Hamilton Beach(US:HBB)2019-04-27 01:42Financial Data and Key Metrics Changes - Consolidated revenue decreased to $145.4 million from $146.6 million last year [26] - Gross profit margin decreased to 23.9% from 25.8% [27] - Consolidated operating loss increased to $2.1 million from $500,000 last year [28] - Consolidated net loss was $1.8 million or $0.13 per diluted share, compared to a net loss of $400,000 or $0.03 per diluted share for 2018 [29] Business Segment Data and Key Metrics Changes - Hamilton Beach Brands revenue increased to $126.7 million from $125.4 million [26] - Kitchen Collection revenue decreased to $19.3 million from $22.1 million [26] - Kitchen Collection's operating loss improved to $3.7 million from $4.3 million last year [22] Market Data and Key Metrics Changes - Revenue growth in the U.S. consumer market was partially offset by decreases in some international markets [7] - Global commercial revenue remained comparable to last year [8] - Unfavorable foreign currency movements reduced revenue by $700,000 [8] Company Strategy and Development Direction - The company aims to grow faster than the e-commerce rate in each market where it competes [14] - New product platforms introduced in 2018 are expected to benefit the company in 2019 and beyond [11] - The company plans to enter the India market with a soft launch in the second quarter [16] Management's Comments on Operating Environment and Future Outlook - Management expects cash flow before financing activities to increase significantly in 2019 compared to 2018 [35] - Kitchen Collection's future performance is closely aligned with customer traffic trends [35] - The company is focused on improving inventory, cash flow, and debt levels [32] Other Important Information - The company plans to close an additional 10 Kitchen Collection stores by the end of the year [20] - The company introduced 90 new product platforms in 2018 and plans to introduce a strong lineup in 2019 [11] Q&A Session Summary Question: Timing and market size for new air fryers and pressure cookers - The company has two air fryers currently in the market and expects three more in the third quarter, with two pressure cookers coming in late Q2 and Q3 [41][42] Question: Thoughts on private label products - Private label has been part of the small appliances market, with participation expected to remain in the 10% to 15% range [46][47] Question: Revenue outlook for Hamilton Beach Brands - The company expects moderate revenue growth and aims to keep up with the overall market trends [51][54] Question: Accounts payable timing shift - The timing of accounts payable is influenced by inventory orders during the holiday season, affecting cash flow in the first quarter [60][62] Question: Improvement in Kitchen Collection's operating losses - The company anticipates continued positive improvement in operating losses, contingent on foot traffic trends [64][66]