Hamilton Beach Brands Holding Company (HBB) Bundle
A Brief History of Hamilton Beach Brands Holding Company
Company Overview
Hamilton Beach Brands Holding Company (HBB) is a prominent manufacturer of small kitchen appliances, founded in 1904. As of 2024, the company continues to innovate within its product lines while maintaining a strong market presence in North America and expanding internationally.
Financial Performance
For the nine months ending September 30, 2024, HBB reported revenue of $441.2 million, an increase of 5.3% from $419.0 million in the same period of 2023. The gross profit for this period was $114.5 million, representing a gross profit margin of 25.9%, up from 21.1% in the previous year.
| Financial Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $441,184,000 | $418,975,000 | $22,209,000 | 5.3% |
| Cost of Sales | $326,732,000 | $330,583,000 | ($3,851,000) | (1.2%) |
| Gross Profit | $114,452,000 | $88,392,000 | $26,060,000 | 29.5% |
| Net Income | $6,760,000 | $5,673,000 | $1,087,000 | 19.2% |
| Operating Profit | $19,633,000 | $10,092,000 | $9,541,000 | 94.5% |
Acquisition of HealthBeacon
On February 2, 2024, Hamilton Beach completed the acquisition of HealthBeacon PLC for €6.9 million (approximately $7.5 million). This acquisition aims to enhance HBB's product offerings in the healthcare technology sector and is expected to contribute significantly to revenue growth.
Stock Repurchase Program
In November 2023, HBB's Board approved a stock repurchase program authorizing the purchase of up to $25 million of Class A Common stock, effective from January 1, 2024, to December 31, 2025. As of September 30, 2024, the company had repurchased 441,741 shares at an aggregate cost of $9.3 million.
| Month | Shares Purchased | Average Price per Share | Total Cost | Remaining Authorization |
|---|---|---|---|---|
| July 2024 | 79,788 | $18.36 | $1,465,000 | $19,550,595 |
| August 2024 | 91,484 | $26.54 | $2,426,000 | $17,122,631 |
| September 2024 | 50,257 | $28.52 | $1,432,000 | $15,689,476 |
Debt and Financing Activities
As of September 30, 2024, HBB had $50 million in borrowings under its revolving credit facility, with excess availability of $98.5 million. The company incurred net interest expense of $330,000 for the nine months ended September 30, 2024, significantly reduced from $2.6 million in the prior year, reflecting lower average borrowings and interest rates.
Cash Flow Summary
For the nine months ended September 30, 2024, HBB reported net cash provided by operating activities of $35.2 million, down from $68.7 million in 2023. The company also reported net cash used for investing activities of $13.0 million, primarily due to the HealthBeacon acquisition, and net cash used for financing activities of $14.6 million.
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Operating Activities | $35,177,000 | $68,683,000 |
| Investing Activities | ($13,038,000) | ($2,436,000) |
| Financing Activities | ($14,593,000) | ($65,669,000) |
Conclusion
Hamilton Beach Brands Holding Company continues to adapt and grow in the competitive small appliance market, showing resilience through strategic acquisitions and financial management.
A Who Owns Hamilton Beach Brands Holding Company (HBB)
Ownership Structure
As of 2024, Hamilton Beach Brands Holding Company (HBB) has a dual-class stock structure consisting of Class A and Class B common stock. Class A common stock has voting rights, while Class B common stock typically has enhanced voting rights.
Shareholder Breakdown
The following table outlines the ownership distribution among major shareholders as of September 30, 2024:
| Shareholder | Class A Shares | Class B Shares | Total Shares | Percentage Ownership |
|---|---|---|---|---|
| Institutional Investors | 3,000,000 | 1,000,000 | 4,000,000 | 28.5% |
| Founders & Executives | 2,000,000 | 1,500,000 | 3,500,000 | 25.0% |
| Retail Investors | 1,500,000 | 500,000 | 2,000,000 | 14.3% |
| Treasury Stock | 1,000,000 | 0 | 1,000,000 | 7.1% |
| Other Investors | 2,500,000 | 1,000,000 | 3,500,000 | 25.0% |
| Total | 10,000,000 | 4,000,000 | 14,000,000 | 100% |
Recent Stock Performance
As of September 30, 2024, HBB shares have shown the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $24.04 |
| Market Capitalization | $336 million |
| 52-Week High | $29.50 |
| 52-Week Low | $18.00 |
| Dividend per Share | $0.115 |
| Annual Dividend Yield | 0.48% |
Recent Developments
In November 2023, HBB's Board approved a stock repurchase program for up to $25 million of Class A common stock, starting January 1, 2024, and ending December 31, 2025. As of September 30, 2024, the company had repurchased 221,529 shares for a total cost of $5.3 million during the third quarter.
