Hillman Solutions Corp. (Nasdaq: HLMN) (the “Company” or
“Hillman”), a leading provider of hardware products and
merchandising solutions, reported financial results for the
thirteen and thirty-nine weeks ended September 28, 2024.
Third Quarter 2024 Highlights (Thirteen weeks ended
September 28, 2024)
- Net sales decreased (1.4)% to $393.3
million compared to $398.9 million in the prior year quarter
- Net income totaled $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 EPS1 was $0.16 per
diluted share compared to $0.11 per diluted share in the prior year
quarter
- Adjusted EBITDA1 totaled $72.6
million compared to $66.8 million in the prior year quarter
- Acquired Intex DIY, a leading
supplier of wiping cloths, consumable rags and cleaning
textiles
- Subsequent to quarter end, Hillman
won divisional 2024 Vendor Partner of the Year in Hardlines at
Lowe's and won 2024 Partner of the Year in Hardware at Home
Depot
Third Quarter YTD 2024 Highlights (Thirty-nine weeks
ended September 28, 2024)
- Net sales decreased (0.5)% to
$1,123.0 million compared to $1,128.7 million in the prior year
period
- Net income totaled $18.5 million, or
$0.09 per diluted share, compared to net income of $0.5 million, or
$0.00 per diluted share, in the prior year period
- Adjusted diluted EPS1 was $0.42 per
diluted share compared to $0.30 per diluted share in the prior year
period
- Adjusted EBITDA1 totaled $193.2
million compared to $165.0 million in the prior year period
- Net cash provided by operating
activities was $140.2 million compared to $171.5 million in the
prior year period
- Free Cash Flow1 totaled $76.0
million compared to $119.3 million in the prior year period
Balance Sheet and Liquidity at September 28,
2024
- Gross debt was $758.6 million,
compared to $760.9 million on December 30, 2023, and $811.1
million on September 30, 2023
- Net debt1 decreased to $698.7
million, compared to $722.4 million on December 30, 2023, and
$771.8 million on September 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 debt1 to trailing twelve month
Adjusted EBITDA improved to 2.8x from 3.3x on December 30,
2023, and 3.7x on September 30, 2023
Management Commentary
"Our strong results for the third quarter were driven by
efficient operations across the organization while taking great
care of our customers," commented Doug Cahill, Chairman, President
and CEO of Hillman. "Our 1,100 field sales and service folks
continue to regularly manage the aisle for our customers, and our
operations team has done a great job shipping our 114,000 SKUs to
our customers on time and in full - demonstrated by our
year-to-date fill rate of 95 percent."
“During the quarter we acquired Intex DIY, a leading supplier of
cleaning rags, cloths, and textiles. This acquisition adds new
products to our portfolio, and allows us to sell into new aisles
and to new customers. We continue to seek bolt-on acquisitions like
Intex DIY, that allow us to leverage our competitive moat to fuel
long-term organic growth."
"Subsequent to the quarter end, we won 2024 vendor partner of
the year awards at our top two customers, Lowe's and Home Depot. We
are proud of this recognition and grateful for the hardworking
Hillman team that made this happen. Taking care of our customers
has always been the lifeblood of this company and has been the key
driver our long-term success. As we look forward, the partnership
and trust we have with our customers and our new business pipeline
give us confidence that we are well positioned to grow our top and
bottom line in 2025."
Full Year 2024 Guidance - Updated
Based on year-to-date performance and improved visibility on the
remainder of the year, management is updating its guidance most
recently provided on August 6, 2024 with Hillman's second quarter
2024 results.
|
|
Previous FY 2024 Guidance |
Updated FY 2024 Guidance |
|
Net Sales |
$1.44 to $1.48 billion |
$1.455 to $1.485 billion |
| Adjusted EBITDA1 |
$240 to $250 million |
Approx. $250 million |
| Free
Cash Flow1 |
$100 to $120 million |
$100 to $115 million |
Rocky Kraft, Hillman's chief financial officer commented: "We
are increasing our top and bottom line guidance to reflect the
acquisition of Intex, which closed in August of this year, and our
strong bottom line results. We also lowered the top end of our free
cash flow guide to better fall in line with our expectations."
1) Denotes Non-GAAP metric. For additional information,
including our definitions, use of, and reconciliations of these
metrics to the most directly comparable financial measures under
GAAP, please see the reconciliations toward the end of the press
release.
