Company Overview - Turning Point Brands (TPB) is a consumer products company marketing alternative smoking accessories and other consumables[14] - TPB's asset-light business model generates resilient free cash flow, with CapEx averaging approximately 1% of sales from 2015-2020[11] Segment Performance - Zig-Zag Products are the 1 premium and overall rolling paper brand in the U S and Canada, and 1 in MYO cigar wraps[11] - Zig-Zag Products accounted for 38% of sales and 57% of adjusted operating income[19] - Stoker's Products are the 2 loose leaf chew and a leading MST value brand[11] - Stoker's Products accounted for 28% of sales and 38% of adjusted operating income[19] - NewGen Products accounted for 34% of sales[19] Financial Performance and Guidance - Q3 2021 net sales reached $110 million, a 6% year-over-year increase, with adjusted EBITDA of $26 million, a 10% year-over-year increase[119] - The company adjusted its FY 2021 guidance to net sales of $433 to $443 million and adjusted EBITDA of $104 to $108 million[120] Strategic Initiatives - TPB is positioned to capitalize on growing cannabinoid consumption trends, with 68% of Americans now favoring cannabis legalization[46] - The company is focused on increasing its mix of proprietary products in the NewGen segment, targeting gross margins of 50%+[84]

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 September 30, 2021 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 its charter) Del ...

Turning Point Brands, Inc. (NYSE:TPB) Q3 2021 Earnings Conference Call October 26, 2021 10:00 AM ET Company Representatives Larry Wexler - President, Chief Executive Officer Louie Reformina - Chief Financial Officer Graham Purdy - Chief Operating Officer Conference Call Participants Vivien Azer - Cowen Susan Anderson - B. Riley Eric Des Lauriers - Craig-Hallum Capital Group Gaurav Jain - Barclays Richard Evans - Mara River Capital Management Operator Good morning. My name is Chris and I will be your confere ...

