$EML

EASTERN CO

CIK:0000031107|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Net sales	$ 61,821,757	$ 70,164,086	$ 121,498,295	$ 136,101,298
Cost of products sold	(49,069,618)	(53,801,184)	(96,816,475)	(104,642,211)
Gross margin	12,752,139	16,362,902	24,681,820	31,459,087
Product development expense	(1,042,688)	(1,031,716)	(2,078,000)	(2,140,902)
Selling and administrative expenses	(10,051,659)	(12,188,736)	(19,621,306)	(22,534,931)
Operating profit	1,657,792	3,142,450	2,982,514	6,783,254
Interest expense	(581,318)	(636,287)	(1,108,831)	(1,330,941)
Bargain purchase gain	6,529,299	0	6,529,299	0
Other income (expense)	(101,234)	75,210	(88,049)	(124,495)
Income before income taxes from continuing operations	7,504,539	2,581,373	8,314,933	5,327,818
Income tax expense	(1,855,254)	(546,383)	(2,025,518)	(1,124,703)
Net income from continuing operations	5,649,285	2,034,990	6,289,415	4,203,115
Discontinued Operations (see note C)
Loss from operations of discontinued unit	0	(234,237)	0	(520,005)
Income from disposal of discontinued unit	0	2,016,696	0	2,016,696
Income tax expense	0	(377,282)	0	(315,952)
Income from discontinued operations	0	1,405,177	0	1,180,739
Net Income	$ 5,649,285	$ 3,440,167	$ 6,289,415	$ 5,383,854
Earnings per share from continuing operations:
Basic	$ 0.94	$ 0.33	$ 1.04	$ 0.69
Diluted	0.94	0.33	1.04	0.69
Earnings per share from discontinued operations:
Basic	0	0.23	0	0.19
Diluted	0	0.23	0	0.19
Total earnings per share:
Basic	0.94	0.56	1.04	0.88
Diluted	0.94	0.56	1.04	0.88
Cash dividends per share:	$ 0.11	$ 0.11	$ 0.22	$ 0.22

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
Operating Activities
Net income	$ 6,289,415	$ 5,383,854
Less: Income from discontinued operations	0	1,180,739
Income from continuing operations	6,289,415	4,203,115
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,209,318	3,178,318
Bargain purchase gain	(6,529,299)	0
Reduction in carrying amount of ROU assets	1,276,927	1,502,376
Unrecognized pension and postretirement benefit	(1,211,007)	(397,676)
(Gain) loss on sale of equipment	(64,661)	38,479
Provision for doubtful accounts	54,828	14,000
Stock compensation expense	188,134	289,126
Changes in operating assets and liabilities:
Accounts receivable	(4,974,987)	(2,271,343)
Inventories	920,744	1,886,960
Prepaid expenses and other	(947,631)	(314,221)
Other assets	(144,699)	124,859
Accounts payable	8,968,808	2,511,193
Accrued compensation	642,535	(445,105)
Operating lease liability	(1,276,927)	(1,502,376)
Other accrued expenses	5,635,050	(6,908,197)
Net cash provided by operating activities	12,036,548	1,909,508
Investing Activities
Marketable securities	(32,825)	(2,222,059)
Acquisition	(8,041,927)	(421,039)
Payments received from notes receivable	5,000	14,545
Proceeds from sale of equipment	3,500	800
Proceeds from sale of discontinued operations	0	1,593,646
Purchases of property, plant, and equipment	(1,482,339)	(1,599,780)
Net cash (used in) provided by investing activities	(9,548,591)	1,810,231
Financing Activities
Proceeds from long-term debt	8,000,000	0
Proceeds from promissory note	785,000	0
Principal payments on long-term debt	(1,000,000)	(5,919,065)
Financing leases, net	(442,282)	(393,352)
Purchase common stock for treasury	(827,873)	(2,123,705)
Dividends paid	(1,327,007)	(1,347,951)
Net cash used in financing activities	5,187,838	(9,784,073)
Effect of exchange rate changes on cash	20,950	331,115
Net change in cash and cash equivalents	7,696,745	(5,733,219)
Cash and cash equivalents at beginning of period	7,412,019	14,843,530
Cash and cash equivalents at end of period	15,108,764	9,110,311
Supplemental disclosure of cash flow information:
Interest	1,099,963	1,683,412
Income taxes	694,933	1,679,091
Non-cash investing and financing activities
Right of use asset	205,983	3,050,510
Lease liability	$ 104,836	$ 2,836,158

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jul. 04, 2026	Jan. 03, 2026
Current Assets
Cash and cash equivalents	$ 15,108,764	$ 7,412,019
Marketable Securities	32,825	0
Accounts receivable, less allowances: 2026 - $681,170; 2025 - $633,391	36,842,066	30,128,669
Inventories	65,989,520	56,343,756
Current portion of notes receivable	28,844	33,844
Prepaid expenses and other current assets	6,754,824	5,349,486
Total Current Assets	124,756,843	99,267,774
Property, Plant and Equipment	66,497,282	60,163,556
Accumulated depreciation	(35,807,530)	(33,246,213)
Property, Plant and Equipment, Net	30,689,752	26,917,343
Goodwill	58,666,199	58,631,336
Trademarks	5,082,816	5,082,767
Patents and other intangibles, net of accumulated amortization	4,121,143	5,269,204
Deferred income taxes	5,528,496	5,528,496
Right of use assets	16,170,708	15,979,696
Other Long-term assets	102,674	0
Total Other Assets	89,672,036	90,491,499
TOTAL ASSETS	245,118,631	216,676,616
Current Liabilities
Accounts payable	27,192,690	16,426,259
Accrued compensation	5,615,457	4,203,720
Other accrued expenses	6,884,543	2,349,400
Current portion of operating lease liability	3,997,516	3,729,769
Current portion of finance lease liability	905,524	908,332
Total Current Liabilities	44,595,730	27,617,480
Other long-term liabilities	464,902	464,902
Operating lease liability, less current portion	12,173,424	12,235,188
Finance lease liability, less current portion	2,772,205	3,080,446
Long-term debt, less current portion	41,683,212	33,902,353
Accrued postretirement benefits	329,767	332,165
Accrued pension cost	13,106,148	14,398,753
Total Liabilities	115,125,388	92,031,287
Shareholders' Equity
Common Stock, no par value, Authorized: 50,000,000 shares Issued: 9,195,728 shares as of July 4, 2026 and 9,179,288 shares as of January 3, 2026 Outstanding: 6,017,558 shares as of July 4, 2026 and 6,041,767 shares as of January 3, 2026	36,525,234	36,337,100
Treasury Stock: 3,178,170 shares as of July 4, 2026 and 3,137,521 shares as of January 3, 2026	(30,895,650)	(30,067,777)
Retained earnings	142,959,790	137,997,382
Accumulated other comprehensive loss:
Foreign currency translation	(975,778)	(1,437,363)
Unrealized gain on foreign currency swap, net of tax	711,155	570,097
Unrecognized net pension and postretirement benefit costs, net of tax	(18,331,508)	(18,754,110)
Accumulated other comprehensive loss	(18,596,131)	(19,621,376)
Total Shareholders' Equity	129,993,243	124,645,329
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 245,118,631	$ 216,676,616