NYSE$TPB

Turning Point Brands Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Turning Point Brands' financial performance was mixed, with sales declining slightly but gross profit increasing, reflecting robust demand amidst challenging conditions.

Turning Point Brands reported a slight decrease in net sales but an increase in gross profit for Q1 2020. The company faced challenges including PMTA costs, but saw growth in the Smokeless and Smoking segments. The NewGen segment experienced a contraction in sales.

  • Net sales decreased by 1.0% to $90.7 million.
  • Gross profit increased by 2.4% to $41.4 million.
  • Net income decreased to $3.3 million due to PMTA costs.
  • Adjusted diluted EPS increased from $0.43 to $0.51.

Headline financials

Total Revenue

$90.7M

Previous: $91.6M-1.0%
EPS (adj)

$0.51

Previous: $0.43+18.6%
Capital Expenditures

-$877K

Previous: -$886K+1.0%
Free Cash Flow

$2.4M

Previous: $5.67M-57.7%
Net Income

$3.28M

Previous: $6.56M-50.1%
Operating Income

$9.04M

Previous: $12M-24.9%
Gross Profit

$41.4M

Previous: $40.5M+2.4%
Cash & Equivalents

$99.4M

Previous: $1.74M+5609.7%
Total Assets

$449M

Previous: $348M+29.3%
Stock-Based Comp

$455K

Previous: $466K-2.4%

Revenue & EPS history

Turning Point Brands · Revenue · Quarterly

$90.7M

Q1 2020-1%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Turning Point Brands · $28.9M total across 1 segment · Q1 2020

  • Zig-Zag Products
    $28.9M+13.2%

Forward guidance

Turning Point Brands maintained its full year net sales and Adjusted EBITDA guidance provided February 26, 2020. The company projects 2020 net sales to be $338 to $353 million and 2020 Adjusted EBITDA of $69 to $75 million.

Tailwinds

  • Government measures are supporting consumers and the economy.
  • First quarter results were above expectations.
  • Stock compensation and non-cash incentive expense in 2020 is now projected to be $2.8 million.
  • The company expects the 2020 effective income tax rate to be 22% to 24%.
  • Capital expenditures for 2020 are anticipated to be approximately $4 to $6 million.

Headwinds

  • COVID-19 is expected to impact results in the second quarter.
  • A third-party cigar wrap manufacturer in the Dominican Republic temporarily closed for three weeks and is slowly ramping back up.
  • In-person selling has been dramatically dampened, which will slow new product launches.
  • Select budgeted annual price increases will be delayed.
  • There is no upside from the PMTA process in 2020.

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 Q1 2020

Historical avgQ1 2020

+3.8%

Avg return

Earnings day

+4.7%

Avg return

5 days after

+7.3%

Avg return

30 days after

68%

30 / 44 earnings

Positive

+26.2%

Q1 2025

Best reaction

-22.2%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.7%-0.4%-4.6%
Q4 2025+5.0%-33.1%-45.8%
Q3 2025-1.1%-0.7%-0.3%
Q1 2025+26.2%+7.8%+17.4%
Q4 2024-8.1%-11.9%-18.6%
Q3 2024+1.3%+7.8%+25.8%
Q2 2024-1.3%-5.4%+5.1%
Q1 2024+12.1%+13.1%+12.4%
Q4 2023+10.2%+15.0%+27.7%
Q3 2023+2.8%+0.5%+13.6%
Q2 2023+8.0%+9.2%+5.0%
Q1 2023-3.5%-6.0%-4.5%
Q4 2022+10.2%+8.3%-4.6%
Q3 2022+7.9%+8.3%-2.3%
Q2 2022-15.3%-19.3%-19.5%
Q1 2022+1.0%+1.6%-6.6%
Q4 2021-1.1%-1.3%-4.7%
Q3 2021-22.2%-21.5%-23.3%
Q2 2021+9.9%+13.3%+5.8%
Q1 2021+1.0%+0.5%-10.3%
Q4 2020+1.2%+15.2%+4.0%
Q3 2020+14.6%+13.8%+16.6%
Q2 2020+11.1%+8.2%-5.0%
Q1 2020+2.4%+8.2%+16.2%
Q4 2019+12.2%+14.3%-9.1%
Q3 2019+21.9%+26.1%+32.3%
Q2 2019-8.2%-5.6%-11.6%
Q1 2019+21.3%+24.5%+15.1%
Q4 2018+6.2%+11.0%+9.3%
Q3 2018-9.2%-15.2%-31.6%
Q2 2018-2.9%-0.5%+16.7%
Q1 2018+5.4%+6.4%+33.5%
Q4 2017+2.2%+1.3%-5.3%
Q3 2017-2.5%+1.8%+8.9%
Q2 2017+12.8%+4.1%+11.2%
Q1 2017-4.2%-3.5%+3.4%
Q4 2016+4.8%+12.0%+20.7%
Q4 2014+4.8%+12.0%+20.7%
Q3 2015+0.5%+12.7%+2.6%
Q3 2016+0.5%-0.7%-10.6%
Q2 2015+22.5%+19.0%+69.3%
Q2 2016+22.5%+19.0%+69.3%
Q1 2015-8.8%+18.3%+37.9%
Q1 2016-8.8%+18.3%+37.9%
Q3 2014
Q2 2014
Q1 2014

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