The Eastern Company Reports Third Quarter 2023 Results
- The operational transformation program led to a 123% increase in EPS from continuing operations, a 270 basis point improvement in gross margin, and a $19.6 million increase in cash flow from operations. The company's balance sheet strengthened with a $15.2 million debt paydown during the first nine months of 2023. The company's sales declined in Q3 2023, but backlog increased by 4% year-over-year. Gross margins improved due to price increases to recover raw material costs. Selling, general and administrative expenses decreased in Q3 2023, and the company's balance sheet showed a senior net leverage ratio of 1.85 to 1 at the end of the third quarter.
- The positive impact of the operational transformation program is evident in the company's financial results, with a significant increase in EPS and gross margin as a percentage of sales. The increase in cash flow from operations and record debt paydown further strengthen the company's financial position. Although sales declined, the increase in backlog and the improvement in gross margins reflect positive trends for the company's future performance.
- None.
- Impact of new operational transformation program evident in working capital improvement, margin improvement and an increase in EPS from continuing operations sequentially.
- Gross margin as a percentage of sales improved to
24.9% in the third quarter of 2023 from22.2% in the second quarter of 2023. - Cash flow from operations for the nine months ended September 30, 2023 increased
$19.6 million compared to the same period in 2022, enabling record debt paydown of$15.2 million during the first nine months of 2023. - EPS from continuing operations was
$0.49 per share in the third quarter of 2023 compared to$0.22 in the second quarter of 2023, an increase of123% . Adjusted EPS increased23% to$0.49 per share in Q3 2023 from$0.40 per share in Q2 2023
SHELTON, CT / ACCESSWIRE / November 7, 2023 / The Eastern Company ("Eastern") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving commercial transportation, logistics, and other industrial markets, today announced the results of operations for the third fiscal quarter ended September 30, 2023.
President and CEO Mark Hernandez commented, "Eastern's new leadership team has been driving ahead with the operational transformation program we began implementing in early 2023 to enhance the Company's operating efficiency, reduce costs and strengthen its focus on delivering value to shareholders. As we expected, the positive impact of these efforts is becoming increasingly evident in the Company's financial results.
"In particular, our improvement in gross margin as a percentage of net sales -- which, on a sequential quarter basis, rose 270 basis points from Q2 2023 to
Mr. Hernandez added, "Our balance sheet continues to strengthen. During the first nine months of 2023 we increased our cash flow from operations by
"The four-pronged strategy we developed early this year, based on disciplined operations, optimum capital utilization, focused commercial business, and value-adding acquisitions, continues to guide all our actions. Within our three operating divisions we have been taking many steps to become more efficient and optimize performance. We look forward to capitalizing on these actions as well as the positive trends in our industry and the impact of our repricing strategy in the year's final quarter."
Third Quarter and Nine Months Ended September 30, 2023 Financial Results
Net sales in the third quarter of 2023 decreased
Gross margin as a percentage of sales was
Selling, general and administrative expenses decreased
Other income decreased
Net income from continuing operations for the third quarter of fiscal 2023 was
Adjusted net income from continuing operations (a non-GAAP measure) for the third quarter of fiscal 2023 was
Conference Call and Webcast
The Eastern Company will host a conference call to discuss its results for the third quarter of 2023 and other matters on Wednesday, November 8, 2023, at 11:00 AM Eastern Time. Participants can access the conference call by phone at 877-545-0320 (toll-free in the US and Canada) or 973-528-0002 (international), using access code 651078. Participants can also join via the web at https://www.webcaster4.com/Webcast/Page/1757/49220.
About The Eastern Company
The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to markets. Eastern's businesses operate in industries that offer long-term macroeconomic growth opportunities. The Company operates from locations in the U.S., Canada, Mexico, Taiwan, and China. More information on the Company can be found at www.easterncompany.com.
