Hamilton Beach(US:HBB)2025-11-05 21:59Financial Performance - Revenue for Q3 2025 was $132.8 million, a decrease of 15.2% compared to $156.7 million in Q3 2024[11] - Gross profit for Q3 2025 was $28.0 million, down 36.3% from $43.9 million in Q3 2024[11] - Net income for the nine months ended September 30, 2025, was $7.9 million, an increase of 16.9% compared to $6.8 million for the same period in 2024[14] - Operating profit for the nine months ended September 30, 2025, was $11.1 million, down 43.5% from $19.6 million in the same period of 2024[11] - The net income for the three months ended September 30, 2025, was $1,653,000, compared to a net income of $5,986,000 for the same period in 2024[22] - Basic earnings per share for Q3 2025 were $0.12, compared to $0.14 in Q3 2024[11] - Comprehensive income for the nine months ended September 30, 2025, was $8.3 million, compared to $9.9 million for the same period in 2024[14] - Total revenues for the three months ended September 30, 2025, were $132.8 million, a decrease of 15.2% compared to $156.7 million for the same period in 2024[55] - Consumer product revenue for the nine months ended September 30, 2025, was $340.8 million, down 13.6% from $394.4 million in 2024[55] - Commercial product revenue increased to $42.4 million for the nine months ended September 30, 2025, compared to $39.9 million in 2024, reflecting a growth of 6.3%[55] - Licensing revenue for the nine months ended September 30, 2025, was $6.8 million, up 41.7% from $4.8 million in 2024[55] Assets and Liabilities - Total assets as of September 30, 2025, were $392.4 million, a decrease of 5.4% from $415.1 million at the end of 2024[9] - Total liabilities decreased to $228.3 million as of September 30, 2025, down 8.4% from $249.2 million at the end of 2024[9] - Cash and cash equivalents at the end of Q3 2025 were $17.2 million, a decrease of 24.5% from $22.6 million at the end of Q3 2024[9] - Total stockholders' equity as of September 30, 2025, was $164,048,000, with retained earnings of $126,953,000[20] - The company has $54.4 million in outstanding payment obligations to a third-party financial institution as of September 30, 2025[36] Shareholder Activities - The company paid cash dividends of $0.12 per share during the third quarter of 2025, totaling $1,619,000[20] - The company repurchased 396,065 shares for an aggregate purchase price of $7.2 million during the nine months ended September 30, 2025[42] - The company repurchased 39,333 shares for $0.6 million during the three months ended September 30, 2025, compared to 221,529 shares for $5.3 million in 2024[44] - As of September 30, 2025, the company had $4.2 million remaining authorized for share repurchase[42] Credit and Financing - The company has a $125.0 million senior secured floating-rate revolving credit facility expiring on December 13, 2029, which is expected to provide sufficient liquidity for operating needs[29] - The fair value of the HBB Facility was $125.0 million, determined using current rates for similar obligations[41] Environmental and Regulatory Matters - As of September 30, 2025, the Company accrued undiscounted obligations of $3.0 million for environmental investigation and remediation activities, down from $3.9 million as of December 31, 2024[58] - The Company estimates additional expenses related to environmental investigation and remediation could range from $0 to $1.0 million[58] Acquisitions - The Company completed the acquisition of HealthBeacon Limited for €6.9 million (approximately $7.5 million) on February 2, 2024[63] - HealthBeacon generated revenue of $1.887 million and an operating profit of $313,000 for the three months ended September 30, 2025[65] - The total assets acquired from HealthBeacon amounted to $10.191 million, with total liabilities of $2.632 million[67] Taxation - The effective tax rate for the three months ended September 30, 2025, was 18.4%, a decrease from 27.4% in the same period of 2024, primarily due to increased foreign derived tax benefits[60] Other Financial Information - The company reported a net cash used in operating activities of $14.6 million for the nine months ended September 30, 2025[17] - The company reported a share-based compensation expense of $569,000 for the three months ended September 30, 2025[20] - The company incurred transaction costs of approximately $0.2 million and $1.3 million during the three and nine months ended September 30, 2024, respectively[66] - The company completed the termination of its U.S. Pension Plan in 2024, with a pre-tax settlement charge of $7.6 million recognized in the third quarter of 2024[33] - The company transferred $13.4 million of surplus assets to a qualified replacement plan for employee retirement benefits in the first quarter of 2025[34] - The company expects revenue to increase during the second half of the year, peaking in the fourth quarter due to the fall holiday-selling season[28]