Hamilton Beach Brands Holding Company (NYSE:HBB) Q1 2021 Earnings Conference Call May 6, 2021 9:30 AM ET Company Participants Lou Anne Nabhan - Investor Relations Greg Trepp - President and Chief Executive Officer Michelle Mosier - Senior Vice President and Chief Financial Officer Scott Tidey - Senior Vice President, Consumer Sales and Marketing Conference Call Participants Peter Benedict - Baird Operator Good morning and thank you for standing by. Welcome to the Hamilton Beach Brands Holdings First Quarter ...

For the transition period from to UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☑ For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Commission File No. 001-38214 | | --- | HAMILTON BEACH BRANDS HOLDING COMPANY (Exact name of registrant as specified in its charter) | Delaware | 31-1236686 | | --- | --- | | (State or other jur ...

Financial Data and Key Metrics Changes - Revenue in Q4 2020 increased by 14.4% to $234 million compared to $204.6 million in Q4 2019, driven by strong demand in U.S. and Canadian consumer markets [27][6] - Operating profit increased by 49% to $28.4 million compared to $19.1 million in the same period last year [29] - Net income rose to $19.4 million or $1.40 per diluted share, compared to $13.3 million or $0.98 per diluted share in the previous year [29] Business Line Data and Key Metrics Changes - Revenue from U.S. and Canadian consumer markets increased year-over-year, while international consumer markets saw a decrease due to pandemic-related challenges [7][27] - Revenue from commercial products decreased by 37% in 2020, accounting for only 5% of total sales due to the impact of the pandemic on food service and hospitality industries [31] Market Data and Key Metrics Changes - E-commerce sales increased by 30% in 2020, accounting for 32% of total revenue, with Q4 2020 e-commerce sales making up 41% of total revenue [30] - The global commercial market is expected to recover gradually, with a focus on quick-serve restaurants and takeout models [13][19] Company Strategy and Development Direction - The company is focusing on long-term shareholder value through strategic initiatives, including new product development and digital marketing [10][15] - Plans to expand in the premium market with new product launches and partnerships, including the Bartesian cocktail dispenser [20][22] - A shift to a licensing model in certain emerging markets to focus resources on North America [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong consumer demand for small kitchen appliances continuing into 2021, driven by demographic trends and new cooking habits formed during the pandemic [11][12] - The company anticipates moderate revenue growth in the first half of 2021, despite challenges from rising material and shipping costs [34][36] Other Important Information - The company introduced nearly 70 new products in 2020 and plans to launch 100 more over the next 24 months [25] - Net debt increased to $95.9 million at the end of 2020, reflecting changes in net working capital [33] Q&A Session Summary Question: Inventory levels at retail partners in the U.S. and Canada - Retailers' inventory is moving quickly, and demand is expected to remain strong due to stimulus checks [39][40] Question: Size of direct-to-consumer operations - The direct-to-consumer business is small, with most e-commerce revenue coming from retail partners [41][42] Question: Commercial business performance and recovery timeline - The commercial business was down 37% in 2020, but there is hope to reach 80% of pre-pandemic levels in 2021 [48][49] Question: Full year guidance and performance expectations - The company expects improved performance in 2021, but visibility into the second half remains limited [50][52] Question: Higher material and shipping costs - The company is managing cost increases and has the ability to pass on some costs to retail partners [54][56]

Hamilton Beach Brands Holding Company (NYSE:HBB) Q3 2020 Earnings Conference Call November 10, 2020 9:30 AM ET Company Participants Lou Anne Nabhan - Head, IR Greg Trepp - President and CEO Michelle Mosier - SVP and CFO Scott Tidey - SVP, North America Sales & Marketing Conference Call Participants Peter Benedict - Baird Operator Ladies and gentlemen, thank you for standing by and welcome to the Hamilton Beach Brands Holding Company Third Quarter 2020 Earnings Conference Call. [Operator Instructions] I woul ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

