|
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED July 2, 2011
|
|
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to
|
Connecticut
|
06-0330020
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
112 Bridge Street, Naugatuck, Connecticut
|
06770
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer [ ]
|
Accelerated filer [X]
|
Non-accelerated filer [ ] (Do not check if a smaller reporting company)
|
Smaller reporting company [ ]
|
Class
|
Outstanding as of July 28, 2011
|
Common Stock, No par value
|
6,168,237
|
ASSETS
|
July 2, 2011
|
January 1, 2011
|
|||||
Current Assets
|
|||||||
Cash and cash equivalents
|
$
|
8,449,223
|
$
|
12,224,608
|
|||
Accounts receivable, less allowances: $560,000 - 2011; $519,000 - 2010
|
19,717,302
|
16,424,766
|
|||||
Inventories
|
28,698,050
|
28,190,175
|
|||||
Prepaid expenses and other assets
|
3,189,642
|
2,652,132
|
|||||
Deferred income taxes
|
1,141,744
|
1,141,744
|
|||||
Total Current Assets
|
61,195,961
|
60,633,425
|
|||||
Property, Plant and Equipment
|
55,371,281
|
53,328,353
|
|||||
Accumulated depreciation
|
(30,457,720
|
)
|
(28,864,317
|
)
|
|||
24,913,561
|
24,464,036
|
||||||
Goodwill
|
13,975,143
|
13,933,990
|
|||||
Trademarks
|
150,751
|
150,751
|
|||||
Patents, technology, and other intangibles net of accumulated amortization
|
1,985,473
|
2,259,235
|
|||||
Deferred income taxes
|
724,605
|
912,043
|
|||||
16,835,972
|
17,256,019
|
||||||
TOTAL ASSETS
|
$
|
102,945,494
|
$
|
102,353,480
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
July 2, 2011
|
January 1, 2011
|
|||||
Current Liabilities
|
|||||||
Accounts payable
|
$
|
7,725,873
|
$
|
7,518,969
|
|||
Accrued compensation
|
1,680,265
|
2,997,126
|
|||||
Other accrued expenses
|
1,294,814
|
1,141,514
|
|||||
Current portion of long-term debt
|
714,286
|
714,286
|
|||||
Total Current Liabilities
|
11,415,238
|
12,371,895
|
|||||
Other long-term liabilities
|
713,202
|
713,202
|
|||||
Long-term debt, less current portion
|
3,214,286
|
3,750,000
|
|||||
Accrued postretirement benefits
|
1,485,092
|
1,461,371
|
|||||
Accrued pension cost
|
13,717,500
|
14,013,269
|
|||||
Shareholders’ Equity
|
|||||||
Voting Preferred Stock, no par value: Authorized and unissued 1,000,000 shares
|
|||||||
Nonvoting Preferred Stock, no par value: Authorized and unissued 1,000,000 shares
|
|||||||
Common Stock, no par value: Authorized: 50,000,000 shares
|
|||||||
Issued: 8,862,966 shares in 2011 and 8,852,762 shares in 2010
|
27,837,062
|
27,717,318
|
|||||
Treasury Stock: 2,694,729 shares in 2011 and 2010
|
(19,105,723
|
)
|
(19,105,723
|
)
|
|||
Retained earnings
|
71,390,767
|
69,919,619
|
|||||
Accumulated other comprehensive income (loss):
|
|||||||
Foreign currency translation
|
2,868,672
|
2,448,675
|
|||||
Unrecognized net pension and postretirement benefit costs, net of tax
|
(10,590,602
|
)
|
(10,936,146
|
)
|
|||
Accumulated other comprehensive loss
|
(7,721,930
|
)
|
(8,487,471
|
)