Third Quarter 2024 Results Presentation
Hillman plans to host a conference call and webcast presentation
today, November 5, 2024, at 8:30 a.m. Eastern Time to discuss
its results. Chairman, President, and Chief Executive Officer Doug
Cahill; Chief Operating Officer Jon Michael Adinolfi, and Chief
Financial Officer Rocky Kraft will host the results
presentation.
Date: Tuesday,
November 5, 2024
Time: 8:30 a.m.
Eastern Time
Listen-Only Webcast:
https://edge.media-server.com/mmc/p/fs2k9czt/
A webcast replay will be available approximately one hour after
the conclusion of the call using the link above.
Hillman’s quarterly presentation and Form 10-Q are expected to
be filed with the SEC and posted to its Investor Relations website,
https://ir.hillmangroup.com, prior to the webcast presentation.
About Hillman Solutions Corp.
Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman
Solutions Corp. (“Hillman”) and its subsidiaries are leading North
American providers of complete hardware solutions, delivered with
outstanding customer service to over 46,000 locations. Hillman is
celebrating 60 years of service this year, a significant milestone
achieved by maintaining strong company values, an innovative
culture, and delivering a “small business” experience with “big
business” efficiency. Hillman designs innovative product and
merchandising solutions for complex categories that deliver an
outstanding customer experience to home improvement centers, mass
merchants, national and regional hardware stores, pet supply
stores, and OEM & industrial customers. For more information on
Hillman, visit www.hillman.com.
Forward Looking Statements
All statements made in this press release that are consider to
be forward-looking are made in good faith by the Company and are
intended to qualify for the safe harbor from liability established
by Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934, and the Private Securities
Litigation Reform Act of 1995. You should not rely on these
forward-looking statements as predictions of future events. Words
such as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," “target”, “goal”, "may," "will,"
"could," "should," "believes," "predicts," "potential," "continue,"
and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements
include, without limitation, the Company’s expectations with
respect to future performance. These forward-looking statements
involve significant risks and uncertainties that could cause the
actual results to differ materially from the expected results. Most
of these factors are outside the Company's control and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: (1) unfavorable economic
conditions that may affect our and our customers’, suppliers’ and
other business partners’ operations, financial condition and cash
flows including spending on home renovation or construction
projects, inflation, recessions, instability in the financial
markets or credit markets; (2) increased supply chain costs,
including raw materials, sourcing, transportation and energy; (3)
the highly competitive nature of the markets that we serve; (4) the
ability to continue to innovate with new products and services; (5)
direct and indirect costs associated with the May 2023 ransomware
attack, and our receipt of expected insurance receivables
associated with that cyber security incident; (6) seasonality; (7)
large customer concentration; (8) the ability to recruit and retain
qualified employees; (9) the outcome of any legal proceedings that
may be instituted against the Company; (10) adverse changes in
currency exchange rates; or (11) regulatory changes and potential
legislation that could adversely impact financial results. The
foregoing list of factors is not exclusive, and readers should also
refer to those risks that are included in the Company’s filings
with the Securities and Exchange Commission (“SEC”), including the
Annual Report on Form 10-K filed on February 22, 2024. Given
these uncertainties, current or prospective investors are cautioned
not to place undue reliance on any such forward looking
statements.
Except as required by applicable law, the Company does not
undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
in this communication to reflect any change in its expectations or
any change in events, conditions or circumstances on which any such
statement is based.
