Multi-year partnership brings innovative nicotine brand into the arena as official sponsor of Unleash The Beast series Ready to Ride: Cowboys Gear Up for Competition Lowriders team members sporting their distinctive FRE jerseys preparing for competition ahead of Kid Rock's Rock N Rodeo PBR Guests At The FRE Stadium Concourse Activation Three visitors in rodeo attire smile for the camera in front of the colorful FRE brand display, showcasing the company's nicotine product line Louisville, KY, July 02 ...

Industry Overview - The Zacks Tobacco industry is shifting towards smoke-free alternatives due to increased consumer health awareness and stricter regulations on traditional cigarettes [1][4] - Major companies like Philip Morris International, Altria Group, and Turning Point Brands are investing in reduced-risk products (RRPs) to cater to the demand for healthier nicotine options [1][4] Market Trends - The popularity of smoke-free options, such as heated tobacco and vaping products, is reshaping the industry as consumers seek safer alternatives [4] - Tobacco companies are leveraging strong pricing power to maintain revenues despite declining cigarette sales, as loyal consumers tend to absorb price increases [2][5] Challenges - The industry faces challenges in cigarette sales volumes due to inflation and changing consumer behavior, alongside regulatory restrictions impacting sales and advertising [6] Industry Performance - The Zacks Tobacco industry ranks 65, placing it in the top 27% of over 250 Zacks industries, indicating positive near-term prospects [7][8] - The industry has outperformed the broader market, gaining 63.8% over the past year compared to the S&P 500's 9.8% increase [10] Valuation - The industry is currently trading at a forward P/E of 15.78X, lower than the S&P 500's 21.89X and the sector's 17.62X [13] Company Highlights - **Altria Group**: Focused on transitioning to a smoke-free future with its oral nicotine pouch brand, on!, and has seen a 29.3% increase in shares over the past year [15][17] - **Philip Morris International**: Leading in RRPs with products like IQOS and ZYN, shares have surged 81% in the past year [20][21] - **Turning Point Brands**: Gaining traction with innovative products and strong demand for smokeless alternatives, shares have skyrocketed 132.8% in the past year [24][25]

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ 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: 001-37763 TURNING POINT BRANDS, INC. (Exact name of registrant as specified in it ...

Turning Point Brands (TPB) Q1 2025 Earnings Call May 07, 2025 09:30 AM ET Company Participants Andrew Flynn - CFOGraham Purdy - CEO, President & DirectorSummer Frein - Chief Revenue OfficerAaron Grey - Managing Director, Head of Consumer ResearchIan Zaffino - Managing Director Conference Call Participants Eric Des Lauriers - Senior Research AnalystNick Anderson - Director & Research Analyst Operator Good morning, and welcome to the Turning Point Brand Q1 twenty twenty five Conference Call. All participants ...

Financial Data and Key Metrics Changes - Revenue increased by 28% to $106.4 million for Q1 2025, with adjusted EBITDA rising by 12% to $27.7 million [4][13] - Gross margin was 56%, down 220 basis points year over year but flat sequentially [13] - Free cash flow for the quarter was $12.4 million, with capital expenditures of $2.2 million [16] Business Line Data and Key Metrics Changes - Modern Oral revenue reached $22.3 million, with sales increasing nearly 10 times year over year [5][16] - Stoker's revenue increased by 63% to $59.2 million, with MST portfolio net sales growing by 10% to $26.3 million [7][15] - Zig Zag sales increased by 1% year over year to $47.3 million, with gross profit decreasing by 7.2% compared to the prior year [14] Market Data and Key Metrics Changes - The company anticipates the modern oral category will exceed $5 billion in manufacturers' revenue by the end of the decade [5] - The company aims for a long-term target of double-digit market share in the modern oral space [6] Company Strategy and Development Direction - The company is increasing full-year consolidated nicotine pouch sales guidance to a range of $80 million to $95 million from $60 million to $80 million [5][17] - Key initiatives include reallocating sales and marketing resources, increasing sales force headcount, and improving online presence [6][10] - The company is exploring U.S. manufacturing to improve profitability and mitigate supply chain risks [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of white nicotine pouch brands and the overall modern oral category [5][6] - The company is focused on building brands for the long term and executing against an omnichannel plan [11][12] - Management acknowledged potential headwinds from tariffs and foreign exchange impacts on the Zig Zag segment [17] Other Important Information - The company reaffirmed its previously announced 2025 adjusted EBITDA guidance of $108 million to $113 million [5][17] - Budgeted capital expenditures for 2025 are projected to be between $4 million to $5 million, excluding modern oral business projects [17] Q&A Session Summary Question: Comments on distribution gains in Modern Oral and rollout expectations for ALP - Management noted strong traction with retailers and plans for rollouts and enhancements later in the year [22][23] Question: Capacity to produce nicotine pouches at current facilities - Management confirmed adequate supply and ongoing exploration of onshoring production options [26] Question: Timing impact on pouch shipments and brand awareness for ALP - Management indicated that ALP's rollout is focused on online direct-to-consumer channels and is seeing good brand awareness [30][32] Question: Stoker segment gross margin performance - Management stated that pouch margins are within previously discussed ranges and are performing well [35] Question: Advertising regulations for nicotine pouches - Management acknowledged more flexibility in advertising compared to traditional tobacco products but emphasized responsible marketing [44] Question: Timing of PMTA applications amid FDA changes - Management indicated uncertainty regarding timing due to changes in government but continues to monitor the situation [46]

