Eastern Company (the) · NASDAQ:EML
Eastern Company (the) — The Eastern Company — Investor Presentation (April 2024)
24 slides from Eastern Company (the)'s investor presentation, April 2024
Slide 1: The Eastern Company Investor Presentation
The Eastern Company NASDAQ: EML Investor Presentation April 2024
Slide 2: Disclosures
Disclosures Forward-Looking Statements Statements contained in this Document of the Company 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 f
Slide 3: Who is The Eastern Company?
Who is The Eastern Company ? The Eastern Company - the trusted partner providing engineered solutions that add intrinsic value… 3
Slide 4: Investment Highlights
Investment Highlights Our Mission: Provide Engineered Solutions that Add Intrinsic Value to Our Shareholders, Customers and Employees Global Tier 1 Supplier Continuously implementing rapid financial and operational improvements to prioritize • Expanding globally with locations in Asia, Mexico, stabi
Slide 5: Pillars of Value-Creation Strategy – One Eastern
Pillars of Value-Creation Strategy One Eastern 1 2 3 4 Disciplined Optimum Capital Focused Value-Adding Operations Utilization Commercial Acquisitions & Business Vertical Integration Creating a bigger, better and more profitable company 5
Slide 6: Pillars of Value-Creation Strategy – One Eastern
Pillars of Value-Creation Strategy – One Eastern One Eastern Maximize return Centralized Procurement on footprint in Synergies Cube Asia and Mexico HR/IT DM/IDM/EXP Creating a bigger, better and more profitable company 6
Slide 7: One-Eastern Highlights
One-Eastern Highlights Optimum Focused Value–Adding Disciplined Capital Commercial Acquisitions and Operations Utilization Business Vertical Integration • Standard workflows across • Standard systems across • Leverage each employee’s • Focused on vertical organizations by sharing the company allow f
Slide 8: Shareholder Value Creation Cycle
Shareholder Value Creation Cycle Restart Process Business Operations Operating Results Growth Strategy • - ↑ Gross Margin • Organic Growth • ↑ Earnings • Revenue Growth • Acquisition Performance • ↑ Cashflow • Efficient Use Of • Vertical • ↓ Debt Working Capital Integration • OTD • Vertical Cap Ex •
Slide 9: Long-Term Growth Opportunities
Long-Term Growth Opportunities Industry Trends Eastern Capabilities Electrification of Automobiles and Commercial Vehicles Core Competencies • New Models • Precision Machining • New Components • Charging Infrastructure • Advanced Manufacturing • Lean Benchmark Assembly • Metal Fabrication Sustainabi
Slide 10: Leadership Team
Leadership Team Mark Hernandez Nick Vlahos Chief Executive Officer Vice President and and Board Member Chief Financial Officer • 30+ years of experience in commercial • 20+ years of finance and business vehicle business experience • Joined EML as Board member in June 2022; • Previously VP of Finance
Slide 11: Portfolio of Attractive Businesses
Portfolio of Attractive Businesses Global manufacturer and designer of access hardware systems, providing custom-engineered industrial, vehicular and specialty hardware to a wide variety of industries. Innovator in vision systems and components to truck, recreational and specialty vehicle OEMs and 4
Slide 12: Eberhard Capabilities
Eberhard Capabilities FY23 % of Revenue by Market Manufacturing Capabilities Truck Off-Road Accessories Other 1% Electromechanical solutions Distribution 26% 31% Lightweight solutions Dual-Sourcing locations 15% 28% Stamping & Skilled Assembly Heavy Transport Non-Wheeled Companies Engineered solutio
Slide 13: Velvac Capabilities
Velvac Capabilities Manufacturing Capabilities FY23 % of Revenue by Market Other 8% Infrastructure development Heavy Truck A.M. 14% Skilled logistic planning 47% Heavy Truck RV 8% Skilled assembly & welding Tier 1 Heavy Truck & RV solutions 24% Distribution LEAN focused Velvac prioritizes being a bu
Slide 14: Big 3 Capabilities
Big 3 Capabilities Manufacturing Capabilities FY23 % of Revenue by Market Other 4% Precision Machining Blow Molding 22% Racks Injection Molding solutions 37% Rack fabrication and design 13% Metal Stamping Thermoforming Designs 3% 10% 11% Design Vacform Injection Mold Big 3 prioritized operational st
Slide 15: Financial Performance – 2023 Improvements
Financial Performance – 2023 Improvements Inventory Working Capital as a percent of sales $68 28% • Net cash provided by operating activities $64.6 improved $19 million YOY. $64 -8% Millions 26% 26% 25% • Inventory down 8% versus year-end 2022. $60 $59.3 • Working capital as a percent of sales 25.4%
Slide 16: Adjusted EPS Growth in 2023 by Quarter
Adjusted EPS Growth in 2023 by Quarter Adjusted EPS Growth in 2023 0.6 0.56 0.49 0.5 0.4 0.3 0.22 0.2 0.10 0.1 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 * See Slide 22 for detail by quarter 2023 – A year of alignment and improvement for Eastern 16
Slide 17: Appendix
Appendix 17
Slide 18: Top Ten Institutional Holders
Top Ten Institutional Holders ** Institution EML Shares % S/O 1 GAMCO Investors, Inc. 972,955 15.7% 2 Barington Capital Group LP 630,100 10.2% 3 Minerva Advisors LLC 493,844 7.9% 4 Forager Capital Management LLC 466,534 7.5% 5 Dimensional Fund Advisors LP 377,976 6.1% 6 Equitable Holdings Inc 270,88
Slide 19: Statement of Operations
Statement of Operations CONSOLIDATED STATEMENTS OF INCOME $ in millions (except per share data) Year Ended December 30, 2023 December 31, 2022 Net sales $ 273.5 $ 279.3 Gross margin 65.0 58.6 Product development expense (5.6) (4.2) Selling and administrative expenses (44.2) (39.5) Restructuring cost
Slide 20: Balance Sheet
Balance Sheet $ in millions December 30, 2023 December 31, 2022 Bank Covenant Metrics Current Assets Cash and cash equivalents $ 9.3 $ 10.2 Net Debt / Adjusted EBITDA Accounts receivable, net 37.1 42.9 4 Inventories 59.3 64.6 3.0x Other current assets 6.6 7.6 3 2.5x 2.3x Total Current Assets 112.2 1
Slide 21: Adjusted Earnings Reconciliation
Adjusted Earnings Reconciliation $ in millions (except earnings per share) Three Months Ended Twelve Months Ended December 31, December 31, December 30, 2023 2022 December 30, 2023 2022 Net income from continuing operations 3.5 0.2 8.6 11.1 Diluted earnings per share from continuing operations as re
Slide 22: Adjusted EPS By Quarter
Adjusted EPS By Quarter $ in millions (except earnings per share) Three Months Ended Q1 Q2 Q3 Q4 April 1, 2023 July 1, 2023 September 30, 2023 December 30, 2023 Net income from continuing operations 0.6 1.4 3.1 3.5 Diluted earnings per share from continuing operations as reported under generally acc
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation $ in millions Three Months Ended Twelve Months Ended December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022 Net income from continuing operations $3.5 $0.2 $8.6 $11.1 Interest expense 0.9 0.7 3.5 2.3 Provision for income taxes 0.7 (0.1) 2.4 3.4 Depreci
Slide 24: The Eastern Company Corporate Office
The Eastern Company Corporate Office 3 Enterprise Drive, Suite 408 Shelton, CT Phone: (203) 729-2255 info@easterncompany.com © 2022 The Eastern Company 24 21
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