NYSE$TPB

Turning Point Brands Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Turning Point Brands experienced a challenging Q4 2019 due to vaping market disruption, but core tobacco segment remained solid, and strategic restructuring positioned the company for renewed growth.

Turning Point Brands' Q4 2019 net sales decreased by 14.9% to $80.2 million, and the company reported a net loss of $12.3 million, primarily due to $24.7 million in restructuring costs. The vaping market disruption significantly impacted the NewGen segment, but the core tobacco segment showed resilience. The company has taken steps to consolidate its operations and focus on creating value for shareholders.

  • Net sales decreased 14.9% to $80.2 million due to vaping market disruption.
  • Net loss of $12.3 million was reported, impacted by $24.7 million in restructuring costs.
  • Core tobacco segment performed well, while the NewGen segment was significantly impacted by vaping market issues.
  • Company restructured operations to stabilize the vaping business and focus on growth in MST, Zig-Zag, and Nu-X.

Headline financials

Total Revenue

$80.2M

Previous: $94.3M-14.9%
EPS (adj)

$0.41

Previous: $0.49-16.3%
Capital Expenditures

$755K

Previous: $739K+2.2%
Free Cash Flow

$17M

Previous: $11.4M+49.7%
Net Income

-$12.3M

Previous: $4.98M-346.1%
Operating Income

-$18.1K

Previous: $11M-100.2%
Gross Profit

$12.3M

Previous: $38.7M-68.3%
Cash & Equivalents

$95.3M

Previous: $3.31M+2781.1%
Total Assets

$447M

Previous: $339M+31.6%
Stock-Based Comp

$1.15M

Previous: $355K+223.7%

Revenue & EPS history

Turning Point Brands · Revenue · Quarterly

$80.2M

Q4 2019-14.9%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Turning Point Brands · $27.6M total across 1 segment · Q4 2019

  • Zig-Zag Products
    $27.6M+1.9%

Forward guidance

The company projects 2020 net sales to be $338 to $353 million and Adjusted EBITDA of $69 to $75 million, assuming no upside from the PMTA process.

Tailwinds

  • Projected 2020 net sales of $338 to $353 million.
  • Projected 2020 Adjusted EBITDA of $69 to $75 million.
  • Expects to continue growing market share in MST.
  • Plans to expand Zig-Zag in the alternatives space.
  • Aims to further enhance product pipeline at Nu-X.

Headwinds

  • Projections assume no upside from the PMTA process in 2020.
  • Stock compensation and non-cash incentive expense in 2020 is projected to be $3.3 million.
  • Cash interest expense is projected to be $11-$12 million.
  • The company expects the 2020 effective income tax rate to be 21-23%.
  • Capital expenditures for 2020 are anticipated to be approximately $4.0 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 Q4 2019

Historical avgQ4 2019

+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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