Core Insights - Hamilton Beach Brands Holding Company (HBB) faced challenges in Q3 2024 due to increased operating expenses and a one-time pension termination charge, but achieved revenue growth driven by strong consumer demand and the acquisition of HealthBeacon [1][3][4] Q3 Results - Quarterly earnings per diluted share were 14 cents, down 81% from 74 cents in Q3 2023, primarily due to higher operating expenses and significant non-cash pension termination expenses [3] - Total quarterly revenues increased by 2% year over year to $156.7 million from $153.6 million, with notable growth in the U.S. and Mexican markets, while revenues in Latin America and Canada declined [4] Profitability Metrics - Gross profit rose by 9.6% to $43.9 million in Q3 2024 from $40.1 million in the prior year, with gross margin expanding by 190 basis points to 28% due to a favorable product mix and lower production costs [5] - Operating profit decreased by 26% to $10.6 million in Q3 2024 from $14.4 million in Q3 2023, attributed to increased SG&A expenses and HealthBeacon's integration costs [6] Costs & Cash Flow - Cost of sales slightly decreased to $112.8 million from $113.5 million in Q3 2023, contributing to gross margin expansion [8] - SG&A expenses rose to $33.3 million in Q3 2024 from $25.6 million, driven by higher employee-related costs and HealthBeacon's integration [9] - Operating cash flow totaled $35.2 million in Q3 2024, down from $68.7 million the previous year, reflecting a normalized post-pandemic working capital environment [10] Liquidity & Capital Allocation - The company ended the quarter with $22.6 million in cash and cash equivalents, up from $1.6 million a year earlier, and net debt decreased to $22.5 million from $49.7 million [13] - Enhanced liquidity allowed the company to fund growth initiatives and return value to shareholders through $4.7 million in dividends and $9.3 million in share repurchases [13] Management Guidance - HBB expects a slight year-over-year revenue increase in 2024, with significant growth in operating profit anticipated due to gross margin expansion [14] - The company is focusing on six initiatives to drive revenue growth, improve margins, and sustain strong cash flow, including boosting sales in North America and integrating HealthBeacon [14] Other Developments - The acquisition of HealthBeacon in February 2024 contributed $1.2 million in revenues in Q3, with expectations for it to contribute to operating profit starting in 2025 [15] - Strategic initiatives include expanding in the premium small appliance market and accelerating digital transformation for long-term growth [15]

Financial Data and Key Metrics - Revenue for the first nine months grew by 5.3% compared to the same period last year [9] - Gross profit margin expanded by 480 basis points to 25.9% compared to 21.1% last year [9] - Operating profit almost doubled, and net income increased by 19.2% [9] - Q3 2024 revenue grew by 2% compared to Q3 2023, with gross profit margin expanding by 190 basis points [10] - Operating profit and net income were impacted by non-cash items, including higher incentive compensation expense and a one-time termination charge [11] - Net income for Q3 2024 was $1.9 million or $0.14 per diluted share, compared to $10.3 million or $0.74 per diluted share in Q3 2023 [28] Business Line Performance - The company launched over 40 new platforms across various high-demand categories, including coffee blending, ovens, grills, slow cookers, and more [12] - Hamilton Beach and Proctor Silex brands saw strong performance in North America, with new product placements in key categories like coffee and blending [14] - The premium market, representing 40% of the industry, saw growth through brands like Weston and licensed partnerships, with strong sales in garment care products [16] - The global commercial market is a multi-billion dollar opportunity, with investments in higher-margin products for food service, beverage operations, and hotel amenities [19] - Hamilton Beach Health, focusing on home healthcare management, is growing with a subscription-based revenue model and is expected to contribute to operating profit in 2025 [21][22] Market Performance - U.S. consumer market revenue increased due to new product placements, while Latin American and Canadian markets saw declines [26] - Global commercial market revenue decreased due to soft international markets, particularly in China [26] - HealthBeacon contributed $1.2 million in revenue in Q3 2024, with expectations for growth in 2025 [26] Strategic Initiatives and Industry Competition - The company is focused on expanding sales of innovative, value-added products that command premium prices and improve margins [12] - Strategic initiatives include gaining market share in the premium market, leading in the global commercial market, and accelerating growth in Hamilton Beach Health [16][19][21] - The company is leveraging partnerships and acquisitions to expand its reach in the global commercial market [19] - Investments in advanced technologies and new product categories are driving growth in both consumer and commercial markets [20] Management Commentary on Operating Environment and Future Outlook - The company is cycling more challenging comparisons in Q3 2024 but remains optimistic about future growth [10] - Management reaffirmed the full-year 2024 outlook, expecting modest revenue growth and significant operating profit expansion [11][32] - The company anticipates solid holiday sales despite restrained consumer spending, driven by a broad product line with value to luxury price points [23] - HealthBeacon is expected to contribute to operating profit in 2025, with growth plans including new patient additions and collaborations [22] Other Important Information - The company terminated its over-funded U.S. pension plan, resulting in a one-time non-cash charge of $7.6 million but freeing up $13 million in surplus assets for future use [11][28] - Net cash provided by operating activities for the first nine months of 2024 was $35.2 million, reflecting normalized post-pandemic working capital [29] - The company paid $4.7 million in dividends and repurchased shares totaling $9.3 million year-to-date [30] Q&A Session Summary Question: SG&A Expense Correlation with Gross Margin - SG&A expenses increased due to higher employee-related costs, including equity incentive compensation and HealthBeacon integration expenses [35] - Management indicated that SG&A expenses can be adjusted based on gross profit margin performance, with ongoing investments in growth initiatives [36] Question: Sustainability of Gross Margin Expansion - Gross margin expansion is driven by favorable product mix, cost decreases, and strategic initiatives in premium and commercial markets [40] - The company is focused on sustaining higher gross margins through new product launches and market share growth in higher-margin segments [42] Question: Gross Margin Drivers and Sustainability - Gross margin improvements are attributed to product mix, cost management, and strategic focus on premium and commercial markets [40] - The company expects to maintain or expand gross margins through continued innovation and market share gains [42]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, Par Value $0.01 Per Share HBB New York Stock Exchange (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECUR ...

