<SEC-DOCUMENT>0000031107-18-000031.txt : 20181102
<SEC-HEADER>0000031107-18-000031.hdr.sgml : 20181102
<ACCEPTANCE-DATETIME>20181102121956
ACCESSION NUMBER:		0000031107-18-000031
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20181102
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20181102
DATE AS OF CHANGE:		20181102

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:		181156170

	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>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>thirdqtr2018_8k.htm
<TEXT>
<html>
<head>
<title></title>
<!--Licensed to: THE EASTERN COMPANY
    Document created using EDGARfilings PROfile 4.4.0.0
    Copyright 1995 - 2018 Broadridge-->
</head>
<body style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" bgcolor="#ffffff" text="#000000">
<div>
<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>

<div style="MARGIN-TOP: 12pt"><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<div><br>
</div>

<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> November 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>

<div><br>
</div>

<div><br>
</div>

<div style="FONT-SIZE: 18pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center; MARGIN-TOP: 8pt">The Eastern Company</div>

<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>

<div style="TEXT-ALIGN: justify"><br>
</div>

<div><br>
</div>

<table id="z81e673c2f21549af9f668edd2fc98c06" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 35.45%; VERTICAL-ALIGN: top; FONT-WEIGHT: bold; FONT-STYLE: normal"><u> </u>

<div style="TEXT-ALIGN: center"><u>Connecticut</u></div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 34.29%; VERTICAL-ALIGN: top; FONT-WEIGHT: bold; FONT-STYLE: normal"><u> </u>

<div style="TEXT-ALIGN: center"><u>001-35383</u></div>
</td>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 30.26%; VERTICAL-ALIGN: top; FONT-WEIGHT: bold; FONT-STYLE: normal"><u> </u>

<div style="TEXT-ALIGN: center"><u>06-0330020</u></div>
</td>
</tr>

<tr>
<td style="WIDTH: 35.45%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(State or other jurisdiction</div>
</td>
<td style="WIDTH: 34.29%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(Commission File Number)</div>
</td>
<td style="WIDTH: 30.26%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(IRS Employer</div>
</td>
</tr>

<tr>
<td style="WIDTH: 35.45%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">of incorporation)</div>
</td>
<td style="WIDTH: 34.29%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 30.26%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">Identification No.)</div>
</td>
</tr>
</table>

<div><br>
</div>

<div><br>
</div>

<table id="za4962000904c43a9bdd8f4d4cfe8c8c6" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; WIDTH: 55.43%; VERTICAL-ALIGN: top; FONT-WEIGHT: bold; FONT-STYLE: normal"><u> </u>

<div style="TEXT-ALIGN: center"><u>112 Bridge Street, Naugatuck, Connecticut</u></div>
</td>
<td style="WIDTH: 3.88%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 40.7%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">&#160;&#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;06770</u></font></div>
</td>
</tr>

<tr>
<td style="WIDTH: 55.43%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(Address of principal executive offices)</div>
</td>
<td style="WIDTH: 3.88%; VERTICAL-ALIGN: top">&#160;</td>
<td style="WIDTH: 40.7%; VERTICAL-ALIGN: top">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">(Zip Code)</div>
</td>
</tr>
</table>

<div><br>
</div>

<div><br>
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center"><u>(203) 729-2255</u></div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">&#160;(Registrant's telephone number, including area code)</div>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div><br>
</div>

<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>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<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>

<div><br>
</div>

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

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

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

<div><br>
</div>

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

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

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

<div><br>
</div>

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

<div><br>
</div>

<div><br>
</div>

<div style="TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Exhibit No.<font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; WIDTH: 9pt; DISPLAY: inline-block">&#160;</font></u></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><u>Title</u></font></div>

<div><br>
</div>

<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; TEXT-INDENT: 0px">&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Press Release dated November 2, 2018 announcing the third quarter earnings for 2018.</font></div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

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

<div><br>
</div>

<div><br>
</div>

<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>

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<table id="z2ab49c2110ab49e69f90c3adbfdd2dc5" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 46.97%; VERTICAL-ALIGN: middle">&#160;</td>
<td style="WIDTH: 53.03%; VERTICAL-ALIGN: middle">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: justify">The Eastern Company</div>
</td>
</tr>