[Part I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk disclosures, and internal control effectiveness for the period ended June 30, 2020 [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for Q2 2020 reflect a restatement due to Mexican subsidiary accounting irregularities, showing improved operating profit and cash flow from operations Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2020 ($ thousands) | Dec 31, 2019 ($ thousands) | | :--- | :--- | :--- | | Total current assets | $190,755 | $237,057 | | Total assets | $242,601 | $288,663 | | Total current liabilities | $168,550 | $201,322 | | Total liabilities | $181,049 | $252,397 | | Total stockholders' equity | $61,552 | $36,266 | Condensed Consolidated Statement of Operations Highlights (Unaudited) | Metric | Q2 2020 ($ thousands) | Q2 2019 ($ thousands) | 6 Months 2020 ($ thousands) | 6 Months 2019 ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $138,297 | $131,065 | $259,143 | $257,707 | | Gross Profit | $35,254 | $28,507 | $60,294 | $55,209 | | Operating Profit | $10,895 | $3,185 | $11,398 | $3,296 | | Net Income from Continuing Ops | $8,065 | $1,898 | $6,711 | $1,236 | | Basic EPS from Continuing Ops | $0.59 | $0.14 | $0.49 | $0.09 | Condensed Consolidated Statement of Cash Flows Highlights (Unaudited, 6 Months Ended June 30) | Cash Flow Activity | 2020 ($ thousands) | 2019 ($ thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $21,752 | $(31,646) | | Net cash from investing activities | $(2,092) | $(1,972) | | Net cash from financing activities | $(19,146) | $30,099 | - The company discovered accounting irregularities at its Mexican subsidiaries, leading to a restatement of its financial statements for 2019, 2018, and 2017, involving unauthorized transactions and a non-cash write-off of certain assets[23](index=23&type=chunk) - The Kitchen Collection, LLC (KC) subsidiary ceased operations and was dissolved on April 3, 2020, with its results reported as discontinued operations in all periods presented[15](index=15&type=chunk)[54](index=54&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2020 revenue growth driven by U.S. consumer demand, improved operating profit, and enhanced liquidity, alongside ongoing credit facility refinancing efforts [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q2 2020 revenue increased 5.5% to $138.3 million, driven by U.S. consumer demand, with gross profit margin improving to 25.5% and operating profit surging 242.1% Q2 2020 vs Q2 2019 Performance | Metric | Q2 2020 ($ thousands) | Q2 2019 ($ thousands) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $138,297 | $131,065 | 5.5% | | Gross Profit | $35,254 | $28,507 | 23.7% | | Operating Profit | $10,895 | $3,185 | 242.1% | - Revenue growth was primarily driven by strong demand in U.S. consumer markets as consumers stayed home during the COVID-19 pandemic, with e-commerce sales increasing **77% in Q2** and accounting for **37% of total revenue**[81](index=81&type=chunk) - Gross profit margin improved to **25.5%** from **21.8%** in the prior-year quarter, benefiting from customer/product mix and approximately **$1.6 million in tariff relief**[82](index=82&type=chunk) - For the first six months of 2020, e-commerce sales increased **52.6%** and accounted for **32.8% of total revenue**[87](index=87&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity significantly improved with positive cash from operations, supported by a $115.0 million revolving credit facility currently undergoing refinancing - Net cash provided by operating activities was **$21.8 million** for the first six months of 2020, a significant improvement from the **$31.6 million used** in the same period of 2019, primarily due to better management of inventory and accounts receivable[100](index=100&type=chunk) - The company maintains a **$115.0 million** senior secured revolving credit facility (HBB Facility) that expires on June 30, 2021, and has begun the refinancing process, believing it will be refinanced before maturity[96](index=96&type=chunk)[102](index=102&type=chunk) - As of June 30, 2020, borrowings outstanding under the HBB Facility were **$41.8 million**, with excess availability of **$54.2 million**[102](index=102&type=chunk) - The company utilizes a non-recourse arrangement to sell certain U.S. trade receivables, derecognizing **$75.2 million of receivables** in the first six months of 2020[58](index=58&type=chunk)[107](index=107&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk with swaps and foreign currency risk with forward contracts, primarily for Canadian dollar, Mexican