Turning Point Brands (TPB) came out with quarterly earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 21.33%. A quarter ago, it was expected that this company would post earnings of $0.57 per share when it actually produced earnings of $0.53, delivering a surprise of -7.02%. Over the last four quarters, the co ...

Financial Performance - Q1 2025 net sales increased 28.1% year-over-year to $106.4 million, with Stoker's Products net sales up 62.7% and Zig-Zag Products net sales up 1.2%[6] - Modern Oral sales reached $22.3 million, nearly 10 times the prior year and almost double the previous quarter[3] - Adjusted EBITDA for Q1 2025 was $27.7 million, up 12.0% compared to the prior year[6] - Gross profit increased 23.3% to $59.6 million, while gross margin was 56.0%[6] - Net income rose 19.8% to $14.4 million, with adjusted net income increasing 8.0% to $16.7 million[6] - Consolidated net income for Q1 2025 was $15,791,000, an increase of 29.5% compared to $12,179,000 in Q1 2024[20] - Adjusted EBITDA for Q1 2025 reached $27,678,000, up 12% from $24,703,000 in Q1 2024[26] - Adjusted net income for Q1 2025 was $23.023 million, compared to $20.242 million in Q1 2024, representing a 8.8% increase[30] - The diluted EPS for Q1 2025 was $0.91, an increase from $0.80 in Q1 2024, marking a 13.8% rise[30] - Adjusted operating income for Q1 2025 was $25.482 million, compared to $21.540 million in Q1 2024, indicating a 18.2% increase[35] - The company’s operating income for Q1 2025 was $23.189 million, up from $19.270 million in Q1 2024, reflecting a 20.0% increase[35] Sales Guidance - The company is raising its full-year 2025 Modern Oral sales guidance to a range of $80.0 – 95.0 million, up from $60.0 – 80.0 million[9] Debt and Liquidity - Total gross debt as of March 31, 2025, was $300.0 million, with net debt at $200.4 million[8] - The company ended the quarter with total liquidity of $161.8 million, including $99.6 million in cash[8] - The company redeemed $250,000,000 of 2026 Notes and raised $300,000,000 from 2032 Notes in Q1 2025[20] - The company reported a loss on extinguishment of debt of $1,235,000 in Q1 2025, compared to no such loss in Q1 2024[20] Cash Flow and Expenditures - Net cash provided by operating activities decreased to $14,626,000 in Q1 2025 from $22,639,000 in Q1 2024, reflecting a decline of 35.4%[20] - Total cash at the end of Q1 2025 was $101,553,000, down from $132,837,000 at the end of Q1 2024[20] - Capital expenditures increased significantly to $2,185,000 in Q1 2025 from $366,000 in Q1 2024[20] - The company incurred $1,591,000 in costs related to FDA PMTA applications in Q1 2025, up from $841,000 in Q1 2024[26] Profitability Metrics - Total consolidated net sales for Q1 2025 included a gross profit of $25.6 million from the Zig-Zag Products segment, despite a 7.2% decrease from the prior year[4] - Stoker's Products segment gross profit increased 63.6% year-over-year to $34.0 million, with a gross margin of 57.5%[7] - The net income attributable to non-controlling interest for Q1 2025 was $2.040 million, compared to $3.729 million in Q1 2024, showing a decrease of 45.4%[30] Other Financial Impacts - The company experienced a mark-to-market loss of $315,000 due to foreign exchange fluctuations in Q1 2025[26] - Corporate restructuring costs were $1.261 million in Q1 2024, which were not present in Q1 2025[35]

MIAMI, May 6, 2025 /PRNewswire/ -- ALP has officially partnered with Gopuff to launch a new instant delivery feature via ALP's website. ALP Supply Co. will be using Gopuff's new "Powered by Gopuff" technology to help ALP customers get D2C orders faster than ever before. After a wildly successful launch, Tucker Carlson's ALP will now offer customers the ability to order ALP's nicotine pouches and get them delivered almost instantly through Alppouch.com's "Instant Shop," which leverages Gopuff's 200+ micro di ...

