Core Insights - Hillman Solutions Corp. published its second annual Environmental, Social, and Governance (ESG) fact sheet, highlighting its ESG initiatives for the year ending December 31, 2023 [11] - The company emphasizes its commitment to sustainability, corporate governance, and social impact as integral to its business operations [1][12] - Hillman completed a three-year assessment of its Scope 1-3 Greenhouse Gas emissions from 2020 to 2022, establishing a baseline for future emissions measurement [12] ESG Achievements - The 2023 ESG report includes achievements and awards, such as being recognized as Vendor of the Year by two customers [3] - The report details corporate governance practices, including board composition metrics related to independence and diversity [3] - Statistics on workforce diversity, equity, inclusion, and employee engagement initiatives are highlighted [3] Company Overview - Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading provider of hardware solutions, serving over 40,000 locations [14] - The company focuses on delivering innovative product and merchandising solutions for various retail sectors, including home improvement centers and industrial customers [14] - Hillman aims to provide a "small business" experience with "big business" efficiency through its distribution and sales network [14]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 30% to $52.3 million compared to $40.2 million in Q1 2023, with adjusted EBITDA margins improving by 340 basis points to 14.9% [9] - Net sales for Q1 2024 slightly increased to $350.3 million from $349.7 million in the prior year, reflecting a 0.2% growth [15][57] - Adjusted gross margins improved by 610 basis points to 47.6% from 41.5% in the year-ago quarter [9][57] - Free cash flow usage was $6.1 million, driven by inventory build and working capital related to the Koch acquisition [16][59] - Total net debt increased by $25.1 million to $747.5 million, with liquidity at approximately $242 million [52] Business Line Data and Key Metrics Changes - Hardware and Protective Solutions (HPS) saw a 2.4% increase in net sales, with Hardware (HS) growing by 4.6% while Protective Solutions (PS) sales decreased by 6.9% [18] - Robotics & Digital Solutions (RDS) net sales decreased by 9.2% to $55 million due to lower foot traffic and discretionary spending [20][21] - Canadian business net sales increased slightly, with adjusted EBITDA rising over 70% from Q1 2023 [32] Market Data and Key Metrics Changes - The macroeconomic landscape in the home improvement sector remains muted, with inflation and elevated mortgage rates impacting existing home sales [10] - Retailers reported negative foot traffic compared to last year, but expressed cautious optimism for the second half of the year [11] Company Strategy and Development Direction - The company is focused on strengthening its competitive moat and executing its growth strategy profitably, with an emphasis on M&A opportunities [64][66] - The Koch acquisition is expected to drive organic growth, with a target of at least 20% growth in net sales next year [49] - The company aims for long-term top-line growth in the high single to low teens and adjusted EBITDA growth in the low to mid-teens [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage costs and maintain profitability despite a challenging macro environment [63] - The company anticipates that a strong increase in existing home sales will occur when mortgage rates decline [17] - Management reiterated full-year guidance for net sales, adjusted EBITDA, and free cash flow, reflecting a cautious but optimistic outlook [61] Other Important Information - The company appointed Scott Moore as the new divisional president of RDS, expected to lead growth initiatives [23] - The MinuteKey 3.5 rollout is anticipated to significantly impact performance in the latter half of 2024 and into 2025 [31] Q&A Session Summary Question: Concerns about destocking in the market - Management indicated that they do not face destocking issues as they ship directly to stores, avoiding excess inventory in distribution centers [70] Question: Exposure to pro categories and potential opportunities - Management noted that while they do not compete directly in certain pro categories, they believe their strong relationship with Home Depot will allow them to benefit from their growth [71] Question: Expectations around transport costs and implications for gross margins - Management confirmed that they locked in contracted rates for 2024 and expect to maintain gross margins above 45% for the year [78] Question: Sustainability of Q1 gross margins - Management expects gross margins to remain above 45% for the full year, with potential slight decreases in the back half due to price givebacks [104] Question: Performance of RDS and its impact - Management acknowledged that RDS has been more impacted by macro factors compared to other business lines, attributing this to discretionary spending trends [112][124]

Earnings Presentation Q1 2024 9 1) Jefferies Research Services: July 10, 2023 Earnings Presentation Q1 2024 10 Appendix | --- | --- | --- | |-------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Indispensable partner embedded with winning retailers | | | | Customers love us, trust us and rely on us | | | | Significant runway for incremental growth: Organic + M&A Market an ...

Hillman Solutions Corp. (HLMN) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. 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 compan ...

