ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
−Removed: The following discussion is intended to highlight significant changes in the financial position and results of operations of The Eastern Company (together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) for the three and nine months ended September 28, 2024.
+Added: The following discussion is intended to highlight significant changes in the financial position and results of operations of The Eastern Company (together with its consolidated subsidiaries, the “Company,” “we,” “us” or “our”) for the three months ended March 29, 2025.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 28, 2024 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, which was filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2025 (the “2024 Form 10-K”).
The Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31.
−Removed: References in this Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2024 (this “Form 10-Q”) to 2023, the 2023 fiscal year or fiscal 2023 mean the 52-week period ended on December 30, 2023, and references to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ending on December 28, 2024.
+Added: References in this Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-week period ending on January 3, 2026.
In a 52-week fiscal year, each quarter has 13 weeks.
−Removed: References to the third quarter of 2023, the third fiscal quarter of 2023 or the three months ended September 30, 2023 mean the 13-week period from July 2, 2023 to September 30, 2023.
−Removed: References to the third quarter of 2024, the third fiscal quarter of 2024 or the three months ended September 28, 2024 mean the 13-week period from June 30, 2024 to September 28, 2024.
−Removed: References to the first nine months of 2023 or the nine months ended September 30, 2023 mean the period from January 1, 2023 to September 30, 2023.
−Removed: References to the first nine months of 2024 or the nine months ended September 28, 2024 mean the period from December 31, 2023 to September 28, 2024.
+Added: References to the first quarter of 2024, the first fiscal quarter of 2024, the first three months of 2024 or the three months ended March 30, 2024 mean the 13-week period from December 31, 2023 to March 30, 2024.
+Added: References to the first quarter of 2025, the first fiscal quarter of 2025, the first three months of 2025 or the three months ended March 29, 2025 mean the 13-week period from December 29, 2024 to March 29, 2025.
Safe Harbor for Forward-Looking Statements
3 unchanged sentences
These factors include:
+Added: risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic, and social instability;
+Added: the impact of tariffs, trade sanctions or political instability on the availability or cost of raw materials;
the impact of higher raw material and component costs and cost inflation, supply chain disruptions and shortages, particularly with respect to steel, plastics, scrap iron, zinc, copper, and electronic components;
delays in delivery of our products to our customers;
−Removed: the impact of global economic conditions and rising interest rates, and more specifically conditions in the automotive, construction, aerospace, energy, oil and gas, transportation, electronic, and general industrial markets, including the impact, length and degree of economic downturns on the customers and markets we serve and demand for our products, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, the potential impact of bank failures on our ability to access financing or capital markets, and the impact of market conditions on pension plan funded status;
+Added: the impact of global economic conditions and interest rates, and more specifically conditions in the automotive, construction, aerospace, energy, oil and gas, transportation, electronic, and general industrial markets, including the impact, length and degree of economic downturns on the customers and markets we serve and demand for our products, reductions in production levels, the availability, terms and cost of financing, including borrowings under credit arrangements or agreements, the potential impact of bank failures on our ability to access financing or capital markets, and the impact of market conditions on pension plan funded status;
restrictions on operating flexibility imposed by the agreement governing our credit facility;
−Removed: risks associated with doing business overseas, including fluctuations in exchange rates and the inability to repatriate foreign cash, the impact on cost structure and on economic conditions as a result of actual and threatened increases in trade tariffs and the impact of political, economic, and social instability;
the inability to achieve the savings expected from global sourcing of materials;
4 unchanged sentences
costs and liabilities associated with environmental compliance;
−Removed: the impact of climate change, natural disasters, geopolitical events and elections, including a change in administration from the upcoming U.S.
−Removed: presidential election, and public health crises, including pandemics (such as COVID-19) and epidemics, and any related Company or government policies or actions;
+Added: the impact of climate change, natural disasters, geopolitical events, and public health crises, including pandemics and epidemics, and any related Company or government policies or actions;
military conflict (including the Russia/Ukraine conflict, the conflict in the Middle East, the possible expansion of such conflicts and geopolitical consequences) or terrorist threats and the possible responses by the U.S.
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The Company undertakes 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, except as required by law.
