Turning Point Brands (TPB) Investor Presentation

Company Overview - Turning Point Brands (TPB) is a consumer products company marketing alternative smoking accessories and other consumables[14] - TPB's asset-light business model generates resilient free cash flow, with CapEx averaging approximately 1% of sales from 2015-2020[11] Segment Performance - Zig-Zag Products are the 1 premium and overall rolling paper brand in the U S and Canada, and 1 in MYO cigar wraps[11] - Zig-Zag Products accounted for 38% of sales and 57% of adjusted operating income[19] - Stoker's Products are the 2 loose leaf chew and a leading MST value brand[11] - Stoker's Products accounted for 28% of sales and 38% of adjusted operating income[19] - NewGen Products accounted for 34% of sales[19] Financial Performance and Guidance - Q3 2021 net sales reached $110 million, a 6% year-over-year increase, with adjusted EBITDA of $26 million, a 10% year-over-year increase[119] - The company adjusted its FY 2021 guidance to net sales of $433 to $443 million and adjusted EBITDA of $104 to $108 million[120] Strategic Initiatives - TPB is positioned to capitalize on growing cannabinoid consumption trends, with 68% of Americans now favoring cannabis legalization[46] - The company is focused on increasing its mix of proprietary products in the NewGen segment, targeting gross margins of 50%+[84]