NYSE$TPB

Turning Point Brands Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Turning Point Brands demonstrated solid execution with year-over-year growth significantly outpacing end markets.

Turning Point Brands reported an increase in net sales by 18.7% to $107.6 million, gross profit increased by 28.6% to $53.3 million, and net income increased to $11.8 million. Adjusted EBITDA increased by 57.4% to $28.0 million, with diluted EPS at $0.57 and Adjusted Diluted EPS at $0.80.

  • Net sales increased 18.7% year-over-year to $107.6 million.
  • Gross profit increased 28.6% year-over-year to $53.3 million.
  • Net income increased $7.3 million to $11.8 million.
  • Adjusted EBITDA increased 57.4% year-over-year to $28.0 million.

Headline financials

Total Revenue

$108M

Previous: $90.7M+18.7%
EPS (adj)

$0.80

Previous: $0.51+56.9%
Capital Expenditures

-$842K

Previous: -$877K+4.0%
Free Cash Flow

$10.9M

Previous: $2.4M+356.3%
Net Income

$11.8M

Previous: $3.28M+259.8%
Operating Income

$24.3M

Previous: $9.04M+169.4%
Gross Profit

$53.3M

Previous: $41.4M+28.6%
Cash & Equivalents

$167M

Previous: $99.4M+68.4%
Total Assets

$627M

Previous: $449M+39.6%
Stock-Based Comp

$1.5M

Previous: $455K+229.2%

Revenue & EPS history

Turning Point Brands · Revenue · Quarterly

$108M

Q1 2021+18.7%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Turning Point Brands · $41M total across 1 segment · Q1 2021

  • Zig-Zag Products
    $41M+41.9%

Forward guidance

With the strength of the first quarter results, the Company is revising its guidance provided on February 10, 2021 as follows: Absent any further acquisitions, TPB projects the following for 2021:

Tailwinds

  • Net Sales of $422 to $440 million (up from previous guidance of $412 to $432 million)
  • Strong double-digit sales growth for Zig-Zag Products (up from previous guidance of double-digit sales growth)
  • High-single-digit sales growth for Stoker’s Products (unchanged)
  • Mid-to-low-single digit declines for NewGen Products (up from previous guidance of mid-single-digit sales declines), which includes single-digit declines for vape distribution (up from previous guidance of double-digit declines) offset by growth in Nu-X
  • Adjusted EBITDA of $103 to $108 million (up from previous guidance of $99 to $105 million)

Headwinds

  • Stock compensation and non-cash incentive expense of $7 million
  • Cash interest expense of $19 million and GAAP interest expense of $22 million which no longer includes debt discount amortization related to the 2024 convertible notes and reflects the recently priced senior secured notes
  • Effective income tax rate of 23% to 24%
  • Capital expenditures of $5 to $6 million
  • Net Sales of $103 to $109 million for the second quarter of 2021

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 2021

Historical avgQ1 2021

+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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