Hillman Reports First Quarter 2024 Results • Net sales increased 0.2% to $350.3 million compared to $349.7 million in the prior year quarter • Net loss totaled $(1.5) million, or $(0.01) per diluted share, compared to net loss of $(9.1) million, or $(0.05) per diluted share, in the prior year quarter • Adjusted diluted EPS was $0.10 per diluted share compared to $0.06 per diluted share in the prior year quarter 1 • Adjusted EBITDA totaled $52.3 million compared to $40.2 million in the prior year quarter 1 • ...

CINCINNATI, April 15, 2024 (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 weeks ended March 30, 2024 on Tuesday, May 7, 2024 at 8:30 a.m. Eastern Time. Hillman will issue its earnings release on the same day prior to the results presentation. Chairman, President, and Chief Executive Officer Doug Cahill; Chief Operating Officer Jon Michael Adinol ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ TO _____ Commission file number 001-39609 Hillman Solutions Corp. (Exact name of registrant as specified in its charter) Delaware 85-2096734 Securities registered pursuant ...

Hillman Reports Fourth Quarter 2023 Results; Provides 2024 Guidance CINCINNATI, February 22, 2024 -- 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 30, 2023. Fiscal 2023 consisted of fifty-two weeks compared to fifty-three weeks during fiscal 2022 and the fourth quarter of fiscal 2023 consisted of thirteen weeks compared to fourteen weeks d ...

Financial Data and Key Metrics Changes - Net sales in Q3 2023 increased by 5.4% to $398.9 million compared to the same quarter last year, driven by a 4% increase in total volumes and a 2% price lift, despite FX headwinds in the Canadian business [9][41] - Adjusted EBITDA rose to $66.8 million, up 13.3% from $59 million in the prior year quarter, resulting in an adjusted EBITDA margin improvement to 16.7% [14][51] - Free cash flow for the quarter was $41.3 million, significantly higher than $31 million in the year-ago quarter, contributing to a year-to-date total of $119.3 million [16][55] - The net debt to adjusted EBITDA leverage ratio improved to 3.7 times, down from 4.2 times at the end of 2022 [57] Business Line Data and Key Metrics Changes - Hardware Solutions, which constitutes over 50% of total revenue, saw net sales increase by 8% to $229 million, attributed to new business wins and price increases [43] - Robotics and Digital Solutions (RDS) accounted for about 16% of revenue, with net sales down 1% to $63.5 million due to reduced foot traffic and discretionary spending [44] - Protective Solutions revenues increased by 14% compared to last year, driven by promotional off-shelf activities [49] Market Data and Key Metrics Changes - Year-to-date foot traffic at home improvement centers declined by 8%, with a reported 13% drop in October [13][25] - The Canadian segment, making up about 10% of overall revenue, experienced a 9% decline, impacted by volume decreases and FX headwinds [48] Company Strategy and Development Direction - The company aims to maintain its competitive moat by focusing on customer service and direct store delivery, which differentiates it from competitors [18][19] - Plans for 2024 include cautious growth strategies, with expectations of flat to slightly down revenues while controlling costs to grow EBITDA [68][69] - The company is exploring M&A opportunities, particularly in adjacent categories, as the market for acquisitions has become more favorable [74][75] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing healthy home equity values and the aging housing stock as drivers for repair and maintenance projects [36][38] - The company anticipates that margins will expand in Q4 2023 and maintain above historical rates into 2024, despite ongoing cost pressures [34][126] - Management emphasized the importance of customer relationships and trust as key to long-term success [64] Other Important Information - The company has reduced its inventory by $92 million from the end of 2022, contributing to improved cash flow [54][31] - The launch of the new MinuteKey 3.5 self-service machines is expected to enhance customer experience and drive future growth [46][118] Q&A Session Summary Question: What are the plans for R&R activity in early 2024? - Management plans for flat to slightly down revenues, preparing for potential challenges in the market [68][69] Question: Update on M&A market engagement? - The company is looking to re-engage in M&A discussions in 2024, focusing on opportunities that align with its business model [74][75] Question: New business wins for 2024? - Management confirmed $27 million in new business wins, with some expected to contribute to revenue in 2023 [82] Question: Promotional activity expectations for 2024? - Similar promotional activity levels are expected in 2024, with a more evenly distributed approach compared to 2023 [87] Question: Inventory benefits in 2024? - Management does not foresee inventory reductions as a headwind for 2024, expecting benefits from lower commodity prices [112][114] Question: Margin benefits from lower inventory costs? - Specific quantification of margin benefits was not provided, but management expects to maintain or exceed current EBITDA rates [115] Question: Details on the rollout of MinuteKey 3.5? - Over 500 units are expected to be deployed, primarily retrofitting existing machines to enhance customer experience [117][118]