Eastern Co 8-K/A, filed Aug 3, 2020
Eastern Co (EML)
8-K/A
2020-08-03
For: 2020-07-31
View Original
Added on
April 07, 2026
About this 8-K/A
Eastern Co filed this 8-K/A on August 3, 2020, reporting on events of July 31, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment
No. 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: July 31,
2020
(Date
of earliest event reported)
The Eastern Company
(Exact
name of Registrant as specified in its charter)
|
Connecticut
|
001-35383
|
06-0330020
|
|
(State
or other jurisdiction
|
(Commission
File Number)
|
(IRS
Employer
|
|
of
incorporation)
|
|
identification
No.)
|
|
112 Bridge Street, Naugatuck, Connecticut
|
06770
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(203) 729-2255
(Registrant’s
telephone number, including area code)
________________________________________________
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction
A.2)
☐
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4( c))
Securities
registered pursuant to Section 12(b) of the Act:
|
Title
of each class
|
Trading
Symbol(s)
|
Name of
each exchange on which registered
|
|
Common
Stock, No Par Value
|
EML
|
NASDAQ
Global Market
|
Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).
Emerging
Growth Company ☐
If an
emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY NOTE
This
Amendment No. 1 amends the Current Report on Form 8-K furnished by
The Eastern Company (the “Company”) on July 31, 2020
(the “Original Form 8-K”) solely to correct adjusted
earnings per share and the calculation of adjusted earnings per
share to present such items net of taxes for each of the periods
reported in the press release furnished as Exhibit 99.1 to the
Original Form 8-K. All other information in the
Original Form 8-K remains the same.
ITEM 2.02 – Results of Operations and Financial
Condition
The revised press release dated July 31, 2020 announcing the second
quarter earnings for 2020 is furnished herewith as Exhibit
99.1.
ITEM 9.01 – (d) Exhibits
(d)
Exhibits
|
Exhibit No.
|
Title
|
|
Revised
Press Release dated July 31, 2020 announcing the second quarter
earnings for 2020.
|
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, The Registrant
has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
|
|
The Eastern Company | |
|
|
|
|
|
Date:
August 1,
2020
|
By:
|
/s/John
L. Sullivan III
|
|
|
|
John L.
Sullivan III
Vice
President and Chief Financial Officer
|
Exhibit
99.1
FOR
IMMEDIATE RELEASE
July
31, 2020
CORRECTION:
THE EASTERN COMPANY REPORTS RESULTS
FOR THE
SECOND QUARTER 2020
A 21%
DECLINE IN NET SALES TO $48.8 MILLION;
A LOSS
OF $0.30 PER SHARE, PRIMARILY DUE TO $4.0 MILLION GOODWILL
CHARGE;
AND
ADJUSTED EARNINGS OF $0.23 PER SHARE
This revised press release
corrects the press release issued by The Eastern Company
(NASDAQ:EML) at 8:00 a.m. ET on July 31, 2020. This revised press
release is being issued solely to correct adjusted earnings per
share and the calculation of adjusted earnings per share to present
such items net of taxes for each of the periods reported.
Set forth below is the corrected press release in its
entirety.
NAUGATUCK,
CT – July 31, 2020 – The Eastern Company
(“Eastern” or the “Company”) (NASDAQ:EML),
an industrial manufacturer of unique engineered solutions serving
niche industrial markets, today announced the results of operations
for the second quarter ended June 28, 2020.
●
As a result of
Eastern’s comprehensive program to maintain the health and
safety of employees across all 21 operating locations, the Company
temporarily suspended operations in three locations in the second
quarter of 2020 due to concerns over the COVID-19
pandemic.
●
Second fiscal
quarter of 2020 net sales of $48.8 million fell by 21% compared to
the same period in the prior year, primarily as a result of
customer shutdowns resulting from the COVID-19 pandemic. Sales to
electric vehicle manufacturers and military equipment producers
remained resilient. The Company also leveraged its production
capabilities to manufacture emergency hospital bed frames to meet
demand from field hospitals.
●
Earnings per fully
diluted share in the second fiscal quarter of 2020 declined to a
loss of $0.30. The Company incurred a $4.0 million goodwill
impairment charge, related to Greenwald Industries, and a one-time
restructuring charge of $280 thousand, related to the sale of the
Canadian Commercial Vehicles Corporation. Adjusted for these
charges, net income per share was $0.23 in the second fiscal
quarter of 2020. (See below for reconciliation).
