Core Viewpoint - Hamilton Beach Brands Holding Company is set to release its second quarter financial results for 2025 on July 30, 2025, after market close, and will host a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The company will file its 10-Q for the quarter ended June 30, 2025, on July 30, 2025 [1]. - A conference call is scheduled for July 30, 2025, at 4:30 p.m. Eastern Time to discuss the financial results [2]. Group 2: Company Overview - Hamilton Beach Brands Holding Company is a prominent designer, marketer, and distributor of a variety of small electric household and specialty housewares appliances, as well as commercial products for the food service industry [3]. - The company owns several consumer brands, including Hamilton Beach®, Proctor Silex®, and Hamilton Beach Professional®, among others [3]. - The company has exclusive agreements to design, sell, and distribute products like Bartesian® cocktail makers and Numilk® plant-based milk makers, and has expanded into the home health market through its Hamilton Beach Health subsidiary [3].

Company Overview - Hamilton Beach Brands Holding Company (NYSE: HBB) is recognized as a producer and seller of small electric household and specialty housewares, which has been assigned a soft 'buy' rating [1]. Industry Insights - Crude Value Insights provides an investment service and community that focuses on oil and natural gas, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1]. - Subscribers to Crude Value Insights benefit from a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2].

Core Insights - Hamilton Beach Brands Holding Company (HBB) shares have decreased by 23.2% since the first quarter of 2025 results, contrasting with a 0.63% increase in the S&P 500 index during the same period [1] - The company reported a revenue increase of 4% year-over-year, reaching $133.4 million, with a gross profit rise of 9% to $32.8 million and a net income of $1.8 million compared to a net loss of $1.2 million a year ago [2] - Operating profit improved significantly to $2.3 million from a loss of $0.9 million in the previous year, while SG&A expenses slightly decreased to $30.4 million [3] Financial Performance - Cash flow from operations was $6.6 million, a decline from $19.7 million the previous year, attributed to higher inventory levels and tougher comparisons in receivables collections [4] - The North America consumer business, particularly in the U.S., drove first-quarter gains, supported by positive at-home dining trends [5] - The Health segment, including HealthBeacon, generated $1.5 million in revenues and is expected to grow significantly due to a new partnership with OptumHealth [5][13] Strategic Developments - E-commerce accounted for approximately 40% of U.S. consumer sales, growing in the mid-single digits, while international revenues faced slight declines [7] - The company plans to launch a new premium brand, Lotus, targeting high-end home cooks with seven products set for release later in the year [6] - CEO Scott Tidey noted that 15% of U.S.-bound manufacturing has shifted away from China, with expectations for two-thirds to be sourced elsewhere by the end of 2025, which is projected to positively impact margins in 2026 [8][9] Outlook and Challenges - The company suspended forward guidance due to escalating tariff uncertainties, despite initial results positioning HBB on track to meet full-year targets [10][11] - Management remains confident in its mitigation strategies, including price increases and pre-buying inventory before tariffs took effect [11] - The company repurchased 141,435 shares for $2.7 million and paid out $1.6 million in dividends, indicating a commitment to shareholder returns [12]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.4 million, a 4% increase compared to Q1 2024, driven by favorable product mix and higher volumes [20] - Gross profit was $32.8 million, with a gross profit margin of 24.6%, up from 23.4% in the previous year [21] - Operating profit improved to $2.3 million from an operating loss of $943,000 in Q1 2024 [22] - Net income was $1.8 million or $0.13 per diluted share, compared to a net loss of $1.2 million or $0.08 per diluted share a year ago [23] Business Line Data and Key Metrics Changes - Hamilton Beach brand sales saw modest growth, primarily from the U.S. Consumer and Latin America businesses [8] - The premium business experienced mid-single-digit growth, driven by new product launches like Nu Milk and Qi brand products [10] - The Health Beacon business contributed $1.5 million in revenue, marking its third consecutive quarter of increasing patient subscriptions [12][13] Market Data and Key Metrics Changes - North American consumer markets showed solid growth, with the U.S. market being the major contributor [20] - International revenue experienced slight declines, indicating challenges in overseas markets [20] Company Strategy and Development Direction - The company is focused on six strategic initiatives: driving core growth, gaining share in the premium market, leading in the global commercial market, accelerating growth of Hamilton Beach Health, enhancing digital transformation, and