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Jul 01, 2023
Hillman Solutions Q2 2023 Earnings Report
Hillman Solutions' financial performance was marked by a decrease in net sales and net income, but demonstrated resilience through cost control and free cash flow generation.
Key Takeaways
Hillman Solutions Corp. reported a decrease in net sales and net income for Q2 2023. Net sales decreased by 3.6% to $380.0 million, and net income totaled $4.5 million, or $0.02 per diluted share. However, the company demonstrated cost control and generated strong free cash flow.
Net sales decreased by 3.6% to $380.0 million compared to the prior year quarter.
Net income totaled $4.5 million, or $0.02 per diluted share, compared to $8.8 million in the prior year quarter.
Adjusted diluted EPS was $0.13 per diluted share compared to $0.14 per diluted share in the prior year quarter.
Adjusted EBITDA totaled $58.0 million compared to $62.3 million in the prior year quarter.
Forward Guidance
Hillman reiterated its full year 2023 guidance, expecting net sales between $1.45 to $1.55 billion, adjusted EBITDA between $215 to $235 million, and free cash flow between $125 to $145 million.
Positive Outlook
- Expect to reap the benefits of several new business wins in the months ahead.
- Expect to continue generating healthy free cash flow in the second half of the year.
- Margins expand sequentially during the third and fourth quarter.
- Believe they have the right strategy and a talented team in place.
- Believe they are on track to achieve reiterated full year financial outlook.
Challenges Ahead
- Sales volume on existing products was lower than expected during the quarter.
- Navigated a complex market environment.
- Carefully controlling our costs to produce strong bottom line results.
- Gross margins that came in line with our expectations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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