Hillman Solutions (HLMN) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 decreased by 1.4% to $393.3 million compared to $398.9 million in Q3 2023[2] - Net income for Q3 2024 was $7.4 million, or $0.04 per diluted share, up from $5.1 million, or $0.03 per diluted share in the prior year[2] - Adjusted EBITDA for Q3 2024 increased to $72.6 million from $66.8 million in Q3 2023[2] - Year-to-date net sales decreased by 0.5% to $1,123.0 million compared to $1,128.7 million in the prior year period[3] - Adjusted diluted EPS for the year-to-date period was $0.42 per diluted share, compared to $0.30 per diluted share in the prior year[3] - Net income for the thirty-nine weeks ended September 28, 2024, was $18,477 thousand, a significant increase from $470 thousand in the same period last year[19] - Adjusted EBITDA for the thirty-nine weeks ended September 28, 2024, was $193,241 thousand, up from $164,990 thousand in the prior year, representing an increase of about 17%[23] - Net income for the thirty-nine weeks ended September 30, 2023, was $18,477 million, an increase from $5,057 million in the previous year[26] - Adjusted Net Income for the same period was $82,463 million, up from $58,986 million year-over-year[26] - Adjusted Diluted Earnings per Share (EPS) for the thirty-nine weeks ended September 28, 2024, was $0.42, compared to $0.30 for the same period last year[26] Cash Flow and Liquidity - Free Cash Flow for the year-to-date period totaled $76.0 million, down from $119.3 million in the prior year[3] - Cash and cash equivalents at the end of the period were $59,820 thousand, compared to $39,262 thousand at the end of the same period last year, marking a 52% increase[19] - The net cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $140,187 thousand, down from $171,477 thousand in the prior year, indicating a decrease of approximately 18%[19] - Free cash flow for the thirty-nine weeks ended September 28, 2024, was $75,991 million, down from $119,332 million in the previous year[31] - Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $140,187 million, compared to $171,477 million in the previous year[31] Debt and Liabilities - Gross debt as of September 28, 2024, was $758.6 million, a decrease from $811.1 million on September 30, 2023[4] - Total liabilities rose to $1,216,343 thousand as of September 28, 2024, from $1,176,572 thousand at the end of December 30, 2023, indicating a growth of approximately 3.4%[18] - The current portion of debt and financing lease liabilities increased to $13,039 thousand from $9,952 thousand, representing a rise of approximately 31%[18] - Net debt as of September 28, 2024, was $698,733 million, a decrease from $722,396 million as of December 30, 2023[29] - Gross debt as of September 28, 2024, was $758,553 million, slightly down from $760,949 million as of December 30, 2023[29] Assets and Equity - Total current assets increased to $624,404 thousand as of September 28, 2024, compared to $547,980 thousand at the end of December 30, 2023, reflecting a growth of approximately 14%[18] - The company’s total stockholders' equity increased to $1,181,224 thousand as of September 28, 2024, from $1,154,529 thousand at the end of December 30, 2023, reflecting a growth of about 2.3%[18] Guidance and Strategic Initiatives - The company updated its full-year 2024 guidance for net sales to $1.455 to $1.485 billion, and adjusted EBITDA to approximately $250 million[7] - The acquisition of Intex DIY is expected to enhance product offerings and drive long-term organic growth[5] Other Financial Metrics - The company reported a customer bankruptcy reserve of $7,757 thousand, reflecting proactive measures in response to market conditions[23] - Capital expenditures for the thirty-nine weeks ended September 28, 2024, were $64,196 thousand, compared to $52,145 thousand in the same period last year, showing an increase of about 23%[19] - Total adjusting items for the thirty-nine weeks ended September 28, 2024, contributed $0.13 to the adjusted EPS[28] - The company reported a tax benefit on adjusting items and amortization expense of $(6,876) million for the thirty-nine weeks ended September 30, 2023[26] - The dilutive effect of stock options and awards for the thirteen weeks ended September 28, 2024, included 2,737 options[27]