<SEC-DOCUMENT>0000031107-19-000033.txt : 20191107
<SEC-HEADER>0000031107-19-000033.hdr.sgml : 20191107
<ACCEPTANCE-DATETIME>20191107160902
ACCESSION NUMBER:		0000031107-19-000033
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20191107
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191107
DATE AS OF CHANGE:		20191107

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:			1228

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35383
		FILM NUMBER:		191200380

	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>8k3rdqtr2019earnings.htm
<TEXT>
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  <div style="text-align: center; font-size: 14pt; font-weight: bold;">UNITED STATES</div>
  <div style="text-align: center; font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
  <div style="text-align: center; font-weight: bold;">Washington, D.C. 20549</div>
  <div style="margin-top: 12pt;"><br>
  </div>
  <div style="text-align: center; margin-top: 12pt; font-size: 14pt; font-weight: bold;">FORM 8-K</div>
  <div><br>
  </div>
  <div style="text-align: center; font-weight: bold;">CURRENT REPORT</div>
  <div style="text-align: center; font-weight: bold;">Pursuant to Section 13 or 15(d) of the</div>
  <div style="text-align: center; font-weight: bold;">Securities Exchange Act of 1934</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div style="text-align: center;"><u>Date of Report:</u><font style="font-weight: bold;"><u> November 7, 2019</u></font></div>
  <div style="text-align: center;">(Date of earliest event reported)</div>
  <div><br>
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  <div style="text-align: center; margin-top: 8pt; font-size: 18pt; font-weight: bold;">The Eastern Company</div>
  <div style="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 cellspacing="0" cellpadding="0" id="zfc5f304e8ba24bcfbd79980894b061a0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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          <div style="text-align: center; font-weight: bold;"><u>Connecticut</u></div>
        </td>
        <td style="width: 34.29%; vertical-align: top;">
          <div style="text-align: center; font-size: 12pt; font-weight: bold;"><u>001-35383</u></div>
        </td>
        <td style="width: 30.26%; vertical-align: top;">
          <div style="text-align: center; font-weight: bold;"><u>06-0330020</u></div>
        </td>
      </tr>
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        <td style="width: 35.45%; vertical-align: top;">
          <div style="text-align: center;">(State or other jurisdiction</div>
        </td>
        <td style="width: 34.29%; vertical-align: top;">
          <div style="text-align: center;">(Commission File Number)</div>
        </td>
        <td style="width: 30.26%; vertical-align: top;">
          <div style="text-align: center;">(IRS Employer</div>
        </td>
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        <td style="width: 35.45%; vertical-align: top;">
          <div style="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="text-align: center;">Identification No.)</div>
        </td>
      </tr>

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          <div style="text-align: center; font-weight: bold;"><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="text-align: center; font-weight: bold;">&#160;<u>06770</u></div>
        </td>
      </tr>
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        <td style="width: 55.43%; vertical-align: top;">
          <div style="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="text-align: center;">(Zip Code)</div>
        </td>
      </tr>

  </table>
  <div><br>
  </div>
  <div><br>
  </div>
  <div style="text-align: center; font-weight: bold;"><u>(203) 729-2255</u></div>
  <div style="text-align: center;">&#160;(Registrant&#8217;s telephone number, including area code)</div>
  <div><br>
  </div>
  <div style="text-align: center;">________________________________________________</div>
  <div style="text-align: center;">(Former name or former address, if changed since last report)</div>
  <div><br>
  </div>
  <div style="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="text-align: justify;">[ ]&#160; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>
  <div><br>
  </div>
  <div style="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="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="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="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="text-align: right;">Emerging Growth Company <font style="font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></div>
  <div><br>
  </div>
  <div style="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-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></div>
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  </div>
  <div style="text-align: justify;">ITEM 2.02 &#8211; Results of Operations and Financial Condition</div>
  <div><br>
  </div>
  <div style="text-align: justify;">Press Release dated November 7, 2019 announcing the third quarter earnings for 2019 that includes unaudited financial information, is attached hereto as
    Exhibit 99.1.</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>ITEM 7.01 &#8211; Regulation FD Disclosure</div>
  <div><br>
  </div>
  <div style="text-align: justify;">On November 7, 2019, The Eastern Company released the third quarter earnings of 2019 that included unaudited financial information.&#160; A copy of the Press
    Release dated November 7, 2019 announcing the third quarter earnings for 2019 that includes unaudited financial information, is attached hereto as Exhibit 99.1.</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div>ITEM 9.01 &#8211; Financial Statements and Exhibits</div>
  <div><br>
  </div>
  <div>(d) Exhibits</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><u>Exhibit No.</u>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Title</u></div>
  <div><br>
  </div>
  <div>99.1<font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 72pt">&#160;</font>Press Release dated November 7, 2019 announcing the third quarter earnings for 2019.</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div><br>
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  <div style="text-align: center;">SIGNATURES</div>
  <div><br>
  </div>
  <div><br>
  </div>
  <div style="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>
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          <div style="text-align: justify; font-weight: bold;">The Eastern Company</div>
        </td>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
        <td style="width: 53.03%; vertical-align: middle;">&#160;</td>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
        <td style="width: 53.03%; vertical-align: middle;">&#160;</td>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
