NYSE$TPB

Turning Point Brands Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Turning Point Brands' Q3 2021 performance was within expectations, with core business sales growth of 11% despite prior year benefits.

Turning Point Brands reported a 5.5% increase in net sales to $109.9 million and a 49.3% increase in net income to $13.4 million for the third quarter of 2021. The company's Zig-Zag and Stoker's segments showed growth, while the NewGen segment faced challenges due to regulatory uncertainty. TPB updated its 2021 guidance and increased its share repurchase authorization.

  • Net sales increased by 5.5 percent to $109.9 million.
  • Gross profit increased by 12.3 percent to $54.3 million.
  • Net income increased by 49.3 percent to $13.4 million.
  • Adjusted EBITDA increased by 9.9 percent to $26.3 million.

Headline financials

Total Revenue

$110M

Previous: $104M+5.5%
EPS (adj)

$0.72

Previous: $0.75-4.0%
Capital Expenditures

-$2.22M

Previous: -$1.46M-51.8%
Free Cash Flow

$11.2M

Previous: $6.33M+77.6%
Net Income

$13.5M

Previous: $7.8M+72.8%
Operating Income

$22.4M

Previous: $16M+39.7%
Gross Profit

$54.3M

Previous: $48.3M+12.3%
Cash & Equivalents

$131M

Previous: $67.4M+93.7%
Total Assets

$624M

Previous: $479M+30.2%
Stock-Based Comp

$1.75M

Previous: $773K+126.6%

Revenue & EPS history

Turning Point Brands · Revenue · Quarterly

$110M

Q3 2021+5.5%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Turning Point Brands · $42.2M total across 1 segment · Q3 2021

  • Zig-Zag Products
    $42.2M+17.3%

Forward guidance

Turning Point Brands revised its 2021 annual guidance due to evolving market dynamics driven by the FDA regulatory environment, further implementation of the PACT Act, and supply chain-related delays.

Tailwinds

  • Strong double-digit sales growth for Zig-Zag Products is expected.
  • Mid-to-high single-digit sales growth for Stoker’s Products is anticipated.
  • The FDA rescinded its previous Market Denial Order for TPB’s Vapor Products.
  • All of TPB’s proprietary vapor products will continue to be marketed while they remain under review.
  • Increased equity stake in ReCreation Marketing.

Headwinds

  • Net sales are expected to be $433 to $443 million, revised down from $447 to $462 million.
  • Adjusted EBITDA is projected to be $104 to $108 million, revised down from $108 to $113 million.
  • A decline in sales for NewGen Products is expected.
  • The vape distribution business is expected to see a double-digit decline.
  • Supply chain-related delays are pushing some sales of new products into the first quarter of 2022.

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 2021

Historical avgQ3 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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