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 ...

Core Viewpoint - Hillman Solutions Corp. reported mixed financial results for the third quarter and year-to-date 2024, with slight declines in net sales but improvements in net income and adjusted earnings metrics, alongside a strategic acquisition aimed at long-term growth [2][3][5]. Financial Performance - **Third Quarter 2024 Results**: - Net sales decreased by 1.4% to $393.3 million from $398.9 million in the prior year quarter - Net income increased to $7.4 million, or $0.04 per diluted share, compared to $5.1 million, or $0.03 per diluted share, in the prior year quarter - Adjusted diluted EPS rose to $0.16 from $0.11 in the prior year quarter - Adjusted EBITDA increased to $72.6 million from $66.8 million in the prior year quarter [2][5]. - **Year-to-Date 2024 Results**: - Net sales decreased by 0.5% to $1,123.0 million from $1,128.7 million in the prior year period - Net income totaled $18.5 million, or $0.09 per diluted share, compared to $0.5 million, or $0.00 per diluted share, in the prior year period - Adjusted diluted EPS improved to $0.42 from $0.30 in the prior year period - Adjusted EBITDA rose to $193.2 million from $165.0 million in the prior year period - Net cash provided by operating activities was $140.2 million, down from $171.5 million in the prior year period - Free Cash Flow totaled $76.0 million, compared to $119.3 million in the prior year period [3][4]. Balance Sheet and Liquidity - As of September 28, 2024: - Gross debt was $758.6 million, a decrease from $760.9 million on December 30, 2023 - Net debt decreased to $698.7 million from $722.4 million on December 30, 2023 - Liquidity available totaled $324.6 million, consisting of $264.8 million of available borrowing under the revolving credit facility and $59.8 million of cash and equivalents - Net debt to trailing twelve month Adjusted EBITDA improved to 2.8x from 3.3x on December 30, 2023 [4][5]. Strategic Developments - The company acquired Intex DIY, a leading supplier of cleaning textiles, which is expected to enhance its product portfolio and customer reach - Hillman received recognition as the 2024 Vendor Partner of the Year in Hardlines at Lowe's and Partner of the Year in Hardware at Home Depot, reflecting strong customer relationships and operational efficiency [2][5][6]. Updated Guidance - The company updated its full-year 2024 guidance: - Net Sales guidance revised to $1.455 to $1.485 billion from $1.44 to $1.48 billion - Adjusted EBITDA guidance remains approximately $250 million - Free Cash Flow guidance adjusted to $100 to $115 million from $100 to $120 million [6][8].

Core Viewpoint - Hillman Solutions Corp. is set to announce its earnings for the thirteen weeks ended September 28, 2024, during a conference call on November 5, 2024, at 8:30 a.m. Eastern Time [1][2]. Group 1 - The results presentation will be hosted by key executives including Chairman Doug Cahill, COO Jon Michael Adinolfi, and CFO Rocky Kraft [2]. - A listen-only webcast will be available for the presentation, and a replay will be accessible approximately one hour after the event [2]. - Research analysts must register in advance to participate in the live Q&A session during the call [2]. Group 2 - Hillman's earnings release, quarterly presentation, and 10-Q will be filed with the SEC and made available on its website before the presentation [3]. - Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading provider of hardware solutions in North America, serving over 46,000 locations [4]. - The company is celebrating its 60th anniversary, highlighting its commitment to strong values, innovation, and efficient service delivery [4].

