<SEC-DOCUMENT>0000031107-18-000013.txt : 20180502
<SEC-HEADER>0000031107-18-000013.hdr.sgml : 20180502
<ACCEPTANCE-DATETIME>20180502105112
ACCESSION NUMBER:		0000031107-18-000013
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180502
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180502
DATE AS OF CHANGE:		20180502

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EASTERN CO
		CENTRAL INDEX KEY:			0000031107
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				060330020
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			0102

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35383
		FILM NUMBER:		18798050

	BUSINESS ADDRESS:	
		STREET 1:		112 BRIDGE ST
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
		BUSINESS PHONE:		2037292255

	MAIL ADDRESS:	
		STREET 1:		112 BRIDGE STREET
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
</SEC-HEADER>
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<TYPE>8-K
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<FILENAME>form8k1stqtr2018.htm
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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">UNITED STATES</div>

<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">SECURITIES AND EXCHANGE COMMISSION</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">Washington, D.C. 20549</div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-TOP: 12pt">FORM 8-K</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">CURRENT REPORT</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">Pursuant to Section 13 or 15(d) of the</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">Securities Exchange Act of 1934</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Date of Report:</u></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold"><u> May 2, 2018</u></font></div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(Date of earliest event reported)</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">&#160;(Exact name of Registrant as specified in its charter)</div>

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<div style="TEXT-ALIGN: center"><u>Connecticut</u></div>
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<div style="TEXT-ALIGN: center"><u>001-35383</u></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(State or other jurisdiction</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">of incorporation)</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">Identification No.)</div>
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<div style="TEXT-ALIGN: center"><u>112 Bridge Street, Naugatuck, Connecticut</u></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">&#160;&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: bold; FONT-STYLE: normal"><u>&#160;&#160;06770</u></font></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center"><u>(203) 729-2255</u></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">________________________________________________</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(Former name or former address, if changed since last report)</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2)</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">[ ]&#160; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">[ ]&#160; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">[ ]&#160; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">[ ]&#160; Pre-commencement communications pursuant to Rule 13e-4( c) under the Exchange Act (17 CFR 240.13e-4( c))</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">Emerging Growth Company <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Segoe UI Symbol', sans-serif">&#9744;</font></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section&#160;13(a) of the Exchange Act. <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Segoe UI Symbol', sans-serif">&#9744;</font></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">ITEM 2.02 &#8211; Results of Operations and Financial Condition</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Press Release dated May 2, 2018 announcing the first quarter earnings for 2018 is attached hereto.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">ITEM 7.01 &#8211; Regulation FD Disclosure</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">On May 2, 2018, The Eastern Company released the first quarter earnings of 2018.&#160; A copy of the Press Release dated May 2, 2018 announcing the first quarter earnings for 2018 is attached hereto.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">ITEM 9.01 &#8211; Financial Statements and Exhibits</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">(d) Exhibits</div>

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<div style="TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Exhibit No.</u></font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 72pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Title</u></font></div>

