The Eastern Company (NASDAQ:EML) Q3 2023 Earnings Call Transcript

The Eastern Company (NASDAQ:EML) Q3 2023 Earnings Call Transcript November 12, 2023

Operator: Greetings. And welcome to The Eastern Company’s Third Quarter of Fiscal Year 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Ernie Hawkins, Corporate Controller at The Eastern Company. You may begin.

Ernie Hawkins: Good morning. And thank you everyone for joining us this morning for a review of Eastern’s results for the third quarter of 2023. With me on the call are Eastern’s President and CEO, Mark Hernandez; and Eastern’s CFO, Nicholas Vlahos. We issued an earnings press release yesterday after the market closed. If anyone has not yet seen the release, please visit the Investors section of the company’s website, www.easterncompany.com where you will find the release under Financial News. Please note that some of the information you will hear during today’s call will consist of forward-looking statements about the company’s future financial performance and business prospects, including without limitation, statements regarding revenue, gross margin, operating expenses, other income and expenses, taxes and business outlook.

These forward looking statements are subject to risks and uncertainties that could cause actual results or trends to differ significantly from those projected in these forward-looking statements. We undertake no obligation to review or update any forward-looking statements to reflect events or circumstances that occur after the call. For more information regarding these risks and uncertainties, please refer to risk factors discussed in our SEC filings including Form 10-K filed with the SEC on March 14, 2023, for the fiscal year 2022 and Form 10-Q filed with the SEC on November 7, 2023. In addition, during today’s call, we will discuss non-GAAP financial measures that we believe are useful as supplemental measures of Eastern’s performance.

A research engineer surrounded by hardware, demonstrating the company's secure container offerings.

These non-GAAP measures should be considered, in addition to and not as a substitute for or an isolation from GAAP results. A reconciliation of each of the non-GAAP measures discussed during today’s call to the most directly comparable GAAP measure can be found in the earnings press release. With that introduction, I will turn the call over to Mark.

Mark Hernandez: Thank you, Ernie. Good morning to those who joined us by phone and those participating via the web. As is our practice, I am going to begin today’s call with some high level observations about our performance and market conditions during the past quarter. I will then turn the call over to Nick, who will provide more detailed review of the quarter’s financial results. After that, I will come back and update you on the progress we have made with various additional activities to transform Eastern’s operations and enhance shareholder value. All these build on four basic pillars I have described to you in earlier calls, disciplined operations, effective capital allocation and utilization, a strong commercial business focus and value adding acquisitions.

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