●
Cash flow from
operations was $5.9 million in the second fiscal quarter of 2020
and the Company’s balance sheet continues to strengthen with
a $3.5 million increase in cash and $1.4 million in debt payments
during the second fiscal quarter of 2020.
●
The Company
accelerated its portfolio optimization in the second fiscal quarter
with the sale of its subsidiary, Canadian Commercial Vehicles
Corporation, and is taking further actions to streamline its
businesses, improve short-term results, and position its businesses
for growth in the future.
President
and CEO August Vlak commented, “Sales in the second quarter
of 2020 were $48.8 million, a decrease of 21% compared to the
second quarter of 2019. The decline in sales compared to the same
period in 2019 was partly offset by the inclusion in the 2020
period of Big 3 Precision, which we acquired in August 2019. The
reduction in sales was primarily due to the mandated and voluntary
closure of many of our customers’ operations, primarily in
April and May of 2020. Many of our customers closed their
operations and stopped receiving shipments in response to concerns
about employee health and safety during the COVID-19 pandemic. We
estimate that we lost more than a cumulative 1,600 shipping days to
approximately 80 customers in the second quarter due to these
temporary closures.”
“In
the second quarter, sales to electric vehicle manufacturers and
military equipment producers provided a bright spot, as our
investments in these markets continued to deliver growth.
Similarly, sales to and orders from manufacturers of consumer
sporting and recreational goods markets started to rebound towards
the end of the second quarter,” said Mr. Vlak.
“The
numerous actions that we have taken to control expenses have
allowed our businesses to withstand a significant economic
downturn. Among other savings, we reduced our budgeted spending on
sales and administrative expenses by more than 20% in the second
quarter of 2020. Actions include the suspension of all hiring of
salaried positions, cessation of discretionary spending, temporary
reduction in work hours, initiation of furloughs, cancellation of
certain regularly scheduled merit-based salary increases, and a
limitation on capital spending to critical maintenance, safety, and
regulatory projects. We are sustaining these and other expense
reductions and are taking further action to reduce structural costs
across the Company, including further portfolio rationalization and
planned facility consolidations,” added Mr.
Vlak.
Mr.
Vlak continued, “Our balance sheet remains strong. In the
second quarter of 2020, we generated $5.9 million in cash from
operations and grew our cash balance by $3.5 million to $20.0
million at the end of the second quarter 2020 compared to $16.5
million at the end of the first quarter in 2020. Based on our
extensive scenario planning, we believe that Eastern has a solid
balance sheet with ample resources to navigate the current business
environment. As of June 27, 2020, our Current Ratio is 3.8x. Our
net leverage ratio is 2.9x, and our fixed charge coverage ratio is
2.3x – both of which are well within with our bank covenants
of 4.25x and 1.25x, respectively. Our net leverage ratio is based
on adjusted EBITDA, as defined in our credit agreement, for the
twelve months ended June 27, 2020.”
“In
the past quarter, we accelerated our work on portfolio
optimization. We divested our subsidiary, Canadian Commercial
Vehicles Corporation, and, after reviewing our plans for Greenwald
Industries, we concluded that we no longer believe that the
carrying value of the goodwill from this acquisition in 2000
reflects the performance of the business. As a result, we posted a
goodwill impairment charge of $4.0 million in the second
quarter,” added Mr. Vlak.
Mr.
Vlak concluded, “We are navigating a rapidly evolving
economic environment, but this past quarter has demonstrated the
resilience of our businesses. While managing the short-term
operational and demand challenges, we remain committed to our
vision to build long-term shareholder value. When we acquired Big 3
Precision, we shared our pro forma annual earnings of $3.09 per
fully diluted share, reported our 10Q dated November 7, 2019, which
we believe remains an appropriate performance goal for the Company
when the domestic economy stabilizes.”
