Turning Point Brands(US:TPB)2025-05-07 12:13Financial Performance - Q1 2025 net sales increased 28.1% year-over-year to $106.4 million, with Stoker's Products net sales up 62.7% and Zig-Zag Products net sales up 1.2%[6] - Modern Oral sales reached $22.3 million, nearly 10 times the prior year and almost double the previous quarter[3] - Adjusted EBITDA for Q1 2025 was $27.7 million, up 12.0% compared to the prior year[6] - Gross profit increased 23.3% to $59.6 million, while gross margin was 56.0%[6] - Net income rose 19.8% to $14.4 million, with adjusted net income increasing 8.0% to $16.7 million[6] - Consolidated net income for Q1 2025 was $15,791,000, an increase of 29.5% compared to $12,179,000 in Q1 2024[20] - Adjusted EBITDA for Q1 2025 reached $27,678,000, up 12% from $24,703,000 in Q1 2024[26] - Adjusted net income for Q1 2025 was $23.023 million, compared to $20.242 million in Q1 2024, representing a 8.8% increase[30] - The diluted EPS for Q1 2025 was $0.91, an increase from $0.80 in Q1 2024, marking a 13.8% rise[30] - Adjusted operating income for Q1 2025 was $25.482 million, compared to $21.540 million in Q1 2024, indicating a 18.2% increase[35] - The company’s operating income for Q1 2025 was $23.189 million, up from $19.270 million in Q1 2024, reflecting a 20.0% increase[35] Sales Guidance - The company is raising its full-year 2025 Modern Oral sales guidance to a range of $80.0 – 95.0 million, up from $60.0 – 80.0 million[9] Debt and Liquidity - Total gross debt as of March 31, 2025, was $300.0 million, with net debt at $200.4 million[8] - The company ended the quarter with total liquidity of $161.8 million, including $99.6 million in cash[8] - The company redeemed $250,000,000 of 2026 Notes and raised $300,000,000 from 2032 Notes in Q1 2025[20] - The company reported a loss on extinguishment of debt of $1,235,000 in Q1 2025, compared to no such loss in Q1 2024[20] Cash Flow and Expenditures - Net cash provided by operating activities decreased to $14,626,000 in Q1 2025 from $22,639,000 in Q1 2024, reflecting a decline of 35.4%[20] - Total cash at the end of Q1 2025 was $101,553,000, down from $132,837,000 at the end of Q1 2024[20] - Capital expenditures increased significantly to $2,185,000 in Q1 2025 from $366,000 in Q1 2024[20] - The company incurred $1,591,000 in costs related to FDA PMTA applications in Q1 2025, up from $841,000 in Q1 2024[26] Profitability Metrics - Total consolidated net sales for Q1 2025 included a gross profit of $25.6 million from the Zig-Zag Products segment, despite a 7.2% decrease from the prior year[4] - Stoker's Products segment gross profit increased 63.6% year-over-year to $34.0 million, with a gross margin of 57.5%[7] - The net income attributable to non-controlling interest for Q1 2025 was $2.040 million, compared to $3.729 million in Q1 2024, showing a decrease of 45.4%[30] Other Financial Impacts - The company experienced a mark-to-market loss of $315,000 due to foreign exchange fluctuations in Q1 2025[26] - Corporate restructuring costs were $1.261 million in Q1 2024, which were not present in Q1 2025[35]