Financial Performance - For the year ended December 31, 2024, consolidated net sales increased by $35.6 million, or 11.0%, compared to the prior year, driven by growth in both Zig-Zag and Stoker's product segments [282]. - Zig-Zag products segment net sales increased by $11.9 million, or 6.6%, primarily due to $11.5 million growth in papers, wraps, and accessories, and $5.6 million growth in cigars [283]. - Stoker's products segment net sales increased by $23.7 million, or 16.4%, with a sales volume increase of 6.8% contributing $9.9 million and price/product mix contributing $13.8 million [284]. - For the year ended December 31, 2024, net income from continuing operations attributable to Turning Point Brands, Inc. was $47.3 million for the year ended December 31, 2024, compared to $38.7 million in the prior year [300]. - Consolidated net income for 2024 was $40.51 million, up from $37.78 million in 2023, reflecting a growth of 1.9% [427]. - Basic earnings per share for continuing operations increased to $2.67 in 2024 from $2.20 in 2023, marking a rise of 21.4% [425]. - The company’s accumulated earnings increased to $147.16 million in 2024 from $112.44 million in 2023, an increase of 30.9% [423]. - The company’s total stockholders' equity rose to $190.38 million in 2024, compared to $152.01 million in 2023, reflecting a growth of 25.3% [423]. Profitability and Margins - Consolidated gross profit increased by $18.6 million, or 10.2%, but gross profit margin decreased to 55.9% of net sales from 56.3% in the prior year [286]. - Zig-Zag products segment gross profit increased by $5.5 million, or 5.5%, with gross profit margin decreasing to 55.4% due to growth in lower-margin cigar products [287]. - For the year ended December 31, 2024, gross profit in the Stoker's products segment increased by $13.1 million, or 16.0%, compared to the prior year, while gross profit as a percentage of net sales decreased to 56.4% from 56.6% [288]. - The company’s operating income for the year ended December 31, 2024, was $80.832 million, indicating strong operational performance [362]. Expenses and Costs - Selling, general and administrative expenses increased by $18.1 million, or 17.3%, for the year ended December 31, 2024, including $7.2 million related to stock options and $4.6 million for corporate restructuring [289]. - Operating income in the Zig-Zag products segment decreased by $1.6 million, or 2.3%, for the year ended December 31, 2024, with operating income as a percentage of net sales decreasing to 34.7% from 37.8% [292]. - Operating income in the Stoker's products segment increased by $6.1 million, or 9.7%, for the year ended December 31, 2024, while operating income as a percentage of net sales decreased to 40.6% from 43.0% [293]. - Unallocated costs increased to $54.1 million for the year ended December 31, 2024, compared to $47.5 million in the prior year, marking a 13.9% increase [294]. Cash Flow and Financing - Cash provided by operating activities for the year ended December 31, 2024, was $60,958 thousand, an increase of $4.7 million compared to the prior year [336]. - For the year ended December 31, 2024, net cash used in financing activities was $128.3 million, an increase of $78.8 million primarily due to the retirement of Convertible Senior Notes [341]. - The company had restricted assets of $30.7 million and $33.6 million as of December 31, 2024, and 2023, respectively [334]. - The company’s adjusted working capital increased by $57.3 million compared to the prior year end, primarily due to a $58.3 million decrease in current liabilities [333]. - The company recorded a non-cash charge of $8.8 million to reduce the carrying value of the disposal group to fair value upon meeting the criteria for held for sale classification [323]. Debt and Interest - The company’s long-term debt was $248.604 million, down from $307.064 million in 2023, representing a decrease of approximately 19% [347]. - Interest expense for the year ended December 31, 2024, was $13.983 million, reflecting the company's debt obligations [362]. - Interest expense, net decreased by $0.7 million for the year ended December 31, 2024, due to the maturity of Convertible Senior Notes and increased interest income on cash [295]. Market and Regulatory Environment - The alternative smoking accessories market is experiencing robust growth driven by cannabinoid legalization in the U.S. and Canada [269]. - The FDA has proposed regulations that could significantly impact the company's products and premarket filings [379]. - The company is subject to federal and state excise taxes, which may increase and affect product demand [372][373]. Asset Management - Total assets as of December 31, 2024, amounted to $493.353 million, with current assets totaling $198.205 million [363]. - The company reported total liabilities of $302.973 million, including long-term debt of $248.604 million [363]. - Stockholders' equity reached $190.380 million, with unrestricted subsidiaries contributing $187.981 million [363]. Stock and Shareholder Activity - In 2024, the company repurchased 154,945 shares of common stock for a total cost of $5.1 million, averaging $32.60 per share [370]. - The company has $100 million remaining under its Board-approved stock repurchase program as of December 31, 2024 [370]. Internal Controls and Compliance - The company has not maintained effective internal control over financial reporting as of December 31, 2024, due to identified material weaknesses [414]. - The company reported a material weakness in internal control over financial reporting related to information technology general controls [416]. Research and Development - Research and development and quality assurance costs were approximately $1.3 million in 2024, up from $0.6 million in both 2023 and 2022, indicating a significant increase in investment in these areas [450]. - Advertising and promotion costs amounted to $12.0 million in 2024, compared to $7.6 million in 2023 and $6.2 million in 2022, representing a 57.9% increase from 2023 to 2024 [466].