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          <div style="text-align: justify;">Date: November 7, 2019</div>
        </td>
        <td style="width: 53.03%; vertical-align: middle;">
          <div style="text-align: justify;"><u>/s/John L. Sullivan III</u></div>
        </td>
      </tr>
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        <td style="width: 46.97%; vertical-align: middle;">&#160;</td>
        <td style="width: 53.03%; vertical-align: middle;">
          <div>John L. Sullivan III<br>
            Vice President and Chief Financial Officer</div>
        </td>
      </tr>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex99-1.htm
<TEXT>
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  <div>
    <div style="text-align: right;">Exhibit 99.1</div>
    <div style="text-align: justify;">FOR IMMEDIATE RELEASE</div>
    <div style="text-align: justify;">November 7, 2019</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; font-weight: bold;">THE EASTERN COMPANY REPORTS AN 11.3% INCREASE IN THIRD QUARTER 2019 EARNINGS TO $0.67 PER SHARE, AND A 5.8% INCREASE&#160;IN SALES TO $60.7 MILLION</div>
    <div><br>
    </div>
    <div style="text-align: center; font-style: italic; font-weight: bold;">BIG 3 PRECISION EXPECTEDTO BE ACCRETIVE TO FULL-YEAR EPS BEFORE TRANSACTION EXPENSES</div>
    <div><br>
    </div>
    <div style="text-align: justify;">NAUGATUCK, CT &#8211; November 7, 2019 - The Eastern Company (&#8220;Eastern&#8221;) (NASDAQ:EML), an industrial manufacturer of unique engineered solutions serving niche industrial markets, today announced the results of operations for
      the third quarter ended September 28, 2019.</div>
    <div><br>
    </div>
    <div style="margin-bottom: 7.5pt;">President and CEO August Vlak said, &#8220;Eastern delivered strong results reflecting the strength of our diverse portfolio of leading niche industrial businesses and our focus on growing the operational performance of our
      businesses.&#160; Success of new product launches and continued strength in commercial transportation markets also contributed to our sales growth for the quarter. From a segment perspective, third-quarter sales growth was led by our Industrial Hardware
      Segment, which included one month of Big 3 Precision, a leading provider of engineered turnkey packaging.&#160; We acquired Big 3 Precision on August 30, 2019.</div>
    <div style="margin-bottom: 7.5pt;">&#8220;Sales gains and improved operating profitability resulted in an 11.3% increase in earnings to $0.67 per diluted share in the third quarter of 2019, compared to earnings per<font style="font-size: 12pt;">&#160;</font>diluted

      share of $0.60 in the third quarter of 2018.</div>
    <div style="margin-bottom: 7.5pt;">&#8220;Our backlog grew significantly as a result of the acquisition of Big 3 Precision and remains robust through the end of the year. We anticipate continued strong performance of our businesses as a result of planned new
      product launches, which reflect our focus on highly engineered, value-added products. In addition, Big 3 Precision&#8217;s robust operating results support our conviction that the business will be a significant contributor to our top line, earnings growth
      and cash flow in 2019. We expect the acquisition to be accretive to our full-year results before transaction expenses.&#8221;</div>
    <div style="margin-bottom: 7.5pt;">Mr. Vlak concluded, &#8220;Our acquisition of Big 3 Precision is an important step toward our long-term goal of building a larger and stronger company with a significant presence with key customers and $100 million in
      EBITDA. We remain confident that our strategy of continually optimizing Eastern&#8217;s portfolio of businesses, improving execution, and ensuring a solid and flexible balance sheet will generate positive long-term results for our shareholders.&#8221;</div>
    <div style="margin-bottom: 7.5pt; font-weight: bold;">Third Quarter 2019 Financial Results</div>
    <div style="margin-bottom: 7.5pt;">Net sales for the third quarter 2019 were $60.7 million compared to $57.4 million for the same period in 2018, an increase of 5.8%. Strong sales growth in our Industrial Hardware Segment was partly offset by a decline
      in our Security Products Segment. Gross margin was 25% in both the third quarter of 2019 and the third quarter of 2018. Product development expenses decreased $1.2 million, or 59%, in the third quarter of 2019 as compared to the prior year period,
      primarily as the result of our decision to close the Velvac Road IQ development operations and adopt a leaner approach to the development of new vision products. Selling and administration expenses increased $0.9 million, or 12%, in the third quarter
      of 2019 compared to the prior year period, including approximately $0.8 million of one-time transaction expenses related to the acquisition of Big 3 Precision.</div>
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    <div style="margin-bottom: 7.5pt;"><br>
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    <div style="margin-bottom: 7.5pt;">Net income for the third quarter of 2019 was $4.2 million, or $0.67 per diluted share, compared to $3.8 million, or $0.60 per diluted share, for the prior year period, an increase of 11.3%.</div>
    <div style="margin-bottom: 7.5pt;">In the Industrial Hardware Segment, sales in the third quarter 2019 rose 15% to $39.4 million compared to the same period in 2018. Results for the third quarter 2019 include the addition of Big 3 Precision after
      August 30, 2019.&#160; Operating income for the third quarter of 2019 was $3.4 million for an operating profit margin of 9% as compared to $1.8 million for an operating profit margin of 5% for the same period last year, reflecting the impact of operating
      improvements and cost management, partly offset by short-term costs related to a Class 8 truck mirror program awarded in late 2018.</div>
    <div>In the Security Products Segment, sales for the third quarter 2019 declined by 16% to $14.2 million, compared to the same period in 2018. Sales from the Load N Lock business which was acquired in June 2018 partially offset the impact of lower
      demand for commercial laundry products, a decline in security products for point-of-sale and retail applications, and the termination of a supply contract for mechatronic padlock systems in the second quarter of 2019. Operating income for the
      Security Products Segment was $1.8 million for the third quarter of 2019, a 27% decline compared to the same period in 2018.</div>
    <div><br>
    </div>
    <div>In the Metal Products Segment, sales rose 14% for the third quarter of 2019 compared to the same period in 2018. Operating income was $0.5 million for the third quarter of 2019, 7.3% higher than the same period in 2018.</div>
