Hillman Solutions (US:HLMN)2025-11-04 12:32Financial Performance - Net sales increased by 8.0% to a record $424.9 million compared to $393.3 million in the prior year quarter[5] - Net income totaled $23.2 million, or $0.12 per diluted share, compared to $7.4 million, or $0.04 per diluted share, in the prior year quarter[5] - Adjusted EBITDA increased to a record $88.0 million compared to $64.8 million in the prior year quarter[5] - Net income for the thirty-nine weeks ended September 27, 2025, was $38,707,000, a 109% increase from $18,477,000 for the same period in 2024[19] - Adjusted EBITDA for the thirty-nine weeks ended September 27, 2025, was $217,780,000, up 17.4% from $185,484,000 in the prior year[23] - Adjusted diluted earnings per share for the thirty-nine weeks ended September 27, 2025, was $0.48, compared to $0.39 for the same period in 2024, reflecting a 23.1% increase[26] Cash Flow and Investments - Free Cash Flow totaled $9.1 million compared to $39.6 million in the prior year quarter[5] - Cash flows from operating activities provided $74,289,000, a decrease of 47% compared to $140,187,000 for the thirty-nine weeks ended September 28, 2024[19] - Net cash used for investing activities was $55,501,000, a significant reduction from $122,169,000 in the previous year[19] - Free cash flow for the thirteen weeks ended September 27, 2025, was $9,065,000, compared to $39,593,000 for the same period in 2024, indicating a decrease of approximately 77%[31] - For the thirty-nine weeks ended September 27, 2025, free cash flow was $18,942,000, down from $75,991,000 in the prior year, representing a decline of about 75%[31] - Net cash provided by operating activities for the thirteen weeks ended September 27, 2025, was $26,237,000, compared to $63,711,000 for the same period in 2024, a decrease of approximately 59%[31] - Capital expenditures for the thirteen weeks ended September 27, 2025, were $17,172,000, down from $24,118,000 in the same period in 2024, reflecting a reduction of about 29%[31] - For the thirty-nine weeks ended September 27, 2025, capital expenditures totaled $55,347,000, compared to $64,196,000 in the prior year, a decrease of approximately 14%[31] - The company emphasizes that free cash flow is a critical indicator of cash generated by business operations and available for investment and debt obligations[30] Debt and Liquidity - Gross debt was $709.5 million compared to $718.6 million on December 28, 2024[5] - Net debt to trailing twelve month Adjusted EBITDA improved to 2.5x at quarter end compared to 2.8x on December 28, 2024[5] - Liquidity available totaled $276.9 million, consisting of $239.2 million of available borrowing under the revolving credit facility and $37.7 million of cash and equivalents[5] - Net debt as of September 27, 2025, was $671,791,000, slightly down from $674,045,000 at the end of December 28, 2024[29] Stock and Shareholder Actions - Hillman repurchased approximately 325.6 thousand shares of its common stock at an average price of $9.72 per share, totaling $3.2 million[5] Depreciation and Expenses - The company reported a depreciation and amortization expense of $105,280,000 for the thirty-nine weeks ended September 27, 2025, compared to $96,440,000 in the prior year[19] - The company incurred $10,739,000 in stock-based compensation expense for the thirty-nine weeks ended September 27, 2025, up from $9,742,000 in the prior year[19] Accounts Receivable - Accounts receivable net change was $(34,721,000), indicating a higher collection period compared to $(22,906,000) in the previous year[19] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $37,731,000, down from $59,820,000 at the end of September 28, 2024[19]