Safe Harbor for Forward-Looking Statements
Statements contained in this release that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "would," "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intend," "continue," "plan," "potential," "opportunities," or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company's business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include the impact of the COVID-19 pandemic and resulting economic effects, the impact of higher raw material and component costs and cost inflation, supply chain disruptions and shortages, particularly with respect to steel, plastics, scrap iron, zinc, copper and electronic components, rising interest rates, delays in delivery of our products to our customers, the impact of global economic conditions on demand for our products, including the impact, length and degree of economic downturns on the customers and markets we serve, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, the potential impact of bank failures on our ability to access financing or capital markets, and the impact of market conditions on pension plan funded status. Other factors include, but are not limited to: restrictions on operating flexibility imposed by the agreement governing our credit facility; risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic and social instability; the inability to achieve the savings expected from global sourcing of materials; lower-cost competition; our ability to design, introduce and sell new or updated products and related components; market acceptance of our products; the inability to attain expected benefits from acquisitions or the inability to effectively integrate such acquisitions and achieve expected synergies; domestic and international economic conditions, and more specifically conditions in the automotive, construction, aerospace, energy, oil and gas, transportation, electronic, and general industrial markets; costs and liabilities associated with environmental compliance; the impact of climate change; military conflict (including the Russia/Ukraine conflict, the conflict in Israel and surrounding areas, the possible expansion of such conflicts and geopolitical consequences) or terrorist threats and the possible responses by the U.S. and foreign governments; failure to protect our intellectual property; cyberattacks; materially adverse or unanticipated legal judgments, fines, penalties or settlements; and other risks identified and discussed in Item 1A, Risk Factors, and Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of the Company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the "SEC") on March 14, 2023, and that may be identified from time to time in our quarterly reports on Form 10-Q, current reports on Form 8-K and other filings we make with the SEC. Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted and the Company may alter its business strategies to address changing conditions. Also, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses. The Company undertakes no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law.
Non-GAAP Financial Measures
The non-GAAP financial measures we provide in this release should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.
To supplement the consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Adjusted Net Income from Continuing Operations, Adjusted Earnings Per Share from Continuing Operations and Adjusted EBITDA from Continuing Operations, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures, such as net sales, net income from continuing operations, diluted earnings per share from continuing operations, or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.
Adjusted Net Income from Continuing Operations is defined as net income from continuing operations excluding, when incurred, gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. Adjusted Net Income from Continuing Operations is a tool that can assist management and investors in comparing our performance on a consistent basis across periods by removing the impact of certain items that management believes do not directly reflect our underlying operating performance.
Adjusted Earnings Per Share from Continuing Operations is defined as earnings per share from continuing operations excluding, when incurred, certain per share gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. We believe that Adjusted Earnings Per Diluted Share from Continuing Operations provides important comparability of underlying operational results, allowing investors and management to access operating performance on a consistent basis from period to period.
Adjusted EBITDA from Continuing Operations is defined as net income from continuing operations before interest expense, provision for income taxes, and depreciation and amortization and excluding, when incurred, the impacts of certain losses or gains that we do not believe reflect our ongoing operations, including, for example, impairment losses, gains/losses on sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. Adjusted EBITDA from Continuing Operations is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.
Management uses such measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors, and to establish operational goals and forecasts that are used in allocating resources. These financial measures should not be considered in isolation from, or as a replacement for, U.S. GAAP financial measures.
We believe that presenting non-GAAP financial measures in addition to U.S. GAAP financial measures provides investors greater transparency to the information used by our management for its financial and operational decision-making. We further believe that providing this information better enables our investors to understand our operating performance and to evaluate the methodology used by management to evaluate and measure such performance.
