Core Insights - Hillman Solutions Corp. will participate in the Raymond James 46th Annual Institutional Investors Conference, highlighting its commitment to engaging with investors [1][2]. Company Overview - Hillman Solutions Corp. is a leading provider of hardware-related products and solutions, serving home improvement, hardware, and farm and fleet retailers across North America [4]. - The company has over 60 years of industry experience and is recognized for its customer service and competitive advantages, including direct-to-store shipping and a dedicated sales team of over 1,200 professionals [4]. - Hillman's product portfolio includes hardware solutions (fasteners, screws, nuts, and bolts), protective solutions (work gloves, jobsite storage, and protective gear), and robotic and digital solutions (key duplication and tag engraving) [4]. - The company has a strong distribution network and frequently earns vendor of the year recognition from top customers [4]. Event Details - Hillman's management team, including President and CEO Jon Michael Adinolfi, CFO Rocky Kraft, and Executive Chairman Doug Cahill, will hold one-on-one meetings on March 4, 2025, and Mr. Adinolfi will present on March 5, 2025, at 8:05 a.m. Eastern time [2][3]. - A live webcast of the presentation will be available, along with a replay [3].

Financial Performance - Net sales for the year ended December 28, 2024, were $1,472.6 million, a decrease of approximately $3.9 million or 0.3% compared to $1,476.5 million in 2023, primarily due to market softness and decreased volume, partially offset by acquisitions [188]. - Net income improved to $17.3 million, or $0.09 per diluted share, compared to a net loss of $9.6 million, or $(0.05) per diluted share for the year ended December 30, 2023 [188]. - Adjusted EBITDA totaled $241.8 million, an increase from $219.4 million in the year ended December 30, 2023 [188]. - Net sales for 2024 totaled $1,472.6 million, a decrease of $3.9 million compared to 2023, primarily driven by a $15.1 million decline in Robotics and Digital Solutions sales [195]. - Selling, warehouse, general and administrative expenses increased to $488.7 million, or 33.2% of net sales, compared to 30.6% in 2023 [189]. - Income from operations for Hardware and Protective Solutions surged to $56.8 million in 2024, a substantial increase of $48.4 million compared to 2023 [204]. - Robotics and Digital Solutions segment experienced a decline in income from operations by $19.1 million, primarily due to decreased net sales and increased SG&A expenses [205]. - Adjusted EBITDA for the year ended December 28, 2024, was $241.8 million, an increase from $219.4 million in 2023, representing a growth of 10.2% [215]. - Net income for the year ended December 28, 2024, was $17.3 million, compared to a net loss of $9.6 million in 2023, indicating a significant turnaround [215]. Acquisitions - The acquisition of Koch Industries, Inc. was completed for a total purchase price of $23.8 million, generating $39.9 million in net sales and $3.3 million in operating income for the year [178]. - The acquisition of Intex DIY, Inc. was completed for a total purchase price of $34.1 million, generating $21.1 million in net sales and $2.0 million in operating income for the year [181]. - The company completed the acquisition of Intex DIY, Inc. for $34.1 million and Koch Industries, Inc. for $23.8 million, enhancing its Hardware and Protective Solutions segment [226][227]. Bankruptcy and Financial Impact - True Value Company filed for Chapter 11 bankruptcy, accounting for approximately $8.8 million of the company's accounts receivable as of the filing date [182]. - The company recorded a charge of $8.6 million related to the True Value bankruptcy, reflecting the net receivable balances less expected recoveries [184]. - The company recorded a write-off of $8.6 million in accounts receivable due to the True Value bankruptcy, impacting G&A expenses [203]. - The company recorded a write-off of $8.6 million in receivables due to True Value's Chapter 11 filing, which was included in the revised Adjusted EBITDA figures [214]. Cost and Expenses - The company’s cost of sales for the year ended December 28, 2024, was $764.7 million, representing 51.9% of net sales, compared to 56.1% in 2023 [189]. - Cost of sales for Hardware and Protective Solutions decreased to 55.9% of net sales in 2024 from 61.4% in 2023, attributed to reduced product and shipping costs [197]. - Selling, General and Administrative (SG&A) expenses increased by $36.6 million in 2024, with significant contributions from acquisitions and increased compensation [199][200]. Currency and Market Impact - The U.S. dollar increased in value relative to the Canadian dollar by approximately 9.0% in 2024, impacting sales denominated in Canadian dollars [176]. - Hardware and Protective Solutions segment saw an increase in net sales by $19.8 million, while Canada segment net sales decreased by $8.6 million due to price reductions and unfavorable exchange rates [195][196]. Tax and Interest - The effective income tax rate for 2024 was 35.0%, compared to (29.9)% in 2023, with an income tax provision of $9.3 million recorded for 2024 [208]. - Interest expense decreased by $9.1 million in 2024, driven by reduced outstanding debt and lower interest rate spreads [207]. Capital Expenditures and Cash Flow - Capital expenditures for the year were $85.2 million, up from $65.8 million in 2023, reflecting ongoing investments in key duplicating kiosks and machines [225]. - Net cash provided by operating activities decreased to $183.3 million in 2024 from $238.0 million in 2023, a decline of 23.0% [222]. - The company expects to spend $90 million on capital expenditures in 2025, focusing on new kiosks, machines, and IT projects [232]. Goodwill and Fair Value - The carrying value of the Protective Solutions reporting unit's goodwill was $128.8 million, and the Hardware Solutions reporting unit's goodwill was $436.8 million as of December 28, 2024 [242]. - The company assesses the fair value of reporting units annually, with results indicating that fair value exceeded carrying value for 2024, 2023, and 2022 [240]. - Significant assumptions for fair value estimates include projected net sales and EBITDA growth rates, which are influenced by market growth rates and competitive environment [241]. - The company utilizes foreign exchange forward contracts to manage exposure to currency fluctuations in the Canadian dollar versus the U.S. Dollar [247]. - The company has adopted ASU 2017-04, simplifying the test for goodwill impairment by comparing fair value with carrying amount [238]. - Management's strategies may mitigate risks, but adverse changes could lead to future impairment charges for goodwill [242]. - The company’s discount rate is based on industry required rates of return and may be impacted by macroeconomic changes [241].