Second Quarter 2020 Segment Results
Sales
in the Industrial Hardware segment fell by 10% to $33.9 million in
the second fiscal quarter of 2020 from $37.5 million in the second
fiscal quarter of 2019. Excluding Big 3 Precision, sales in the
second fiscal quarter of 2020 decreased by 42% compared to the same
period in 2019. Sales in the Security Products segment declined by
33% in the second quarter of 2020 compared to the second quarter of
2019, primarily as a result of customer closures and a decline in
demand related to the COVID-19 pandemic. Sales in the Metal
Products segment decreased by 48% in the second fiscal quarter of
2020 compared to the second fiscal quarter of 2019, as mining sales in the second fiscal quarter were
materially impacted by mine closures related to the COVID-19
pandemic, a decline in natural gas prices and a rapid deterioration
in energy markets.
Operating
profits decreased in all segments in the second fiscal quarter of
2020 compared to the second quarter of 2019. Operating profits from
the Industrial Hardware segment were down by 39% in the second
fiscal quarter of 2020 compared to same period in 2019. Operating
profit margin for the Industrial Hardware segment improved to 5.7%
of sales in the second fiscal quarter of 2020 from 2.0% of sales in
the second fiscal quarter of 2019, largely a result of the
avoidance of significant restructuring costs and the addition of
Big 3 Precision. Operating profits from the Security Products
segment declined by 54% in the second fiscal quarter of 2020
compared to same period in 2019. Operating profit margin for the
Security Products segment declined to negative 28.0% of sales in
the second fiscal quarter 2020 from 11.5% of sales in the second
fiscal quarter of 2019. The decline is primarily attributable to
the goodwill impairment charge of $4.0 million, or 36% of sales.
Metal Products generated an operating loss of $932 thousand in the
second fiscal quarter of 2020.
Conference Call and Webcast
The
Eastern Company will host a conference call to discuss its results
for the second fiscal quarter of 2020 and other matters on
Thursday, August 6, 2020 at 11:00 AM Eastern Time. Participants can
access the conference call by phone at (888) 669-0687 (toll free in US &
Canada) or (862) 298-0702
(international). Participants can also join via the
web at
https://www.webcaster4.com/Webcast/Page/1757/36298.
About The Eastern Company
The Eastern Company manages industrial businesses that design,
manufacture and sell unique engineered solutions to niche markets,
focusing on industries that offer long-term macroeconomic growth
opportunities. The Company operates across three reporting segments
-- Industrial Hardware, Security Products and Metal Products --
from locations in the U.S., Canada, Mexico, U.K., Taiwan and China.
More information on the Company can be found at www.easterncompany.com.
Safe Harbor for Forward-Looking Statements
Statements
in this document about our future expectations, beliefs, goals,
plans or prospects constitute forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and the rules, regulations and
releases of the Securities and Exchange Commission. Any statements
that are not statements of historical fact, including statements
containing the words "believes," "intends", "continues,"
"reflects," "plans," "anticipates," "expects," and similar
expressions, should also be considered to be forward-looking
statements. Readers should not place undue reliance on these
forward-looking statements, which are based upon management's
current beliefs and expectations. These forward-looking statements
are subject to risks and uncertainties, and actual results might
differ materially from those discussed in, or implied by, the
forward-looking statements. Among the risks and uncertainties that
could cause actual results or events to differ materially from
those indicated by such forward-looking statements include, but are
not limited to, the impact of the ongoing COVID-19 pandemic,
including the impact of shutdowns and other restrictions imposed in
response to COVID-19 on our supply chain and production and
consumer demand for our products, changing customer preferences,
lack of success of new products, loss of customers, cybersecurity
breaches, changes in competition in our markets, and increased
prices for raw materials resulting from tariffs on imported goods
or otherwise. There are important, additional factors that could
cause actual results or events to differ materially from those
indicated by such forward-looking statements, including those set
forth in our reports and filings with the Securities and Exchange
Commission. We undertake 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.
Non-GAAP Financial Measures
The
non-GAAP financial measures we provide in this report should be
viewed in addition to, and not as an alternative for, results
prepared in accordance U.S. GAAP.
We
provide certain results excluding Big 3 Precision because we
believe these allow for better comparability to the prior
period.
To
supplement the consolidated financial statements prepared in
accordance with U.S. GAAP, we have presented Adjusted EPS and
Adjusted EBITDA, 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 GAAP financial measures, such as net sales, net
income (loss), diluted earnings (loss) per common share, or other
measures prescribed by U.S. GAAP, and there are limitations to
using non-GAAP financial measures.
