Mr. Leganza continued, “The Security Products segment sales improved 4% compared to the first quarter of last year. Sales of our lock products improved in the majority of the markets we serve. We continued however, to experience softness in our commercial laundry market which we believe will improve when the economy strengthens. We have developed several new advanced technology products for introduction into the commercial laundry and other markets which will be introduced beginning in the second quarter of 2010. These advanced coin recognition systems and contactless and wireless cash payment systems will open several new market opportunities in the coin vending and metering industry.”Mr. Leganza concluded, “The emphasis we placed on liquidity and cash flow in 2009 made it possible for us to pay off approximately $7 million of our long-term debt and the company still ended the first quarter of 2010 with a strong cash position of $10.8 million. We expect our current liquidity plans to be sufficient to support our dividend policy, meet our debt service requirements and replace or upgrade capital equipment as needed. In addition, under our new loan agreement with People’s United Bank, we have a $10 million revolving credit facility available to us should the need for funds arise. We will continue to take whatever measures are necessary to enhance our liquidity position during 2010, and as always, we will take whatever further action may be necessary to improve our operating results and pursue our strategic initiatives.” The Eastern Company is a 151-year-old leading manufacturer of vehicular and industrial hardware, locks, metal castings, coin collection and smart card products. It operates from nine locations in the U.S., Canada, Mexico, Taiwan and China. The diversity of the Company’s products enables it to respond to the changing requirements of a broad array of markets. Forward-Looking Statements: Information in this news release contains statements which reflect the Company’s current expectations regarding its future operating performance and achievements. Actual results may differ due to the many economic uncertainties that affect the Company’s business environment. Further information about the potential factors which could affect the Company’s financial results is included in the Company’s reports and filings with the Securities and Exchange Commission. The Company is not obligated to update or revise the aforementioned statements for those new developments.
|Consolidated Statement of Operations (unaudited)|
|THE EASTERN COMPANY (NYSE Amex - EML)|
|THREE Months Ended|
|April 3, 2010||April 4, 2009|
|Net (Loss) Income After Tax||1,009,660||(1,082,530||)|
|Net (Loss) Income Per Share:|
|Weighted average shares outstandings:|