HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES FIRST QUARTER 2025 RESULTS

Revenue Increased 4.0% to $133.4 MillionGross Margin Expanded 120 Basis Points to 24.6%Cash Flow from Operations was $6.6 Million , /PRNewswire/ -- Hamilton Beach Brands Holding Company (NYSE: HBB) (The Company) today announced results for the first quarter of 2025. First Quarter 2025 Overview Revenue increased 4.0% to $133.4 million compared to $128.3 million Gross margin increased 120 basis points to 24.6% compared to 23.4% Operating profit increased to $2.3 million compared to loss of $0.9 million Cash flow from operating activities was $6.6 million compared to $19.7 million Total debt was $50.0 million; Net debt was $1.7 million compared to $23.7 million "Our first quarter results reflect solid improvement over last year even in the face of strengthening macroeconomic headwinds," said R. Scott Tidey, President and Chief Executive Officer. "The positive momentum we generated in the fourth quarter carried into the start of 2025 as demand for our core U.S. consumer business continued to outpace the market. Higher overall sales combined with increased contributions from higher margin products and categories fueled gross margin expansion and expense leverage, resulting in a $3.2 million year-over-year increase in operating profit." "Prior to the most recent round of tariff hikes imposed on China in mid-April, we were confident in our ability to mitigate the initial 20% increase on our China sourced product with only a slight impact to gross margins through increased pricing. While we have visibility into business trends over the next couple of months, the current tariff rates are creating a significant amount of uncertainty and have made it very difficult to plan for the second half of the year. We are working quickly to further diversify our sourcing base and implement additional measures to mitigate higher tariffs and expect these actions to benefit our margin profile in 2026," Tidey added. Results of the First Quarter 2025 Compared to the First Quarter 2024Total revenue grew $5.1 million, or 4.0%, to $133.4 million compared to $128.3 million. The revenue growth reflected favorable product mix and increased volume, partially offset by pricing and foreign currency. In the Company's North America Consumer markets, revenue increased driven by growth in the U.S. market. In the Company's Global Commercial market, revenue decreased slightly due to softness in international markets. HealthBeacon contributed $1.5 million of revenue in the first quarter of 2025. Gross profit was $32.8 million, or 24.6% of total revenue, compared to $30.1 million, or 23.4% of total revenue. The increase in gross profit margin was primarily due to favorable product mix, including the addition of HealthBeacon which operates at a significantly higher gross margin. Selling, general and administrative expenses (SG&A) decreased to $30.4 million compared to $30.9 million. The decrease was primarily driven by HealthBeacon transaction costs that did not recur in 2025. Operating profit was $2.3 million compared to loss of $0.9 million. Interest income, net increased to $0.1 million compared to interest expense, net of $0.2 million, primarily due to investment of increased cash on hand. Income tax expense was $0.7 million compared to income tax benefit of $0.1 million in the prior year period. Net income was $1.8 million, or $0.13 per diluted share, compared to net loss of $1.2 million, or $0.08 per diluted share. Cash Flow and DebtFor the quarter ended March 31, 2025, net cash provided by operating activities was $6.6 million, compared to $19.7 million for the quarter ended March 31, 2024. Net working capital provided cash of $16.3 million compared to $33.5 million. The decrease is primarily related to improvements in trade receivable collections that benefited the prior year as well as a material level of inventory pulled forward ahead of uncertainty related to tariff impacts. Capital expenditures were $0.5 million compared to $0.9 million. The Company allocated its cash flow primarily to return value to shareholders through share repurchases and the quarterly dividend. The Company repurchased 141,435 shares of its Class A common stock at prevailing market prices for an aggregate purchase amount of $2.7 million and paid $1.6 million in dividends during the first quarter of 2025. On March 31, 2025, net debt was $1.7 million compared to net debt of $23.7 million on March 31, 2024. Net (cash) debt is defined as total debt minus cash and cash equivalents and highly liquid short-term investments. OutlookAs a result of the increased uncertainty caused by higher tariffs recently imposed by the United States, particularly in China, the Company believes it is prudent to temporarily suspend its practice of providing forward looking commentary on its business outlook. Conference CallThe Company will conduct an earnings conference call and webcast on Wednesday, April 30, 2025, at 4:30 p.m. Eastern time. The call may be accessed by dialing 888-350-3452 (toll free), International 647-362-9199. Conference