NASDAQ$HLMN

Hillman Solutions Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Hillman Solutions' financial performance was marked by a decrease in net sales and net income, but demonstrated resilience through cost control and free cash flow generation.

Hillman Solutions Corp. reported a decrease in net sales and net income for Q2 2023. Net sales decreased by 3.6% to $380.0 million, and net income totaled $4.5 million, or $0.02 per diluted share. However, the company demonstrated cost control and generated strong free cash flow.

  • Net sales decreased by 3.6% to $380.0 million compared to the prior year quarter.
  • Net income totaled $4.5 million, or $0.02 per diluted share, compared to $8.8 million in the prior year quarter.
  • Adjusted diluted EPS was $0.13 per diluted share compared to $0.14 per diluted share in the prior year quarter.
  • Adjusted EBITDA totaled $58.0 million compared to $62.3 million in the prior year quarter.

Headline financials

Total Revenue

$380M

Previous: $382M-0.4%
EPS (adj)

$0.13

Previous: $0.14-7.1%
Adjusted EBITDA

$58M

Previous: $62.3M-6.9%
Gross Debt

$852M

No prior period
Net Debt

$814M

Previous: $949M-14.2%
Free Cash Flow

$4.55M

Previous: $8.82M-48.4%
Net Income

$4.55M

Previous: $8.82M-48.4%
Operating Income

$20.8M

Previous: $27.8M-25.1%
Gross Profit

-$216M

Previous: $161M-234.1%
Cash & Equivalents

$37.7M

Previous: $17.7M+112.5%
Total Assets

$2.47B

Previous: $2.62B-5.6%
Stock-Based Comp

$3.41M

Previous: $2.29M+49.0%

Revenue & EPS history

Hillman Solutions · Revenue · Quarterly

$380M

Q2 2023-0.4%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Hillman reiterated its full year 2023 guidance, expecting net sales between $1.45 to $1.55 billion, adjusted EBITDA between $215 to $235 million, and free cash flow between $125 to $145 million.

Tailwinds

  • Expect to reap the benefits of several new business wins in the months ahead.
  • Expect to continue generating healthy free cash flow in the second half of the year.
  • Margins expand sequentially during the third and fourth quarter.
  • Believe they have the right strategy and a talented team in place.
  • Believe they are on track to achieve reiterated full year financial outlook.

Headwinds

  • Sales volume on existing products was lower than expected during the quarter.
  • Navigated a complex market environment.
  • Carefully controlling our costs to produce strong bottom line results.
  • Gross margins that came in line with our expectations.
  • Effectively worked down inventory levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.0%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.6%

Avg return

30 days after

41%

9 / 22 earnings

Positive

+8.8%

Q4 2023

Best reaction

-10.1%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-10.5%-14.5%
Q4 2025-10.1%-11.0%-21.2%
Q3 2025-2.9%-5.6%-3.1%
Q1 2025-7.4%-5.7%-1.7%
Q4 2024-2.1%-3.3%-13.2%
Q3 2024+3.8%+4.1%+4.4%
Q2 2024+3.4%+3.0%+7.2%
Q1 2024-4.2%-4.3%-10.7%
Q4 2023+8.8%+8.8%+15.2%
Q3 2023-1.9%-0.7%+15.2%
Q2 2023-6.1%-5.1%-13.2%
Q1 2023+1.4%+0.5%+8.9%
Q4 2022+3.0%+0.0%-12.6%
Q3 2022+7.4%+3.5%+15.4%
Q2 2022-9.7%-6.1%-20.3%
Q1 2022+6.0%+6.6%+6.4%
Q4 2021+8.2%+17.7%+33.9%
Q3 2021-5.3%-1.7%-9.8%
Q2 2021+3.3%+4.2%-0.4%
Q1 2021-8.0%-5.9%+1.9%
Q4 2020-2.8%+1.1%-0.3%
Q4 2019-2.8%+1.1%-0.3%
Q3 2020
Q2 2020
Q1 2020

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro