EASTERN CO Q3 FY2024 earnings call

• The third quarter was a strong period with year-over-year improvement in top and bottom-line results, including actions to improve pricing and strengthen gross margins.
• The company determined the Big 3 Mold business no longer fits the long-term strategy and began steps to sell it, reclassifying it as discontinued operations.
• Appointed Ryan Schroeder as the new CEO, who is a seasoned executive with experience in leading manufacturing companies to growth, having previously served as CEO of Plaskolite LLC and President of IMI Norgen.

For the third quarter, net sales increased 15% to $71.3 million from $62 million in the 2023 period, primarily due to increased demand for returnable transport packaging products and truck mirror assemblies. Gross margin as a percentage of sales was 25.5% in the third quarter of 2024 compared to 24.9% in 2023. Adjusted net income from continuing operations was $4.7 million or $0.75 per diluted share for the third quarter of 2024 compared to $3.5 million or $0.55 per diluted share in 2023. Adjusted EBITA from continuing operations was $8.7 million in 2024 compared to $6.7 million in 2023. The Big 3 Mold business was reclassified as discontinued operations as it no longer fits the long-term strategy.

• No specific numerical guidance given, but mentioned there are ambitious long-term plans with short-term actions to achieve them.

• Forward-looking statements are subject to risks and uncertainties as outlined in SEC filings such as form 10-K for 2023 and form 10-Q for 2024.
• Sale of the Big 3 Mold business involves strategic and market-related risks.

Q: Congratulations to the new CEO, where do you want the company to be in six months?

A: We have pretty ambitious long-term plans and shorter term plans quarterly, yearly. Short-term plans include actions to achieve long-term plans, which are ambitious, but we don't comment specifically on short-term numbers