ID: 1809480. The conference call will also be webcast live on the Company's Investor Relations website at www.hamiltonbeachbrands.com. An archive of the webcast will be available on the website. About Hamilton Beach Brands Holding CompanyHamilton Beach Brands Holding Company is a leading designer, marketer, and distributor of a wide range of brand name small electric household and specialty housewares appliances, and commercial products for restaurants, fast food chains, bars, and hotels, and is a provider of connected devices and software for healthcare management. The Company's owned consumer brands include Hamilton Beach®, Proctor Silex®, Hamilton Beach Professional®, Weston®, and TrueAir®. The Company's owned commercial brands include Hamilton Beach Commercial® and Proctor Silex Commercial®. The Company licenses the brands for CHI® premium garment care products, CloroxTM home appliances, and Brita HubTM countertop electric water filtration appliances. The Company has exclusive multiyear agreements to design, sell, market, and distribute Bartesian® cocktail makers and Numilk® plant-based milk makers. The Company's Hamilton Beach Health subsidiary is focused on expanding the Company's participation in the home health and medical markets. In 2024, Hamilton Beach Health acquired HealthBeacon, a medical technology firm that specializes in developing connected devices, and strategic partner of the Company since 2021. For more information about Hamilton Beach Brands Holding Company, visit www.hamiltonbeachbrands.com. Forward-Looking StatementsThe statements contained in this news release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These forward-looking statements are made subject to certain risks and uncertainties, which could cause actual results to differ materially from those presented. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Such risks and uncertainties include, without limitation: (1) uncertain or unfavorable global economic conditions and impacts from tariffs, inflation, rising interest rates, recessions or economic slowdowns; (2) changes in costs, including transportation costs and tariffs, of sourced products; (3) the Company's ability to source and ship products to meet anticipated demand; (4) changes in or unavailability of quality or cost effective suppliers; (5) the Company's ability to successfully manage constraints throughout the global transportation supply chain; (6) delays in delivery of sourced products; (7) changes in the sales prices, product mix or levels of consumer purchases of small electric and specialty housewares appliances; (8) changes in consumer retail and credit markets, including the increasing volume of transactions made through third-party internet sellers; (9) bankruptcy of or loss of major retail customers or suppliers; (10) exchange rate fluctuations, changes in the import tariffs and monetary policies and other changes in the regulatory climate in the countries in which the Company operates or buys and/or sells products; (11) the impact of tariffs on customer purchasing patterns; (12) customer acceptance of changes in costs of or delays in the development of new products; (13) product liability, regulatory actions or other litigation, warranty claims or returns of products; (14) increased competition, including consolidation within the industry; (15) changes in customers' inventory management strategies; (16) shifts in consumer shopping patterns, gasoline prices, weather conditions, the level of consumer confidence and disposable income as a result of economic conditions, unemployment rates or other events or conditions that may adversely affect the level of customer purchases of the Company's products; (17) changes mandated by federal, state and other regulation, including tax, health, safety or environmental legislation; (18) the Company's ability to identify, acquire or develop, and successfully integrate, new businesses or new product lines; and (19) other risk factors, including those described in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Annual Report on Form 10-K for the year ended December 31, 2024. Furthermore, the future impact of unfavorable economic conditions, including inflation, changing interest rates, availability of capital markets and consumer spending rates remains uncertain. In uncertain economic environments, we cannot predict whether or when such circumstances may improve or worsen, or what impact, if any, such circumstances could have on our business, results of operations, cash flows and financial position. ***** HAMILTON BEACH BRANDS HOLDING COMPANYCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) THREE MONTHS ENDED MARCH 31 2025 2024 (In thousands, except per share data) Revenue $ 133,372 $ 128,277 Cost of sales 100,601 98,223 Gross profit 32,771 30,054 Selling, general and administrative expenses 30,380 30,947 Amortization of intangible assets 78 50 Operating profit (loss) 2,313 (943) Interest (income) expense, net (72) 156 Other (income) expense, net (149) 173 Income (loss) before income taxes 2,534 (1,272) Income tax expense (benefit) 