leveraging partnerships and acquisitions [7] - The launch of the new premium brand Lotus is expected to capture share in the $4 billion premium market [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing macroeconomic headwinds and the impact of tariffs, stating that visibility into near-term trends has become challenging [6][26] - The company is taking actions to mitigate tariff impacts, including price increases and sourcing diversification [15][17] - Future guidance has been temporarily suspended due to the unpredictability of trade negotiations [27] Other Important Information - The company reported a net debt position of $1.7 million, significantly reduced from $23.7 million at the end of the previous year [25] - E-commerce sales accounted for approximately 40% of U.S. consumer sales, with mid-single-digit growth reported in Q1 [14] Q&A Session Summary Question: Clarification on gross margin outlook with tariffs - Management indicated that while they are working to mitigate tariffs, they do not have visibility to share regarding gross margins going forward [31] Question: Cost comparison of sourcing outside China - Management stated that they feel confident in maintaining margins as they diversify production outside of China, regardless of cost impacts [38] Question: Retailers' response to price increases - Management noted that there is open communication with retailers regarding price increases, and both parties are navigating the situation together [42][44] Question: Performance breakout for HealthBeacon - Management confirmed that performance will continue to be disclosed in segment reports and expressed excitement about the business's growth [47]

[Part I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The Q1 2025 financial statements show a return to profitability driven by revenue growth and margin expansion [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $418.0 million, driven by higher inventory and cash, with a corresponding rise in liabilities Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $313,448 | $262,291 | | Inventory | $165,890 | $133,523 | | **Total assets** | $418,020 | $368,950 | | **Total current liabilities** | $158,838 | $126,194 | | **Total liabilities** | $254,839 | $223,543 | | **Total stockholders' equity** | $163,181 | $145,407 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company achieved a net income of $1.8 million in Q1 2025, reversing a $1.2 million loss from the prior year Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $133,372 | $128,277 | | Gross Profit | $32,771 | $30,054 | | Operating Profit (Loss) | $2,313 | $(943) | | Net Income (Loss) | $1,805 | $(1,162) | | Diluted EPS | $0.13 | $(0.08) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased to $6.6 million due to investments in inventory and changes in trade receivables Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $6,620 | $19,701 | | Net cash provided by (used for) investing activities | $(516) | $(6,749) | | Net cash provided by (used for) financing activities | $(4,958) | $(2,085) | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Key notes detail a new two-segment reporting structure, the HealthBeacon acquisition, and a supplier finance program - The company's operations are now managed and reported in two segments: (1) Home and Commercial Products and (2) Health[21](index=21&type=chunk) - On February 2, 2024, the company acquired HealthBeacon PLC for approximately **$7.5 million** in cash, now part of the Health segment[55](index=55&type=chunk) - The company has a supplier finance program for accounts payable, with **$66.9 million** in outstanding payment obligations[30](index=30&type=chunk) Disaggregated Revenue for Q1 (in thousands) | Type of good or service | 2025 | 2024 | | :--- | :--- | :--- | | Consumer products | $117,335 | $112,750 | | Commercial products | $12,292 | $13,453 | | Licensing | $2,560 | $1,615 | | Leasing | $1,185 | $459 | | **Total revenues** | **$133,372** | **$128,277** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved Q1 performance to favorable product mix, volume growth, and the HealthBeacon acquisition Q1 2025 vs Q1 2024 Results Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $133,372 | $128,277 | $5,095 | 4.0% | | Gross profit | $32,771 | $30,054 | $2,717 | 9.0% | | Operating profit (loss) | $2,313 | $(943) | $3,256 | n/m | | Net income (loss) | $1,805 | $(1,162) | $2,967 | n/m | - Revenue growth was driven by favorable product mix and increased volume, with the HealthBeacon acquisition contributing **$1.5 million**[68](index=68&type=chunk) - Gross profit margin increased to **24.6%** from 23.4% due to favorable product mix and the higher-margin HealthBeacon business[69](index=69&type=chunk) - As of March 31, 2025, the company had **$72.6 million** in excess availability under its revolving credit facility[79](index=79&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate and foreign currency risks using swaps and forward contracts with limited financial impact - To manage interest rate risk, the company has interest rate swaps with notional values of **$50.0 million** as of March 31, 2025[81](index=81&type=chunk)[88](index=88&type=chunk) - A