Financial Performance - Net sales increased by 2.6% to $359.3 million compared to $350.3 million in the prior year quarter[6] - Net loss totaled $(0.3) million, or $(0.00) per diluted share, compared to $(1.5) million, or $(0.01) per diluted share, in the prior year quarter[6] - Adjusted EBITDA increased to $54.5 million compared to $52.3 million in the prior year quarter[6] - Net loss for the thirteen weeks ended March 29, 2025, was $317,000, a significant improvement from a net loss of $1,492,000 for the same period in 2024, representing a reduction of approximately 78.8%[20] - Adjusted EBITDA for the thirteen weeks ended March 29, 2025, was $54,526,000, compared to $52,322,000 for the same period in 2024, reflecting an increase of about 4.2%[24] - The company’s diluted earnings per share for the thirteen weeks ended March 29, 2025, was $0.10, unchanged from the same period in 2024, indicating stable performance in this metric[27] Cash Flow and Liquidity - Free Cash Flow totaled $(21.3) million compared to $(6.1) million in the prior year quarter[6] - Free cash flow for the thirteen weeks ended March 29, 2025, was $(21,313,000), a decline from $(6,083,000) in the same period of 2024, indicating a worsening cash generation situation[33] - Cash and cash equivalents at the end of the period were $36,309,000, up from $30,672,000 at the end of the same period in 2024, showing an increase of approximately 18.0%[20] - Net cash provided by financing activities for the thirteen weeks ended March 29, 2025, was $14,393,000, down from $20,411,000 in the same period of 2024, a decrease of about 29.5%[20] Debt and Capital Expenditures - Net debt as of March 29, 2025, was $703,663,000, an increase from $674,045,000 as of December 28, 2024, representing a rise of approximately 4.4%[31] - The company incurred capital expenditures of $20,658,000 for the thirteen weeks ended March 29, 2025, compared to $17,759,000 for the same period in 2024, reflecting an increase of approximately 10.7%[20] Guidance and Strategic Focus - Full Year 2025 guidance for Net Sales is reiterated at $1.495 to $1.575 billion[8] - Full Year 2025 guidance for Adjusted EBITDA is reiterated at $255 to $275 million[8] - The company plans to manage its business to end the year with a leverage ratio of around 2.5 times[8] - The acquisition of Intex DIY in August 2024 contributed to the growth in both top and bottom lines[5] - The company is focusing on diversifying its supply chain to mitigate the impact of tariffs[5] Adjusting Items and Expenses - Total adjusting items for Adjusted EBITDA in the thirteen weeks ended March 29, 2025, amounted to $5,607,000, compared to $7,434,000 in the same period of 2024, indicating a decrease of about 24.5%[24] - The company reported a stock-based compensation expense of $3,278,000 for the thirteen weeks ended March 29, 2025, compared to $2,829,000 for the same period in 2024, an increase of about 15.8%[24]

Core Viewpoint - Hillman Solutions Corp. reported financial results for the first quarter of 2025, showing growth in both net sales and adjusted EBITDA, while also addressing challenges related to tariffs and supply chain diversification [4][5][6]. Financial Performance - Net sales increased by 2.6% to $359.3 million compared to $350.3 million in the prior year quarter [7]. - Adjusted EBITDA rose to $54.5 million from $52.3 million in the prior year quarter [7]. - The company reported a net loss of $(0.3) million, or $(0.00) per diluted share, an improvement from a net loss of $(1.5) million, or $(0.01) per diluted share, in the prior year quarter [7][14]. Balance Sheet and Liquidity - As of March 29, 2025, total assets were $2.33 billion, slightly up from $2.33 billion on December 28, 2024 [15][16]. - Gross debt increased to $740.0 million from $718.6 million at the end of 2024, while net debt rose to $703.7 million from $674.0 million [7][30]. - Liquidity available totaled $200.9 million, consisting of $164.6 million in available borrowing under the revolving credit facility and $36.3 million in cash and equivalents [7]. Guidance and Outlook - The company reiterated its full-year guidance for net sales between $1.495 billion and $1.575 billion and adjusted EBITDA between $255 million and $275 million [6][5]. - Free cash flow guidance was withdrawn due to uncertainties around tariffs, but the company aims to manage its business to achieve a leverage ratio of around 2.5 times by year-end [6][5]. Management Commentary - The CEO highlighted the positive start to 2025, driven by contributions from the Intex DIY acquisition and new business wins, while emphasizing the importance of long-term partnerships and supply chain diversification [4].