Adjusted
EPS is defined as diluted earnings (loss) per share excluding, when
they occur, the impacts of impairment losses and restructuring
expenses. We believe that adjusted EPS provides important
comparability of underlying operational results, allowing investors
and management to access operating performance on a consistent
basis.
Adjusted
EBITDA is defined as net income (loss) from continuing operations
before interest expense, provision for (benefit from) income taxes,
and depreciation and amortization; in addition to these
adjustments, we exclude, when they occur, the impacts of impairment
losses and restructuring expenses. Adjusted EBITDA 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.
Investor Relations Contacts
The Eastern Company
August
Vlak or John L. Sullivan III 203-729-2255
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
Three Months
Ended
|
Six Months
Ended
|
||
|
|
June 27,
2020
|
June 29,
2019
|
June 27,
2020
|
June 29,
2019
|
|
Net
sales
|
$48,833,409
|
$61,439,929
|
$114,159,025
|
$122,323,077
|
|
Cost of products
sold
|
(38,076,590)
|
(46,430,039)
|
(88,308,972)
|
(93,504,144)
|
|
Gross
margin
|
10,756,819
|
15,009,890
|
25,850,053
|
28,818,933
|
|
|
|
|
|
|
|
Product development
expense
|
(756,171)
|
(2,174,803)
|
(1,531,615)
|
(4,414,579)
|
|
Selling and
administrative expenses
|
(7,960,307)
|
(8,076,501)
|
(17,858,438)
|
(16,474,766)
|
|
Goodwill impairment
loss
|
(4,002,548)
|
—
|
(4,002,548)
|
—
|
|
Restructuring
costs
|
(280,000)
|
(1,799,293)
|
(280,000)
|
(2,635,987)
|
|
Operating profit
(loss)
|
(2,242,207)
|
2,959,293
|
2,177,452
|
5,293,601
|
|
|
|
|
|
|
|
Interest
expense
|
(606,553)
|
(261,618)
|
(1,434,217)
|
(554,158)
|
|
Other
income
|
416,917
|
586,823
|
603,322
|
600,748
|
|
Income
(loss) before income taxes
|
(2,431,843)
|
3,284,498
|
1,346,556
|
5,340,191
|
|
|
|
|
|
|
|
Income
taxes
|
(543,061)
|
754,725
|
339,521
|
1,239,458
|
|
Net
income (loss)
|
$(1,888,782)
|
$2,529,773
|
$1,007,036
|
$4,100,733
|
|
|
|
|
|
|
|
Earnings
(loss) per Share:
|
|
|
|
|
|
Basic
|
$(.30)
|
$.41
|
$.16
|
$.66
|
|
|
|
|
|
|
|
Diluted
|
$(.30)
|
$.40
|
$.16
|
$.65
|
|
|
|
|
|
|
|
Cash
dividends per share:
|
$.11
|
$.11
|
$.22
|
$.22
|
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|
ASSETS
|
June 27,
2020
|
December 28,
2019
|
|
|
(unaudited)
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$19,986,055
|
$17,996,505
|
|
Marketable
securities
|
25,916
|
34,305
|
|
Accounts
receivable, less allowances: 2020 - $693,000;2019 -
$556,000
|
33,580,263
|
37,941,900
|
|
Inventories
|
55,908,740
|
54,599,266
|
|
Current portion of
note receivable
|
221,348
|
—
|
|
Prepaid expenses
and other assets
|
3,668,863
|
4,343,507
|
|
Total
Current Assets
|
113,391,185
|
114,915,483
|
|
|
|
|
|
Property,
Plant and Equipment
|
87,020,830
|
88,336,243
|
|
Accumulated
depreciation
|
(47,313,479)
|
(46,313,630)
|
|
|
39,707,351
|
42,022,613
|
|
|
|
|
|
Goodwill
|
75,440,535
|
79,518,012
|
|
Trademarks
|
5,404,283
|
5,404,283
|
|
Patents
and other intangibles net of accumulated amortization
|
25,012,787
|
26,460,110
|
|
Long
term note receivable, less current portion
|
1,030,595
|
—
|
|
Right
of Use Assets
|
11,384,763
|
12,342,475
|
|
|
118,272,963
|
123,724,880
|
|
TOTAL
ASSETS
|
$271,371,499
|
