NASDAQ$HLMN

Hillman Solutions Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Hillman Solutions experienced revenue and adjusted EBITDA growth, navigating a challenging macroeconomic environment.

Hillman Solutions Corp. reported a 5.4% increase in net sales to $398.9 million and net income of $5.1 million for the third quarter of 2023. Adjusted EBITDA grew to $66.8 million, driven by strength in the Hardware and Protective Solutions segment and improved margins. The company updated its full year 2023 guidance, narrowing the range for net sales and adjusted EBITDA while increasing the free cash flow outlook.

  • Net sales increased by 5.4% to $398.9 million compared to the prior year quarter.
  • Net income totaled $5.1 million, or $0.03 per diluted share, compared to a net loss of $(9.5) million in the prior year quarter.
  • Adjusted EBITDA totaled $66.8 million compared to $59.0 million in the prior year quarter.
  • The company narrowed its full year 2023 guidance for net sales and adjusted EBITDA, and increased its free cash flow outlook.

Headline financials

Total Revenue

$399M

Previous: $364M+9.6%
EPS (adj)

$0.11

Previous: $0.14-21.4%
Adjusted EBITDA

$66.8M

Previous: $59M+13.2%
Capital Expenditures

-$15.1M

No prior period
Free Cash Flow

$5.06M

Previous: -$9.47M+153.4%
Net Income

$5.06M

Previous: -$9.47M+153.4%
Operating Income

$34.7M

Previous: -$449K+7837.6%
Gross Profit

-$223M

Previous: $149M-249.4%
Cash & Equivalents

$39.3M

Previous: $29.2M+34.3%
Total Assets

$2.41B

Previous: $2.58B-6.3%
Stock-Based Comp

$3.07M

Previous: $2.49M+23.4%

Revenue & EPS history

Hillman Solutions · Revenue · Quarterly

$399M

Q3 2023+9.6%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Management updated its full year 2023 guidance, narrowing the range for net sales and adjusted EBITDA while increasing the free cash flow outlook.

Tailwinds

  • Expect gross margins to expand sequentially into the fourth quarter.
  • Benefiting from new business wins.
  • Benefiting from prior pricing actions.
  • Benefiting from prudent cost controls.
  • Increased free cash flow outlook for the year.

Headwinds

  • Challenging macroeconomic environment.
  • Lower foot traffic at customers.
  • Net Sales original guidance $1.45 to $1.55 billion, updated guidance $1.455 to $1.485 billion.
  • Adjusted EBITDA original guidance $215 to $235 million, updated guidance $215 to $220 million.
  • Free Cash Flow original guidance $125 to $145 million, updated guidance $135 to $155 million.

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 Q3 2023

Historical avgQ3 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

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