GLEN ALLEN, Va., Aug. 21, 2024 /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) today announced that the Board of Directors declared a regular cash dividend of $0.115 per share. The dividend is payable on both the Class A and Class B Common Stock and will be paid September 13, 2024, to stockholders of record at the close of business on September 3, 2024. About Hamilton Beach Brands Holding Company Hamilton Beach Brands Holding Company is a leading designer, marketer, and distributor of a wi ...

Hamilton Beach Brands Holding Company (HBB) has demonstrated a strong performance in second-quarter 2024, with significant revenue and profit growth, driven by strategic initiatives and favorable market conditions. The company's focus on innovation, strategic acquisitions and operational efficiency is expected to sustain its growth trajectory. The following analysis delves into the detailed financial metrics and strategic developments that have contributed to the company's impressive quarterly results. Q2 R ...

GLEN ALLEN, Va., July 24, 2024 /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) announced today that it will release its 2024 second quarter financial results and file its 10-Q for the quarter ended June 30, 2024, after the close of the market on Wednesday, July 31, 2024. The Company will host a conference call on Thursday, August 1, 2024, to discuss its results. Conference Call: Thursday, August 1, 2024 Time: 9:30 a.m. (Eastern Time) Telephone: 888-350-3452 (toll free) International 647-36 ...

Zacks Investment Research has recently initiated the coverage of Hamilton Beach Brands Holding Company (HBB) with a "Neutral" recommendation. The report highlights the company's strong positioning in the small appliance market, its strategic moves into health technology and its improved financial footing while also noting some areas of concern that investors should consider. Hamilton Beach, headquartered in Glen Allen, VA, is a leading designer and marketer of small electric household and specialty housewar ...

GLEN ALLEN, Va., May 10, 2024 /PRNewswire/ -- The Board of Directors of Hamilton Beach Brands Holding Company (NYSE: HBB) has approved a 4.5% increase in the Company's regular quarterly cash dividend, raising the quarterly amount from $0.11 per share to $0.115 per share. The dividend is payable on both the Class A and Class B Common Stock and will be paid June 14, 2024, to stockholders of record at the close of business on May 31, 2024. About Hamilton Beach Brands Holding CompanyHamilton Beach Brands Holdin ...

CONTACT: Lou Anne J. Nabhan Louanne.nabhan@hamiltonbeach.com For Immediate Release Tuesday, May 7, 2024 HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES FIRST QUARTER 2024 RESULTS Glen Allen, Virginia - Hamilton Beach Brands Holding Company (NYSE: HBB) (the Company) today announced first quarter 2024 results. Highlights - First Quarter 2024 Compared to First Quarter 2023 THREE MONTHS ENDED MARCH 31 2024 2023 (In millions) Revenue $128.3 $128.3 Gross profit $ 30.1 $ 20.9 % of revenue 23.4 % 16.3 % Operating p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Number of shares of Class A Common Stock outstanding as of May 3, 2024: 10,534,277 Number of shares of Class B Common Stock outstanding as of May 3, 2024: 3,611,746 HAMILTON BEACH BRANDS HOLDING COMPANY TABLE OF CONTENTS | | | | Page Number | | --- | --- | --- | --- | | Part I. | FINANCIAL INFORMATION | | | | | Item 1 | Financial Statements | | | | | Consolidated Balance Sheets | 1 | | | | Consolidated Statements of Operations | 2 | | | ...