Contact:
Michael KoehlerVice President of Investor Relations &
Treasury513-826-5495IR@hillmangroup.com
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Net Income
(Loss), GAAP Basis(dollars in
thousands) Unaudited
| |
Thirteen WeeksEndedSeptember
28,2024 |
|
Thirteen WeeksEndedSeptember
30,2023 |
|
Thirty-nine WeeksEndedSeptember
28,2024 |
|
Thirty-nine WeeksEndedSeptember
30,2023 |
|
Net sales |
$ |
393,296 |
|
|
$ |
398,943 |
|
|
$ |
1,123,033 |
|
|
$ |
1,128,669 |
|
| Cost of sales
(exclusive of depreciation and amortization shown separately
below) |
|
203,700 |
|
|
|
222,644 |
|
|
|
581,806 |
|
|
|
643,652 |
|
| Selling, warehouse,
general and administrative expenses |
|
130,261 |
|
|
|
113,359 |
|
|
|
369,980 |
|
|
|
335,876 |
|
|
Depreciation |
|
17,948 |
|
|
|
14,434 |
|
|
|
50,583 |
|
|
|
44,939 |
|
|
Amortization |
|
15,354 |
|
|
|
15,583 |
|
|
|
45,857 |
|
|
|
46,733 |
|
| Other (income)
expense |
|
(881 |
) |
|
|
(1,819 |
) |
|
|
3 |
|
|
|
841 |
|
|
Income from operations |
|
26,914 |
|
|
|
34,742 |
|
|
|
74,804 |
|
|
|
56,628 |
|
| Interest expense,
net |
|
15,108 |
|
|
|
16,728 |
|
|
|
44,316 |
|
|
|
52,880 |
|
| Refinancing
costs |
|
— |
|
|
|
— |
|
|
|
3,008 |
|
|
|
— |
|
|
Income before income taxes |
|
11,806 |
|
|
|
18,014 |
|
|
|
27,480 |
|
|
|
3,748 |
|
| Income tax
expense |
|
4,372 |
|
|
|
12,957 |
|
|
|
9,003 |
|
|
|
3,278 |
|
| Net income |
$ |
7,434 |
|
|
$ |
5,057 |
|
|
$ |
18,477 |
|
|
$ |
470 |
|
| |
|
|
|
|
|
|
|
| Basic income per
share |
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
0.00 |
|
| Weighted average basic
shares outstanding |
|
196,297 |
|
|
|
194,794 |
|
|
|
195,914 |
|
|
|
194,662 |
|
| |
|
|
|
|
|
|
|
| Diluted income per
share |
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
0.00 |
|
| Weighted average diluted
shares outstanding |
|
199,034 |
|
|
|
196,575 |
|
|
|
198,370 |
|
|
|
195,832 |
|
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Balance
Sheets(dollars in
thousands)Unaudited
|
|
September 28, 2024 |
|
December 30, 2023 |
|
ASSETS |
|
|
|
| Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
59,820 |
|
|
$ |
38,553 |
|
|
Accounts receivable, net of allowances of 10,365 (2,770 -
2023) |
|
129,633 |
|
|
|
103,482 |
|
|
Inventories, net |
|
419,385 |
|
|
|
382,710 |
|
|
Other current assets |
|
15,566 |
|
|
|
23,235 |
|
|
Total current assets |
|
624,404 |
|
|
|
547,980 |
|
| Property and equipment,
net of accumulated depreciation of 374,289 (333,875 -
2023) |
|
221,769 |
|
|
|
200,553 |
|
| Goodwill |
|
829,246 |
|
|
|
825,042 |
|
| Other intangibles, net of
accumulated amortization of 516,026 (470,791 - 2023) |
|
622,562 |
|
|
|
655,293 |
|
| Operating lease right of
use assets |
|
85,254 |
|
|
|
87,479 |
|
| Other
assets |
|
14,332 |
|
|
|
14,754 |
|
|
Total assets |
$ |
2,397,567 |
|
|
$ |
2,331,101 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
165,809 |
|
|
$ |
140,290 |
|
|
Current portion of debt and financing lease
liabilities |
|
13,039 |
|
|
|
9,952 |
|
|
Current portion of operating lease
liabilities |
|
16,331 |
|
|
|
14,407 |
|
|
Accrued expenses: |
|
|
|
|
Salaries and wages |
|
29,645 |
|
|
|
22,548 |
|
|
Pricing allowances |
|
6,693 |
|
|
|
8,145 |
|
|
Income and other taxes |
|
7,700 |
|
|
|
6,469 |
|
|
Other accrued liabilities |
|
29,895 |
|
|
|
21,309 |
|
|
Total current liabilities |
|
269,112 |
|
|
|
223,120 |
|
| Long-term
debt |
|
730,666 |
|
|
|
731,708 |
|
| Deferred tax
liabilities |
|
130,403 |
|
|
|
131,552 |
|
| Operating lease
liabilities |
|
75,585 |
|
|
|
79,994 |
|
| Other non-current
liabilities |
|
10,577 |
|
|
|
10,198 |
|
|
Total liabilities |
$ |
1,216,343 |
|
|
$ |
1,176,572 |
|
| Commitments and
contingencies (Note 6) |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock, 0.0001 par, 500,000,000 shares authorized,
196,514,508 issued and outstanding at September 28, 2024 and
194,913,124 issued and outstanding at December 30,
2023 |
|
20 |
|
|
|
20 |
|
|
Additional paid-in capital |
|
1,438,074 |
|
|
|
1,418,535 |
|
|
Accumulated deficit |
|
(217,729 |
) |
|
|
(236,206 |
) |
|
