Hamilton Beach(US:HBB)2025-11-05 21:05Revenue Performance - Revenue declined 15.2% to $132.8 million compared to $156.7 million in the same quarter last year[3] - Revenue decline was primarily driven by lower volumes in the U.S. Consumer business, with a delay in orders from a large retailer[4] Profitability Metrics - Gross margin decreased to 21.1% from 28.0%, impacted by a one-time 370 basis point effect from a temporary 125% tariff on Chinese imports[3][5] - Operating profit decreased to $2.9 million compared to $10.6 million in the prior year[6] - Net income was $1.7 million, or $0.12 per diluted share, compared to $1.9 million, or $0.14 per diluted share in the same quarter last year[7] - Net income for the nine months ended September 30, 2025, increased to $7.9 million, up from $6.8 million in the same period of 2024, reflecting a growth of 16.9%[20] Expenses and Cost Management - Selling, general and administrative expenses (SG&A) decreased to $25.1 million from $33.3 million, primarily due to lower personnel costs[6] Cash Flow and Liquidity - Net cash used for operating activities was $14.6 million for the nine months ended September 30, 2025, compared to $35.2 million cash provided in the same period last year[8] - Net cash provided by operating activities was $(14.6) million for the nine months ended September 30, 2025, compared to $35.2 million in 2024, indicating a significant decline[20] - Cash and cash equivalents dropped to $17.2 million from $45.6 million, a decrease of 62.3%[20] Debt and Liabilities - Net debt increased to $32.8 million from $22.5 million year-over-year[9] - Net (cash) debt stood at $32.8 million as of September 30, 2025, compared to $(0.6) million at December 31, 2024, indicating a shift to a net debt position[21] - Total liabilities decreased to $228.3 million as of September 30, 2025, down from $249.2 million at December 31, 2024, a reduction of 8.3%[18] Asset Management - Total assets decreased to $392.4 million as of September 30, 2025, from $415.1 million at December 31, 2024, representing a decline of 5.5%[18] - Inventory increased to $174.8 million as of September 30, 2025, from $124.9 million at December 31, 2024, an increase of 40%[18] - Total stockholders' equity slightly decreased to $164.0 million from $165.9 million, a decline of 1.1%[18] Dividends and Shareholder Returns - Cash dividends paid amounted to $4.8 million for the nine months ended September 30, 2025, compared to $4.7 million in 2024, reflecting a marginal increase[20] Business Outlook - The company did not provide specific guidance on its business outlook due to increased uncertainty from higher tariffs[10] - The company expects further top-line and margin recovery in the fourth quarter due to improved visibility and brand strength[2] Operational Challenges - The company reported a net change in operating assets and liabilities of $(27.8) million for the nine months ended September 30, 2025, compared to $(10.5) million in 2024, indicating increased operational challenges[20]