−Removed: Recent Development
−Removed: In the third quarter of 2024 we determined that the Big 3 Mold business no longer fits with our long-term strategy, and we have initiated the process of selling the business.
−Removed: The Mold business is cyclical in nature, requires significant capital investment to remain competitive, and serves different markets than our other businesses.
−Removed: Selling the Big 3 Mold business will allow management to focus on our core capabilities, offerings, and markets served.
+Added: Recent Developments
+Added: tariffs implemented in March 2025 did not materially impact our results for the first quarter 2025.
+Added: While the long-term effects remain uncertain, we continue to closely monitor the evolving tariff policy environment which presents a mix of impacts, with the potential for higher pricing, as well as higher product and operating costs.
+Added: See Part I, Item 1A, Risk Factors in the 2024 Form 10-K for a discussion regarding tariff-related risks.
+Added: On February 14, 2025, the Company acquired certain assets under asset and real estate purchase agreements from Centralia Industrial Painting, Inc.
+Added: and Ronald R.
+Added: Rainwater, respectively.
+Added: These assets are held in our Big 3 Precision Products, Inc.
+Added: (“Big 3”) subsidiary.
+Added: We expect the acquisition will enable the Company to become more competitive with respect to cost and quality of the products sold by Big 3.
In the third quarter of 2024, we determined that the Big 3 Mold business met the criteria to be held for sale and that the assets held for sale qualify for discontinued operations.
1 unchanged sentence
Additionally, current and non-current assets and liabilities of discontinued operations are reflected in the unaudited condensed consolidated balance sheets for both periods presented.
−Removed: The loss recognized in the write-down of the Big 3 Mold business to fair value in the third quarter of 2024 was $19.2 million, net of tax.
The following analysis excludes discontinued operations.
−Removed: Net sales in the third quarter of 2024 increased 15% to $71.3 million from $62.0 million in the corresponding period in 2023.
−Removed: Net sales for the first nine months of 2024 increased 6% to $206.1 million from $195.1 million in the corresponding period last year.
−Removed: Sales increased in the third quarter of 2024 primarily due to increased demand for returnable transport packaging products, truck mirror assemblies, and truck accessories of $7.4 million, $1.2 million, and $0.7 million, respectively.
−Removed: Sales increases in the first nine months of 2024 were driven by increased demand for truck mirror assemblies and returnable transport packaging products of $13.3 million and $4.6 million respectively, offset by lower demand for truck accessories of $6.9 million.
−Removed: Our backlog as of September 28, 2024 increased 13% to $97.2 million from $86.2 million as of September 30, 2023, primarily driven by increased orders for various truck mirror assemblies of $11.6 million and returnable transport packaging products of $3.2 million.
−Removed: Net sales of existing products increased 9% in the third quarter of 2024 and decreased 2% for the first nine months of 2024 compared to the corresponding periods in 2023.
−Removed: Price increases and new products increased net sales by 5% in the third quarter of 2024 and 6% in the first nine months of 2024, compared to the corresponding periods in 2023.
−Removed: New products included various truck mirror assemblies, rotary latches, D-rings, handles, and mirror cams.
−Removed: Cost of products sold increased $6.5 million, or 14%, in the third quarter of 2024 and increased $3.8 million, or 3% in the first nine months of 2024 compared to the corresponding period in 2023 primarily due to higher sales volume, partially offset by other cost savings initiatives.
−Removed: Additionally, the Company paid tariff costs on China-sourced products of approximately $0.6 million and $1.9 million in the third quarter of 2024 and first nine months of 2024 respectively, compared to $0.6 million and $1.7 million in the third quarter of 2023 and first nine months of 2023, respectively.
+Added: Net sales in the first quarter of 2025 decreased 2% to $63.3 million from $64.6 million in the corresponding period in 2024.
+Added: Sales decreased in the first quarter of 2025 due to decreased sales of truck mirror assemblies and truck accessories of $4.2 million and $2.6 million, respectively, offset by increased sales of returnable transport packaging products of $3.1 million.
