Turning Point Brands(TPB) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 net sales increased 12.8% year-over-year to $93.7 million, with total consolidated net sales for FY 2024 increasing 11.0% to $360.7 million[5]. - Adjusted EBITDA for Q4 2024 was $26.2 million, up 5.3% from the prior year, while FY 2024 Adjusted EBITDA increased 12.0% to $104.5 million[5]. - Consolidated net income for 2024 was $40,510,000, an increase from $37,781,000 in 2023, representing a growth of 4.8%[25]. - Adjusted EBITDA for 2024 was $104,459,000, up from $93,252,000 in 2023, reflecting a growth of 11.9%[31]. - Adjusted diluted EPS for the year ended December 31, 2024, was $3.49, an increase from $2.93 in 2023[37]. - Adjusted net income for the quarter was $21.68 million, compared to $20.20 million in the prior year, reflecting an increase of 7.3%[39]. - Adjusted diluted EPS for the quarter was $0.98, compared to $0.82 in the same quarter of the previous year, marking an increase of 19.5%[39]. Segment Performance - Zig-Zag Products segment net sales increased 1.8% to $45.9 million in Q4 2024, while Stoker's Products segment net sales rose 25.8% to $47.8 million[6][8]. - Modern Oral combined sales reached $11.2 million for Q4 2024, with FRE sales more than quadrupling year-over-year and growing 26% sequentially[4]. - Stoker's Products segment gross profit increased 26.0% to $27.6 million in Q4 2024, with a gross margin of 57.7%[9]. Income and Expenses - Net income for Q4 2024 decreased 76.1% to $2.4 million, primarily due to a one-time loss from discontinued operations of $7.3 million[5]. - The company incurred $4,634,000 in corporate restructuring costs for the year ended December 31, 2024[37]. - The FDA PMTA-related costs for the year ended December 31, 2024, amounted to $3,592,000, compared to $2,098,000 in 2023[38]. - The company incurred $1.11 million in transactional expenses and strategic initiatives during the quarter, compared to $3,000 in the same quarter last year[40]. - Loss on extinguishment of debt was reported at $194,000 for Q4 2024, while the previous year showed a gain of $146,000[39]. Balance Sheet and Liquidity - Total gross debt as of December 31, 2024, was $248.6 million, with net debt at $202.4 million and total liquidity of $103.6 million[10]. - Total current assets decreased to $198,205,000 in 2024 from $267,629,000 in 2023, a decline of 26%[24]. - Total liabilities reduced to $302,973,000 in 2024 from $417,363,000 in 2023, a decrease of 27.3%[24]. - Total stockholders' equity increased to $190,380,000 in 2024 from $152,006,000 in 2023, a growth of 25.3%[24]. - Cash at the end of the period decreased to $50,902,000 in 2024 from $122,815,000 in 2023, a decline of 58.6%[26]. Guidance and Future Outlook - FY 2025 guidance projects Adjusted EBITDA of $108-113 million and Modern Oral sales of $60-80 million[14]. - The company expects to maintain its focus on FDA PMTA applications, with costs of $512,000 incurred in Q4 2024[40]. Other Notable Items - The company reported a loss from discontinued operations of $7,517,000 in 2024, compared to $285,000 in 2023[25]. - The company recognized a mark-to-market loss of $942,000 on a Canadian inter-company note in Q4 2024[39]. - The effective tax rate for the quarter was 28.4% in 2024, compared to 24.6% in 2023[41]. - The federal excise tax refund for the year ended December 31, 2024, was $(1,674,000), compared to $(5,095,000) in 2023[37].