<tr>
<td style="WIDTH: 46.97%; VERTICAL-ALIGN: middle">&#160;</td>
<td style="WIDTH: 53.03%; VERTICAL-ALIGN: middle">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 46.97%; VERTICAL-ALIGN: middle">&#160;</td>
<td style="WIDTH: 53.03%; VERTICAL-ALIGN: middle">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 46.97%; VERTICAL-ALIGN: middle">&#160;</td>
<td style="WIDTH: 53.03%; VERTICAL-ALIGN: middle">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 46.97%; VERTICAL-ALIGN: middle">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Date: November 2, 2018</div>
</td>
<td style="WIDTH: 53.03%; VERTICAL-ALIGN: middle">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">/<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; FONT-WEIGHT: normal; FONT-STYLE: normal"><u>s/John L. Sullivan III</u></font></div>
</td>
</tr>

<tr>
<td style="WIDTH: 46.97%; VERTICAL-ALIGN: middle">&#160;</td>
<td style="WIDTH: 53.03%; VERTICAL-ALIGN: middle">
<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>
</font> Vice President and Chief Financial Officer</div>
</td>
</tr>
</table>

<div><br>
</div>

<div><br>
</div>

<br>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex99_3rdqtr2018.htm
<TEXT>
<html>
<head>
<title></title>
<!--Licensed to: THE EASTERN COMPANY
    Document created using EDGARfilings PROfile 4.4.0.0
    Copyright 1995 - 2018 Broadridge-->
</head>
<body style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif" bgcolor="#ffffff" text="#000000">
<div>
<div><br>
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; 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>

<div><br>
</div>

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

<div><br>
</div>

<div><br>
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">THE EASTERN COMPANY REPORTS EARNINGS OF $0.60 PER DILUTED SHARE</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">FOR THE THIRD QUARTER OF 2018, AN INCREASE OF 71% OVER THE SAME PERIOD IN 2017</div>

<div><br>
</div>

<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 third quarter of 2018.&#160; Sales for the third quarter were $57.4 million, compared to $56.0 million for the same period in 2017.&#160; Net income for the third quarter of 2018 was $3.8 million, or $0.60 per diluted share, compared to $2.2 million, or $0.35 per diluted share, for the same period last year.</div>

<div><br>
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Mr. August Vlak, President and CEO, stated that "the increase in sales for the third quarter of 2018 compared to the same period in 2017 reflects sustained growth across our Industrial Hardware and Security Products business segments.&#160; Our Industrial Hardware segment grew by 4% in the third quarter of 2018 compared with the third quarter of 2017.&#160; Our businesses are well-positioned to take advantage of growth in the heavy duty trucks, sports utility vehicles, and military markets, which more than offset deterioration in the market for recreational vehicles.&#160; Strong execution at our Eberhard Manufacturing business delivered two all-time record sales months in the third quarter of 2018.&#160; Sales in our Security Product segment grew by 5% in the third quarter of 2018 compared to the same period in 2017 due primarily to the strong growth of our Illinois Lock business and the acquisition of certain assets of Load N Lock Systems, Inc.&#160; In the third quarter of 2018, Illinois Lock completed the seamless integration of Load N Lock while earning ISO certification at the same time.&#160; In our Metal Products segment, sales for the third quarter of 2018 were down 10% compared to the third quarter of 2017 due primarily to lower sales of mining products, partially offset by strong growth of new industrial markets."</div>

<div><br>
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Net income increased 69% to $3.8 million for the third quarter of 2018 from $2.2 million for the comparable period of 2017.&#160; The growth in net income was primarily attributable to increased profitability of the Company's Eberhard Manufacturing and Illinois Lock businesses.&#160; While the Company increased total investment in new product development, it significantly reduced its investments in certain programs, including Road-iQ.&#160; Gross margins were 25% of net sales for the third quarter of 2018 compared to 21% of net sales for the third quarter of 2017.&#160; Mr. Vlak commented that "the favorable impact from changes in the product mix and price increases in response to higher raw material costs and cost absorption was partially offset by higher prices for steel, zinc, copper and scrap iron."</div>