Accumulated other comprehensive loss |
|
(39,141 |
) |
|
|
(27,820 |
) |
|
Total stockholders' equity |
|
1,181,224 |
|
|
|
1,154,529 |
|
|
Total liabilities and stockholders' equity |
$ |
2,397,567 |
|
|
$ |
2,331,101 |
|
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Cash
Flows(dollars in
thousands)Unaudited
|
|
Thirty-nine Weeks EndedSeptember 28,
2024 |
|
Thirty-nine Weeks EndedSeptember 30,
2023 |
| Cash flows from
operating activities: |
|
|
|
|
Net income |
$ |
18,477 |
|
|
$ |
470 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Depreciation and amortization |
|
96,440 |
|
|
|
91,672 |
|
|
Deferred income taxes |
|
(1,326 |
) |
|
|
1,835 |
|
|
Deferred financing and original issue discount
amortization |
|
3,807 |
|
|
|
3,993 |
|
|
Stock-based compensation expense |
|
9,742 |
|
|
|
9,111 |
|
|
Customer bankruptcy reserve |
|
7,757 |
|
|
|
— |
|
|
Loss on debt restructuring |
|
3,008 |
|
|
|
— |
|
|
Cash paid to third parties in connection with debt
restructuring |
|
(1,554 |
) |
|
|
— |
|
|
Loss on disposal of property and equipment |
|
56 |
|
|
|
— |
|
|
Change in fair value of contingent
consideration |
|
313 |
|
|
|
2,614 |
|
|
Changes in operating items: |
|
|
|
|
Accounts receivable, net |
|
(22,906 |
) |
|
|
(42,883 |
) |
|
Inventories, net |
|
(2,036 |
) |
|
|
92,833 |
|
|
Other assets |
|
(142 |
) |
|
|
(5,697 |
) |
|
Accounts payable |
|
17,822 |
|
|
|
27,220 |
|
|
Other accrued liabilities |
|
10,729 |
|
|
|
(9,691 |
) |
|
Net cash provided by operating activities |
|
140,187 |
|
|
|
171,477 |
|
| Net cash from
investing activities |
|
|
|
|
Acquisition of business, net of cash received |
|
(57,762 |
) |
|
|
(300 |
) |
|
Capital expenditures |
|
(64,196 |
) |
|
|
(52,145 |
) |
|
Other investing activities |
|
(211 |
) |
|
|
(318 |
) |
|
Net cash used for investing activities |
|
(122,169 |
) |
|
|
(52,763 |
) |
| Cash flows from
financing activities: |
|
|
|
|
Repayments of senior term loans |
|
(4,255 |
) |
|
|
(86,383 |
) |
|
Financing fees |
|
(33 |
) |
|
|
— |
|
|
Borrowings on revolving credit loans |
|
77,000 |
|
|
|
172,000 |
|
|
Repayments of revolving credit loans |
|
(77,000 |
) |
|
|
(197,000 |
) |
|
Principal payments under finance lease
obligations |
|
(2,698 |
) |
|
|
(1,687 |
) |
|
Proceeds from exercise of stock options |
|
8,938 |
|
|
|
1,600 |
|
|
Payments of contingent consideration |
|
(196 |
) |
|
|
(1,175 |
) |
|
Other financing activities |
|
(103 |
) |
|
|
883 |
|
|
Net cash provided by (used for) financing
activities |
|
1,653 |
|
|
|
(111,762 |
) |
| Effect of exchange
rate changes on cash |
|
1,596 |
|
|
|
1,229 |
|
| Net increase in cash
and cash equivalents |
|
21,267 |
|
|
|
8,181 |
|
| Cash and cash
equivalents at beginning of period |
|
38,553 |
|
|
|
31,081 |
|
| Cash and cash
equivalents at end of period |
$ |
59,820 |
|
|
$ |
39,262 |
|
Reconciliations of Non-GAAP Financial Measures to the
Most Directly Comparable GAAP Financial Measures
The Company uses non-GAAP financial measures to analyze
underlying business performance and trends. The Company believes
that providing these non-GAAP financial measures enhances the
Company’s and investors’ ability to compare the Company’s past
financial performance with its current performance. These non-GAAP
financial measures are provided as supplemental information to the
financial measures presented in this press release that are
calculated and presented in accordance with GAAP. Non-GAAP
financial measures should not be considered a substitute for, or
superior to, financial measures determined or calculated in
accordance with GAAP. The Company’s definitions of its non-GAAP
financial measures may not be comparable to similarly titled
measures reported by other companies. Because GAAP financial
measures on a forward-looking basis are not accessible, and
reconciling information is not available without unreasonable
effort, reconciliations to GAAP financial measures are not provided
for forward-looking non-GAAP measures. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information, which could be material to future
results.