729 (110) Net income (loss) $ 1,805 $ (1,162) Basic and diluted earnings (loss) per share $ 0.13 $ (0.08) Basic weighted average shares outstanding 13,769 14,162 Diluted weighted average shares outstanding 13,788 14,162 HAMILTON BEACH BRANDS HOLDING COMPANYCONSOLIDATED BALANCE SHEETS(Unaudited) MARCH 312025 DECEMBER 312024 MARCH 312024 (In thousands) Assets Current assets Cash and cash equivalents $ 48,296 $ 45,644 $ 26,279 Trade receivables, net 82,331 117,068 89,596 Inventory 165,890 124,904 133,523 Prepaid expenses and other current assets 16,931 16,103 12,893 Total current assets 313,448 303,719 262,291 Property, plant and equipment, net 34,015 34,401 36,851 Right-of-use lease assets 37,961 36,049 37,848 Goodwill 7,099 7,099 6,253 Other intangible assets, net 2,023 2,101 2,375 Deferred income taxes 7,115 6,693 2,410 Deferred costs 2,720 16,156 14,550 Other non-current assets 13,639 8,849 6,372 Total assets $ 418,020 $ 415,067 $ 368,950 Liabilities and stockholders' equity Current liabilities Accounts payable $ 126,342 $ 104,161 $ 96,579 Accrued compensation 5,302 18,792 5,701 Accrued product returns 7,074 7,876 6,135 Lease liabilities 5,531 5,193 6,086 Other current liabilities 14,589 18,098 11,693 Total current liabilities 158,838 154,120 126,194 Revolving credit agreements 50,000 50,000 50,000 Lease liabilities, non-current 40,184 39,008 41,009 Other long-term liabilities 5,817 6,036 6,340 Total liabilities 254,839 249,164 223,543 Stockholders' equity Preferred stock, par value $0.01 per share — — — Class A Common stock 118 115 114 Class B Common stock 36 36 36 Capital in excess of par value 77,821 76,668 72,303 Treasury stock (29,575) (26,202) (12,567) Retained earnings 124,083 123,863 96,705 Accumulated other comprehensive loss (9,302) (8,577) (11,184) Total stockholders' equity 163,181 165,903 145,407 Total liabilities and stockholders' equity $ 418,020 $ 415,067 $ 368,950 HAMILTON BEACH BRANDS HOLDING COMPANYCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) THREE MONTHS ENDED MARCH 31 2025 2024 (In thousands) Operating activities Net income (loss) $ 1,805 $ (1,162) Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization 1,225 1,188 Stock compensation expense 1,156 1,904 Other (935) 1,255 Net changes in operating assets and liabilities: Trade receivables 34,899 46,236 Inventory (40,645) (9,614) Other assets 7,178 (3,074) Accounts payable 22,031 (3,102) Other liabilities (20,094) (13,930) Net cash provided by (used for) operating activities 6,620 19,701 Investing activities Expenditures for property, plant and equipment (516) (942) Acquisition of business, net of cash acquired — (7,412) Issuance of secured loan — (600) Repayment of secured loan — 2,205 Net cash provided by (used for) investing activities (516) (6,749) Financing activities Cash dividends paid (1,585) (1,531) Purchase of treasury stock (3,373) (554) Net cash provided by (used for) financing activities (4,958) (2,085) Effect of exchange rate changes on cash, cash equivalents and restricted cash 626 (2) Cash, cash equivalents and restricted cash Increase (decrease) for the period 1,772 10,865 Balance at the beginning of the period 46,524 16,379 Balance at the end of the period $ 48,296 $ 27,244 Reconciliation of cash, cash equivalents and restricted cash Cash and cash equivalents $ 48,296 $ 26,279 Restricted cash included in prepaid expenses and other current assets — 51 Restricted cash included in other non-current assets — 914 Total cash, cash equivalents and restricted cash $ 48,296 $ 27,244 Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures: Net (Cash) Debt Net (cash) debt is a non-GAAP financial measure that management uses in evaluating financial position. Net (cash) debt is defined as long-term debt less cash and cash equivalents and highly liquid short-term investments. Management believes net (cash) debt is an important measure of the Company's financial position due to the amount of cash and cash equivalents on hand. The presentation of this measure is not intended to be considered in isolation from, as a substitute for, or as superior to, the financial information prepared and presented in accordance with U.S. GAAP. The presentation of this measure may be different from non-GAAP financial measures used by other companies. A reconciliation of this measure to its most directly comparable GAAP measure is provided in the table below: MARCH 312025 DECEMBER 312024 MARCH 312024 (In millions) Total debt $ 50.0 $ 50.0 $ 50.0 Less: cash and cash equivalents $ (48.3) $ (45.6) $ (26.3) Less: highly liquid short-term investments (1) $ — $ (5.0) $ — Net (cash) debt $ 1.7 $ (0.6) $ 23.7 1 Investments with original maturities greater than 3 months but less than one year are included in prepaid expenses andother current assets on the balance sheet. If the original maturity is 3 months or less it is included within cash and cashequivalents. SOURCE Hamilton Beach Brands Holding Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

HAMILTON BEACH BRANDS HOLDING COMPANY ANNOUNCES FIRST QUARTER 2025 RESULTS

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