[PART I—FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents unaudited consolidated financial statements, including balance sheets, income, cash flows, and equity, with notes detailing significant asset, liability, and net sales growth [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements reveal strong Q2 and H1 2021 performance with significant growth in net sales, net income, total assets, and liabilities Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $288,107 | $163,403 | | **Total assets** | $629,399 | $496,049 | | **Total current liabilities** | $61,243 | $56,629 | | **Total liabilities** | $495,131 | $378,562 | | **Total stockholders' equity** | $134,268 | $117,487 | Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $122,643 | $104,963 | $230,284 | $195,652 | | **Gross profit** | $59,973 | $47,936 | $113,234 | $89,367 | | **Operating income** | $24,879 | $17,180 | $49,228 | $26,217 | | **Net income attributable to TPB** | $15,355 | $10,295 | $27,137 | $14,794 | | **Diluted EPS** | $0.73 | $0.49 | $1.30 | $0.73 | Consolidated Cash Flow Highlights - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $37,415 | $17,534 | | **Net cash used in investing activities** | ($34,391) | ($39,728) | | **Net cash provided by (used in) financing activities** | $92,189 | ($8,864) | | **Net increase (decrease) in cash** | $95,213 | ($31,058) | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, business segments, inventory method change, recent acquisitions, significant financing activities, and subsequent events - The company operates in three segments: Zig-Zag Products (rolling papers, cigars), Stoker's Products (smokeless tobacco), and NewGen Products (vapor and alternative products) and sells products in over 210,000 retail outlets in North America[30](index=30&type=chunk) - Effective January 1, 2021, the company changed its inventory accounting method from LIFO to FIFO, applying the change retrospectively to better reflect current costs and align with management's performance assessment[38](index=38&type=chunk)[85](index=85&type=chunk) - In February 2021, the company issued **$250 million** of 5.625% senior secured notes due 2026 and entered a new **$25 million** revolving credit facility, with proceeds used to repay all obligations under the 2018 First Lien Credit Facility[94](index=94&type=chunk)[102](index=102&type=chunk) Net Sales by Segment - Three & Six Months Ended June 30 (in thousands) | Segment | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Zig-Zag products** | $47,202 | $27,403 | $88,206 | $56,317 | | **Stoker's products** | $33,369 | $30,822 | $62,624 | $57,317 | | **NewGen products** | $42,072 | $46,738 | $79,454 | $82,018 | | **Total** | **$122,643** | **$104,963** | **$230,284** | **$195,652** | - Subsequent to the quarter's end, the company acquired assets from Unitabac for **$9.6 million** on July 23, 2021, and invested **$8 million** in Old Pal Holding Company LLC on July 21, 2021[170](index=170&type=chunk)[171](index=171&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2021 performance driven by Zig-Zag segment growth, improved gross margin, strategic investments, and increased Adjusted EBITDA [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q2 and H1 2021 saw consolidated net sales growth, primarily from the Zig-Zag segment, with improved gross profit margin and increased net income Q2 2021 vs Q2 2020 Performance Summary (in thousands) | Metric | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | **Total net sales** | $122,643 | $104,963 | 16.8% | | **Total gross profit** | $59,973 | $47,936 | 25.1% | | **Operating income** | $24,879 | $17,180 | 44.8% | | **Net income attributable to TPB** | $15,355 | $10,295 | 49.2% | - Zig-Zag Products segment net sales increased **72.3%** in Q2 2021, driven by a **64.6%** increase in volume and a **7.7%** increase in price/mix, led by a doubling in sales of MYO cigar wraps[193](index=193&type=chunk) - Stoker's Products segment net sales grew **8.3%** in Q2 2021, with a **2.4%** volume increase and **5.9%** price/mix increase, driven by continued double-digit volume growth in Stoker's® MST[194](index=194&type=chunk) - NewGen Products segment net sales decreased **10.0%** in Q2 2021, primarily due to declines in vape distribution businesses compared to strong B2C orders during stay-at-home provisions in the prior year[195](index=195&type=chunk) [EBITDA and Adjusted EBITDA](index=46&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) The company utilizes non-GAAP EBITDA and Adjusted EBITDA to assess operating performance, showing significant increases for Q2 and H1 2021 Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net income attributable to TPB** | $15,355 | $10,295 | $27,137 | $14,794 | | **EBITDA** | $26,538 | $18,542 | $52,430 | $29,033 | | **Adjusted EBITDA** | $30,004 | $22,778 | $58,002 | $40,560 | [Liquidity and Capital Reserves](index=47&type=section&id=Liquidity%20and%20Capital%20Reserves) The company maintained strong liquidity with $157.5 million cash, increased working capital, and significant cash flow from operations and financing activities - As of June 30, 2021, the company had **$157.5 million** of cash on hand and **$21.4 million** of availability under the 2021 Revolving Credit Facility[229](index=229&type=chunk) - Net cash provided by operating activities increased to **$37.4 million** for the first six months of 2021, up from **$17.5 million** in the same period of 2020, primarily due to higher net income[232](index=232&type=chunk) - Net cash provided by financing activities was **$92.2 million** for the first six months of 2021, a **$101.1 million** increase from the prior year, mainly due to net proceeds from the Senior Secured Notes offering[235](index=235&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk exposure, with fixed-rate debt instruments mitigating interest rate risk on financial statements - There have been no material changes in the company's exposure to foreign currency exchange rate fluctuation risk or credit risk during the period[267](index=267&type=chunk)[268](index=268&type=chunk) - The company's Senior Secured Notes and Convertible Senior Notes bear interest at a fixed rate, eliminating financial statement risk from interest rate changes for these instruments[269](index=269&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2021[271](index=271&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that were likely to materially affect such controls[272](index=272&type=chunk) [PART II—OTHER INFORMATION](index=53&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 16 for material pending legal proceedings, including a stockholder complaint and product liability lawsuits - For details on material pending legal proceedings, the report directs readers to Note 16, which discusses a stockholder lawsuit regarding the SDI merger and other product liability claims[145](index=145&type=chunk)[146](index=146&type=chunk)[274](index=274&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2020 Annual Report on Form 10-K - There have been no material changes to the Risk Factors previously disclosed in the company's 2020 Annual Report on Form 10-K[276](index=276&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q2 2021 share repurchase activity, with 175,000 shares bought for $8.4 million, leaving $25.7 million available under the program Share Repurchase Activity - Q2 2021 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | **April 2021** | - | $- | - | | **May 2021** | 184,090 | $47.71 | 170,000 | | **June 2021** | 5,000 | $42.87 | 5,000 | | **Total Q2** | **189,090** | **-** | **175,000** | - As of June 30, 2021, **$25.7 million** remains available for share repurchases under the company's **$50.0 million** program[169](index=169&type=chunk)[278](index=278&type=chunk)

Turning Point Brands, Inc. (NYSE:TPB) Q2 2021 Earnings Conference Call July 27, 2021 10:00 AM ET Company Participants Louie Reformina – Chief Financial Officer Larry Wexler – President and Chief Executive Officer Graham Purdy – Chief Operating Officer Conference Call Participants Eric Des Lauriers – Craig-Hallum Capital Gaurav Jain – Barclays Alex Rygiel – B. Riley FBR Greg Pendy – Sidoti & Company Operator Good morning and welcome to the Turning Point Brands Second Quarter 2021 Earnings Conference Call. Al ...

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, 2021 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 its charter) Delawar ...

Turning Point Brands, Inc. (NYSE:TPB) Q1 2021 Results Earnings Conference Call April 27, 2021 10:00 AM ET Company Participants Louie Reformina - Chief Business Development Officer Larry Wexler - President, Chief Executive Officer, Director Graham Purdy - Chief Operating Officer Conference Call Participants Vivien Azer - Cowen Eric Des Lauriers - Craig-Hallum Greg Pendy - Sidoti Operator Good morning and welcome to the Turning Point Brands first quarter 2021 earnings conference call. All participants will be ...

m Point Brint Brint Brint TURNING POINT™ B R A S N D × INVESTOR PRESENTATION Q1 2021 | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM | | N Y S E : T P B | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I L L E K Y | T U R N I N G P O I N T B R A N D S . C O M | FORWARD LOOKING STATEMENTS DisclaimerTurning Point Brands (NYSE: TPB) This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be i ...