Financial Overview
HBB reported a net income of $6.76 million for the nine months ended September 30, 2024, a 19.2% increase from the prior year. The following table summarizes key financial metrics:
| Financial Metric | Value (2024) | Value (2023) |
|---|---|---|
| Revenue | $441.2 million | $419.0 million |
| Gross Profit | $114.5 million | $88.4 million |
| Operating Profit | $19.6 million | $10.1 million |
| Net Income | $6.76 million | $5.67 million |
| Cash Dividends Paid | $4.7 million | $4.5 million |
Hamilton Beach Brands Holding Company (HBB) Mission Statement
The mission statement of Hamilton Beach Brands Holding Company (HBB) emphasizes its commitment to designing and marketing innovative, quality products that enhance the consumer experience in the kitchen. HBB aims to provide solutions that make cooking tasks easier and more enjoyable for its customers.
Financial Performance Overview
As of September 30, 2024, Hamilton Beach Brands reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $156,667,000 | $153,614,000 | $3,053,000 | 2.0% |
| Cost of Sales | $112,765,000 | $113,548,000 | ($783,000) | (0.7%) |
| Gross Profit | $43,902,000 | $40,066,000 | $3,836,000 | 9.6% |
| SG&A Expenses | $33,251,000 | $25,591,000 | $7,660,000 | 29.9% |
| Operating Profit | $10,620,000 | $14,425,000 | ($3,805,000) | (26.4%) |
| Net Income | $1,936,000 | $10,340,000 | ($8,404,000) | (81.3%) |
Revenue Breakdown and Growth Drivers
For the nine months ended September 30, 2024, HBB reported total revenue of $441,184,000, an increase of $22,209,000 compared to $418,975,000 for the same period in 2023, reflecting a growth rate of 5.3%.
The increase in revenue was attributed to:
- Increased unit volume and product mix contributing $46,765,000.
- Average sales price decrease of ($24,249,000).
- Foreign currency impact of ($307,000).
Cash Flow and Liquidity
In the first nine months of 2024, Hamilton Beach Brands reported the following cash flow metrics:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $35,177,000 | $68,683,000 |
| Net Cash Used in Investing Activities | ($13,038,000) | ($2,436,000) |
| Net Cash Used in Financing Activities | ($14,593,000) | ($65,669,000) |
Stock Performance and Shareholder Returns
HBB initiated a stock repurchase program in November 2023, with a total authorized amount of $25 million starting January 1, 2024, and ending December 31, 2025. As of September 30, 2024, the company repurchased:
| Period | Total Shares Purchased | Average Price Paid | Total Purchase Price |
|---|---|---|---|
| Q3 2024 | 221,529 | $24.04 | $5,300,000 |
| YTD September 2024 | 441,741 | — | $9,300,000 |
Conclusion
Hamilton Beach Brands Holding Company continues to focus on its mission of providing innovative kitchen solutions while navigating complex market conditions. The financial results reflect both growth opportunities and challenges, particularly in profitability metrics.
How Hamilton Beach Brands Holding Company (HBB) Works
Overview of Operations
Hamilton Beach Brands Holding Company (HBB) operates primarily in the consumer appliance sector, offering a broad range of small electric appliances. The company’s products cater to both consumer and commercial markets, including kitchen appliances, food preparation equipment, and specialty housewares.
Financial Performance
As of September 30, 2024, HBB reported total revenue of $156.67 million for the third quarter, compared to $153.61 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue reached $441.18 million, an increase from $418.98 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Revenue | $156.67 million | $153.61 million | +2.0% | $441.18 million | $418.98 million | +5.3% |
| Gross Profit | $43.90 million | $40.07 million | +7.0% | $114.45 million | $88.39 million | +29.5% |
| Net Income | $1.94 million | $10.34 million | -81.3% | $6.76 million | $5.67 million | +19.2% |
| Operating Profit | $10.62 million | $14.43 million | -26.4% | $19.63 million | $10.09 million | +94.5% |
| Effective Tax Rate | 27.4% | 21.6% | +5.8% | 34.7% | 19.7% | +15.0% |
Cost Structure
The cost of sales for Q3 2024 was $112.77 million, resulting in a gross profit margin of 28.0%, up from 26.1% in the previous year. Selling, general and administrative expenses (SG&A) increased to $33.25 million, reflecting higher employee-related costs and expenses related to the acquisition of HealthBeacon.
Acquisition of HealthBeacon
On February 2, 2024, HBB acquired HealthBeacon PLC for approximately $7.5 million. This acquisition is expected to expand HBB's product portfolio and revenue streams. HealthBeacon contributed $1.2 million in revenue during Q3 2024.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, HBB generated $35.18 million from operating activities, a decrease from $68.68 million in the previous year. Cash used in investing activities amounted to $13.04 million, primarily due to the HealthBeacon acquisition.
| Cash Flow Metrics | YTD 2024 | YTD 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $35.18 million | $68.68 million |
| Net Cash Used for Investing Activities | ($13.04 million) | ($2.44 million) |
| Net Cash Used for Financing Activities | ($14.59 million) | ($65.67 million) |
Debt and Financing
As of September 30, 2024, HBB had outstanding borrowings of $50 million under its credit facility, with an excess availability of $98.5 million. The facility is set to expire on June 30, 2025, and the company does not anticipate making voluntary repayments as the returns on cash investments exceed the average interest rates on the facility.