|
|||
Total Shareholders’ Equity
|
72,400,176
|
70,043,743
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
102,945,494
|
$
|
102,353,480
|
Six Months Ended
|
Three Months Ended
|
||||||||||||
July 2, 2011
|
July 3, 2010
|
July 2, 2011
|
July 3, 2010
|
||||||||||
Net sales
|
$
|
68,708,794
|
$
|
63,532,220
|
$
|
35,520,182
|
$
|
32,577,665
|
|||||
Cost of products sold
|
(55,460,341
|
)
|
(50,574,900
|
)
|
(28,588,070
|
)
|
(25,679,320
|
)
|
|||||
Gross margin
|
13,248,453
|
12,957,320
|
6,932,112
|
6,898,345
|
|||||||||
Selling and administrative expenses
|
(9,230,481
|
)
|
(9,055,896
|
)
|
(4,633,196
|
)
|
(4,623,095
|
)
|
|||||
Operating profit
|
4,017,972
|
3,901,424
|
2,298,916
|
2,275,250
|
|||||||||
Interest expense
|
(120,043
|
)
|
(138,069
|
)
|
(53,040
|
)
|
(67,997
|
)
|
|||||
Other income
|
9,516
|
491
|
3,071
|
397
|
|||||||||
Income before income taxes
|
3,907,445
|
3,763,846
|
2,248,947
|
2,207,650
|
|||||||||
Income taxes
|
1,326,472
|
1,343,317
|
766,148
|
796,781
|
|||||||||
Net income/(loss)
|
$
|
2,580,973
|
$
|
2,420,529
|
$
|
1,482,799
|
$
|
1,410,869
|
|||||
Earnings/(loss) per Share:
|
|||||||||||||
Basic
|
$
|
.42
|
$
|
.40
|
$
|
.24
|
$
|
.23
|
|||||
Diluted
|
$
|
.42
|
$
|
.39
|
$
|
.24
|
$
|
.23
|
|||||
Cash dividends per share:
|
$
|
.18
|
$
|
.18
|
$
|
.09
|
$
|
.09
|
Six Months Ended
|
Three Months Ended
|
|||||||||||
July 2, 2011
|
July 3, 2010
|
July 2, 2011
|
July 3, 2010
|
|||||||||
Net income
|
$
|
2,580,973
|
$
|
2,420,529
|
$
|
1,482,799
|
$
|
1,410,869
|
||||
Other comprehensive income/(loss):
|
||||||||||||
Change in foreign currency translation
|
419,997
|
(105,766
|
)
|
116,810
|
(450,658
|
)
|
||||||
Change in pension and postretirement benefit costs, net of taxes of:
2011 – $187,438 and $94,057, respectively
2010 – $178,936 and $89,468, respectively
|
345,544
|
327,677
|
172,772
|
163,839
|
||||||||
765,541
|
221,911
|
289,582
|
(286,819
|
)
|
||||||||
Comprehensive income
|
$
|
3,346,514
|
$
|
2,642,440
|
$
|
1,772,381
|
$
|
1,124,050
|
Six Months Ended
|
|||||||
July 2, 2011
|
July 3, 2010
|
||||||
Operating Activities
|
|||||||
Net income
|
$
|
2,580,973
|
$
|
2,420,529
|
|||
Adjustments to reconcile net income to net cash (used) provided by operating activities:
|
|||||||
Depreciation and amortization
|
1,815,098
|
1,981,307
|
|||||
Provision for doubtful accounts
|
33,403
|
54,449
|
|||||
Issuance of Common Stock for directors’ fees
|
12,301
|
12,306
|
|||||
Changes in operating assets and liabilities:
|
|||||||
Accounts receivable
|
(3,169,134
|
)
|
(1,321,810
|
)
|
|||
Inventories
|
(311,550
|
)
|
(1,918,552
|
)
|
|||
Prepaid expenses and other
|
(509,981
|
)
|
(15,062
|
)
|
|||
Prepaid pension cost
|
249,140
|
908,679
|
|||||
Other assets
|
(29,950
|
)
|
(117,843
|
)
|
|||
Accounts payable
|
120,723
|
2,690,396
|
|||||
Accrued compensation
|
(1,331,130
|
)
|
174,675
|
||||
Other accrued expenses
|
129,293
|
153,484
|
|||||
Net cash (used) provided by operating activities
