Turning Point Brands(TPB) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 Adjusted EBITDA increased 11.3% to $27.2 million compared to the same period last year[2] - Total consolidated net sales increased 3.8% to $105.6 million in Q3 2024, with Zig-Zag Products net sales up 5.5% and Stoker's Products net sales up 12.1%[2] - Gross profit increased 4.0% to $53.7 million in Q3 2024[2] - Net income increased 14.3% to $12.4 million in Q3 2024[2] - Adjusted net income increased 9.8% to $15.9 million in Q3 2024[2] - The Company increased its full-year 2024 adjusted EBITDA guidance to $101 to $103 million, up from the previous range of $98 to $102 million[6] - Consolidated net income for the nine months ended September 30, 2024, was $37.455 million, compared to $27.916 million in the same period in 2023[16] - Net cash provided by operating activities increased to $49.321 million in 2024 from $40.005 million in 2023[16] - Adjusted EBITDA for the three months ended September 30, 2024, was $27.158 million, up from $24.403 million in 2023[22] - GAAP Net Income for Q3 2024 was $16,960 thousand, with an adjusted net income of $12,375 thousand and adjusted diluted EPS of $0.68[23] - Net sales for Q3 2024 were $105,617 thousand, a 3.8% increase from $101,722 thousand in Q3 2023[24] - Gross profit for Q3 2024 was $53,699 thousand, up 4% from $51,622 thousand in Q3 2023[24] - Operating income for Q3 2024 was $20,530 thousand, slightly higher than $20,237 thousand in Q3 2023[24] - Adjusted operating income for Q3 2024 was $22,985 thousand, compared to $20,916 thousand in Q3 2023[24] Segment Performance - Stoker's Products segment gross profit increased 12.1% to $23.1 million in Q3 2024, with gross margin up 10 basis points to 55.8%[4] - Zig-Zag Products segment gross profit increased 2.2% to $27.3 million in Q3 2024, though gross margin declined 180 basis points to 55.4%[3] - Creative Distribution Solutions (CDS) net sales were $14.9 million in Q3 2024, with gross profit of $3.3 million and gross margin of 22.1%[4] - Zig-Zag Products net sales for Q3 2024 were $49,324 thousand, up 5.5% from $46,754 thousand in Q3 2023[24] - Stoker's Products net sales for Q3 2024 were $41,380 thousand, up 12.1% from $36,916 thousand in Q3 2023[24] - Creative Distribution Solutions net sales for Q3 2024 were $14,913 thousand, down 17.4% from $18,052 thousand in Q3 2023[24] Debt and Liquidity - Total gross debt as of September 30, 2024 was $250.0 million, with net debt of $216.4 million and total liquidity of $92.4 million[5] - Net cash used in financing activities was $127.527 million in 2024, compared to $45.956 million in 2023[16] - Total cash at the end of the period was $35.516 million in 2024, down from $101.000 million in 2023[16] Expenses and Costs - Capital expenditures decreased to $3.516 million in 2024 from $4.206 million in 2023[16] - Stock compensation expense increased to $5.720 million in 2024 from $4.660 million in 2023[16] - Depreciation and other amortization expense rose to $3.393 million in 2024 from $2.388 million in 2023[16] - FDA PMTA costs increased to $1.242 million in 2024 from $275 million in 2023[22] - Non-cash asset impairment was $2.173 million in 2023, with no impairment recorded in 2024[22] - FDA PMTA costs for Q3 2024 were $1,242 thousand, significantly higher than $275 thousand in Q3 2023[23][24] - Corporate restructuring costs for Q3 2024 were $186 thousand, slightly lower than $190 thousand in Q3 2023[23][24]