    <div><br>
    </div>
    <div style="font-weight: bold;">Nine Month 2019 Financial Results</div>
    <div><br>
    </div>
    <div>Net sales for the first nine months of 2019 were $183.0 million compared to $177.7 million in the first nine months of 2018, an increase of 3%, which includes one month of impact from the acquisition of Big 3 Precision. Net income for the first
      nine months of 2019 was $8.3 million, or $1.33 per diluted share, compared to $10.1 million, or $1.61 per diluted share for the first nine months of 2018, a decrease of 18% from the prior-year period. Net income for the first nine months of 2019
      includes $2.6 million of one-time restructuring costs associated with the closure of the Velvac Road IQ development operations, the consolidation of Eastern&#8217;s Composite Panel Technologies facility, and $1.2 million of one-time, non-tax deductible
      transaction expenses related to the acquisition of Big 3 Precision. Together, non-recurring expenses in the first nine months of 2019 equaled $3.8 million, or $0.51 per diluted share.</div>
    <div><br>
    </div>
    <div style="font-weight: bold;">Conference Call and Webcast</div>
    <div><br>
    </div>
    <div>The Eastern Company will host a conference call to discuss its results for the third quarter of 2019 and other matters on Friday, November 8, 2019 at 9:00 Eastern Time. Participants can access the conference call by phone at (888) 669-0687 (toll
      free in US &amp; Canada) or (862) 298-0702 (international). Participants can also join via the web at <u>https://www.webcaster4.com/Webcast/Page/1757/32067</u>.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">About The Eastern Company</div>
    <div><br>
    </div>
    <div>The Eastern Company manages industrial businesses that design, manufacture and sell unique engineered solutions to niche markets, focusing on industries that offer long-term macroeconomic growth opportunities The Company operates in three business
      segments -- Industrial Hardware, Security Products and Metal Products -- from 18 locations in the U.S., Canada, Mexico, U.K., Taiwan and China.</div>
    <div><br>
    </div>
    <div style="text-align: justify; font-weight: bold;">Safe Harbor for Forward-Looking Statements</div>
    <div><br>
    </div>
    <div style="margin-bottom: 6pt;">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</div>
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    <div style="margin-bottom: 6pt;"><br>
    </div>
    <div style="margin-bottom: 6pt;">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. 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. 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, cybersecurity breaches, changes in competition in our markets, and
      increased prices for raw materials resulting from tariffs on imported goods or otherwise. 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. 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-weight: bold;">Investor Relations Contacts</div>
    <div><br>
    </div>
    <div><font style="font-weight: bold;">The Eastern Company</font><br>
      August Vlak or John L. Sullivan III</div>
    <div>203-729-2255</div>
    <div><br>
    </div>
    <div style="font-weight: bold;">LHA Investor Relations</div>
    <div>Jody Burfening</div>
    <div>212.838.3777</div>
    <div style="text-align: justify;"><u>JBurfening@lhai.com</u></div>
    <div><br>
    </div>
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    <div style="text-align: center; font-weight: bold;">THE EASTERN COMPANY AND SUBSIDIARIES</div>
    <div style="text-align: center; font-weight: bold;">CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)</div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" id="zb4ab316620914f7199fc93d0989fe580" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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          <td style="width: 32.86%; vertical-align: bottom; border-bottom: #000000 2px solid;" colspan="6">
            <div style="text-align: center; font-weight: bold;">Three Months Ended</div>
          </td>
          <td style="width: 33.55%; vertical-align: bottom; border-bottom: #000000 2px solid;" colspan="7">
            <div style="text-align: center; text-indent: 0.15pt; font-weight: bold;">Nine Months Ended</div>
          </td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-weight: bold;">September 28, 2019</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
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          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: center; font-weight: bold;">September 28, 2019</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 2px solid;">
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          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="font-weight: bold;">Net sales</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">60,692,645</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">57,357,442</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">183,015,723</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">177,663,291</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt;">Cost of products sold</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">(45,754,911</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">(43,139,780</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">(139,243,164</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">(133,670,797</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div>Gross margin</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">14,937,734</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">14,217,662</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">43,772,559</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">43,992,494</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div>Product development expenses</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(825,425</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">(2,004,919</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(5,240,004</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">(5,089,178</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt;">Selling and administrative expenses</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(8,391,898</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">(7,472,335</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(24,866,665</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">(25,602,515</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt;">Restructuring costs</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">(2,651,877</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt;">Operating