Investor Relations Contacts
The Eastern Company
Mark Hernandez or Nicholas Vlahos
203-729-2255
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||
Net sales | $ | 65,635,680 | $ | 71,636,746 | $ | 206,468,838 | $ | 210,191,448 | ||||||||
Cost of products sold | (49,260,313 | ) | (55,056,160 | ) | (159,447,930 | ) | (163,047,360 | ) | ||||||||
Gross margin | 16,375,367 | 16,580,586 | 47,020,908 | 47,144,088 | ||||||||||||
Product development expense | (1,425,159 | ) | (1,011,961 | ) | (4,257,468 | ) | (3,168,333 | ) | ||||||||
Selling general and administrative expenses | (9,700,342 | ) | (10,121,683 | ) | (32,927,015 | ) | (30,129,112 | ) | ||||||||
Operating profit | 5,249,866 | 5,446,942 | 9,836,425 | 13,846,643 | ||||||||||||
Interest expense | (1,067,779 | ) | (645,773 | ) | (2,574,890 | ) | (1,583,894 | ) | ||||||||
Other (expense) income | (135,839 | ) | 1,118,453 | (514,357 | ) | 2,118,783 | ||||||||||
Income from continuing operations before income taxes | 4,046,248 | 5,919,622 | 6,747,178 | 14,381,532 | ||||||||||||
Income tax expense | (984,289 | ) | (1,423,363 | ) | (1,678,698 | ) | (3,498,365 | ) | ||||||||
Net income from continuing operations | 3,061,959 | 4,496,259 | 5,068,480 | 10,883,167 | ||||||||||||
Discontinued Operations (see Note B) | ||||||||||||||||
Gain from operations of discontinued operations | - | 495,820 | - | 1,426,569 | ||||||||||||
Income tax expense | - | (133,500 | ) | - | (384,104 | ) | ||||||||||
Gain from discontinued operations | - | 362,320 | - | 1,042,465 | ||||||||||||
Net income | $ | 3,061,959 | $ | 4,858,579 | $ | 5,068,480 | $ | 11,925,632 | ||||||||
Earnings per share from continuing operations: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.72 | $ | 0.81 | $ | 1.75 | ||||||||
Diluted | $ | 0.49 | $ | 0.72 | $ | 0.81 | $ | 1.74 | ||||||||
Earnings per share from discontinued operations: | ||||||||||||||||
Basic | $ | - | $ | 0.06 | $ | - | $ | 0.17 | ||||||||
Diluted | $ | - | $ | 0.06 | $ | - | $ | 0.17 | ||||||||
Total earnings per share: | ||||||||||||||||
Basic | $ | 0.49 | $ | 0.78 | $ | 0.81 | $ | 1.92 | ||||||||
Diluted | $ | 0.49 | $ | 0.78 | $ | 0.81 | $ | 1.91 | ||||||||
Cash dividends per share: | $ | 0.11 | $ | 0.11 | $ | 0.33 | $ | 0.33 | ||||||||
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2023 | December 31, 2022 | |||||||
| (unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 9,540,786 | $ | 10,187,522 | ||||
Accounts receivable, less allowances: 2023 - | 42,838,864 | 42,886,250 | ||||||
Inventories | 60,648,599 | 64,636,591 | ||||||
Current portion of notes receivable | 570,696 | 1,006,421 | ||||||
Prepaid expenses and other assets | 5,876,920 | 6,598,774 | ||||||
Total Current Assets | 119,475,865 | 125,315,558 | ||||||
Property, Plant and Equipment | 60,077,603 | 56,112,889 | ||||||
Accumulated depreciation | (32,088,351 | ) | (30,000,797 | ) | ||||
Property, Plant and Equipment, Net | 27,989,252 | 26,112,092 | ||||||
Goodwill | 70,764,166 | 70,777,459 | ||||||
Trademarks | 5,514,890 | 5,514,886 | ||||||
Patents and other intangibles net of accumulated amortization | 16,080,034 | 18,819,897 | ||||||
Long term notes receivable, less current portion | 446,627 | 2,276,631 | ||||||
Deferred Income Taxes | 657,607 | 488,989 | ||||||
Right of Use Assets | 15,796,743 | 12,217,521 | ||||||
Total Other Assets | 109,260,067 | 110,095,383 | ||||||
TOTAL ASSETS | $ | 256,725,184 | $ | 261,523,033 | ||||
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2023 | December 31, 2022 | |||||||
| (unaudited) | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 30,257,077 | $ | 27,638,317 | ||||
Accrued compensation | 4,205,484 | 3,327,832 | ||||||
Other accrued expenses | 4,830,717 | 3,944,964 | ||||||
Current portion of operating lease liability | 3,540,157 | 3,059,547 | ||||||
Current portion of finance lease liability | 150,362 | - | ||||||
Current portion of long-term debt | 3,000,000 | 9,010,793 | ||||||
Total Current Liabilities | 45,983,797 | 46,981,453 | ||||||
Other long-term liabilities | 754,763 | 754,762 | ||||||
Operating lease liability, less current portion | 12,256,587 | 9,195,205 | ||||||