Hillman Solutions (HLMN) Q4 2024 Earnings Call February 18, 2025 08:54 PM ET Company Participants Michael Koehler - VP of Investor Relations & TreasuryDouglas Cahill - Executive ChairmanJon Michael Adinolfi - President & CEORobert Kraft - CFO & TreasurerRyan Merkel - Co-Group Head–IndustrialsWill Gildea - Equity Research Associate Conference Call Participants Brian McNamara - MD - Senior Analyst ConsumerMatthew Bouley - Senior Equity Research AnalystBrian Butler - AnalystDavid Manthey - Senior Research Anal ...

Hillman Solutions Corp. (NASDAQ:HLMN) Q4 2024 Earnings Conference Call February 18, 2025 8:30 AM ET Company Participants Michael Koehler - Vice President of Investor Relations and Treasury Jon Michael Adinolfi - President and Chief Executive Officer Robert Kraft - Chief Financial Officer Douglas Cahill - Executive Chairman Conference Call Participants Brian McNamara - Canaccord Genuity Ryan Merkel - William Blair Matthew Bouley - Barclays Brian Butler - Stifel David Manthey - Robert W. Baird Reuben Garner - ...

Core Viewpoint - Hillman Solutions Corp. reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.11 per share, representing an earnings surprise of -9.09% [1][2] Financial Performance - The company posted revenues of $349.56 million for the quarter ended December 2024, which was 0.62% below the Zacks Consensus Estimate and a slight increase from $347.81 million year-over-year [2] - Over the last four quarters, Hillman Solutions has surpassed consensus EPS estimates two times and topped revenue estimates just once [2] Stock Performance - Hillman Solutions shares have increased approximately 6.4% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $362.43 million, and for the current fiscal year, it is $0.57 on revenues of $1.55 billion [7] - The estimate revisions trend for Hillman Solutions is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Building Products - Miscellaneous industry, to which Hillman Solutions belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Hillman Reports Record Fourth Quarter 2024 Results; Provides 2025 Guidance CINCINNATI, February 18, 2025 -- Hillman Solutions Corp. (Nasdaq: HLMN) (the "Company" or "Hillman"), a leading provider of hardware products and merchandising solutions, reported financial results for the thirteen and fifty-two weeks ended December 28, 2024. Fourth Quarter 2024 Highlights (Thirteen Weeks Ended December 28, 2024) Full Year 2024 Highlights (Fifty-Two Weeks Ended December 28, 2024) • Net sales decreased (0.3)% to $1.47 ...

