our new I'll Eastern. CEO Before taken appointment, at details go another talk recently

discussed during As evaluating earnings of August, company's continuing all businesses process in our for of the QX and performance have we call long-term potential. the growth been

fewer that returnable many business a Big longer businesses competitive. is began discontinued as Big offers the X's one During X Mold and Big complex and given long-term for excellent X reclassified to today's synergy opportunities the the that potential capital sell of especially strategy. Accordingly, to fits within require our we and financial determined packaging mold market no for Big operations. it a significant products dynamics Precision process, we Eastern. steps niche recently business, which holds X X Unlike that business investment Mold business, remain taking

in The play company's better strengths. to of put the to will Eastern mold sale a position

our resources of Eastern's vehicle, assembling we commercial in be capabilities on industrial the markets. other all able and to manufacturing addition, now best-in-class In end focus will and automotive

call detailed QX introduction, review Nick? of more Nick results. financial a that to turn over I'll With for the our

good and morning, Thank you, Jim, everyone.

for it value to in the of X discontinued operations. recognized loss fair As for X Mold made Jim opening and classification sell noted business in criteria we million, business write-down of held-for-sale Big met recently the quarter Mold tax. and was in $XX.X to accounting third decision that the net his the comments, the determined Big The

for third financial quarter. Eastern's from operations the my results focus I'll on review today continuing

truck products from to accessories. and XX% for primarily period, due assemblies XXXX demand increased sales $XX net quarter, million packaging to and increased the third the $XX.X returnable For million truck in mirror

orders XX, as $XX.X of primarily truck compared packaging products. XX, by rose $XX.X increase returnable backlog to increased assemblies transport to of was various Our XXXX. driven XXXX, The as September September for million million mirror XX% and

sales to The the increase in XX.X% alignment third was percentage margin XXXX Gross price primarily period. compared and cost the XX.X% savings quarter in a in improved reflected other initiatives. as of cost margin

net As a compared percentage XXXX for development the X.X% X.X% of of sales, costs product quarter for to XXXX were third period.

due compared administrative or legal income primarily professional for the payroll-related compared and other expenses million period. quarter year last third million XXXX by The the was of increase to of pension income increased quarter third XXXX was $X.X of increase period. expense million and XXXX to when prior Selling lower Other period. increased driven and XX% expenses. compared in primarily the the for $X.X to to The $X.X year's and expense higher

net of million Net million or $X.XX period. to the per to income quarter or period. was continuing measure, XXXX quarter share $X.XX operations non-GAAP XXXX the of or for was the compared net compared of income per $X.X or $X.X $X.XX $X.X income a diluted third share $X.XX of income from Adjusted diluted third for net million share million the share continuing operations, XXXX for for from diluted [indiscernible] per the diluted adjusted $X.X year per prior

the the $X.X leverage XXXX for quarter Adjusted the of a end continuing senior period. third EBITDA million the end At $X.X for at quarter, from second to X.X:X ratio net of quarter. compared the to X.X the of was operations, our million third measure was non-GAAP XXXX compared

$X.X million the we of in months addition, expenditures fiscal X for dividends capital first In and paid $X.X of invested XXXX. million

a million in specific on of cost operating XXXX $X during was increases lower period, to primarily in to to corresponding of receivable fiscal XXXX. We million the generated compared X due Cash $XX.X flow to year's operations XXXX cover accounts period XXXX, due million from activities compared to of $X.X in compared job. first X during in in period and from fiscal in of $XX.X third accounts the last the million due months quarter to the first revenue increases months pre-billing receivable XXXX material the to approximately

September $X.X end of third of million and of $X.X year million last XXXX, the year's $XX.X totaled fiscal end million, As a quarter. from from inventories decrease XX, down XXXX the of

repurchased of the to During the share under third board in of bringing my us approximately our total That authorized financial a XXXX, we XXX,XXX shares repurchase program of buyback XX,XXX shares XXXX, under completes review. common quarter August program. stock repurchased the

to I'll now Jim. back call turn the

newly on Thank Officer. further like you, Chief Nick. Executive Eastern's provide I'd At to this point, details appointed

pleased Schroder to As we CEO today. announced as we're Ryan join us effective have yesterday,

through a he of served sheet lines sustained history organically acrylic worldwide. a X,XXX polycarbonate a and Plaskolite Ryan a global Most as with peer-beating strong is leader record production and growth. executive of acquisition. Ryan LLC, recently, leading more CEO than long-term XXX brings businesses, companies both employees and to seasoned manufacturing with of of growing

XX that, before President XX was spent that, plant across of to Chain roles, Ryan engineering employees Hannifin facilities. general Norgen, Supply manager at Prior division. company's of firm IMI Cylinders a of and the including Manager leader Ryan X,XXX variety valves, Parker in global And some the Industrial in with years manager Mobile Automation a of

achieving sales, will all Ryan has share supply lean vision Easter. in long-term call. finance for sustained valuable which quarterly be background and operations, next Ryan will growth our to chain of his management, extensive in

for join you'll discussion. hope us we that So

to Operator, I'd to questions. like now floor the open

can on before that, web We questions. the we please do how those they about will directions but to take phone ask questions from provide the first,

[Operator Instructions].

right. All

question congratulations via new want first company do the X the to to the CEO, So have you in we web months? the where be is,

our plans, shorter-term short-term quarterly, don't we include, course, have pretty it we yearly. long-term ambitious on our And certainly, of the far numbers have achieve But We the plans. or ambitious short-term plans actions And specifically to plans. as long-term long-term the plans. comment plans as

to the stated, we long-term are rest plans, of all ambitious. ways can look achieve pretty I which, So at you assured that as

conference have Thank you, the on there Operator, call? web. questions you Do questions further are via any Jim. the no

the I'm anyone [Operator Instructions]. queue not in seeing at the moment.

operator. Jim, you, over there no the call further Thank to closing questions. I'll for turn remarks. you are

today. Thank your time all you for

If the believe out or meantime, you've We in look to better introducing business grow forward it's earnings now on productive important Nick Ryan quarter a to elements need much to third me. any Eastern. Thank of you. positioned reach you period was the heard, We've our for company's call. the and there's transformation As the next prosper. advanced and please to most you Schroder information

Thank you very much. This does today's conclude conference.

at and a time, your Thank this your wonderful participation. have may You for phone lines you day. disconnect