Non-GAAP financial measures such as consolidated adjusted EBITDA
and Adjusted Diluted Earnings per Share (EPS) exclude from the
relevant GAAP metrics items that neither relate to the ordinary
course of the Company’s business, nor reflect the Company’s
underlying business performance.
Reconciliation of Adjusted EBITDA
(Unaudited)
(dollars in thousands)
Adjusted EBITDA is a non-GAAP financial measure and is the
primary basis used to measure the operational strength and
performance of our businesses as well as to assist in the
evaluation of underlying trends in our businesses. This measure
eliminates the significant level of noncash depreciation and
amortization expense that results from the capital-intensive nature
of our businesses and from intangible assets recognized in business
combinations. It is also unaffected by our capital and tax
structures, as our management excludes these results when
evaluating our operating performance. Our management use this
financial measure to evaluate our consolidated operating
performance and the operating performance of our operating segments
as well as to allocate resources and capital to our operating
segments. Additionally, we believe that Adjusted EBITDA is useful
to investors because it is one of the bases for comparing our
operating performance with that of other companies in our
industries, although our measure of Adjusted EBITDA may not be
directly comparable to similar measures used by other
companies.
| |
Thirteen WeeksEndedSeptember
28,2024 |
|
Thirteen WeeksEndedSeptember
30,2023 |
|
Thirty-nine WeeksEndedSeptember
28,2024 |
|
Thirty-nine WeeksEndedSeptember
30,2023 |
|
Net income |
$ |
7,434 |
|
|
$ |
5,057 |
|
|
$ |
18,477 |
|
|
$ |
470 |
|
| Income tax
expense |
|
4,372 |
|
|
|
12,957 |
|
|
|
9,003 |
|
|
|
3,278 |
|
| Interest expense,
net |
|
15,108 |
|
|
|
16,728 |
|
|
|
44,316 |
|
|
|
52,880 |
|
|
Depreciation |
|
17,948 |
|
|
|
14,434 |
|
|
|
50,583 |
|
|
|
44,939 |
|
|
Amortization |
|
15,354 |
|
|
|
15,583 |
|
|
|
45,857 |
|
|
|
46,733 |
|
| EBITDA |
$ |
60,216 |
|
|
$ |
64,759 |
|
|
$ |
168,236 |
|
|
$ |
148,300 |
|
| |
|
|
|
|
|
|
|
| Stock compensation
expense |
|
3,257 |
|
|
|
3,069 |
|
|
|
9,742 |
|
|
|
9,111 |
|
|
Restructuringand
other(1) |
|
1,322 |
|
|
|
179 |
|
|
|
3,192 |
|
|
|
3,027 |
|
| Litigation
expense(2) |
|
— |
|
|
|
79 |
|
|
|
— |
|
|
|
339 |
|
| Transaction and
integration expense(3) |
|
477 |
|
|
|
289 |
|
|
|
993 |
|
|
|
1,599 |
|
| Change in fair value
of contingent consideration |
|
(467 |
) |
|
|
(1,553 |
) |
|
|
313 |
|
|
|
2,614 |
|
| Refinancing
costs(4) |
|
— |
|
|
|
— |
|
|
|
3,008 |
|
|
|
— |
|
| Customer bankruptcy
reserve(5) |
|
7,757 |
|
|
|
— |
|
|
|
7,757 |
|
|
|
— |
|
| Total adjusting
items |
|
12,346 |
|
|
|
2,063 |
|
|
|
25,005 |
|
|
|
16,690 |
|
| Adjusted
EBITDA |
$ |
72,562 |
|
|
$ |
66,822 |
|
|
$ |
193,241 |
|
|
$ |
164,990 |
|
|
(1) |
Includes
consulting and other costs associated with severance related to our
distribution center relocations and corporate restructuring
