The Eastern pany(US:EML)2024-08-06 20:54Financial Performance - Net income for Q2 2024 increased to $3.5 million, or $0.56 per diluted share, compared to $1.4 million, or $0.22 per diluted share in Q2 2023, representing a 150% increase in net income year-over-year[8] - Adjusted net income for Q2 2024 was $3.5 million, or $0.56 per diluted share, compared to $2.5 million, or $0.40 per diluted share in Q2 2023[9] - Net income for the six months ended June 29, 2024, reached $5,455,445, compared to $2,006,521 for the same period last year, indicating a growth of 171.5%[24] - Basic and diluted earnings per share (GAAP) for the three months ended June 29, 2024, were both $0.56, compared to $0.22 for the same period in 2023, indicating a significant increase[31] - Earnings per share (EPS) for the six months ended June 29, 2024, was $0.88, up from $0.32 for the same period last year, representing a 175% increase[24] Sales and Revenue - Net sales for Q2 2024 rose by 7% to $73.2 million, up from $68.3 million in the same period last year, driven by increased demand for truck mirror assemblies[4] - Net sales for the three months ended June 29, 2024, increased to $73,151,889, up from $68,337,790 for the same period last year, representing a growth of 2.4%[24] Margins and Profitability - Gross margin improved to 25% in Q2 2024 from 22% in Q2 2023, reflecting effective price increases and cost-saving initiatives[5] - Gross margin improved to $18,210,553 for the three months ended June 29, 2024, compared to $15,147,842 for the same period last year, reflecting a margin increase of approximately 20.5%[24] - Operating profit for the six months ended June 29, 2024, was $8,709,462, significantly higher than $4,586,560 for the same period last year, marking an increase of 90.5%[24] Expenses and Costs - Selling, general and administrative expenses increased by $0.2 million, or 2%, in Q2 2024 compared to Q2 2023, primarily due to higher payroll-related expenses[6] - Interest expense for the three months ended June 29, 2024, was $830,000, compared to $781,000 in the same period last year, showing a 6.3% rise[34] - Provision for income taxes for the three months ended June 29, 2024, was $1,014,000, up from $500,000 in the prior year, marking a 102.8% increase[34] - Severance and accrued compensation expenses were recorded as $1,799,000 for the six months ended July 1, 2023, indicating restructuring costs[34] - Associated Toolmakers, Ltd. closure costs were $1,448,000 for the six months ended July 1, 2023, reflecting operational adjustments[34] Cash Flow and Assets - Cash and cash equivalents increased to $11,706,497 as of June 29, 2024, compared to $8,299,453 at the end of the previous year, showing a growth of 41.5%[26] - Total assets as of June 29, 2024, were $255,902,501, a slight increase from $252,039,201 at the end of December 2023, reflecting a growth of 1.1%[28] - Total current liabilities increased to $45,454,922 as of June 29, 2024, compared to $42,733,726 at the end of December 2023, indicating a rise of 6.4%[27] - The company reported a net cash provided by operating activities of $10,261,311 for the six months ended June 29, 2024, compared to $13,558,455 for the same period last year, a decrease of 24.4%[29] Shareholder Returns - The company repurchased 10,000 shares of common stock under its share repurchase program authorized in August 2023, reflecting a commitment to returning value to shareholders[10] Market Conditions - The company is observing softening in the commercial vehicle market, which may impact demand for custom returnable packaging solutions[4] Business Strategy - The overall business transformation program is ongoing, focusing on long-term performance and strengthening customer relationships[4]