Finance lease liability, less current portion | 792,484 | - | ||||||
Long-term debt, less current portion | 45,661,186 | 55,136,231 | ||||||
Accrued postretirement benefits | 672,064 | 666,222 | ||||||
Accrued pension cost | 21,958,215 | 22,174,465 | ||||||
Total Liabilities | 128,079,096 | 134,908,338 | ||||||
Shareholders' Equity | ||||||||
Voting Preferred Stock, no par value: | ||||||||
Authorized and unissued: 1,000,000 shares | ||||||||
Nonvoting Preferred Stock, no par value: | ||||||||
Authorized and unissued: 1,000,000 shares | ||||||||
Common Stock, no par value, Authorized: 50,000,000 shares | 33,737,465 | 33,586,165 | ||||||
Issued: 9,086,096 shares in 2023 and 9,056,421 shares in 2022 | ||||||||
Outstanding: 6,238,413 shares in 2023 and 6,221,976 shares in 2022 | ||||||||
Treasury Stock: 2,847,683 shares in 2023 and 2,834,445 shares in 2022 | (22,790,230 | ) | (22,544,684 | ) | ||||
Retained earnings | 141,985,268 | 138,985,852 | ||||||
Accumulated other comprehensive loss: | ||||||||
Foreign currency translation | (1,323,007 | ) | (1,140,978 | ) | ||||
Unrealized gain on interest rate swap, net of tax | - | 1,449,754 | ||||||
Unrecognized net pension and postretirement benefit costs, net of tax | (22,963,408 | ) | (23,721,414 | ) | ||||
Accumulated other comprehensive loss | (24,286,415 | ) | (23,412,638 | ) | ||||
Total Shareholders' Equity | 128,646,088 | 126,614,695 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 256,725,184 | $ | 261,523,033 | ||||
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Nine Months Ended | ||||||||
| September 30, 2023 | October 1, 2022 | |||||||
Operating Activities | ||||||||
Net income | $ | 5,068,480 | $ | 11,925,632 | ||||
Less: gain from discontinued operations | - | 1,042,465 | ||||||
Income from continuing operations | $ | 5,068,480 | $ | 10,883,167 | ||||
Adjustments to reconcile net income to net cash provided by (used in) | ||||||||
operating activities: | ||||||||
Depreciation and amortization | 5,471,633 | 5,389,394 | ||||||
Unrecognized pension and postretirement benefits | 635,677 | (477,560 | ) | |||||
Loss (Gain) on sale of equipment and other assets | 331,474 | (345,718 | ) | |||||
Provision for doubtful accounts | (88,353 | ) | 35,000 | |||||
Stock compensation expense | 151,300 | 699,454 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 116,025 | (8,008,687 | ) | |||||
Inventories | 4,628,294 | (5,217,395 | ) | |||||
Prepaid expenses and other | 888,342 | (1,082,483 | ) | |||||
Other assets | 190,216 | 340,925 | ||||||
Accounts payable | 1,499,401 | (537,072 | ) | |||||
Accrued compensation | 476,714 | (957,022 | ) | |||||
Other accrued expenses | (119,557 | ) | (1,046,094 | ) | ||||
Net cash provided by (used in) operating activities | 19,249,646 | (324,091 | ) | |||||
Investing Activities | ||||||||
Business Acquisition | (547,638 | ) | - | |||||
Issuance of Notes Receivable | - | (400,000 | ) | |||||
Payments received from notes receivable | 2,265,730 | 748,148 | ||||||
Proceeds from sale of equipment | - | 2,171,073 | ||||||
Purchases of property, plant, and equipment | (4,718,673 | ) | (1,734,553 | ) | ||||
Net cash (used in) provided by investing activities | (3,000,581 | ) | 784,668 | |||||
Financing Activities | ||||||||
Principal payments on long-term debt | (74,919,004 | ) | (5,688,866 | ) | ||||
Principal payments on short-term borrowings (revolver) | (300,029 | ) | (1,000,000 | ) | ||||
Proceeds from short term borrowings (revolver) | - | 10,000,000 | ||||||
Proceeds from new long-term debt financing | 60,000,000 | - | ||||||
Financing leases, net | 674,558 | (161,906 | ) | |||||
Purchase common stock for treasury | (245,546 | ) | (1,637,072 | ) | ||||
Dividends paid | (2,069,043 | ) | (2,054,875 | ) | ||||
Net cash used in financing activities | (16,859,064 | ) | (542,719 | ) | ||||
Discontinued Operations | ||||||||
Cash used in operating activities | - | (610,887 | ) | |||||
Cash used in discontinued operations | - | (610,887 | ) | |||||
Effect of exchange rate changes on cash | (36,737 | ) | (257,093 | ) | ||||
Net change in cash and cash equivalents | (646,737 | ) | (950,122 | ) | ||||