Company Overview - Turning Point Brands, Inc. operates in three segments: Zig-Zag Products, Stoker's Products, and NewGen Products, with a focus on branded consumer products in the alternative smoking accessories and Other Tobacco Products (OTP) industries [257]. - The company has a market share of 34.0% in cigarette papers and 63.0% in make-your-own (MYO) cigar wraps, ranking 1 overall in both categories [263]. - As of December 31, 2020, the company's products were available in approximately 190,000 U.S. retail locations, expanding its North American retail presence to an estimated 210,000 points of distribution [259]. Acquisitions and Investments - In June 2020, the company acquired certain tobacco assets from Durfort Holdings for $47.7 million, enhancing its product offerings in the alternative cigar and cigar wrap market [272]. - In October 2020, the company acquired a 20% stake in Wild Hempettes LLC for $2.5 million, with options to increase ownership based on milestones [275]. - The company made acquisitions totaling $39.4 million in 2020, compared to $7.7 million in 2019 [409]. Financial Performance - Total net sales for the year ended December 31, 2020, increased to $405.1 million, up 11.9% from $361.9 million in 2019 [303]. - Consolidated net income for the year ended December 31, 2020, was $33.0 million, up 139.9% from $13.8 million in 2019 [303]. - The company’s operating income for 2020 was $64.1 million, a substantial increase from $26.9 million in 2019 [405]. - Adjusted EBITDA for 2020 was $90.236 million, up from $67.337 million in 2019, representing a growth of 34% [340]. Segment Performance - Zig-Zag products segment net sales rose to $132.8 million, a 22.1% increase from $108.7 million in 2019, driven by a 19.7% volume increase [304]. - Stoker's products segment net sales increased to $115.9 million, up 16.0% from $99.9 million in 2019, with volume growth of 12.0% [306]. - NewGen products segment net sales grew to $156.4 million, a 2.0% increase from $153.4 million in 2019, primarily due to growth in Nu-X and vape distribution businesses [307]. Profitability Metrics - Gross profit for the year ended December 31, 2020, was $189.6 million, reflecting a 38.7% increase from $136.7 million in 2019 [303]. - Gross profit in the Zig-Zag Products segment rose to $78.2 million, an increase of 31.7% from $59.4 million in 2019, with gross profit as a percentage of net sales increasing to 58.9% [309]. - Gross profit in the Stoker's Products segment increased to $61.5 million, up 17.6% from $52.3 million in 2019, with gross profit as a percentage of net sales rising to 53.0% [310]. - NewGen products segment gross profit surged to $49.9 million, a 99.1% increase from $25.1 million in 2019, with gross profit as a percentage of net sales increasing to 31.9% [311]. Expenses and Liabilities - Selling, general, and administrative expenses increased to $125.6 million, a 14.3% rise from $109.9 million in 2019 [303]. - Interest expense, net, rose to $20.2 million, reflecting a 16.6% increase from $17.3 million in 2019 [303]. - Income tax expense increased significantly to $10.0 million, a 390.0% rise from $2.0 million in 2019 [303]. - Total liabilities increased to $358.5 million in 2020 from $340.0 million in 2019 [403]. Cash Flow and Capital Structure - Net cash provided by operating activities rose to $43.7 million in 2020, a 16% increase from $37.8 million in 2019 [347]. - Net cash used in investing activities was $64.8 million in 2020, a decrease of 508% compared to net cash provided of $15.9 million in 2019 [349]. - Long-term debt as of December 31, 2020, was $277.962 million, slightly up from $268.951 million in 2019 [353]. - The company had unrestricted cash on hand of $41.8 million as of December 31, 2020, down from $95.3 million in 2019 [345]. Market Presence and Growth Opportunities - The company has identified additional growth opportunities in the emerging alternatives market, establishing Nu-X as a subsidiary dedicated to alternative products [258]. - The company reported a significant increase in inventories, rising to $79.8 million in 2020 from $71.0 million in 2019 [403]. - The company’s products are available in over 210,000 retail outlets across North America, indicating a strong market presence [414]. Regulatory and Compliance Matters - The company submitted Premarket Tobacco Applications (PMTAs) for 250 products to the FDA prior to the September 9, 2020 deadline, covering a broad assortment of products in the vapor category [274]. - The Company has established an MSA escrow account as a means of compliance with the Master Settlement Agreement, which may not prevent future regulations from adversely affecting operations [448]. - Federal excise taxes on tobacco products could materially affect the Company's financial condition, although e-cigarettes and related products are not currently assessed federal excise taxes as of December 31, 2020 [455].

m Point Brint Brint Brint TURNING POINT™ B R A S N D × INVESTOR PRESENTATION Q4 2020 | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM | | N Y S E : T P B | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I L L E K Y | T U R N I N G P O I N T B R A N D S . C O M | FORWARD LOOKING STATEMENTS DisclaimerTurning Point Brands (NYSE: TPB) This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be i ...