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 18% to $68.4 million compared to $58 million in Q2 2023, with adjusted EBITDA margins improving to 18% [6][12][27] - Full year adjusted EBITDA guidance increased to a range of $240 million to $250 million, reflecting a 12% increase over 2023 [6][30] - Net sales for Q2 2024 totaled $379.4 million, essentially flat compared to the prior year quarter, with a revised full year net sales guidance of $1.44 billion to $1.48 billion, reflecting a 1% decrease from 2023 [7][10][30] Business Line Data and Key Metrics Changes - Hardware and Protective Solutions (HPS) net sales increased by 3.5%, driven by new business wins and contributions from the Koch acquisition [13] - Robotics and Digital Solutions (RDS) net sales decreased by 8%, impacted by softer traffic and discretionary spending [13][14] - Adjusted gross margins for the quarter improved to 48.7%, a 570-basis point increase from the previous year [12][26] Market Data and Key Metrics Changes - Canadian business net sales decreased by 10.1% compared to the prior year quarter, attributed to a softer market and economy [17] - Existing home sales in the U.S. have decreased significantly, impacting overall market volume [11] - Overall market volumes were down about 4% for the quarter, excluding new business wins and M&A [10] Company Strategy and Development Direction - The company plans to continue executing low-risk tuck-in acquisitions, with a focus on adjacent aisles, and expects to close on an acquisition similar to Koch by the end of Q3 [9][23] - Emphasis on product innovation and leveraging the Hillman Moat to drive growth and maintain competitive advantages [19][22] - The company aims to maintain operational efficiencies and margin management to support future growth, even in a challenging macro environment [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is soft, impacting net sales expectations, but expressed optimism about future top-line growth prospects [7][8] - The company is confident in its ability to manage costs and maintain margins, similar to the performance seen in 2009 [6][31] - Management highlighted the importance of maintaining strong relationships with customers and executing well during the current cycle [17][19] Other Important Information - The company ended Q2 2024 with a net debt to trailing 12-month adjusted EBITDA ratio of 2.9 times, down from 4 times a year ago [8][29] - Free cash flow for Q2 was $42.5 million, a significant improvement from a cash use of $6 million in the previous quarter [12][28] - The company is focused on maintaining a strong balance sheet while pursuing growth opportunities [29] Q&A Session Summary Question: What areas is the company looking to expand into with M&A? - Management indicated that they are excited about a potential acquisition similar to Koch and mentioned categories like plumbing and electrical as areas of interest [36][37] Question: What is the visibility on home center foot traffic? - Management noted that foot traffic has been slightly less negative recently but remains challenging overall [38] Question: What has surprised management this year regarding market conditions? - Management expressed surprise at the market's stagnation after an initial positive outlook in early 2024, particularly noting the decline in DIY activity [39][40] Question: What is the outlook for RDS in the second half of the year? - Management is optimistic about RDS returning to growth in 2025, citing new machine capabilities and recent account acquisitions as key drivers [41][42] Question: How will the leadership transition impact the company? - Management stated that while there will be a new CEO, the strategic direction and day-to-day operations will remain consistent [55] Question: What is the current M&A pipeline like? - Management confirmed a healthy M&A pipeline with opportunities for multiple acquisitions per year, particularly in the $4 million to $8 million EBITDA range [56][58]

Hillman Solutions Corp. (HLMN) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.10, delivering a surprise of 25%. Over the last four quarters, the c ...

Financial Performance - Net sales for Q2 2024 decreased by 0.2% to $379.4 million compared to $380.0 million in the prior year quarter[2] - Net income for Q2 2024 totaled $12.5 million, or $0.06 per diluted share, compared to $4.5 million, or $0.02 per diluted share, in the prior year quarter[2] - Adjusted EBITDA for Q2 2024 was $68.4 million, an increase from $58.0 million in the prior year quarter[2] - Year-to-date net sales for 2024 were $729.7 million, unchanged from the prior year period[2] - Net income for the twenty-six weeks ended June 29, 2024, was $11,043,000, a significant recovery from a net loss of $4,587,000 for the same period in 2023[14] - Adjusted EBITDA for the twenty-six weeks ended June 29, 2024, was $120,679,000, compared to $98,168,000 for the same period in 2023, reflecting a 22.9% increase[18] - Net income for the thirteen weeks ended June 29, 2024, was $12,535, compared to $4,545 for the same period last year, representing a significant increase[20] - Adjusted net income for the twenty-six weeks ended June 29, 2024, was $50,425, up from $37,339 in the prior year, reflecting a growth of 35.0%[20] - Adjusted diluted earnings per share (EPS) for the thirteen weeks ended June 29, 2024, was $0.16, compared to $0.13 for the same period last year, indicating a 23.1% increase[20] Cash Flow and Liquidity - Free Cash Flow for the first half of 2024 totaled $36.4 million, down from $78.0 million in the prior year period[2] - The company reported a net cash provided by operating activities of $76,476,000 for the twenty-six weeks ended June 29, 2024, down from $115,046,000 in the prior year[14] - Free cash flow for the twenty-six weeks ended June 29, 2024, was $36,398, down from $78,017 in the prior year, showing a decrease of 53.4%[25] - Net debt as of June 29, 2024, was $705,340, a decrease from $722,396 at the end of December 30, 2023, indicating improved liquidity[23] - Gross debt as of June 29, 2024, was $759,356, slightly down from $760,949 at the end of December 30, 2023[23] Guidance and Projections - Full year 2024 net sales guidance was updated to $1.44 to $1.48 billion, down from the original guidance of $1.475 to $1.555 billion[5] - Adjusted EBITDA guidance for 2024 was increased to $240 to $250 million from the original guidance of $230 to $240 million[5] Assets and Liabilities - Total current assets increased to $617,773,000 as of June 29, 2024, up from $547,980,000 on December 30, 2023, representing a 12.5% increase[5] - Total liabilities rose to $1,210,674,000 as of June 29, 2024, compared to $1,176,572,000 at the end of 2023, indicating a 2.9% increase[5] - Accounts receivable increased to $130,505,000 as of June 29, 2024, up from $103,482,000, which is a 26.1% increase[5] - Inventories increased to $411,928,000 as of June 29, 2024, compared to $382,710,000, reflecting a 7.6% increase[5] Capital Expenditures and Expenses - Capital expenditures for the twenty-six weeks ended June 29, 2024, were $40,078, compared to $37,029 in the prior year, reflecting an increase of 5.5%[25] - Stock compensation expense contributed $0.02 to adjusted EPS for the thirteen weeks ended June 29, 2024, consistent with the prior year[22] - Total adjusting items for the thirteen weeks ended June 29, 2024, amounted to $0.03, down from $0.04 in the same period last year[22] Debt Management - Gross debt decreased to $759.4 million from $760.9 million on December 30, 2023[3] - Net debt outstanding improved to $705.3 million from $722.4 million on December 30, 2023[3] - Long-term debt remained relatively stable at $732,097,000 as of June 29, 2024, compared to $731,708,000 at the end of 2023[5] - The company incurred a loss on debt restructuring of $3,008,000 during the twenty-six weeks ended June 29, 2024[14] Operational Efficiency - The company reported exceptional fill rates of 95% during the quarter, ensuring product availability for retail partners[3]

