NYSE$TPB

Turning Point Brands Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Turning Point Brands reported an increase in net sales and gross profit, but a decrease in net income due to PMTA costs. The company saw growth in its Smokeless, Smoking, and NewGen segments.

Turning Point Brands announced positive financial results for Q2 2020, with net sales increasing by 12.5% to $105.0 million and gross profit increasing by 16.8% to $48.1 million. However, net income decreased to $9.2 million due to PMTA-related expenses. The company's Smokeless, Smoking, and NewGen segments all experienced growth during the quarter.

  • Net sales increased 12.5% to $105.0 million.
  • Gross profit increased 16.8% to $48.1 million.
  • Diluted EPS was $0.47, and Adjusted Diluted EPS was $0.71.
  • The company increased its full-year guidance for net sales and Adjusted EBITDA.

Headline financials

Total Revenue

$105M

Previous: $93.3M+12.5%
EPS (adj)

$0.71

Previous: $0.53+34.0%
Capital Expenditures

-$1.08M

Previous: -$1.08M-0.1%
Free Cash Flow

$8.15M

Previous: $12.1M-32.8%
Net Income

$9.23M

Previous: $13.2M-30.1%
Operating Income

$17.3M

Previous: $19.9M-13.1%
Gross Profit

$48.1M

Previous: $41.2M+16.8%
Cash & Equivalents

$64.2M

Previous: $2.13M+2918.0%
Total Assets

$467M

Previous: $361M+29.3%
Stock-Based Comp

$758K

Previous: $946K-19.9%

Revenue & EPS history

Turning Point Brands · Revenue · Quarterly

$105M

Q2 2020+12.5%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Turning Point Brands · $27.4M total across 1 segment · Q2 2020

  • Zig-Zag Products
    $27.4M

Forward guidance

The company projects 2020 net sales to be $370 to $382 million and 2020 Adjusted EBITDA of $78 million to $83 million.

Tailwinds

  • Net sales are projected to be $370 to $382 million.
  • Adjusted EBITDA is projected to be $78 million to $83 million.
  • The projections assume no upside from the PMTA process in 2020.
  • Stock compensation and non-cash incentive expense in 2020 is projected to be $2.8 million.
  • Capital expenditures for 2020 are anticipated to be approximately $4 to $6 million.

Headwinds

  • There is uncertainty in the current environment.
  • There is on-going government support for the consumer.
  • There are expected near-term volatility within our NewGen segment.
  • The company expects to spend a total of $16 to $18 million on the PMTA process.
  • Net Sales for the third quarter 2020 are expected to be $90 to $95 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 Q2 2020

Historical avgQ2 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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