The Eastern pany(US:EML)2025-03-11 20:34Financial Performance - Net sales for the year ended December 28, 2024, increased to $272.75 million, up from $258.86 million in 2023, representing a growth of approximately 5.3%[194] - Gross margin improved to $67.27 million in 2024, compared to $61.77 million in 2023, reflecting an increase of about 8.1%[194] - Operating profit rose to $20.15 million in 2024, up from $17.03 million in 2023, marking an increase of approximately 18.5%[194] - Net income from continuing operations for 2024 was $13.22 million, compared to $11.78 million in 2023, an increase of about 12.2%[196] - The company reported a net loss of $8.53 million for 2024, compared to a net income of $8.59 million in 2023, indicating a significant decline[196] Assets and Liabilities - Total assets decreased to $235.31 million in 2024 from $252.04 million in 2023, a reduction of approximately 6.6%[195] - Current liabilities increased to $44.79 million in 2024, compared to $42.73 million in 2023, reflecting a rise of about 4.8%[192] - The company’s retained earnings decreased to $133.55 million in 2024 from $144.81 million in 2023, a decline of about 7.8%[192] - Total liabilities included a treasury stock purchase of $3,057,841 in 2024, compared to $735,783 in 2023[202] Cash Flow - Cash and cash equivalents rose to $14.01 million in 2024, up from $8.05 million in 2023, representing an increase of approximately 74.1%[191] - Cash provided by operating activities decreased to $19,386,050 in 2024 from $25,543,857 in 2023, reflecting a decline of approximately 24%[202] - Total net cash used in investing activities increased to $7,888,050 in 2024 from $4,641,379 in 2023, indicating a rise of approximately 70%[202] Discontinued Operations - The company experienced a loss from discontinued operations amounting to $21,744,741 in 2024, significantly higher than the loss of $3,195,349 in 2023[213]. - The company reported a gross margin of $2,154,915 from discontinued operations in 2024, down from $3,180,838 in 2023[213]. - Total assets of discontinued operations decreased from $27,468,838 in December 30, 2023 to $5,071,828 in December 28, 2024, reflecting a significant reduction[214] Goodwill and Impairments - The company recognized a goodwill impairment of approximately $12.1 million in the third quarter of 2024 related to discontinued operations[232] - The Company reported a goodwill impairment charge of $12.1 million in 2024, reducing the ending balance of goodwill to $58.5 million[259] Pension and Retirement Plans - The net periodic benefit cost for the Company's pension benefit plans decreased to $1,492,140 in 2024 from $2,000,223 in 2023, representing a reduction of approximately 25.4%[291] - The benefit obligation for the Company's pension plans decreased to $75,916,060 in 2024 from $81,862,011 in 2023, a decline of about 7.3%[298] - The fair value of pension plan assets at the end of 2024 was $59,311,220, down from $60,836,643 in 2023, indicating a decrease of approximately 2.5%[298] Stock and Dividends - Cash dividends per share remained stable at $0.44 for both 2024 and 2023[196] - The Company granted 92,016 stock awards in 2024, up from 82,800 in 2023, showing an increase in employee incentives[269] - Regular matching contributions increased to $1,068,843 in 2024 from $990,993 in 2023, representing an increase of approximately 7.8%[313] Segment Performance - Net sales for the Engineered Solutions segment rose to $272,751,967 in 2024, up from $258,857,380 in 2023, reflecting an increase of approximately 5.4%[316] - Gross margin improved to $67,267,160 in 2024 compared to $61,772,306 in 2023, indicating a growth of about 8.1%[317] - Operating profit increased to $20,149,004 in 2024 from $17,033,224 in 2023, marking a rise of approximately 18.5%[317] Taxation - Total income taxes paid were $5,166,195 in 2024, down from $6,608,084 in 2023[278] - The provision for income taxes for 2024 was $(306,136), reflecting a 4% effective tax rate, compared to $2,406,940 and 22% in 2023[277] Future Plans - The Eastern Company plans to pursue acquisitions in industries outside its current operations if attractive opportunities arise[203] - The Company expects to make cash contributions of approximately $2,900,000 to its qualified pension plans in 2025[299]