profit</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">5,720,411</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">4,740,408</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">11,014,013</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">13,300,801</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt;">Interest expense</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(420,377</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">(310,507</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(974,536</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">(918,897</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt;">Other income</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">188,623</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">228,787</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">789,371</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">673,287</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="font-weight: bold;">Income before income taxes</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">5,488,657</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">
            <div style="text-align: right;">4,658,688</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">10,828,848</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">
            <div style="text-align: right;">13,055,191</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div>Income taxes</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">1,295,575</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">892,027</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">2,535,033</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">2,929,858</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="font-weight: bold;">Net income</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">4,193,082</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">3,766,661</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">8,293,815</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">10,125,333</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="font-weight: bold;">Earnings per Share:</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 29.9pt;">Basic</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">.67</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">.60</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">1.33</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">1.62</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 29.9pt;">Diluted</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">.67</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">.60</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">1.33</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">1.61</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.29%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom;">&#160;</td>
          <td style="width: 13.94%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 12.49%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 32.18%; vertical-align: bottom;">
            <div style="text-indent: -18pt; margin-left: 18pt; font-weight: bold;">Cash dividends per share:</div>
          </td>
          <td style="width: 1.42%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.29%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">.11</div>
          </td>
          <td style="width: 2.17%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.44%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.3%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">.11</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.53%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">$</div>
          </td>
          <td style="width: 13.94%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">.33</div>
          </td>
          <td style="width: 2.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.43%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
          </td>
          <td style="width: 12.49%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">.33</div>
          </td>
          <td style="width: 1.03%; vertical-align: bottom;">&#160;</td>
          <td style="width: 0.23%; vertical-align: top;">&#160;</td>
        </tr>

    </table>
    <div><br>
    </div>
    <div style="text-align: justify; font-style: italic;">See accompanying notes in the Company&#8217;s third quarter 2019 form 10-Q.</div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: right;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">4</font></div>
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div><br>
    </div>
    <div style="text-align: center; margin-left: 4pt; font-weight: bold;">THE EASTERN COMPANY AND SUBSIDIARIES</div>
    <div style="text-align: center; margin-left: 4pt; font-weight: bold;">CONDENSED CONSOLIDATED BALANCE SHEETS</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" id="zb51a525f8fc24dbaba6ec29421e466c8" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="font-weight: bold;">ASSETS</div>
            <div>&#160;</div>
            <div>&#160;</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 17.52%; vertical-align: bottom; border-bottom: 2px solid black;" colspan="2">
            <div style="text-align: center; font-weight: bold;">September 28, 2019</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 16.35%; vertical-align: bottom; border-bottom: 2px solid black;" colspan="2">
            <div style="text-align: center;">December 29, 2018</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 17.52%; vertical-align: bottom;" colspan="2">
            <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 16.35%; vertical-align: bottom;" colspan="2">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Current Assets</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Cash and cash equivalents</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; text-align: right;">
            <div style="font-weight: bold;">$</div>
          </td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">11,983,329</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; text-align: right;">
            <div>$</div>
