Hillman Solutions (US:HLMN)2024-08-06 11:33Financial 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]