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Jun 29, 2024
Hillman Solutions Q2 2024 Earnings Report
Hillman Solutions' performance was marked by bottom-line improvements driven by efficiencies and strong margins, despite a slight decrease in net sales due to market conditions.
Key Takeaways
Hillman Solutions Corp. reported a slight decrease in net sales but a significant increase in net income and adjusted EBITDA for Q2 2024. The company focused on operational efficiencies and margin management, updating its full-year guidance to reflect these improvements.
Net sales decreased slightly by 0.2% to $379.4 million.
Net income increased to $12.5 million, or $0.06 per diluted share, compared to $4.5 million, or $0.02 per diluted share, in the prior year quarter.
Adjusted EBITDA increased to $68.4 million compared to $58.0 million in the prior year quarter.
The company updated its full-year 2024 guidance, lowering revenue expectations but increasing adjusted EBITDA guidance.
Forward Guidance
Hillman updated its full-year 2024 guidance to reflect current market conditions, lowering revenue expectations while increasing adjusted EBITDA guidance, and maintaining free cash flow guidance.
Positive Outlook
- Adjusted EBITDA guidance increased to $240 to $250 million from $230 to $240 million.
- Confidence in driving profitability through operations and margin management.
- Free cash flow guidance remains unchanged at $100 to $120 million.
- Focus on 'controlling the controllables' to position Hillman for future growth.
- Exceptional fill rates of 95% ensuring product availability for retail partners.
Challenges Ahead
- Net sales guidance lowered to $1.44 to $1.48 billion from $1.475 to $1.555 billion.
- Sales impacted by prevailing market conditions.
- Increased supply chain costs, including raw materials, sourcing, transportation and energy
Historical Earnings Impact
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Avg. Return Before/After Earnings
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