Core Insights - Hillman Solutions Corp. reported a slight decrease in net sales for the second quarter of 2024, with net sales of $379.4 million, down 0.2% from $380.0 million in the prior year quarter [3] - The company achieved a net income of $12.5 million, or $0.06 per diluted share, compared to $4.5 million, or $0.02 per diluted share, in the prior year quarter, indicating improved profitability [3] - Adjusted EBITDA for the second quarter was $68.4 million, up from $58.0 million in the prior year quarter, reflecting enhanced operational efficiency [3] Financial Performance - For the year-to-date period ending June 29, 2024, net sales remained unchanged at $729.7 million compared to the prior year period [3] - Year-to-date net income was $11.0 million, a significant recovery from a net loss of $(4.6) million in the prior year period [3] - Adjusted diluted EPS increased to $0.25 from $0.19 in the prior year period [3] Balance Sheet and Liquidity - As of June 29, 2024, gross debt was $759.4 million, a slight decrease from $760.9 million at the end of 2023 [4] - Net debt decreased to $705.3 million from $722.4 million at the end of 2023, indicating improved leverage [4] - The company had approximately $305.3 million in available liquidity, consisting of $251.2 million in borrowing capacity and $54.0 million in cash [4] Management Commentary - Management highlighted strong bottom-line performance driven by improved efficiencies and strong margins, despite market challenges [5] - The company maintained a fill rate of 95%, ensuring product availability for retail partners [5] - The strategic focus remains on controlling operational factors and positioning for future growth [5] Updated Guidance - The company updated its full-year 2024 guidance, lowering top-line revenue expectations while increasing bottom-line guidance, reflecting confidence in profitability through operational management [6][7] - The revised guidance for net sales is now projected between $1.44 billion and $1.48 billion, with adjusted EBITDA expected between $240 million and $250 million [2][6] Leadership Transition - A leadership transition is planned for January 1, 2025, with Jon Michael Adinolfi becoming President and CEO, and Doug Cahill transitioning to Executive Chairman [8]

Core Viewpoint - Hillman Solutions Corp. (HLMN) is expected to report a year-over-year increase in earnings driven by higher revenues, with a consensus EPS estimate of $0.14, reflecting a 7.7% increase compared to the previous year [1][3]. Earnings Expectations - The company is projected to generate revenues of $383.53 million, which is a 0.9% increase from the same quarter last year [13]. - The consensus EPS estimate has been revised down by 1.82% over the last 30 days, indicating a reassessment by analysts [13]. Earnings Surprise Prediction - The Earnings ESP (Expected Surprise Prediction) for Hillman Solutions Corp. is -5.46%, suggesting a bearish outlook from analysts regarding the company's earnings prospects [7]. - A negative Earnings ESP reading does not necessarily indicate an earnings miss, but it complicates the prediction of an earnings beat [6][8]. Historical Performance - Over the last four quarters, Hillman Solutions Corp. has beaten consensus EPS estimates three times, which may influence future earnings expectations [10]. - In the last reported quarter, the company was expected to post earnings of $0.08 per share but delivered $0.10, resulting in a surprise of +25% [17]. Analyst Sentiment - The current Zacks Rank for Hillman Solutions Corp. is 4 (Sell), which may affect investor sentiment and stock performance ahead of the earnings release [16]. - Analysts' revisions and the company's historical performance are critical factors in assessing future earnings potential [4][9].

Chairman, President, and Chief Executive Officer Doug Cahill; Chief Operating Officer Jon Michael Adinolfi; and Chief Financial Officer Rocky Kraft will host the results presentation. About Hillman Solutions Corp. Research analysts wishing to participate in the call's live question and answer session must register by clicking here: https://register.vevent.com/register/BI4136382679574780aa098fd7b4b61ca4 Investor Contact Michael Koehler Vice President of Investor Relations & Treasury 513-826-5495 IR@hillmangr ...