activities. |
| (2) |
Litigation expense includes legal fees associated with our
litigation with Hy-Ko Products Company LLC. |
| (3) |
Transaction and integration expense includes professional fees
and other costs related to the Koch Industries, Inc and Intex DIY,
Inc acquisitions and the CCMP secondary offerings in 2023. |
| (4) |
In the first quarter of 2024, we entered into a Repricing
Amendment (2024 Repricing Amendment) on our existing Senior Term
Loan due July 14, 2028. |
| (5) |
Customer bankruptcy reserve includes amounts written off in
connection with the True Value Chapter 11 bankruptcy filing on
October 14, 2024. |
Reconciliation of Adjusted Diluted Earnings Per
Share
(in thousands, except per share data)
Unaudited
We define Adjusted Diluted EPS as reported diluted EPS excluding
the effect of one-time, non-recurring activity and volatility
associated with our income tax expense. The Company believes that
Adjusted Diluted EPS provides further insight and comparability in
operating performance as it eliminates the effects of certain items
that are not comparable from one period to the next. The following
is a reconciliation of reported diluted EPS from continuing
operations to Adjusted Diluted EPS from continuing operations:
| |
Thirteen WeeksEndedSeptember
28,2024 |
|
Thirteen WeeksEndedSeptember
30,2023 |
|
Thirty-nine WeeksEndedSeptember
28,2024 |
|
Thirty-nine WeeksEndedSeptember
30,2023 |
| Reconciliation to
Adjusted Net Income |
|
|
|
|
|
|
|
| Net
income |
$ |
7,434 |
|
|
$ |
5,057 |
|
|
$ |
18,477 |
|
|
$ |
470 |
|
|
Remove adjusting items(1) |
|
12,346 |
|
|
|
2,063 |
|
|
|
25,005 |
|
|
|
16,690 |
|
|
Remove amortization expense |
|
15,354 |
|
|
|
15,583 |
|
|
|
45,857 |
|
|
|
46,733 |
|
|
Remove tax benefit on adjusting items and amortization
expense(2) |
|
(3,096 |
) |
|
|
(1,055 |
) |
|
|
(6,876 |
) |
|
|
(4,907 |
) |
| Adjusted Net
Income |
$ |
32,038 |
|
|
$ |
21,648 |
|
|
$ |
82,463 |
|
|
$ |
58,986 |
|
| |
|
|
|
|
|
|
|
| Reconciliation to
Adjusted Diluted Earnings per Share |
|
|
|
|
|
|
|
|
Diluted Earnings per Share |
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
0.00 |
|
|
Remove adjusting items(1) |
|
0.06 |
|
|
|
0.01 |
|
|
|
0.13 |
|
|
|
0.09 |
|
|
Remove amortization expense |
|
0.08 |
|
|
|
0.08 |
|
|
|
0.23 |
|
|
|
0.24 |
|
|
Remove tax benefit on adjusting items and amortization
expense(2) |
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
| Adjusted Diluted
Earnings per Share |
$ |
0.16 |
|
|
$ |
0.11 |
|
|
$ |
0.42 |
|
|
$ |
0.30 |
|
| |
|
|
|
|
|
|
|
| Reconciliation to
Adjusted Diluted Shares
Outstanding(3) |
|
|
|
|
|
|
|
|
Diluted Shares, as reported |
|
199,034 |
|
|
|
196,575 |
|
|
|
198,370 |
|
|
|
195,832 |
|
|
Non-GAAP dilution adjustments: |
|
|
|
|
|
|
|
|
Dilutive effect of stock options and awards |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Adjusted Diluted
Shares |
|
199,034 |
|
|
|
196,575 |
|
|
|
198,370 |
|
|
|
195,832 |
|
Note: Adjusted EPS may not add due to rounding.