          </td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">13,925,765</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Marketable securities</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">33,759</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Accounts receivable, less allowances: $546,000 - 2019; $680,000 -2018</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">43,536,854</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">30,285,316</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Inventories</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">52,761,230</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">52,773,209</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Prepaid expenses and other assets</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">4,421,384</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">3,071,888</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Refundable taxes</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; font-weight: bold;">1,081,011</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right;">1,133,847</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom; padding-bottom: 2px;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt; font-weight: bold;">Total Current Assets</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; font-weight: bold;">113,817,567</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right;">101,190,025</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Property, Plant and Equipment</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">87,406,814</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">73,768,615</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Accumulated depreciation</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">(46,563,361</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">(43,915,238</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right; font-weight: bold;">40,843,453</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);">
            <div style="text-align: right;">29,853,377</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Goodwill</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">78,965,485</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">34,840,376</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Trademarks</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">5,479,063</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">3,686,063</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Patents and other intangibles net of accumulated amortization</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">28,454,738</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">10,281,720</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Right of Use Assets</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">10,280,814</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Deferred income taxes</div>
          </td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">1,396,006</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">1,396,006</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.3%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">124,576,106</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.1%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">50,204,165</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.69%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">TOTAL ASSETS</div>
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          <td style="width: 2.21%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 4px double;">
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          <td style="width: 15.3%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">279,237,125</div>
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">$</div>
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          <td style="width: 14.1%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">181,247,567</div>
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          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>

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    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div style="text-align: right;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">5</font></div>
      <div id="DSPFPageBreak" style="page-break-after:always;">
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    <div style="text-align: center; margin-left: 4pt; font-weight: bold;">THE EASTERN COMPANY AND SUBSIDIARIES</div>
    <div style="text-align: center; margin-left: 4pt; font-weight: bold;">CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)</div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <div><br>
    </div>
    <table cellspacing="0" cellpadding="0" id="zb01833e2d1e44136b6258fb0645ff34d" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="font-weight: bold;">LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 17.04%; vertical-align: bottom; border-bottom: 2px solid black;" colspan="2">
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
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            <div style="text-align: center; font-weight: bold;">(Unaudited)</div>
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Current Liabilities</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Accounts payable</div>
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          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">20,457,928</div>
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">18,497,626</div>
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          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Accrued compensation</div>
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          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">3,579,677</div>
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">4,159,808</div>
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          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Other accrued expenses</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">6,134,991</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">3,095,666</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Contingent liability</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">2,070,000</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Current portion of long-term debt</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">5,187,689</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">2,325,000</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Total Current Liabilities</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">35,360,285</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">30,148,100</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Deferred income taxes</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">8,630,744</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">1,516,012</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Other long-term liabilities</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">1,703,535</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">353,856</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Lease Liability</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">10,280,814</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Long-term debt, less current portion</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">94,852,921</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">26,350,000</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Accrued postretirement benefits</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">326,489</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">648,635</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Accrued pension cost</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">24,470,438</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">25,362,325</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Shareholders&#8217; Equity</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">&#160;Preferred Stock, no par value:</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