hypothetical 10% relative decrease in interest rates would cause a **$0.1 million** decrease in the fair value of interest rate swap agreements[89](index=89&type=chunk) - The company uses forward foreign currency exchange contracts to reduce risks from transactions in Canadian dollars, Mexican pesos, Chinese yuan, and Euros[90](index=90&type=chunk)[91](index=91&type=chunk) - A hypothetical 10% weakening of the U.S. dollar would decrease the fair value of foreign currency-sensitive financial instruments by **$2.0 million**[92](index=92&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, excluding the recently acquired HealthBeacon - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[94](index=94&type=chunk) - HealthBeacon, acquired in February 2024, has been excluded from the assessment of internal control over financial reporting for this quarter[96](index=96&type=chunk) [Part II. OTHER INFORMATION](index=23&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to have a material adverse effect - Information regarding legal proceedings is detailed in Note 6, 'Contingencies', of the financial statements[98](index=98&type=chunk) - As of March 31, 2025, accrued obligations for environmental matters were **$3.4 million**[50](index=50&type=chunk)[52](index=52&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company highlights significant risk from U.S. tariffs on Chinese goods, as three-fourths of its suppliers are in China - A key risk is government trade actions, as approximately **three-fourths of the company's suppliers are based in China**, making many products subject to Section 301 tariffs[100](index=100&type=chunk) - Mitigation strategies include reviewing sourcing options outside of China, filing for tariff exclusions, and working with suppliers and customers[100](index=100&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 180,556 shares for $3.4 million in Q1 2025, with $8.8 million remaining in its buyback program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Maximum Value Remaining for Purchase | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 31,732 | $16.51 | 31,732 | $10,924,841 | | Feb 2025 | 39,121 | $17.61 (1) | 0 | $10,924,841 | | Mar 2025 | 109,703 | $19.69 | 109,703 | $8,764,857 | | **Total** | **180,556** | **$18.98** | **141,435** | **$8,764,857** | - (1) February repurchases represent shares withheld for tax payments due upon issuance of stock to employees and were not part of the publicly announced program[101](index=101&type=chunk) - The stock repurchase program authorizes up to **$25 million** in purchases through December 31, 2025[37](index=37&type=chunk)[101](index=101&type=chunk) [Other Items (3, 4, 5, 6)](index=24&type=section&id=Other%20Items%20(3,%204,%205,%206)) The company reports no senior security defaults, mine safety issues, or new director/officer 10b5-1 trading plans - Item 3: No defaults upon senior securities were reported[105](index=105&type=chunk) - Item 4: No mine safety disclosures were made[106](index=106&type=chunk) - Item 5: No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement[107](index=107&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.4 million, a 4% increase compared to Q1 2024, driven by favorable product mix and higher volumes, partially offset by average price decreases and foreign currency impacts [20] - Gross profit was $32.8 million, with a gross profit margin of 24.6%, up from 23.4% in the previous year [21] - Operating profit improved to $2.3 million from an operating loss of $943,000 in Q1 2024 [22] - Net income was $1.8 million or $0.13 per diluted share, compared to a net loss of $1.2 million or $0.08 per diluted share a year ago [23] - Net cash provided by operating activities was $6.6 million, down from $19.7 million in Q1 2024 [24] Business Line Data and Key Metrics Changes - Hamilton Beach brand sales saw modest growth, primarily from the U.S. Consumer and Latin America businesses [8] - The premium business delivered mid-single-digit growth, driven by new product launches, particularly in the Nu Milk and Qi brands [9] - The Health Beacon business contributed $1.5 million in revenue, marking its third consecutive quarter of increasing patient subscriptions [12] Market Data and Key Metrics Changes - North American consumer markets showed solid growth, with the U.S. market being the primary contributor [20] - International revenue experienced slight declines, indicating challenges in overseas markets [20] Company Strategy and Development Direction - The company is focused on six strategic initiatives: driving core growth, gaining share in the premium market, leading in the global commercial market, accelerating growth of Hamilton Beach Health, enhancing digital transformation, and leveraging partnerships and acquisitions [7] - The launch of the new premium brand Lotus is expected to capture share in the $4 billion total addressable premium market [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing macroeconomic headwinds and the challenges posed by tariffs, but expressed confidence in navigating these issues [6] - The company plans to suspend guidance temporarily due to the unpredictability