peso, Chinese yuan, and Brazilian real exposures - The company uses interest rate swap agreements to reduce exposure to floating interest rates on its credit facility, with swaps having notional values of **$25.0 million** in place at June 30, 2020[105](index=105&type=chunk)[114](index=114&type=chunk) - The company is exposed to foreign currency risk from transactions denominated in Canadian dollars, Mexican pesos, Chinese yuan, and Brazilian real, and uses forward foreign currency exchange contracts to mitigate this risk[116](index=116&type=chunk)[117](index=117&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to material weaknesses in Mexican subsidiary internal controls, prompting a remediation plan including personnel and organizational changes - Management concluded that disclosure controls and procedures were **not effective** as of June 30, 2020, due to material weaknesses in internal control over financial reporting at its Mexican subsidiaries[119](index=119&type=chunk) - The material weaknesses identified were: 1) Ineffective review controls over account reconciliations and manual journal entries, which failed to detect unauthorized transactions; and 2) Insufficiently designed transaction-level controls over spending, pricing, and customer setup[121](index=121&type=chunk)[122](index=122&type=chunk) - A remediation plan has been initiated, which includes terminating employees engaged in misconduct, augmenting the local accounting team, implementing a more comprehensive review process, and outsourcing certain functions[123](index=123&type=chunk)[128](index=128&type=chunk) [Part II. OTHER INFORMATION](index=37&type=section&id=Part%20II.%20OTHER%20INFORMATION) This section details ongoing legal proceedings, key risk factors, and information regarding unregistered equity security sales and use of proceeds [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company faces patent infringement, dissolved subsidiary debt, and class-action lawsuits related to accounting irregularities, all of which it is vigorously defending - The company is a defendant in a patent infringement lawsuit where a jury awarded the plaintiff **$3.2 million**, but the court later reduced the award by **$0.9 million**[69](index=69&type=chunk) - The company is being sued for the unsatisfied debts of its dissolved subsidiary, The Kitchen Collection (KC), but believes the claims are without merit[70](index=70&type=chunk) - A class action complaint was filed against the company and its officers related to the accounting irregularities in Mexico, which the company also believes are without merit[71](index=71&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) Key risks include the uncertain impact of the COVID-19 pandemic on operations and potential disruptions from the new ERP system implementation - The COVID-19 pandemic poses a significant risk, with potential impacts on product demand, costs, supply chain, and access to capital, and the full extent of the impact remains uncertain[132](index=132&type=chunk)[133](index=133&type=chunk) - The implementation of a new enterprise resource planning (ERP) system presents a risk, as any disruptions, delays, or deficiencies could adversely affect the company's ability to process orders, ship products, and operate its business effectively[134](index=134&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A $25.0 million stock repurchase program is active through December 2021, with no shares repurchased during the first six months of 2020 - A stock repurchase program for up to **$25.0 million** of Class A Common Stock is in effect through December 31, 2021[136](index=136&type=chunk) - No shares were repurchased during the six months ended June 30, 2020[137](index=137&type=chunk)

For the quarterly period ended March 31, 2020 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Hamilton Beach Brands Holding Company (NYSE:HBB) Q4 2019 Earnings Conference Call February 27, 2020 9:30 AM ET Company Participants Lou Anne Nabhan - Head of Investor Relations Greg Trepp - President & Chief Executive Officer Michelle Mosier - Senior Vice President, Chief Financial Officer & Treasurer Scott Tidey - Senior Vice President, North America Sales & Marketing Conference Call Participants Justin Kleber - Baird Michael Fisherman - Zuckerman Operator Thank you for standing by and welcome to the Hamil ...

General FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-38214 HAMILTON BEACH BRANDS HOLDING COMPANY (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 31-1236686 (I.R.S. Employer Identification No.) 4421 Waterfront ...