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<div style="TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">99.1</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 72pt; DISPLAY: inline-block">&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Press Release dated May 2, 2018 announcing the first quarter earnings for 2018.</font></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">SIGNATURES</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify; TEXT-INDENT: 36pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">The Eastern Company</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date: May 2, 2018</div>
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<div style="TEXT-ALIGN: justify"><u>/s/John L. Sullivan III</u></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">John L. Sullivan III<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><br>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">Exhibit 99.1</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">FOR IMMEDIATE RELEASE</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">May 2, 2018</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">THE EASTERN COMPANY REPORTS NET SALES OF $59.4 MILLION AND<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><br>
</font> EARNINGS OF $0.49 PER DILUTED SHARE FOR THE FIRST QUARTER OF 2018</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Naugatuck, CT &#8211; The Eastern Company (NASDAQ:EML) today announced the results of operations for the first quarter of 2018.&#160; Sales for the first quarter were $59.4 million, compared to $36.0 million for the same period in 2017.&#160; Net income for the first quarter of 2018 was $3.1 million, or $0.49 per diluted share, compared to $1.5 million, or $0.24 per diluted share, for the same period last year.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Mr. August Vlak, President and CEO, stated that "the 65% increase in sales for the first quarter of 2018 compared to the same period in 2017 reflects the acquisition of Velvac, Inc., which closed on April 3, 2017, as well as sustained organic growth across all three of our business segments.&#160; Our Industrial Hardware segment grew by 137% in the first quarter of 2018 compared with the first quarter of 2017 and if sales resulting from the Velvac acquisition are excluded, our Industrial Hardware segment would have grown by 19% in the first quarter of 2018 compared with the first quarter of 2017 as a result of strong sales growth in the heavy duty truck, sports utility vehicles, and military markets.&#160; Nationwide truck orders in the first quarter of 2018 hit the second highest mark in history and mark the best period for orders since 2006, according to ACT Research. Security Product segment sales grew by 9% in the first quarter of 2018 compared to the same period in 2017 in part as a result of Greenwald Industries winning significant new business over our competition in the commercial laundry market.&#160; In our Metal Products segment, first quarter 2018 sales were up 16% compared to the first quarter of 2017.&#160; This segment continues to benefit from strong sales to mining customers and solid growth to other industrial markets."</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Net income increased 104% to $3.1 million for the first quarter of 2018 from $1.5 million for the comparable period of 2017.&#160; The growth in net income was primarily attributable to the increase in sales and a reduction in income taxes.&#160; Gross margins increased modestly to 24.8% of net sales in the first quarter of 2018 from 24.1% of sales in the first quarter of 2017.&#160; Mr. Vlak added that "The favorable impact from cost absorption was partially offset by higher material costs, primarily due to increases in steel prices.&#160; In addition, growth in net income was partially offset by our investments in new product development.&#160; We sustained our investments in the development of new technology products at Road-iQ, a division of Velvac, and gPay at Greenwald Industries.&#160; Road-iQ is a connected vehicle vision technology that provides both active and passive safety to drivers of RVs, trucks and other specialty vehicles, and gPay is a new payment system that enables consumers to use their mobile phones to pay for their laundry.&#160; Both products are currently being tested by potential customers, and Road-iQ has secured initial orders for its blind spot detection application."</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Mr. Vlak continued that "we continue to make progress with our three-part strategy of optimizing our portfolio, improving execution and building our balance sheet.&#160; We continue to look for bolt-on acquisition opportunities that have strong economics and help us build scale in attractive end-markets.&#160; We are beginning to see some impact of the uncertainty surrounding tariffs and trade regulation on our customers as well as our businesses.&#160; However, we believe our businesses are well positioned to benefit from underlying growth in several of our core markets in 2018."</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">The Eastern Company will host a conference call to discuss its results for the first quarter of 2018 and other matters on Tuesday, May 8, 2018 at 9:00am EST.&#160; Participants can access the conference call by phone at (888) 419-5570 with passcode 412 268 15.&#160; Participants can also join via the web at <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">https://www.webcaster4.com/Webcast/Page/1757/25638</font>.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">About The Eastern Company</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">The Eastern Company is 160-year old manufacturer of industrial hardware, security products and metal castings.&#160; It operates 16 locations in the United States, Canada, Mexico, Taiwan and China.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">Safe Harbor for Forward-Looking Statements</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">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.&#160; 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.&#160; 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 changing customer preferences, lack of success of new products, loss of customers and increased prices for raw materials.&#160; 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.&#160; 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.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; FONT-STYLE: italic; TEXT-ALIGN: justify">The Eastern Company</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; FONT-STYLE: italic; TEXT-ALIGN: justify">August Vlak or John L. Sullivan III, 203-729-2255</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Statement of Consolidated Income (unaudited)</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">THE EASTERN COMPANY (NASDAQ - EML)</div>
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<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
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<td style="WIDTH: 10.9%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: #000000 2px solid">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">13 weeks ending March 31, 2018</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">13 weeks ending April 1, 2017</div>
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<td style="WIDTH: 27.89%; VERTICAL-ALIGN: bottom" colspan="4">&#160;</td>
<td style="WIDTH: 10.9%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
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<td style="WIDTH: 27.89%; VERTICAL-ALIGN: bottom" colspan="4">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Net Sales</div>
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<td style="WIDTH: 10.9%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$59,444,997</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$36,043,295</div>
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<td style="WIDTH: 10.9%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">&#160;</td>
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<td style="WIDTH: 38.8%; VERTICAL-ALIGN: bottom" colspan="5">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Net Income After Tax</div>
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<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$3,100,195</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$1,517,141</div>
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<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">&#160;</td>
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<td style="WIDTH: 45.4%; VERTICAL-ALIGN: bottom" colspan="6">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Net Income Per Share:</div>
</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">&#160;</td>
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<td style="WIDTH: 8.64%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 18.83%; VERTICAL-ALIGN: bottom" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">&#160;&#160;Basic</div>
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<td style="WIDTH: 17.92%; VERTICAL-ALIGN: bottom" colspan="3">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$0.49</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$0.24</div>
</td>
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<tr>
<td style="WIDTH: 8.64%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 18.83%; VERTICAL-ALIGN: bottom" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">&#160;&#160;Diluted</div>
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<td style="WIDTH: 17.92%; VERTICAL-ALIGN: bottom" colspan="3">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$0.49</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">$0.24</div>
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<tr>
<td style="WIDTH: 27.89%; VERTICAL-ALIGN: bottom" colspan="4">&#160;</td>
<td style="WIDTH: 10.9%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">&#160;</td>
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<tr>
<td style="WIDTH: 45.4%; VERTICAL-ALIGN: bottom" colspan="6">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Weighted average shares outstandings:</div>
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<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 9.68%; VERTICAL-ALIGN: bottom" colspan="2">&#160;</td>
<td style="WIDTH: 29.12%; VERTICAL-ALIGN: bottom" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Basic</div>
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<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">6,263,553</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">6,256,496</div>
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<tr>
<td style="WIDTH: 9.68%; VERTICAL-ALIGN: bottom" colspan="2">&#160;</td>
<td style="WIDTH: 29.12%; VERTICAL-ALIGN: bottom" colspan="3">
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<td style="WIDTH: 6.6%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.89%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">6,291,726</div>
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<td style="WIDTH: 10.86%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 21.85%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: right">6,256,496</div>
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