of trade negotiations and their potential impacts [26] Other Important Information - The company has transitioned approximately 15% of its manufacturing out of China and aims for two-thirds of U.S. sales to come from outside China by the end of 2025 [16] - The company is taking proactive measures to mitigate tariff impacts, including price increases and sourcing diversification [15] Q&A Session Summary Question: Clarification on gross margin outlook with tariffs - Management indicated that while they are working to mitigate tariff impacts, they do not have clear visibility on gross margins going forward [30] Question: Cost comparison of sourcing outside China - Management stated that they believe they can maintain margins despite potential cost variations when diversifying production outside of China [34][37] Question: Retailers' response to price increases - Management noted that there is open communication with retailers regarding price increases, and both parties are navigating the situation together [42] Question: Performance breakout for HealthBeacon - Management confirmed that HealthBeacon's performance will continue to be reported in segment disclosures and is growing at a better-than-expected rate [46]

Financial Performance - Revenue increased 4.0% to $133.4 million compared to $128.3 million[3] - Gross margin expanded 120 basis points to 24.6% compared to 23.4%[3] - Operating profit increased to $2.3 million compared to a loss of $0.9 million[6] - Net income was $1.8 million, or $0.13 per diluted share, compared to a net loss of $1.2 million, or $0.08 per diluted share[6] - Net income for the three months ended March 31, 2025, was $1,805,000, compared to a net loss of $1,162,000 in the same period of 2024[20] Cash Flow and Liquidity - Cash flow from operations was $6.6 million compared to $19.7 million[7] - Net cash provided by operating activities was $6,620,000, a decrease from $19,701,000 in the prior year[20] - Total cash, cash equivalents, and restricted cash at the end of the period was $48,296,000, up from $27,244,000 a year earlier[20] - Net (cash) debt as of March 31, 2025, was $1,700,000, compared to a net cash position of $(600,000) at the end of 2024[21] - Cash dividends paid increased to $1,585,000 from $1,531,000 in the previous year[20] - The balance of cash and cash equivalents increased by $1,772,000 during the period, compared to an increase of $10,865,000 in the previous year[20] Expenses and Investments - SG&A expenses decreased to $30.4 million compared to $30.9 million[5] - The company reported a depreciation and amortization expense of $1,225,000, slightly up from $1,188,000 in the prior year[20] - The company had a net cash used for investing activities of $(516,000), down from $(6,749,000) in the prior year[20] Debt and Financial Position - Total debt was $50.0 million; net debt decreased to $1.7 million from $23.7 million[9] Operational Changes - HealthBeacon contributed $1.5 million of revenue in the first quarter of 2025[4] - The company is working to diversify its sourcing base to mitigate tariff impacts[2] - The company temporarily suspended its practice of providing forward-looking commentary due to increased tariff uncertainty[10] Inventory and Receivables - Trade receivables decreased to $34,899,000 from $46,236,000 year-over-year[20] - Inventory levels increased to $(40,645,000) compared to $(9,614,000) in the previous year, indicating a significant rise in inventory[20]

Core Viewpoint - Hamilton Beach Brands Holding Company reported a solid performance in Q1 2025, with revenue growth and improved profitability despite macroeconomic challenges [2][3]. Financial Performance - Total revenue increased by 4.0% to $133.4 million compared to $128.3 million in Q1 2024, driven by a favorable product mix and increased volume [3][12]. - Gross profit rose to $32.8 million, representing a gross margin of 24.6%, up from 23.4% in the previous year, primarily due to a favorable product mix including the addition of HealthBeacon [4][12]. - Operating profit improved to $2.3 million from a loss of $0.9 million in the prior year [5][12]. - Net income was $1.8 million, or $0.13 per diluted share, compared to a net loss of $1.2 million, or $0.08 per diluted share, in Q1 2024 [5][12]. Cash Flow and Debt Management - Cash flow from operating activities was $6.6 million, a decrease from $19.7 million in Q1 2024, attributed to changes in working capital [6][12]. - The company reported net debt of $1.7 million, significantly reduced from $23.7 million a year earlier, indicating improved financial health [8][12]. Strategic Outlook - The company is facing increased uncertainty due to recent tariff hikes, particularly affecting products sourced from China, which has led to a temporary suspension of forward-looking guidance [9]. - Management is actively working to diversify the sourcing base and implement measures to mitigate the impact of higher tariffs, with expectations for improved margins in 2026 [2][9]. Shareholder Returns - In Q1 2025, the company repurchased 141,435 shares for $2.7 million and paid $1.6 million in dividends, reflecting a commitment to returning value to shareholders [7].

