In This Article:
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Net Sales (Q4 2024): Increased 4.5% to $66.7 million from $63.8 million in Q4 2023.
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Net Sales (Full Year 2024): Rose 5% to $272.8 million from $258.9 million in 2023.
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Backlog (End of 2024): Increased 15.7% to $89.2 million from $77.1 million at the end of 2023.
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Gross Margin (Q4 2024): 23% compared to 26.8% in Q4 2023.
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Gross Margin (Full Year 2024): 24.7% compared to 23.9% in 2023.
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Product Development Costs (Q4 2024): 1.7% of net sales compared to 2.1% in Q4 2023.
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Selling and Administrative Expenses (Q4 2024): Increased 11% or $1.1 million compared to Q4 2023.
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Net Income (Q4 2024): $1.6 million or $0.26 per diluted share compared to $3.9 million or $0.63 per diluted share in Q4 2023.
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Net Income (Full Year 2024): Increased 12% to $13.2 million or $2.13 per diluted share from $11.8 million or $1.88 per diluted share in 2023.
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Adjusted Net Income (Q4 2024): $2.6 million or $0.42 per diluted share compared to $3.9 million or $0.63 per diluted share in Q4 2023.
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Adjusted Net Income (Full Year 2024): $14.2 million or $2.29 per diluted share compared to $13.4 million or $2.14 per diluted share in 2023.
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Senior Net Leverage Ratio (End of Q4 2024): 1.23:1 compared to 1.41:1 at the end of 2023.
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Capital Expenditures (2024): $9.7 million.
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Dividends Paid (2024): $2.7 million.
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Inventories (End of 2024): $55.2 million, down $3.2 million from the end of 2023.
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Share Repurchase (Q4 2024): 39,000 shares repurchased, totaling approximately 150,000 shares under the buyback program.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net sales increased by 4.5% in the fourth quarter and 5% for the full year 2024, indicating strong demand, particularly in the truck demand for returnable transport packaging products.
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The company's backlog rose by 15.7%, driven by new mirror programs for Class 8 trucks, suggesting future revenue growth.
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Net income for the full year 2024 increased by 12%, reflecting improved profitability.
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The company successfully reduced its senior net leverage ratio, indicating improved financial health.
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Eastern Co (NASDAQ:EML) repurchased 39,000 shares of common stock, demonstrating confidence in its financial position and commitment to returning value to shareholders.
Negative Points
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Gross margin decreased in the fourth quarter due to higher material costs and the absence of a favorable LIFO reserve adjustment from the previous year.
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Selling and administrative expenses increased by 11% in the fourth quarter, driven by higher payroll, legal, and professional expenses.
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Net income for the fourth quarter decreased significantly compared to the same period in 2023.
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The company faced challenges with lower demand for truck accessories and mirror assemblies, impacting sales growth.
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Product development costs as a percentage of net sales decreased, which may indicate reduced investment in innovation.