$280,662,976
|
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
June 27,
2020
|
December 28,
2019
|
|
|
(unaudited)
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$18,942,706
|
$19,960,507
|
|
Accrued
compensation
|
2,044,562
|
3,815,186
|
|
Other accrued
expenses
|
4,849,785
|
2,967,961
|
|
Current portion of
long-term debt
|
5,187,689
|
5,187,689
|
|
Total
Current Liabilities
|
31,024,742
|
31,931,343
|
|
|
|
|
|
Deferred
income taxes
|
4,374,343
|
5,270,465
|
|
Other
long-term liabilities
|
2,465,260
|
2,465,261
|
|
Lease
liability
|
11,384,763
|
12,342,475
|
|
Long-term
debt, less current portion
|
90,954,799
|
93,577,544
|
|
Accrued
postretirement benefits
|
1,000,476
|
1,007,146
|
|
Accrued
pension cost
|
27,388,381
|
28,631,485
|
|
|
|
|
|
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
|
31,100,484
|
30,651,815
|
|
Issued:
8,987,324 shares in 2020 and 8,975,434 shares in 2019
|
|
|
|
Outstanding:
6,237,595 shares in 2020 and 6,240,705 shares in 2019
|
|
|
|
Treasury
Stock: 2,749,729 shares in 2020 and 2,734,729 shares in
2019
|
(20,537,962)
|
(20,169,098)
|
|
Retained
earnings
|
119,310,219
|
120,189,111
|
|
Accumulated other
comprehensive loss:
|
|
|
|
Foreign
currency translation
|
(2,564,356)
|
(2,037,952)
|
|
Unrealized
gain on marketable securities, net of tax
|
(6,796)
|
(471)
|
|
Unrealized gain
(loss) on interest rate swap, net of tax
|
(1,679,808)
|
167,489
|
|
Unrecognized net
pension and postretirement benefit costs, net of tax
|
(22,843,046)
|
(23,363,637)
|
|
Accumulated
other comprehensive loss
|
(27,094,006)
|
(25,234,571)
|
|
Total
Shareholders’ Equity
|
102,778,735
|
105,437,257
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$271,371,499
|
$280,662,976
|
THE EASTERN COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
Six Months
Ended
|
|
|
|
June 27,
2020
|
June 29,
2019
|
|
Operating
Activities
|
|
|
|
Net
income
|
$1,007,036
|
$4,100,733
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
4,050,250
|
2,391,314
|
|
Unrecognized
pension and postretirement benefits
|
(962,094)
|
448,214
|
|
Goodwill
impairment loss
|
4,002,548
|
—
|
|
(Gain)
loss on sale of equipment and other assets
|
(420,536)
|
2,208,740
|
|
Provision
for doubtful accounts
|
156,286
|
43,420
|
|
Stock
compensation expense
|
448,669
|
293,726
|
|
Changes
in operating assets and liabilities:
|
|
|
|
Accounts
receivable
|
3,408,873
|
(1,794,182)
|
|
Inventories
|
(2,330,448)
|
3,618,303
|
|
Prepaid
expenses and other
|
616,300
|
(21,533)
|
|
Other
assets
|
734,790
|
709,357
|
|
Accounts
payable
|
(730,055)
|
(89,081)
|
|
Accrued
compensation
|
(1,697,444)
|
(1,307,966)
|
|
Other
accrued expenses
|
(927,178)
|
(1,893,440)
|
|
Net cash provided by operating activities
|
7,356,997
|
8,707,605
|
|
|
|
|
|
Investing Activities
|
|
|
|
Marketable
securities
|
8,389
|
(23,136)
|
|
Business
disposition
|
1,378,602
|
—
|
|
Proceeds
from sale of equipment
|
445,212
|
—
|
|
Purchases
of property, plant and equipment
|
(1,183,419)
|
(1,261,942)
|
|
Net cash provided by/used in investing activities
|
648,784
|
(1,285,078)
|
|
|
|
|
|
Financing Activities
|
|
|
|
Principal
payments on long-term debt
|
(2,622,745)
|
(6,275,000)
|
|
Note
Receivable
|
(1,251,943)
|
—
|
|
Purchase
common stock for treasury
|
(368,864)
|
—