|
(410,814
|
)
|
5,022,558
|
||||
Investing Activities
|
|||||||
Purchases of property, plant and equipment
|
(1,843,634
|
)
|
(1,914,722
|
)
|
|||
Net cash used in investing activities
|
(1,843,634
|
)
|
(1,914,722
|
)
|
|||
Financing Activities
|
|||||||
Principal payments on long-term debt
|
(535,714
|
)
|
(11,785,714
|
)
|
|||
Proceeds from issuance of long-term debt
|
-
|
5,000,000
|
|||||
Proceeds from sales of Common Stock
|
90,990
|
1,038,350
|
|||||
Tax benefit from exercise of incentive stock options
|
16,453
|
19,370
|
|||||
Purchases of Common Stock for treasury
|
-
|
(730,307
|
)
|
||||
Dividends paid
|
(1,109,824
|
)
|
(1,091,997
|
)
|
|||
Net cash used in financing activities
|
(1,538,095
|
)
|
(7,550,298
|
)
|
|||
Effect of exchange rate changes on cash
|
17,158
|
(34,759
|
)
|
||||
Net change in cash and cash equivalents
|
(3,775,385
|
)
|
(4,477,221
|
)
|
|||
Cash and cash equivalents at beginning of period
|
12,224,608
|
16,746,673
|
|||||
Cash and cash equivalents at end of period
|
$
|
8,449,223
|
$
|
12,269,452
|
Six Months Ended
|
Three Months Ended
|
||||||
July 2, 2011
|
July 3, 2010
|
July 2, 2011
|
July 3, 2010
|
||||
Basic:
|
|||||||
Weighted average shares outstanding
|
6,164,798
|
6,069,977
|
6,166,883
|
6,074,700
|
|||
Diluted:
|
|||||||
Weighted average shares outstanding
|
6,164,798
|
6,069,977
|
6,166,883
|
6,074,700
|
|||
Dilutive stock options
|
50,984
|
107,870
|
51,609
|
90,669
|
|||
Denominator for diluted earnings per share
|
6,215,782
|
6,177,847
|
6,218,492
|
6,165,369
|
July 2, 2011
|
January 1, 2011
|
||
Raw material and component parts
|
$ 8,236,341
|
$ 8,090,149
|
|
Work in process
|
5,395,233
|
5,298,939
|
|
Finished goods
|
15,066,476
|
14,801,087
|
|
$ 28,698,050
|
$ 28,190,175
|
Six Months Ended
|
Three Months Ended
|
||||||||||||||||||
July 2, 2011
|
July 3, 2010
|
July 2, 2011
|
July 3, 2010
|
||||||||||||||||
Revenues:
|
|||||||||||||||||||
Sales to unaffiliated customers:
|
|||||||||||||||||||
Industrial Hardware
|
$
|
29,466,082
|
$
|
28,237,294
|
$
|
14,865,806
|
$
|
14,019,231
|
|||||||||||
Security Products
|
24,593,978
|
22,065,334
|
12,974,240
|
11,865,642
|
|||||||||||||||
Metal Products
|
14,648,734
|
13,229,592
|
7,680,136
|
6,692,792
|
|||||||||||||||
$
|
68,708,794
|
$
|
63,532,220
|
$
|
35,520,182
|
$
|
32,577,665
|
||||||||||||
Income before income taxes:
|
|||||||||||||||||||
Industrial Hardware
|
$
|
1,984,681
|
$
|
2,389,134
|
$
|
1,050,796
|
$
|
1,289,726
|
|||||||||||
Security Products
|
1,639,029
|
1,382,693
|
1,083,151
|
941,244
|
|||||||||||||||
Metal Products
|
394,262
|
129,597
|
164,969
|
44,280
|
|||||||||||||||
Operating Profit
|
4,017,972
|
3,901,424
|
2,298,916
|
2,275,250
|
|||||||||||||||
Interest expense
|
(120,043
|
)
|
(138,069
|
)
|
(53,040
|
)
|
(67,997
|
)
|
|||||||||||
Other income
|
9,516
|
491
|
3,071
|
397
|
|||||||||||||||
$
|
3,907,445
|
$
|
3,763,846
|
$
|
2,248,947
|
$
|
2,207,650
|
Industrial
