Hillman Reports Third Quarter 2024 Results

Core Viewpoint - Hillman Solutions Corp. reported mixed financial results for the third quarter and year-to-date 2024, with slight declines in net sales but improvements in net income and adjusted earnings metrics, alongside a strategic acquisition aimed at long-term growth [2][3][5]. Financial Performance - Third Quarter 2024 Results: - Net sales decreased by 1.4% to $393.3 million from $398.9 million in the prior year quarter - Net income increased to $7.4 million, or $0.04 per diluted share, compared to $5.1 million, or $0.03 per diluted share, in the prior year quarter - Adjusted diluted EPS rose to $0.16 from $0.11 in the prior year quarter - Adjusted EBITDA increased to $72.6 million from $66.8 million in the prior year quarter [2][5]. - Year-to-Date 2024 Results: - Net sales decreased by 0.5% to $1,123.0 million from $1,128.7 million in the prior year period - Net income totaled $18.5 million, or $0.09 per diluted share, compared to $0.5 million, or $0.00 per diluted share, in the prior year period - Adjusted diluted EPS improved to $0.42 from $0.30 in the prior year period - Adjusted EBITDA rose to $193.2 million from $165.0 million in the prior year period - Net cash provided by operating activities was $140.2 million, down from $171.5 million in the prior year period - Free Cash Flow totaled $76.0 million, compared to $119.3 million in the prior year period [3][4]. Balance Sheet and Liquidity - As of September 28, 2024: - Gross debt was $758.6 million, a decrease from $760.9 million on December 30, 2023 - Net debt decreased to $698.7 million from $722.4 million on December 30, 2023 - Liquidity available totaled $324.6 million, consisting of $264.8 million of available borrowing under the revolving credit facility and $59.8 million of cash and equivalents - Net debt to trailing twelve month Adjusted EBITDA improved to 2.8x from 3.3x on December 30, 2023 [4][5]. Strategic Developments - The company acquired Intex DIY, a leading supplier of cleaning textiles, which is expected to enhance its product portfolio and customer reach - Hillman received recognition as the 2024 Vendor Partner of the Year in Hardlines at Lowe's and Partner of the Year in Hardware at Home Depot, reflecting strong customer relationships and operational efficiency [2][5][6]. Updated Guidance - The company updated its full-year 2024 guidance: - Net Sales guidance revised to $1.455 to $1.485 billion from $1.44 to $1.48 billion - Adjusted EBITDA guidance remains approximately $250 million - Free Cash Flow guidance adjusted to $100 to $115 million from $100 to $120 million [6][8].