<div><br>
</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: justify">Mr. Vlak further stated, "Looking ahead, we believe we are addressing economic uncertainties.&#160; Our businesses have been working with our customers to manage the increased tariffs with other countries.&#160; Our backlog remains strong going into the new year due, in part, to our subsidiary, Velvac Holdings, Inc., successfully capturing several significant new mirror programs.&#160; We strengthened our balance sheet by using cash repatriated from overseas subsidiaries to pay down outstanding debt in the third quarter and repurchasing 30,000 shares of our common stock between August 1 and October 31, 2018 pursuant to our previously announced share repurchase program.&#160; We are confident that our three-part strategy of optimizing our portfolio businesses, improving execution and building our balance sheet will generate long-term results for our shareholders"</div>

<div><br>
</div>

<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 third quarter and first nine months of 2018 and other matters on Tuesday, November 6, 2018 at 9:00 a.m. Eastern Time.&#160; Participants can access the conference call by phone at (888) 669-0687.&#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/1757/28155</font></div>

<div><br>
</div>

<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>

<div><br>
</div>

<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," "are confident," "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>

<div><br>
</div>

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

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

<div><br>
</div>

<div><br>
</div>

<div><br>
</div>

<div id="DSPFPageBreakArea" style="MARGIN-BOTTOM: 10pt; CLEAR: both; MARGIN-TOP: 10pt">
<div id="DSPFPageBreak" style="PAGE-BREAK-AFTER: always">
<hr style="BORDER-LEFT-WIDTH: 0px; HEIGHT: 2px; BORDER-RIGHT-WIDTH: 0px; WIDTH: 100%; BORDER-BOTTOM-WIDTH: 0px; COLOR: #000000; CLEAR: both; MARGIN: 4px 0px; BORDER-TOP-WIDTH: 0px; BACKGROUND-COLOR: #000000" noshade="noshade">
</div>
</div>

<div><br>
</div>

<table id="zad1d0d1468eb433d92c86e1caf451046" style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; WIDTH: 100%" cellspacing="0" cellpadding="0">
<tr>
<td style="WIDTH: 57.1%; VERTICAL-ALIGN: bottom" colspan="6">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><a name="RANGE!A1:J25"><!--Anchor--></a>Statement of Consolidated Income (unaudited)</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 57.1%; VERTICAL-ALIGN: bottom" colspan="6">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">THE EASTERN COMPANY (NASDAQ - EML)</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 35.03%; VERTICAL-ALIGN: bottom" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">THREE Months Ended</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 33.28%; VERTICAL-ALIGN: bottom" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">NINE Months Ended</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">13 wks</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">13 wks</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">39 wks</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">39 wks</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 2px solid">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">Sept 29, 2018</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 2px solid">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">Sept 30, 2017</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 2px solid">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">Sept 29, 2018</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 2px solid">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">Sept 30, 2017</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Net Sales</div>
</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; 57,357,442</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; 56,007,937</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$ 177,663,291</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; 50,095,975</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 22.07%; VERTICAL-ALIGN: bottom" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Net Income After Tax</div>
</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; 3,766,661</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160;&#160; 2,230,481</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160;&#160; 10,125,333</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160;&#160; 5,214,024</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 22.07%; VERTICAL-ALIGN: bottom" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Net Income Per Share:</div>
</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Basic</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 0.60</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160;&#160; 0.36</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 1.62</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 0.83</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Diluted</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 0.60</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160;&#160; 0.35</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 1.61</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">$&#160; &#160; &#160; &#160; &#160; &#160; &#160; 0.83</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 19.85%; VERTICAL-ALIGN: bottom" colspan="2">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Weighted average</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 22.07%; VERTICAL-ALIGN: bottom" colspan="3">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">&#160;&#160;&#160;shares outstanding:</div>
</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Basic</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,262,332</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,259,872</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,263,733</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,258,278</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Diluted</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,290,248</div>
</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,296,551</div>
</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,291,649</div>
</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">
<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: center">6,294,957</div>
</td>
</tr>

<tr>
<td style="WIDTH: 11.51%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 8.34%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.08%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 2.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 16.73%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 9.62%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 4.81%; VERTICAL-ALIGN: bottom">&#160;</td>
<td style="WIDTH: 14.23%; VERTICAL-ALIGN: bottom">&#160;</td>
</tr>
</table>

<div><br>
</div>
</div>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