+Added: Our backlog as of March 29, 2025 decreased 9% to $85.9 million from $94.0 million as of March 30, 2024, driven by decreased orders for returnable transport packaging products of $6.6 million various truck mirror assemblies of $2.7 million offset by increase a latch and handle assemblies of $1.3 million.
+Added: Net sales of existing products decreased 6% in the first quarter of 2025 compared to the corresponding period in 2024.
+Added: Price increases and new products increased net sales by 1% in the first quarter of 2025, compared to the corresponding periods in 2024.
+Added: New products sales included various truck mirror assemblies and handles.
+Added: Cost of products sold decreased less than $0.1 million in the first quarter of 2025 compared to the corresponding period in 2024.
+Added: Additionally, the Company paid tariff costs on China-sourced products of approximately $0.6 million in the first quarter of 2025, compared to $0.7 million in the first quarter of 2024.
Most tariffs on China-sourced products have been recovered through price increases.
−Removed: Gross margin as a percentage of sales was 25.5% in the third quarter of 2024 and 25.2% in the first nine months of 2024 compared to 24.9% in the third quarter of 2023 and 22.9% in the first nine months of 2023.
−Removed: Our gross margins in the third quarter of 2024 primarily reflect the impact of price increases to customers to recover increases in raw material costs and other cost savings initiatives.
−Removed: Product development expenses decreased $0.3 million in the third quarter of 2024 and decreased $0.5 million in the first nine months of 2024 compared to the corresponding periods in 2023 as we continue to invest in new products at our Eberhard, Velvac, and Big 3 businesses.
−Removed: As a percentage of net sales, product development costs were 1.5% for the third quarter of 2024 and 1.8% for the first nine months of 2024, compared to 2.3% and 2.2% for the corresponding periods in 2023.
−Removed: Selling, general and administrative expenses increased $1.9 million, or 22.1%, in the third quarter of 2024 when compared to the third quarter of 2023 primarily due to higher payroll-related expenses of $1.2 million, legal and professional expenses of $0.3 million, travel expenses of $0.1 million, and other selling and administrative expenses of $0.3 million.
−Removed: Selling and administrative expenses increased $2.0 million, or 6.8%, in the first nine months of 2024 when compared to the corresponding period in 2023 primarily due to higher payroll-related expenses of $1.7 million and other administrative costs.
−Removed: Interest expense decreased $0.1 million in the third quarter of 2024 and was flat in the first nine months of 2024 compared to the corresponding periods in 2023 due to lower principal balances, partially offset by higher interest rates.
−Removed: Other income and expense increased $0.1 million in the third quarter of 2024 and decreased $1.1 million in the first nine months of 2024 when compared to the corresponding periods in 2023.
−Removed: The increase in other income and expense of $0.1 million in the third quarter of 2024 was primarily driven by lower pension expense of $0.1 million when compared to the third quarter of 2023.
−Removed: The decrease in other income and expense of $1.1 million for the first nine months of 2024 when compared to the corresponding period in 2023 was primarily driven by $0.3 million lower pension expense in the second quarter of 2023, and an unfavorable final working capital adjustment of $0.4 million related to the sale of the Greenwald business in the first quarter of 2023, partially offset by a $1.6 million favorable adjustment for the final settlement of our swap agreement with Santander in the second quarter of 2023.
−Removed: Net income for the third quarter of fiscal 2024 was $4.7 million, or $0.75 per diluted share compared to net income of $3.5 million, or $0.55 per diluted share, for the comparable period in 2023.
−Removed: In the first nine months of 2024 net income was $11.7 million, or $1.87 per diluted share compared to net income of $7.8 million, or $1.24 per diluted share for the comparable period in 2023.
+Added: Gross margin as a percentage of sales was 22.4% in the first quarter of 2025 compared to 23.9% in the corresponding period in 2024.
+Added: Gross margin for our returnable transport packaging business gained 1% offset by a comparable reduction in our latch and handle assembles business, while gross margin for our mirror assemblies was consistent with the prior comparable period.
+Added: Product development expenses decreased $0.3 million in the first quarter of 2025 compared to the corresponding periods in 2024.
+Added: As a percentage of net sales, product development costs were 2.0% in each period as we continue to invest in new products at our businesses.