|
|
Dividends
paid
|
(1,372,673)
|
(1,373,700)
|
|
Net cash used in financing activities
|
(5,616,225)
|
(7,648,700)
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
(400,006)
|
(31,690)
|
|
Net change in cash and cash equivalents
|
1,989,550
|
(257,863)
|
|
|
|
|
|
Cash
and cash equivalents at beginning of period
|
17,996,505
|
13,925,765
|
|
Cash and cash equivalents at end of period
|
$19,986,055
|
$13,667,902
|
|
|
|
|
Reconciliation
of earnings (loss) per share from GAAP to Non-GAAP financial
measure
For
the Three and Six Months ended June 27, 2020
|
|
Three
Months Ended
|
Six
Months Ended
|
||
|
|
June 27,
2020
|
June 29,
2019
|
June 27,
2020
|
June 29,
2019
|
|
|
|
|
|
|
|
Net Income (Loss) as
reported per generally accepted accounting principles
(GAAP)
|
$(1,888,782)
|
$2,529,773
|
$1,007,036
|
$4,100,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share as reported under generally accepted accounting principles
(GAAP):
|
|
|
|
|
|
Basic
|
$(0.30)
|
$0.41
|
$0.16
|
$0.66
|
|
Diluted
|
$(0.30)
|
$0.40
|
$0.16
|
$0.65
|
|
|
|
|
|
|
|
Adjustments for
one-time expenses
|
|
|
|
|
|
Goodwill impairment
loss (A)
|
$(3,109,980)
|
|
$(2,993,906)
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
$(217,560)(B)
|
$(1,381,857)(C)
|
$(209,440)(B)
|
$(2,024,438)(C)(D)
|
|
|
$(3,327,540)
|
$(1,381,857)
|
$(3,203,346)
|
$(2,024,438)
|
|
|
|
|
|
|
|
Adjusted Net Income
(related to one-time expenses); (Non-GAAP)
|
$1,438,758
|
$3,911,630
|
$4,210,382
|
$6,125,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings per
share (related to one-time expenses);
(Non-GAAP)
|
|
|
|
|
|
Basic
|
$0.23
|
$0.63
|
$0.68
|
$0.98
|
|
Diluted
|
$0.23
|
$0.62
|
$0.68
|
$0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A)
Goodwill impairment
|
|||||||||||||||
|
B) Cost incurred on disposition of Canadian Commercial Vehicles
Corporation
|
|||||||||||||||
|
C) Cost incurred on closure of Road IQ in Bellingham,
Washington
|
|||||||||||||||
|
D) Cost incurred on the relocation of Composite Panels
Technology
|
|||||||||||||||
Reconciliation
of EBITDA from GAAP to Non-GAAP financial measure
For
the Three and Six Months ended June 27, 2020 and June 29,
2019
|
|
Three Months Ended
|
Six Months Ended
|
||
|
|
June 27, 2020
|
June 29, 2019
|
June 27, 2020
|
June 29, 2019
|
|
|
|
|
|
|
|
Net
Income(loss) as reported per generally accepted accounting
principles (GAAP)
|
$(1,888,782)
|
$2,529,773
|
$1,007,036
|
$4,100,733
|
|
|
|
|
|
|
|
Interest
expense
|
606,553
|
261,618
|
1,434,217
|
554,158
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes
|
(543,061)
|
754,725
|
339,521
|
1,239,458
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
1,994,468
|
952,515
|
4,050,250
|
2,391,314
|
|
|
|
|
|
|
|
Goodwill
impairment loss
|
4,002,548A
|
|
4,002,548
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
280,000B
|
1,799,293C
|
280,000
|
2,635,987C,D
|
|
|
|
|
|
|
|
Transaction
costs
|
17,182
|
|
17,182
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$4,468,908
|
$6,297,924
|
$11,130,754
|
$10,921,650
|
A)
Goodwill impairment
B)
Cost incurred on disposition of Canadian Commercial Vehicles
Corporation
C)
Cost incurred on closure of Road IQ in Bellingham,
Washington
D)
Cost incurred on the relocation of Composite Panels
Technology