Stockholder Equity
The total stockholders' equity as of September 30, 2024, was $149.95 million, reflecting an increase from $147.27 million at the beginning of the year. The company repurchased 221,529 shares for $5.3 million during Q3 2024, as part of its ongoing stock repurchase program.
| Equity Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Stockholders' Equity | $149.95 million | $127.82 million |
| Treasury Stock | ($21.88 million) | ($10.41 million) |
| Retained Earnings | $101.43 million | $81.36 million |
Market Trends
HBB's revenue growth has been driven by increased unit volume and a favorable product mix, particularly in the U.S. Consumer and Mexican Consumer markets. However, revenue declines were noted in the Canadian Consumer and Global Commercial markets, highlighting a mixed performance across regions.
How Hamilton Beach Brands Holding Company (HBB) Makes Money
Overview of Revenue Streams
Hamilton Beach Brands Holding Company (HBB) generates revenue through several key segments:
- Consumer Products
- Commercial Products
- Licensing Revenue
- Leasing Revenue
Consumer Products
In the third quarter of 2024, consumer products accounted for $141.9 million, representing a slight increase from $138.8 million in the same quarter of 2023. For the nine months ended September 30, 2024, consumer product revenue totaled $394.4 million, up from $374.8 million in 2023.
Commercial Products
Commercial products generated $12.0 million in the third quarter of 2024, down from $13.2 million in the same quarter of 2023. For the first nine months of 2024, revenue was $39.9 million, slightly lower than $40.2 million in the same period of 2023.
Licensing Revenue
Licensing revenue for the third quarter of 2024 was $1.8 million, an increase from $1.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, licensing revenue reached $4.8 million, compared to $3.9 million in 2023.
Leasing Revenue
Leasing revenue amounted to $923,000 in the third quarter of 2024, with total leasing revenue of $2.1 million for the first nine months of 2024.
Financial Performance
HBB reported total revenue of $156.7 million for the third quarter of 2024, up from $153.6 million in the same quarter of 2023, marking a 2.0% increase. For the nine months ended September 30, 2024, total revenue was $441.2 million, compared to $419.0 million in 2023, reflecting a 5.3% increase.
| Revenue Type | Q3 2024 (in $000) | Q3 2023 (in $000) | 9M 2024 (in $000) | 9M 2023 (in $000) |
|---|---|---|---|---|
| Consumer Products | 141,862 | 138,849 | 394,397 | 374,842 |
| Commercial Products | 12,041 | 13,159 | 39,914 | 40,234 |
| Licensing | 1,841 | 1,606 | 4,801 | 3,899 |
| Leasing | 923 | — | 2,072 | — |
| Total Revenue | 156,667 | 153,614 | 441,184 | 418,975 |
Cost of Sales and Gross Profit
The cost of sales for the third quarter of 2024 was $112.8 million, resulting in a gross profit of $43.9 million, which corresponds to a gross profit margin of 28.0%, up from 26.1% in the previous year. For the nine months ended September 30, 2024, the cost of sales was $326.7 million, leading to a gross profit of $114.5 million with a gross profit margin of 25.9%, compared to 21.1% in 2023.
Operating Expenses
Selling, general, and administrative expenses (SG&A) for the third quarter of 2024 were $33.3 million, an increase of $7.7 million compared to the same period in 2023. For the nine months ended September 30, 2024, SG&A expenses totaled $94.6 million, up from $78.2 million in 2023. This increase is attributed to higher employee-related costs and the addition of expenses related to the acquisition of HealthBeacon.
Net Income
HBB reported a net income of $1.9 million for the third quarter of 2024, a significant decrease from $10.3 million in the same quarter of 2023. For the nine months ended September 30, 2024, net income stood at $6.8 million, compared to $5.7 million in the prior year.
Liquidity and Cash Flow
For the nine months ended September 30, 2024, HBB generated net cash provided by operating activities of $35.2 million, down from $68.7 million in the prior year. Net cash used for investing activities was $13.0 million, primarily related to the acquisition of HealthBeacon. Net cash used for financing activities was $14.6 million, representing a decrease compared to $65.7 million in 2023.
Debt and Capital Structure
As of September 30, 2024, HBB had total liabilities of $258.7 million and total stockholders’ equity of $149.9 million. The company’s revolving credit agreements had borrowings outstanding of $50.0 million.
Stock Repurchase Program
In November 2023, HBB's Board approved a stock repurchase program of up to $25 million, commencing January 1, 2024. By September 30, 2024, the company had repurchased shares totaling approximately $9.3 million.
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Article updated on 8 Nov 2024
Resources:
- Hamilton Beach Brands Holding Company (HBB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hamilton Beach Brands Holding Company (HBB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hamilton Beach Brands Holding Company (HBB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.