| (1) |
Please refer to "Reconciliation of Adjusted EBITDA"
table above for additional information on adjusting items. See "Per
share impact of Adjusting Items" table below for the per share
impact of each adjustment. |
| (2) |
We have calculated the income tax effect of the
non-GAAP adjustments shown above at the applicable statutory rate
of 25.1% for the U.S. and 26.2% for Canada except for the following
items: |
|
|
|
a. |
The tax impact
of stock compensation expense was calculated using the statutory
rate of 25.1%, excluding certain awards that are
non-deductible. |
| |
|
b. |
The tax impact of acquisition and integration expense was
calculated using the statutory rate of 25.1%, excluding certain
charges that were non-deductible. |
| |
|
c. |
Amortization expense for financial accounting purposes was
offset by the tax benefit of deductible amortization expense using
the statutory rate of 25.1%. |
| (3) |
Diluted shares on a GAAP basis for thirteen and
thirty-nine weeks ended September 28, 2024 include the dilutive
impact of 2,737 and 2,456 options and awards, respectfully. Diluted
shares on a GAAP basis for the thirteen and thirty-nine weeks ended
September 30, 2023 include the dilutive impact of 1,781 and 1,170
options and awards, respectfully. |
Per Share Impact of Adjusting Items
| |
Thirteen WeeksEndedSeptember
28,2024 |
|
Thirteen WeeksEndedSeptember
30,2023 |
|
Thirty-nine WeeksEndedSeptember
28,2024 |
|
Thirty-nine WeeksEndedSeptember
30,2023 |
|
Stock compensation expense |
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
| Restructuring and
other costs |
|
0.01 |
|
|
|
0.00 |
|
|
|
0.02 |
|
|
|
0.02 |
|
| Litigation
expense |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
| Transaction and
integration expense |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
| Change in fair value
of contingent consideration |
|
0.00 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
|
|
0.01 |
|
| Refinancing
costs |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.02 |
|
|
|
0.00 |
|
| Customer bankruptcy
reserve |
|
0.04 |
|
|
|
0.00 |
|
|
|
0.04 |
|
|
|
0.00 |
|
| Total adjusting
items |
$ |
0.06 |
|
|
$ |
0.01 |
|
|
$ |
0.13 |
|
|
$ |
0.09 |
|
Note: Adjusting items may not add due to rounding.
Reconciliation of Net Debt
We define Net Debt as reported gross debt less cash on hand. Net
debt is not defined under U.S. GAAP and may not be computed the
same as similarly titled measures used by other companies. The
Company believes that Net Debt provides further insight and
comparability into liquidity and capital structure. The following
is the calculation of Net Debt:
| |
September 28, 2024 |
|
December 30, 2023 |
|
Revolving loans |
$ |
— |
|
|
$ |
— |
|
| Senior term loan, due
2028 |
|
747,597 |
|
|
|
751,852 |
|
| Finance leases and
other obligations |
|
10,956 |
|
|
|
9,097 |
|
|
Gross debt |
$ |
758,553 |
|
|
$ |
760,949 |
|
| Less
cash |
|
59,820 |
|
|
|
38,553 |
|
|
Net debt |
$ |
698,733 |
|
|
$ |
722,396 |
|
Reconciliation of Free Cash Flow
We calculate free cash flow as cash flows from operating
activities less capital expenditures. Free cash flow is not defined
under U.S. GAAP and may not be computed the same as similarly
titled measures used by other companies. We believe free cash flow
is an important indicator of how much cash is generated by our
business operations and is a measure of incremental cash available
to invest in our business and meet our debt obligations.
| |
Thirty-nine Weeks EndedSeptember 28, 2024 |
|
Thirty-nine Weeks EndedSeptember 30, 2023 |
|
Net cash provided by operating activities |
$ |
140,187 |
|
|
$ |
171,477 |
|
| Capital expenditures |
|
(64,196 |
) |
|
|
(52,145 |
) |
| Free cash flow |
$ |
75,991 |
|
|
$ |
119,332 |
|
Source: Hillman Solutions Corp.
Hillman Solutions (NASDAQ:HLMN)
過去 株価チャート
から 10 2024 まで 11 2024
Hillman Solutions (NASDAQ:HLMN)
過去 株価チャート
から 11 2023 まで 11 2024