CINCINNATI, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the “Company” or “Hillman”), a leading provider of hardware products and merchandising solutions, reported financial results for the thirteen and fifty-two weeks ended December 28, 2024. Fourth Quarter 2024 Highlights (Thirteen Weeks Ended December 28, 2024) Net sales increased 0.5% to $349.6 million compared to $347.8 million in the prior year quarterNet loss totaled $(1.2) million, or $(0.01) per diluted share, compared ...

CINCINNATI, Jan. 24, 2025 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (NASDAQ:HLMN) ("Hillman"), a leading provider of hardware products and merchandising solutions, plans to host a conference call to discuss its results for the thirteen and fifty-two weeks ended December 28, 2024 on Tuesday, February 18 at 8:30 a.m. Eastern Time. Hillman will issue its earnings release and 2025 guidance on the same day prior to the results presentation. Executive Chairman Doug Cahill; President and Chief Executive Officer ...

CINCINNATI, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (NASDAQ:HLMN) (the "Company" or "Hillman"), a leading provider of hardware products and merchandising solutions, successfully repriced its existing $643 million Term Loan due July 14, 2028. The repricing reduces Hillman's interest rate margin by 25 basis points to SOFR + 200 basis points, based on current leverage and elections. The expected annualized interest savings are approximately $1.6 million, before one-time fees of approximately ...

Financial Data and Key Metrics Changes - For Q3 2024, net sales totaled $393.3 million, a decrease of 1.4% compared to the prior year quarter [21] - Adjusted EBITDA increased by 9% to $72.6 million, with adjusted EBITDA margins improving to 18.4% [22][55] - Adjusted gross margins for the quarter were 48.2%, marking a 400 basis point improvement over the previous year [23] Business Line Data and Key Metrics Changes - Hardware and Protective Solutions (HPS), the largest segment, saw net sales increase by 0.1% year-over-year, with adjusted EBITDA rising by 19.8% [24] - Robotics and Digital Solutions (RDS) net sales decreased by 5.3% compared to the prior year quarter, but adjusted gross margins remained healthy at 72.3% [25][26] - Canadian business net sales were down 6.5% year-over-year, but the company expects to maintain 10% adjusted EBITDA margins in Canada [27] Market Data and Key Metrics Changes - The U.S. housing market is projected to see existing home sales at a 30-year low of 3.8 million in 2024, down from over 6 million in 2021 [15] - Homeowners in the U.S. are sitting on a record $35 trillion of home equity, which has increased by 81% since the end of 2019 [14] Company Strategy and Development Direction - The company is focused on strengthening relationships with customers and reinforcing its competitive moat, as evidenced by recent vendor awards from Lowe's and Home Depot [31] - The acquisition of Intex is expected to enhance product offerings and leverage cross-selling opportunities with existing customers [43][46] - The company aims to grow both top line and bottom line in 2025, anticipating a historic run in home improvement projects as macroeconomic conditions improve [12][18] Management's Comments on Operating Environment and Future Outlook - Management believes that lower interest rates will stimulate home improvement projects and existing home sales, driving demand for their products [14][15] - The company has seen an 18% increase in trailing 12-month adjusted EBITDA compared to the previous year, despite headwinds in unit volume [18] - Management expressed confidence in returning to historic growth rates in 2025, assuming favorable macroeconomic conditions [73] Other Important Information - The company has adjusted its 2024 full-year net sales guidance to a range of $1.455 billion to $1.485 billion, with a midpoint of $1.47 billion, reflecting a 4% increase over the previous year [20][62] - A $7.8 million charge was taken for receivables related to True Value's Chapter 11 filing, which is expected to have a limited long-term impact on the business [70][68] Q&A Session Summary Question: Trends in foot traffic and demand expectations for 2025 - Management noted that while volume remains soft, margins are strong, and they anticipate a return to growth in 2025 as macro conditions improve [80] Question: Impact of potential tariff increases on cost structure - Management indicated they would work with retailers to pass on costs dollar-for-dollar if tariffs increase, maintaining flexibility in sourcing [82][83] Question: Details on Intex's customer partnerships and revenue expectations - Intex sells to major customers like Home Depot and Walmart, with expectations for low double-digit growth in the coming year [85][92] Question: SG&A expectations for Q4 and 2025 - SG&A as a percentage of sales is expected to be slightly above 31% in Q4, with a full-year expectation of around 30% [94] Question: RDS segment growth opportunities - Management expressed confidence in the growth of the RDS segment, particularly with the rollout of MinuteKey 3.5 machines [87][100]