+Added: Selling, general and administrative expenses decreased $0.8 million, or 8%, in the first quarter of 2025 when compared to the first quarter of 2024 due to lower payroll-related expenses of $0.5 million offset by higher sales commissions of $0.4 million and $0.7 million of other reductions.
+Added: Interest expense decreased $0.1 million in the first quarter of 2025 due to lower principal balances, offset by higher interest rates.
+Added: Other (expense) income decreased $0.2 million in the first quarter of 2025 compared to the corresponding period in 2024.
+Added: The decrease is due to $0.1 million of gains on securities transactions in 2024 that did not occur in 2025, and restructuring expenses incurred in 2025.
+Added: Net income for the first quarter of fiscal 2025 was $1.9 million, or $0.31 per diluted share compared to net income of $2.1 million, or $0.34 per diluted share, for the comparable period in 2024.
A more detailed analysis of the Company’s results of operations and financial condition follows.
2 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 28, 2024
−Removed: September 30, 2023
−Removed: September 28, 2024
−Removed: September 30, 2023
+Added: March 29, 2025
+Added: March 30, 2024
Cost of products sold
2 unchanged sentences
Operating Profit
−Removed: The following table shows the change in sales and operating profit for the third quarter and first nine months of 2024 compared to the third quarter and first nine months of 2023 (dollars in thousands):
−Removed: September 28, 2024
−Removed: September 28, 2024
+Added: The following table shows the change in sales and operating profit for the first quarter of 2025 compared to the first quarter of 2025 (dollars in thousands):
Operating Profit
Liquidity and Sources of Capital
−Removed: The Company generated $8.3 million of cash from operations during the first nine months of fiscal 2024 compared to generating $18.2 million during the first nine months of fiscal 2023.
−Removed: Cash flow from operations in the first nine months of 2024 was lower when compared to the corresponding period in 2023 primarily due to increases in accounts receivable of $11.7 million due to increases in revenue in the third quarter of 2024 when compared to the corresponding period in 2023 and approximately $3.0 million in accounts receivable due to the pre-billing to cover material costs on a specific job.
−Removed: Additions to property, plant, and equipment were $7.6 million and $4.1 million for the first nine months of 2024 and 2023, respectively.
−Removed: As of September 28, 2024, there were approximately $4.0 million of outstanding commitments for capital expenditures.
−Removed: The following table shows key financial ratios at the end of each specified period:
+Added: The Company used $1.9 million of cash in operations during the first three months of 2025 compared to generating $2.8 million during the first three months of 2024.
+Added: The usage in cash flow from operations in the first three months of 2025 compared to the cash generation from operations in the corresponding period in 2024 was primarily due to timing of annual vendor deposit and 2024 bonus payments offset by improved customer collection performance and lower sales.
+Added: Additions to property, plant, and equipment were $0.8 million and $1.7 million for the first three months of 2025 and 2024, respectively.
+Added: As of March 29, 2025, there was approximately $0.6 million of outstanding commitments for capital expenditures.
+Added: The following table shows key financial ratios as of the dates specified:
+Added: March 29, 2025
+Added: March 30, 2024
+Added: Fiscal Year 2024
Current Ratio
−Removed: Average days’ sales in accounts receivable
+Added: Average days' sales in accounts receivables
Inventory Turnover
1 unchanged sentence
The following table shows important liquidity measures as of the balance sheet date for each specified period or for the period, as applicable (in millions):
−Removed: Cash and cash equivalents
+Added: March 29, 2025
+Added: March 30, 2024
+Added: Fiscal Year 2024
Held in the United States
1 unchanged sentence
Working capital
−Removed: Net cash provided by operating activities
−Removed: Change in working capital impact on net cash
−Removed: used in operating activities
−Removed: Net cash used in investing activities
−Removed: Net cash used in financing activities
−Removed: Inventories of $58.1 million as of September 28, 2024 declined by $0.3 million, or 0.5%, when compared to $59.3 million at the end of fiscal year 2023 and declined $1.9 million, or 3.2%, when compared to $60.0 million at the end of the third quarter of fiscal 2023.