Hardware
Segment
|
Security
Products
Segment
|
Metal
Products
Segment
|
Total
|
||||||||||
Beginning balance
|
$
|
2,100,174
|
$
|
11,833,816
|
$
|
—
|
$
|
13,933,990
|
|||||
Foreign exchange
|
41,153
|
—
|
—
|
41,153
|
|||||||||
Ending balance
|
$
|
2,141,327
|
$
|
11,833,816
|
$
|
—
|
$
|
13,975,143
|
Industrial
Hardware
Segment
|
Security
Products
Segment
|
Metal
Products
Segment
|
Total
|
Weighted-Average
Amortization Period (Years)
|
|||||||||||
2011 Gross Amount:
|
|||||||||||||||
Patents and developed
technology
|
$
|
2,795,548
|
$
|
1,034,947
|
$
|
26,382
|
$
|
3,856,877
|
16.0
|
||||||
Customer relationships
|
45,825
|
1,921,811
|
—
|
1,967,636
|
5.0
|
||||||||||
Non-compete agreements
|
30,000
|
90,735
|
—
|
120,735
|
5.0
|
||||||||||
Total Gross Intangibles
|
$
|
2,871,373
|
$
|
3,047,493
|
$
|
26,382
|
$
|
5,945,248
|
12.0
|
||||||
2011 Accumulated
Amortization:
|
|||||||||||||||
Patents and developed
technology
|
$
|
1,511,873
|
$
|
458,616
|
$
|
25,694
|
$
|
1,996,183
|
|||||||
Customer relationships
|
32,078
|
1,822,781
|
—
|
1,854,859
|
|||||||||||
Non-compete agreements
|
21,000
|
87,733
|
—
|
108,733
|
|||||||||||
Total Gross Amortization
|
$
|
1,564,951
|
$
|
2,369,130
|
$
|
25,694
|
$
|
3,959,775
|
|||||||
Net July 2, 2011 per Balance Sheet
|
$
|
1,306,422
|
$
|
678,363
|
$
|
688
|
$
|
1,985,473
|
Industrial
Hardware
Segment
|
Security
Products
Segment
|
Metal
Products
Segment
|
Total
|
Weighted-Average
Amortization Period (Years)
|
|||||||||||
2010 Gross Amount:
|
|||||||||||||||
Patents and developed
technology
|
$
|
2,746,918
|
$
|
1,016,936
|
$
|
26,382
|
$
|
3,790,236
|
16.0
|
||||||
Customer relationships
|
45,825
|
1,921,811
|
—
|
1,967,636
|
5.0
|
||||||||||
Non-compete agreements
|
30,000
|
90,735
|
—
|
120,735
|
5.0
|
||||||||||
Total Gross Intangibles
|
$
|
2,822,743
|
$
|
3,029,482
|
$
|
26,382
|
$
|
5,878,607
|
11.9
|
||||||
2010 Accumulated
Amortization:
|
|||||||||||||||
Patents and developed
technology
|
$
|
1,416,034
|
$
|
417,801
|
$
|
25,307
|
$
|
1,859,142
|
|||||||
Customer relationships
|
27,495
|
1,630,581
|
—
|
1,658,076
|
|||||||||||
Non-compete agreements
|
18,000
|
84,154
|
—
|
102,154
|
|||||||||||
Total Gross Amortization
|
$
|
1,461,529
|
$
|
2,132,536
|
$
|
25,307
|
$
|
3,619,372
|
|||||||
Net January 1, 2011 per Balance Sheet
|
$
|
1,361,214
|
$
|
896,946
|
$
|
1,075
|
$
|
2,259,235
|
Pension Benefits
|
|||||||||||||
Six Months Ended
|
Three Months Ended
|
||||||||||||
July 2,
2011
|
July 3,
2010
|
July 2,
2011
|
July 3,
2010
|
||||||||||
Service cost
|
$
|
1,060,503
|
$
|
1,119,438
|
$
|
530,251
|
$
|
559,719
|
|||||
Interest cost
|
1,474,837
|
1,454,480
|
737,419
|
727,239
|
|||||||||
Expected return on plan assets
|
(1,825,142
|
)
|
(1,672,552
|
)
|
(912,571
|
)
|
(836,276
|
)
|
|||||
Amortization of prior service cost
|
97,075
|
102,286
|
48,538
|
51,144
|
|||||||||
Amortization of the net loss
|
448,527
|
421,577
|
224,263
|
210,788
|
|||||||||
