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Jun 25, 2022
Hillman Solutions Q2 2022 Earnings Report
Hillman's financial performance reflected pricing initiatives and efforts to maintain customer stock levels.
Key Takeaways
Hillman Solutions Corp. reported a 4.9% increase in net sales to $394.1 million and a net income of $8.8 million, or $0.04 per diluted share, for the second quarter of 2022. Adjusted diluted EPS was $0.14, and adjusted EBITDA totaled $62.3 million.
Net sales increased by 4.9% to $394.1 million compared to the prior year quarter.
Net income reached $8.8 million, or $0.04 per diluted share, compared to a loss in the prior year quarter.
Adjusted diluted EPS was $0.14 per diluted share, a decrease from the prior year quarter.
Adjusted EBITDA totaled $62.3 million, slightly lower than the prior year quarter.
Forward Guidance
Hillman has tempered its full year expectations to account for softness in sales volume, but the business remains on solid footing.
Positive Outlook
- Over 90% of sales are driven by repair, remodel and maintenance activity, which remains robust.
- These activities are not highly sensitive to mortgage rates or dependent on new housing construction.
- Lead times have come down considerably since the beginning of the year.
- Price increases are expected to offset increased costs for the full year 2022 on a dollar-for-dollar basis.
- Competitive advantages position the company for further success with customers.
Challenges Ahead
- There are many factors influencing the economy, including labor shortages.
- Supply chain constraints exist.
- Retail inventories are elevated amid overall lighter foot traffic at stores.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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