NAUGATUCK, CT / ACCESSWIRE / December 22, 2020 / The Eastern Company ("Eastern" or the "Company") (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving industrial markets, today announced it reduced its debt obligations by an additional $5.0 million.
August Vlak, Eastern's President & CEO, said "We have allocated an additional $5.0 million to reduce our long term debt obligation. As of October 3, 2020, our long-term debt stood at $94.9 million, and our leverage ratio was 2.90x." Mr. Vlak added "This reduction will further strengthen our balance sheet."
Mr. Vlak continued "Our debt repayment reflects the many actions we took to sustain performance throughout the economic fallout from the COVID-19 pandemic as well as the subsequent recovery of our businesses in the third quarter of this year. Eastern's net sales in the third quarter of 2020 posted a sequential increase of 35% compared to the second quarter of 2020, and we generated $16.7 million in cash from operations in the first nine months of this year."
About The Eastern Company
The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to industrial 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, except as required by law.
Investor Relations Contacts:
The Eastern Company
August Vlak or John L. Sullivan III 203-729-2255
SOURCE: The Eastern Company