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          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">30,440,228</div>
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          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">29,994,890</div>
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          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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        <tr>
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            <div style="text-align: justify; text-indent: -18pt; margin-left: 47.2pt;">Issued: 8,973,046 shares in 2019 and 8,965,987 shares in 2018</div>
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          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
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          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Treasury Stock: 2,734,729 shares in 2019 and 2,634,729 shares in 2018</div>
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          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(20,169,098</div>
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          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">(20,169,098</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Retained earnings</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">115,906,469</div>
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">109,671,362</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 29.9pt;">Accumulated other comprehensive income (loss):</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
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        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 47.2pt;">Foreign currency translation</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(2,452,986</div>
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          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">(2,106,329</div>
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          <td style="width: 1.73%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 47.2pt;">Unrealized loss on marketable securities, net of tax</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(882</div>
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          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">&#8212;</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 47.2pt;">Unrealized gain (loss) on interest rate swap, net of tax</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom;">
            <div style="text-align: right; font-weight: bold;">(104,422</div>
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          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 2.25%; vertical-align: bottom;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom;">
            <div style="text-align: right;">166,444</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 47.2pt;">Unrecognized net pension and postretirement benefit costs, net of tax</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">(20,007,409</div>
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          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
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          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">(20,688,630</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
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        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; text-indent: -18pt; margin-left: 40.5pt;">&#160;&#160;&#160;Accumulated other comprehensive loss</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">(22,565,699</div>
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          <td style="width: 1.5%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">)</div>
          </td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">(22,628,515</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">
            <div style="text-align: justify;">)</div>
          </td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">Total Shareholders&#8217; Equity</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 15.13%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right; font-weight: bold;">103,611,900</div>
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          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: #000000 2px solid;">&#160;</td>
          <td style="width: 14.15%; vertical-align: bottom; border-bottom: #000000 2px solid;">
            <div style="text-align: right;">96,868,639</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 60.9%; vertical-align: bottom;">
            <div style="text-align: justify; font-weight: bold;">TOTAL LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</div>
          </td>
          <td style="width: 2.43%; vertical-align: bottom;">&#160;</td>
          <td style="width: 1.91%; vertical-align: bottom; border-bottom: 4px double rgb(0, 0, 0); text-align: right;">
            <div style="font-weight: bold;">$</div>
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          <td style="width: 15.13%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right; font-weight: bold;">279,237,125</div>
          </td>
          <td style="width: 1.5%; vertical-align: bottom;">&#160;</td>
          <td style="width: 2.25%; vertical-align: bottom; border-bottom: 4px double rgb(0, 0, 0); text-align: right;">
            <div>$</div>
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          <td style="width: 14.15%; vertical-align: bottom; border-bottom: #000000 4px double;">
            <div style="text-align: right;">181,247,567</div>
          </td>
          <td style="width: 1.73%; vertical-align: bottom;">&#160;</td>
        </tr>

    </table>
    <div><br>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify; font-style: italic;">See accompanying notes in the Company&#8217;s third quarter 2019 form 10-Q.</div>
    <div><br>
    </div>
  </div>
  <div> <br>
  </div>
  <div> <br>
  </div>
  <div style="text-align: right;" id="DSPFPageNumberArea"><font style="font-size: 8pt; font-weight: normal; font-style: normal;" id="DSPFPageNumber">6</font></div>
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</SEC-DOCUMENT>