−Removed: Accounts receivable, less allowances, were $46.0 million as of September 28, 2024, as compared to $34.2 million at 2023 fiscal year end and $40.0 million at the end of the third quarter of fiscal 2023.
−Removed: Accounts receivable as of September 28, 2024 included approximately $3.0 million for pre-billing to cover material costs on a specific job and adversely impacted average days sales in accounts receivable by 4 days.
−Removed: On June 16, 2023, the Company entered into a credit agreement with TD Bank, N.A., Wells Fargo Bank, Bank of America, and M&T Bank as lenders (the “Credit Agreement”), and incurred indebtedness under the Credit Agreement in the aggregate principal amount of $60 million in the form of a term loan, the proceeds of which were used to repay the Company’s remaining outstanding term loan and to terminate its existing credit facility with Santander.
+Added: Net cash (used) provided by operating activities
+Added: Change in working capital impact on net cash (used) provided by operating activities
+Added: Net cash used by investing activities
+Added: Net cash used by financing activities
+Added: Inventories of $55.4 million as of March 29, 2025 increased by $0.2 million, or less than 0.1%, when compared to $55.2 million at the end of fiscal year 2024 and increased $0.3 million, or less than 0.1 % when compared to $55.1 million at the end of the first quarter of fiscal 2024.
+Added: Accounts receivable, less allowances, were $33.5 million as of March 29, 2025, as compared to $35.5 million at 2024 fiscal year end and $40.5 million at the end of the first quarter of fiscal 2024.
+Added: On June 16, 2023, the Company entered into a credit agreement with the lending institutions named therein (the "Lenders"), TD Bank NA, the swing line lender and as the administrative agent, TD Securities (USA) LLC, as sole arranger and sole bookrunner, and Bank of America, N.A.
+Added: and Wells Fargo Bank, National Association, as co-syndication (the “Credit Agreement”), and incurred indebtedness under the Credit Agreement in the aggregate principal amount of $60 million in the form of a term loan, the proceeds of which were used to repay the Company’s remaining outstanding term loan and to terminate its previous credit facility with Santander.
+Added: The Credit Agreement also included a $30 million revolving commitment portion, which was increased to $50 million through an amendment to the Credit Agreement in April 2025.
See Note H Debt , for additional information regarding the terms of the Credit Agreement, including repayment terms, interest rates, and applicable loan covenants.
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These covenants may limit how we conduct our business, and in the event of certain defaults, our repayment obligations may be accelerated.
−Removed: We were in compliance with all of our covenants as of September 28, 2024 and had no outstanding borrowings under the revolving commitment portion of the credit facility as of such date.
−Removed: On September 6, 2024, the Company drew down $3.0 million on its revolving credit facility to support ongoing working capital requirements.
−Removed: The Company has $27.0 million available on its revolving line of credit.
−Removed: Cash, cash flow from operating activities and funds available under the revolving credit portion of the Credit Agreement are expected to be sufficient to cover future foreseeable working capital requirements in the short-term (i.e., the next 12 months from September 28, 2024) and separately in the long-term (i.e., beyond the next 12 months).
+Added: We were in compliance with all of our covenants as March 29, 2025 and had $1.3 million borrowings under the revolving commitment portion of the credit facility as of such date.
+Added: The Company has $27.0 million available on its revolving line of credit as of such date.
+Added: Cash, cash flow from operating activities and funds available under the revolving credit portion of the Credit Agreement are expected to be sufficient to cover future foreseeable working capital requirements in the short-term (i.e., the next 12 months from March 29, 2025) and separately in the long-term (i.e., beyond the next 12 months).
However, the Company cannot provide any assurances of the availability of future financing or the terms on which it might be available.
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In addition to funding capital requirements, we may use available cash to pay down our indebtedness, to make investments, which may include investments in publicly traded securities, or to make acquisitions that we believe will complement or expand our existing businesses.
−Removed: As of the end of the third quarter of 2024, the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
+Added: As of the end of the first quarter of 2025, the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Estimates
4 unchanged sentences
Non-GAAP Financial Measures
−Removed: 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 with U.S.
+Added: The non-GAAP financial measures we provide in this Form 10-Q report should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S.