Net periodic benefit cost
|
$
|
1,255,800
|
$
|
1,425,229
|
$
|
627,900
|
$
|
712,614
|
Postretirement Benefits
|
|||||||||||||
Six Months Ended
|
Three Months Ended
|
||||||||||||
July 2,
2011
|
July 3,
2010
|
July 2,
2011
|
July 3,
2010
|
||||||||||
Service cost
|
$
|
63,232
|
$
|
70,500
|
$
|
31,616
|
$
|
35,250
|
|||||
Interest cost
|
68,376
|
69,700
|
34,188
|
34,850
|
|||||||||
Expected return on plan assets
|
(49,650
|
)
|
(47,350
|
)
|
(24,825
|
)
|
(23,675
|
)
|
|||||
Amortization of prior service cost
|
(11,944
|
)
|
(11,950
|
)
|
(5,972
|
)
|
(5,975
|
)
|
|||||
Amortization of the net loss
|
-
|
(5,300
|
)
|
-
|
(2,650
|
)
|
|||||||
Net periodic benefit cost
|
$
|
70,014
|
$
|
75,600
|
$
|
35,007
|
$
|
37,800
|
Six Months Ended
July 2, 2011
|
Year Ended
January 1, 2011
|
|||||||||
Shares
|
Weighted - Average Exercise Price
|
Shares
|
Weighted - Average Exercise Price
|
|||||||
Outstanding at beginning of period
|
80,000
|
$
|
12.471
|
221,750
|
$
|
10.581
|
||||
Granted
|
—
|
—
|
—
|
—
|
||||||
Exercised
|
(9,500
|
)
|
9.578
|
(141,750
|
)
|
9.514
|
||||
Outstanding at end of period
|
70,500
|
12.861
|
80,000
|
12.471
|
Options Outstanding and Exercisable
|
||||
Range of Exercise Prices
|
Outstanding as of July 2, 2011
|
Weighted- Average Remaining Contractual Life
|
Weighted- Average Exercise Price
|
|
$10.20
|
15,000
|
2.1
|
$10.200
|
|
$13.58
|
55,500
|
3.5
|
13.580
|
|
70,500
|
3.2
|
12.861
|
Three Months Ended July 2, 2011
|
||||
Industrial
|
Security
|
Metal
|
||
Hardware
|
Products
|
Products
|
Total
|
|
Net sales
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
Cost of products sold
|
79.0%
|
75.9%
|
90.9%
|
80.4%
|
Gross margin
|
21.0%
|
24.1%
|
9.1%
|
19.6%
|
Selling and administrative expense
|
13.9%
|
15.8%
|
6.9%
|
13.1%
|
Operating profit
|
7.1%
|
8.3%
|
2.2%
|
6.5%
|
Three Months Ended July 3, 2010
|
||||
Industrial
|
Security
|
Metal
|
||
Hardware
|
Products
|
Products
|
Total
|
|
Net sales
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
Cost of products sold
|
75.2%
|
75.2%
|
93.0%
|
78.8%
|
Gross margin
|
24.8%
|
24.8%
|
7.0%
|
21.2%
|
Selling and administrative expense
|
15.6%
|
16.9%
|
6.3%
|
14.2%
|
Operating profit
|
9.2%
|
7.9%
|
0.7%
|
7.0%
|
Industrial
|
Security
|
Metal
|
||
Hardware
|
Products
|
Products
|
Total
|
|
Net sales
|
$ 847
|
$ 1,109
|
$ 987
|
$ 2,943
|
Volume
|
4.3%
|
7.5%
|
11.0%
|
6.8%
|
Prices
|
0.6%
|
0.9%
|
3.8%
|
1.4%
|
New products
|
1.1%
|
0.9%
|
0.0%
|
0.8%
|
6.0%
|
9.3%
|
14.8%
|
9.0%
|
|
Cost of products sold
|
$ 1,198
|
$ 931
|
$ 761
|
$ 2,890
|
11.4%
|
10.4%
|
12.2%
|
11.3%
|
|
Gross margin
|
$ (351)
|
$ 178
|
$ 226
|
$ 53
|
-10.1%
|
6.0%
|
48.2%
|
0.8%
|
|
Selling and administrative expenses
|
$ (112)
|
$ 36
|
$ 105
|
$ 29
|
-5.1%
|
1.8%
|
24.9%
|
0.6%
|
|
Operating profit
|
$ (239)
|
$ 142
|
$ 121
|
$ 24
|
-18.5%
|
15.1%
|
272.6%
|
1.0%
|
Six Months Ended July 2, 2011
|
||||
Industrial
|
Security
|
Metal
|
||
Hardware
|
Products
|