Company Overview - Hillman Solutions Corp. (HLMN) shares increased by 6.9% to close at $7.89, following a notable trading volume and a 21.2% loss over the past four weeks [1] - The stock's surge is linked to President Trump's announcement to suspend U.S. tariffs for 90 days, which has renewed investor optimism [1] Earnings Expectations - The company is projected to report quarterly earnings of $0.10 per share, unchanged from the same quarter last year, with revenues expected to reach $358.57 million, reflecting a 2.4% increase year-over-year [2] - The consensus EPS estimate for the quarter has been revised 1.5% higher in the last 30 days, indicating a positive trend that may lead to price appreciation [3] Industry Context - Hillman Solutions Corp. operates within the Zacks Building Products - Miscellaneous industry, where another company, TopBuild (BLD), saw its shares rise by 7.7% to $297.13, despite a -7.2% return over the past month [3] - TopBuild's consensus EPS estimate has decreased by 2.2% to $4.42, representing an 8.1% decline compared to the previous year, and it currently holds a Zacks Rank of 4 (Sell) [4]

Core Viewpoint - Hillman Solutions Corp. is set to announce its financial results for the thirteen weeks ending March 29, 2025, during a conference call scheduled for April 29, 2025, at 8:30 a.m. Eastern Time [1][2]. Company Overview - Hillman Solutions Corp. is a prominent provider of hardware-related products and solutions, serving home improvement, hardware, and farm and fleet retailers across North America [5]. - The company is recognized for its strong customer service and has established a competitive advantage through direct-to-store shipping and a dedicated in-store sales and service team of over 1,200 professionals [5]. - Hillman's product portfolio includes hardware solutions such as fasteners, screws, nuts, and bolts, as well as protective solutions like work gloves and jobsite storage [5]. - The company has over 60 years of experience in the industry and is frequently awarded vendor of the year by top customers due to its world-class distribution network [5]. Earnings Presentation Details - The earnings release and quarterly results presentation will be filed with the SEC and made available on Hillman's website before the presentation begins [4]. - A listen-only webcast will be available for the presentation, and sell-side analysts must register to participate in the live Q&A session [3].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Hillman Solutions Corp. identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Hillman Solutions Corp. has a historical EPS growth rate of 28.5%, with projected EPS growth of 17.3% for the current year, significantly outperforming the industry average of 5.5% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 12.5%, which is substantially higher than the industry average of 2.7% [5]. - Over the past 3-5 years, Hillman Solutions Corp. has maintained an annualized cash flow growth rate of 40.2%, compared to the industry average of 8.9% [6]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Hillman Solutions Corp. have been revised upward, with the Zacks Consensus Estimate increasing by 1.3% over the past month [8]. Group 4: Overall Assessment - Hillman Solutions Corp. has achieved a Growth Score of B and a Zacks Rank of 2, indicating its potential as an outperformer and a solid choice for growth investors [10].

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].

Financial Data and Key Metrics Changes - In 2024, net sales totaled $1.473 billion, slightly down from 2023, impacted by a nearly 6% decline in foot traffic and existing home sales at 30-year lows [17][55] - Adjusted EBITDA for 2024 increased 10.2% to $241.8 million, with a margin of 16.4%, compared to 14.9% a year ago [59][70] - Adjusted gross margins improved by 390 basis points to 48.1% for 2024, driven by operating efficiencies and a higher margin product mix [19][55] Business Line Data and Key Metrics Changes - The Hardware and Protective Solutions (HPS) segment saw a 23% increase in adjusted EBITDA with flat top-line results, demonstrating strong customer value [21] - Robotics and Digital Solutions (RDS) is expected to return to growth in 2025, with new strategies and machine rollouts enhancing revenue potential [45][111] Market Data and Key Metrics Changes - Existing home sales fell to 30-year lows, contributing to a 5-point reduction in market volume for Hillman in 2024 [18] - The company anticipates a return to 2% to 3% volume growth in the market, which is crucial for achieving organic top-line growth of 5% to 6% [27][69] Company Strategy and Development Direction - The company aims to grow to $2 billion in net sales over the next three to five years, focusing on core business growth and strategic acquisitions [26][29] - Investments in technology, including cloud migration and AI, are prioritized to enhance operational efficiency and customer service [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in 2025, despite current market pressures, and emphasized readiness for future market improvements [40][76] - The company is confident in its ability to navigate macroeconomic challenges and maintain profitability through strategic initiatives [39][41] Other Important Information - Hillman made two acquisitions in 2024, Koch Industries and Intex DIY, which are expected to provide organic growth opportunities [14][15] - The company has paid down over $900 million of debt in the past four years, improving its balance sheet [24][63] Q&A Session Summary Question: Can you break out organic growth in Q4 by price and volume? - Management indicated that price was down just over 1%, with volume making up the remainder of the growth calculation [80] Question: Why should MinuteKey 3.5% drive sustainable growth in RDS? - Management highlighted the expansion into new markets and improved machine capabilities as key drivers for growth [84][87] Question: How did December trends look, and what is expected in Q1? - December was pressured, but Q1 has stabilized, aligning with expectations from Q4 [96] Question: How are tariffs being managed? - Management plans to handle tariffs similarly to past experiences, ensuring pricing adjustments are made as necessary [98][102] Question: What is the outlook for the Canadian business? - The Canadian market is facing pressures, but new business wins are helping to offset these challenges [127][130]

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]

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 ...