Cash and cash equivalents at beginning of period | 10,187,522 | 6,602,429 | ||||||
Cash and cash equivalents at end of period1 | $ | 9,540,786 | $ | 5,652,307 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest | $ | 2,482,362 | $ | 1,753,699 | ||||
Income taxes | 1,321,170 | 3,197,375 | ||||||
Non-cash investing and financing activities | ||||||||
Right of use asset | $ | 3,579,222 | $ | 1,743,518 | ||||
Lease liability | (4,484,838 | ) | (1,608,530 | ) | ||||
1 includes cash from assets held for sale of
Reconciliation of Non-GAAP Measures
Adjusted Net Income and EPS from Continuing Operations Calculation
For the Three and Nine Months ended September 30, 2023 and October 1, 2022
(
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||
Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $ | 3,062 | $ | 4,496 | $ | 5,068 | $ | 10,883 | ||||||||||
Earnings per share from continuing operations as reported under generally accepted accounting principles (GAAP): | ||||||||||||||||||
Basic | $ | 0.49 | $ | 0.72 | $ | 0.81 | $ | 1.75 | ||||||||||
Diluted | $ | 0.49 | $ | 0.72 | $ | 0.81 | $ | 1.74 | ||||||||||
Adjustments: | ||||||||||||||||||
Loss on sale of Wheeling, IL building, net of tax | - | - | - | 202 | A | |||||||||||||
Gain on sale of Eastern corporate office building, net of tax | - | (474) | B | - | (474 | ) | B | |||||||||||
Severance and accrued compensation, net of tax | - | - | 1,349 | C | - | |||||||||||||
Greenwald final sale adjustment | - | 293 | D | - | ||||||||||||||
Associated Toolmakers, Ltd. closure, net of tax | - | 1,086 | E | - | ||||||||||||||
Total adjustments (non-GAAP) | $ | - | $ | (474 | ) | $ | 2,728 | $ | (272 | ) | ||||||||
Adjusted net income from continuing operations | $ | 3,062 | $ | 4,022 | $ | 7,796 | $ | 10,611 | ||||||||||
Adjusted earnings per share from continuing operations (non-GAAP): | ||||||||||||||||||
Basic | $ | 0.49 | $ | 0.65 | $ | 1.25 | $ | 1.70 | ||||||||||
Diluted | $ | 0.49 | $ | 0.65 | $ | 1.24 | $ | 1.70 | ||||||||||
A) Loss on sale of building in Wheeling, IL
B) Gain on sale of Eastern corporate office building
C) Severance expenses associated with accrued compensation and severance related to the elimination of the Chief Operating Officer position and the departure of the former Chief Executive Officer
D) Final settlement of working capital adjustment associated with Greenwald sale
E) Associated Toolmakers, Ltd. closure costs
Reconciliation of Non-GAAP Measures
Adjusted EBITDA from Continuing Operations Calculation
For the Three and Nine Months ended September 30, 2023 and October 1, 2022
(
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||
Net income from continuing operations as reported per generally accepted accounting principles (GAAP) | $ | 3,062 | $ | 4,496 | $ | 5,068 | $ | 10,883 | ||||||||||
Interest expense | 1,068 | 646 | 2,575 | 1,584 | ||||||||||||||
Provision for income taxes | 984 | 1,423 | 1,679 | 3,498 | ||||||||||||||
Depreciation and amortization | 1,851 | 1,756 | 5,472 | 5,389 | ||||||||||||||
Loss on sale of Wheeling, IL building | - | - | - | 269 | A | |||||||||||||
Gain on sale of Eastern corporate office building | - | (624) | B | - | (624 | ) | B | |||||||||||
Severance and accrued compensation | - | - | 1,799 | C | - | |||||||||||||
Greenwald final sale adjustment | - | - | 390 | D | - | |||||||||||||
Associated Toolmakers, Ltd. closure, net of tax | - | - | 1,448 | E | - | |||||||||||||
Adjusted EBITDA from continuing operations | $ | 6,965 | $ | 7,697 | $ | 18,431 | $ | 20,999 | ||||||||||
A) Loss on sale of building in Wheeling, IL
B) Gain on sale of Eastern corporate office building
C) Severance expenses associated with accrued compensation and severance related to the elimination of the Chief Operating Officer position and the departure of the former Chief Executive Officer
D) Final settlement of working capital adjustment associated with Greenwald sale
E) Associated Toolmakers, Ltd. closure costs
SOURCE: The Eastern Company
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https://www.accesswire.com/800204/the-eastern-company-reports-third-quarter-2023-results
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