Products
|
Total
|
|
Net sales
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
Cost of products sold
|
79.1%
|
77.0%
|
90.3%
|
80.7%
|
Gross margin
|
20.9%
|
23.0%
|
9.7%
|
19.3%
|
Selling and administrative expense
|
14.2%
|
16.4%
|
7.0%
|
13.5%
|
Operating profit
|
6.7%
|
6.6%
|
2.7%
|
5.8%
|
Six Months Ended July 3, 2010
|
||||
Industrial
|
Security
|
Metal
|
||
Hardware
|
Products
|
Products
|
Total
|
|
Net sales
|
100.0%
|
100.0%
|
100.0%
|
100.0%
|
Cost of products sold
|
76.4%
|
76.4%
|
91.8%
|
79.6%
|
Gross margin
|
23.6%
|
23.6%
|
8.2%
|
20.4%
|
Selling and administrative expense
|
15.1%
|
17.3%
|
7.2%
|
14.3%
|
Operating profit
|
8.5%
|
6.3%
|
1.0%
|
6.1%
|
Industrial
|
Security
|
Metal
|
||
Hardware
|
Products
|
Products
|
Total
|
|
Net sales
|
$ 1,229
|
$ 2,529
|
$ 1,419
|
$ 5,177
|
Volume
|
2.9%
|
9.6%
|
8.5%
|
6.4%
|
Prices
|
0.3%
|
1.2%
|
2.2%
|
1.0%
|
New products
|
1.2%
|
0.7%
|
0.0%
|
0.7%
|
4.4%
|
11.5%
|
10.7%
|
8.1%
|
|
Cost of products sold
|
$ 1,724
|
$ 2,061
|
$ 1,082
|
$ 4,867
|
8.0%
|
12.2%
|
8.9%
|
9.6%
|
|
Gross margin
|
$ (495)
|
$ 468
|
$ 337
|
$ 310
|
-7.4%
|
9.0%
|
31.0%
|
2.4%
|
|
Selling and administrative expenses
|
$ (91)
|
$ 212
|
$ 72
|
$ 193
|
-2.1%
|
5.6%
|
7.5%
|
2.1%
|
|
Operating profit
|
$ (404)
|
$ 256
|
$ 265
|
$ 117
|
-16.9%
|
18.5%
|
204.2%
|
3.0%
|
Second
Quarter
2011
|
Second
Quarter
2010
|
Year
End
2010
|
|||||
Current ratio
|
5.4
|
4.8
|
4.9
|
||||
Average days’ sales in accounts receivable
|
51
|
46
|
47
|
||||
Inventory turnover
|
3.9
|
3.8
|
3.7
|
||||
Total debt to shareholders’ equity
|
5.4
|
%
|
6.8
|
%
|
6.4
|
%
|
Second
Quarter
2011
|
Second
Quarter
2010
|
Year
End
2010
|
|||||
Cash and cash equivalents
|
$ 8.4
|
|
$ 12.3
|
$ 12.2
|
|||
Working capital
|
49.8
|
46.4
|
48.3
|
||||
Net cash (used)/provided by operating activities
|
(0.4
|
)
|
5.0
|
9.5
|
|||
Change in working capital impact on net cash
(used)/provided by operating activities
|
(4.8
|
)
|
0.5
|
(0.8
|
)
|
||
Net cash used in investing activities
|
(1.8
|
)
|
(1.9
|
)
|
(4.7
|
)
|
|
Net cash used in financing activities
|
(1.5
|
)
|
(7.6
|
)
|
(9.4
|
)
|
THE EASTERN COMPANY
|
|
(Registrant)
|
|
DATE: July 29, 2011
|
/s/Leonard F. Leganza
|
Leonard F. Leganza
Chairman, President and Chief Executive Officer
|
|
DATE: July 29, 2011
|
/s/John L. Sullivan III
|
John L. Sullivan III
Vice President and Chief Financial Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Eastern Company;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of The Eastern Company;
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
1)
|
The Company’s Quarterly Report on Form 10-Q for the Period ended July 2, 2011, and to which this certification is attached as Exhibit 32 (the “Periodic Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and
|
|
2)
|
The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Leonard F. Leganza
|
|
Leonard F. Leganza
CEO
|
|
/s/ John L. Sullivan III
|
|
John L. Sullivan III
CFO
|