The Eastern pany(US:EML)2025-11-04 22:06Financial Performance - Net sales for Q3 2025 decreased by 22% to $55.3 million from $71.3 million in Q3 2024[5] - Net income for Q3 2025 was $0.6 million, or $0.10 per diluted share, compared to $4.7 million, or $0.75 per diluted share, in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was $3.5 million, down from $8.7 million in Q3 2024[11] - Operating profit for the three months ended September 27, 2025, was $1.72 million, a decline of 74.7% from $6.79 million in the same period of 2024[28] - Net income from continuing operations for the three months ended September 27, 2025, was $578,936, compared to $4.67 million for the same period in 2024, representing a decrease of 87.6%[29] - Basic earnings per share from continuing operations for the three months ended September 27, 2025, were $0.10, down from $0.75 in the same period of 2024[29] - For the three months ended September 27, 2025, the net income from continuing operations was $579,000, a significant decrease from $4,669,000 for the same period in 2024[36] - Adjusted net income from continuing operations for the three months ended September 27, 2025, was $804,000, compared to $4,669,000 in the prior year, reflecting a decline of approximately 82.8%[36] - The adjusted earnings per share (EPS) from continuing operations for the three months ended September 27, 2025, was $0.13, down from $0.75 in the same period of 2024[36] - For the nine months ended September 27, 2025, the net income from continuing operations was $4,782,000, down from $11,676,000 in the same period of 2024[36] - The adjusted net income from continuing operations for the nine months ended September 27, 2025, was $6,495,000, compared to $11,676,000 in the prior year, reflecting a decline of approximately 44.0%[36] - The adjusted EPS from continuing operations for the nine months ended September 27, 2025, was $1.06, compared to $1.88 in the same period of 2024[36] Cost and Expenses - Gross margin for Q3 2025 was 22.3%, down from 25.5% in Q3 2024, primarily due to increased raw material costs[7] - Selling, general and administrative expenses decreased by $0.7 million, or 6.5%, in Q3 2025 compared to Q3 2024[8] - Interest expense for the three months ended September 27, 2025, was $688,000, slightly down from $710,000 in the same period of 2024[37] - Depreciation and amortization for the three months ended September 27, 2025, was $1,633,000, compared to $2,033,000 in the same period of 2024[37] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $9.23 million, down from $14.01 million at the end of December 2024, a decrease of 34.5%[31] - The company reported a net cash provided by operating activities of $5.02 million for the nine months ended September 27, 2025, compared to $8.35 million for the same period in 2024, a decrease of 39.5%[35] - Total current assets decreased to $100.57 million as of September 27, 2025, from $115.62 million as of December 28, 2024, a decline of 13.0%[31] - Total liabilities decreased to $95.77 million as of September 27, 2025, from $114.62 million as of December 28, 2024, a reduction of 16.4%[33] Shareholder Actions - The company repurchased approximately $3.0 million worth of stock, totaling 118,000 shares year-to-date[5] - Cash dividends per share remained stable at $0.11 for both the three months ended September 27, 2025, and September 28, 2024[29] Strategic Initiatives - The company secured a new $100 million revolving credit facility to enhance financial flexibility[5] - Year-to-date debt reduction amounted to $7.0 million, demonstrating a focus on capital allocation[5] - The company is focused on operational agility and efficiency to navigate current market uncertainties[4] Adjusted Metrics - Adjusted net income for Q3 2025 was $0.8 million, or $0.13 per diluted share, compared to $4.7 million, or $0.75 per diluted share, in Q3 2024[10] - Adjusted EBITDA from continuing operations for the three months ended September 27, 2025, was $3,483,000, compared to $8,745,000 for the same period in 2024, indicating a decrease of about 60%[37] - Gross margin for the nine months ended September 27, 2025, was $43.82 million, down 15.7% from $51.91 million in the same period of 2024[28]