Hamilton Beach(HBB) - 2025 Q2 - Quarterly Report

Part I. FINANCIAL INFORMATION Item 1. Financial Statements Presents unaudited consolidated financial statements, including balance sheets, operations, cash flows, equity changes, and detailed notes Consolidated Balance Sheets | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | June 30, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :-------------------------- | :-------------------------- | | Assets | | | | | Cash and cash equivalents | $11,338 | $45,644 | $37,213 | | Inventory | $160,357 | $124,904 | $130,197 | | Total current assets | $260,106 | $303,719 | $264,992 | | Total assets | $363,804 | $415,067 | $369,896 | | Liabilities & Equity | | | | | Accounts payable | $76,275 | $104,161 | $96,452 | | Revolving credit agreements (non-current) | $50,000 | — | — | | Total current liabilities | $105,492 | $154,120 | $177,645 | | Total liabilities | $199,829 | $249,164 | $224,164 | | Total stockholders' equity | $163,975 | $165,903 | $145,732 | - Total assets decreased by $51.26 million from December 31, 2024, to June 30, 2025, primarily driven by a significant reduction in cash and cash equivalents and trade receivables, partially offset by an increase in inventory[7] - Total liabilities decreased by $49.34 million from December 31, 2024, to June 30, 2025, mainly due to a decrease in accounts payable and other current liabilities, while $50.00 million in revolving credit agreements shifted from current to non-current[7] Consolidated Statements of Operations | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Revenue | $127,770 | $156,240 | $261,142 | $284,517 | | Gross profit | $35,131 | $40,496 | $67,902 | $70,550 | | Operating profit (loss) | $5,948 | $9,956 | $8,261 | $9,013 | | Net income (loss) | $4,453 | $5,986 | $6,258 | $4,824 | | Basic and diluted EPS | $0.33 | $0.42 | $0.46 | $0.34 | - Revenue for the three months ended June 30, 2025, decreased by 18.2% year-over-year, while net income decreased by 25.6%[9] - For the six months ended June 30, 2025, revenue decreased by 8.2% year-over-year, but net income increased by 29.7%, and basic and diluted EPS rose from $0.34 to $0.46[9] Consolidated Statements of Comprehensive Income (Loss) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :---------------------------------- | :---------------------------------- | | Net income (loss) | $4,453 | $5,986 | $6,258 | $4,824 | | Foreign currency translation adjustment | $2,660 | $(1,868) | $2,987 | $(2,965) | | Cash flow hedging activity | $(1,115) | $1,555 | $(1,735) | $1,592 | | Total other comprehensive income (loss), net of tax | $1,080 | $(1,243) | $355 | $(1,760) | | Comprehensive income (loss) | $5,533 | $4,743 | $6,613 | $3,064 | - Comprehensive income for the three months ended June 30, 2025, increased to $5.53 million from $4.74 million in the prior year, primarily due to a positive shift in foreign currency translation adjustment[12] - For the six months ended June 30, 2025, comprehensive income more than doubled to $6.61 million from $3.06 million in the prior year, largely influenced by favorable foreign currency translation adjustments[12] Consolidated Statements of Cash Flows | Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash provided by (used for) operating activities | $(23,773) | $37,071 | | Net cash provided by (used for) investing activities | $(1,466) | $(7,347) | | Net cash provided by (used for) financing activities | $(10,549) | $(7,683) | | Increase (decrease) in cash for the period | $(35,186) | $21,789 | | Balance at the end of the period | $11,338 | $38,168 | - Net cash used for operating activities significantly shifted from a positive $37.07 million in H1 2024 to a negative $23.77 million in H1 2025, a year-over-year decline of $60.9 million[14][83] - Net cash used for investing activities decreased by $5.88 million in H1 2025 compared to H1 2024, primarily due to the absence of the HealthBeacon acquisition in the current period[14][84] - Net cash used for financing activities increased to $10.55 million in H1 2025 from $7.68 million in H1 2024, driven by increased share repurchases[14][85] Consolidated Statements of Changes in Equity | Equity Component | Balance, Jan 1, 2025 (in thousands) | Balance, June 30, 2025 (in thousands) | Balance, Jan 1, 2024 (in thousands) | Balance, June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :---------------------------------- | :---------------------------------- | | Class A Common Stock | $115 | $118 | $112 | $114 | | Capital in Excess of Par Value | $76,668 | $78,673 | $70,401 | $73,483 | | Treasury Stock | $(26,202) | $(33,549) | $(12,013) | $(16,552) | | Retained Earnings | $123,863 | $126,919 | $99,398 | $101,078 | | Accumulated Other Comprehensive Income (Loss) | $(8,577) | $(8,222) | $(10,667) | $(12,427) | | Total Stockholders' Equity | $165,903 | $163,975 | $147,267 | $145,732 | - Total stockholders' equity decreased slightly from $165.90 million at January 1, 2025, to $163.98 million at June 30, 2025, primarily due to share repurchases and cash dividends, partially offset by net income[17] - Treasury stock increased by $7.35 million during the first six months of 2025, reflecting ongoing share repurchase activities[17] Notes to Unaudited Consolidated Financial Statements Detailed notes for financial statements, covering accounting policies, transactions, equity, revenue, and segments