Hillman Reports Second Quarter 2024 Results

Core Insights - Hillman Solutions Corp. reported a slight decrease in net sales for the second quarter of 2024, with net sales of $379.4 million, down 0.2% from $380.0 million in the prior year quarter [3] - The company achieved a net income of $12.5 million, or $0.06 per diluted share, compared to $4.5 million, or $0.02 per diluted share, in the prior year quarter, indicating improved profitability [3] - Adjusted EBITDA for the second quarter was $68.4 million, up from $58.0 million in the prior year quarter, reflecting enhanced operational efficiency [3] Financial Performance - For the year-to-date period ending June 29, 2024, net sales remained unchanged at $729.7 million compared to the prior year period [3] - Year-to-date net income was $11.0 million, a significant recovery from a net loss of $(4.6) million in the prior year period [3] - Adjusted diluted EPS increased to $0.25 from $0.19 in the prior year period [3] Balance Sheet and Liquidity - As of June 29, 2024, gross debt was $759.4 million, a slight decrease from $760.9 million at the end of 2023 [4] - Net debt decreased to $705.3 million from $722.4 million at the end of 2023, indicating improved leverage [4] - The company had approximately $305.3 million in available liquidity, consisting of $251.2 million in borrowing capacity and $54.0 million in cash [4] Management Commentary - Management highlighted strong bottom-line performance driven by improved efficiencies and strong margins, despite market challenges [5] - The company maintained a fill rate of 95%, ensuring product availability for retail partners [5] - The strategic focus remains on controlling operational factors and positioning for future growth [5] Updated Guidance - The company updated its full-year 2024 guidance, lowering top-line revenue expectations while increasing bottom-line guidance, reflecting confidence in profitability through operational management [6][7] - The revised guidance for net sales is now projected between $1.44 billion and $1.48 billion, with adjusted EBITDA expected between $240 million and $250 million [2][6] Leadership Transition - A leadership transition is planned for January 1, 2025, with Jon Michael Adinolfi becoming President and CEO, and Doug Cahill transitioning to Executive Chairman [8]