The Eastern pany(US:EML)2021-05-12 19:04Financial Data and Key Metrics Changes - The company reported net sales of $73.1 million for Q1 2021, a 12% increase from $65.3 million in Q1 2020, marking the highest sales in its 163-year history [14][6] - Net income for Q1 2021 was $5.8 million or $0.93 per diluted share, compared to $2.9 million or $0.46 per diluted share in Q1 2020 [19] - Adjusted EBITDA for Q1 2021 was approximately $10.6 million, with an adjusted figure of $8.7 million after accounting for a gain from the sale of the Eberhard Hardware facility [20] Business Line Data and Key Metrics Changes - The Engineered Solutions segment saw a 19% increase in net sales to $61.8 million, driven by demand for truck accessories and automotive products [14] - The Diversified Products segment experienced a 16% decrease in sales to $11.3 million, attributed to the sale of certain businesses and lower demand for commercial laundry products [15] - Sales of existing products increased by 5%, with price increases and new products contributing an additional 7% to net sales [16] Market Data and Key Metrics Changes - Class 8 truck orders in March 2021 reached 40,000 units, a fourfold increase from March 2020, indicating strong demand in the commercial vehicle market [8] - North America Class 8 production is expected to be about 302,000 units in 2021, a 40% increase over the previous year [9] Company Strategy and Development Direction - The company aims to focus on its three core businesses: Big 3 Precision, Eberhard, and Velvac, to drive sales, earnings, and cash flow growth throughout 2021 and beyond [27] - The company is committed to reducing debt and pursuing bolt-on acquisition opportunities to accelerate growth [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding ongoing supply chain challenges and raw material price volatility, which are expected to persist throughout the year [26] - The backlog of orders at the end of Q1 2021 was $98 million, a 15% increase from $85 million at the end of fiscal 2020, reflecting strong demand for truck accessories and tooling products [24] Other Important Information - Gross margin as a percentage of sales increased to 24% in Q1 2021 from 22% in Q1 2020, aided by higher sales and successful cost pass-throughs [17] - Cash flow from operations was strong at $2.1 million, a 40% increase over Q1 2020, despite a $4 million increase in working capital [20] Q&A Session Summary - There were no questions from participants during the Q&A session [22][29]