To supplement the condensed consolidated financial statements prepared in accordance with U.S.
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Adjusted Earnings Per Share from Continuing Operations is defined as earnings per share from continuing operations excluding, when incurred, certain per share gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs.
−Removed: We believe that Adjusted Earnings Per Share from Continuing Operations provides important comparability of underlying operational results, allowing investors and management to access operating performance on a consistent basis from period to period.
+Added: We believe that Adjusted Earnings Per Share from Continuing Operations provides important comparability of underlying operational results, allowing investors and management to assess operating performance on a consistent basis from period to period.
Adjusted EBITDA from Continuing Operations is defined as net income from continuing operations before interest expense, provision for income taxes, and depreciation and amortization and excluding, when incurred, the impacts of certain losses or gains that we do not believe reflect our ongoing operations, including, for example, impairment losses, gains/losses on sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses.
11 unchanged sentences
Reconciliation of Non-GAAP Measures
−Removed: Adjusted Net Income from Continuing Operations and Adjusted Earnings per Share
−Removed: from Continuing Operations Calculation
−Removed: For the Three and Nine Months ended September 28, 2024 and September 30, 2023
+Added: Adjusted Net Income from Continuing Operations and
+Added: Adjusted Earnings per Share from Continuing Operations Calculation
+Added: For the Three Months ended March 29, 2025 and March 30, 2024
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 28, 2024
−Removed: September 30, 2023
−Removed: September 28, 2024
−Removed: September 30, 2023
+Added: March 29, 2025
+Added: March 30, 2024
Net income from continuing operations as reported per generally accepted accounting principles (GAAP)
Earnings per share from continuing operations as reported under generally accepted accounting principles (GAAP):
−Removed: Severance and accrued compensation
−Removed: Greenwald final sale adjustment
+Added: Restructuring (a)
Non-GAAP tax impact of adjustments (1)
3 unchanged sentences
(1) We estimate the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pre-tax amount in order to calculate the non-GAAP provision for income taxes
−Removed: a) Severance expenses associated with accrued compensation and severance related to the elimination of the Chief Operating Officer position and the departure of the Chief Executive Officer
−Removed: b) Final settlement of working capital adjustment associated with Greenwald sale
+Added: (a) consists of personnel related and facility costs
Reconciliation of Non-GAAP Measures
−Removed: Calculations of Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations and Adjusted EBITDA
−Removed: For the Three and Nine Months ended September 28, 2024 and September 30, 2023
+Added: Adjusted EBITDA Calculation
+Added: For the Three Months ended March 29, 2025 and March 30, 2024
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 28,
−Removed: September 30,
−Removed: September 28,
−Removed: September 30,
+Added: March 29, 2025
+Added: March 30, 2024
Net income from continuing operations as reported per generally accepted accounting principles (GAAP)
2 unchanged sentences
Depreciation and amortization
−Removed: Severance and accrued compensation
−Removed: Greenwald final sale adjustment
+Added: Restructuring (a)
Adjusted EBITDA from continuing operations (non-GAAP)
−Removed: Net income from discontinued operations as reported per generally accepted accounting principles (GAAP)
+Added: Net income (loss) from discontinued operations as reported per generally accepted accounting principles (GAAP)
Interest expense
−Removed: Provision for income taxes
+Added: Provision (benefit) for income taxes
Depreciation and amortization
−Removed: Loss on classification as held for sale
Adjusted EBITDA from discontinued operations (non-GAAP)
3 unchanged sentences
Depreciation and amortization
−Removed: Severance and accrued compensation
−Removed: Greenwald final sale adjustment
−Removed: Loss on classification as held for sale
−Removed: Adjusted EBITDA (non-GAAP)
−Removed: a) Severance expenses associated with accrued compensation and severance related to the elimination of the Chief Operating Officer position and the departure of the Chief Executive Officer
−Removed: b) Final settlement of working capital adjustment associated with Greenwald sale
−Removed: c) Impact of classifying Big 3 Mold business as held for sale
+Added: Restructuring (a)
+Added: Total Adjusted EBITDA
+Added: (a) consists of personnel related and facility costs
ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.