Group 1 - Hamilton Beach Brands (NYSE: HBB) is identified as a small firm with a market capitalization that is currently being considered for an upgrade [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers to the service gain access to a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement and information sharing [2]

Core Viewpoint - Hamilton Beach Brands Holding Company (HBB) has demonstrated strong financial performance in Q4 2024, with significant stock gains and a solid outlook for 2025, driven by revenue growth, improved gross margins, and strategic market expansions [1][17]. Revenue & Earnings Performance - HBB reported quarterly earnings per diluted share of $1.75, a 25% increase from $1.40 in Q4 2023 [2]. - Revenues for Q4 2024 reached $213.5 million, reflecting a 3.3% year-over-year increase from $206.7 million, attributed to higher volume and a favorable product mix [2]. - The gross margin for the quarter declined by 70 basis points to 26.1% from 26.8% in the prior-year quarter, but for the full year, it expanded by 300 basis points to 26%, marking a record high since HBB became a public entity in 2017 [3]. Profitability Metrics - Operating profit for Q4 declined 5.7% to $23.6 million from $25 million in the prior-year period, while net income rose 22.6% to $24 million from $19.6 million, primarily due to a foreign tax benefit [4]. - Operating cash flow for the year was $65.4 million, down from $88.6 million in 2023, with working capital contributing $14.5 million compared to $49.5 million in the previous year [5]. Expenses and Debt Management - SG&A expenses increased to $32.1 million in Q4 from $30.2 million in Q4 2023, driven by HealthBeacon acquisition costs [6]. - At the end of 2024, HBB reported a net cash position of $0.6 million, a significant improvement from a net debt of $34.6 million at the end of 2023 [7]. Management Insights - The CEO highlighted the achievement of financial targets despite a competitive market, attributing success to expansion into underserved markets and innovation [8]. - HBB gained market share in the U.S. and international markets, particularly in Mexico, where it became the third-largest small appliance brand [9]. Market Performance Factors - Revenue growth was supported by higher volumes in North America, particularly in the U.S. consumer market, while the Global Commercial segment faced slight declines [10]. - The February 2024 acquisition of HealthBeacon contributed $1.7 million to Q4 revenues and $4.3 million for the year [10]. Future Outlook - HBB expects the small kitchen appliance retail market to grow in the low-single-digit range in 2025, with the company anticipating mid-single-digit revenue growth [12]. - Operating profit is expected to rise faster than revenues, benefiting from operating leverage and a decrease in HealthBeacon-related SG&A expenses [13]. - The company aims to mitigate tariff impacts on 75% of its products by the end of 2025 through price increases and supplier concessions [14]. Strategic Developments - HBB is expanding into the healthcare sector through the integration of HealthBeacon, focusing on scaling its remote therapeutic monitoring system [15]. - The company has diversified its sourcing strategy to reduce reliance on China, mitigating sourcing risk for 35% of its business by the end of 2024, with plans to extend this to 75% by the end of 2025 [16].