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Sep 24, 2022
Hillman Solutions Q3 2022 Earnings Report
Hillman Solutions' Q3 2022 results reflected a year-over-year increase in net sales and an improvement in Adjusted EBITDA, driven by price increases offsetting higher costs.
Key Takeaways
Hillman Solutions Corp. reported a 3.9% increase in net sales to $378.5 million and an adjusted EBITDA of $59.0 million for the third quarter of 2022. The company's fill rates for the year reached 96%, contributing to market share gains. While sales volume was softer than expected, price increases helped offset higher costs.
Net sales increased by 3.9% to $378.5 million compared to the prior year quarter.
Net loss was $(9.5) million, or $(0.05) per diluted share, compared to a loss of $(32.5) million in the prior year quarter.
Adjusted diluted EPS was $0.14 per diluted share, up from $0.13 in the prior year quarter.
Adjusted EBITDA totaled $59.0 million, compared to $56.5 million in the prior year quarter.
Forward Guidance
Hillman has updated its full year 2022 guidance, refining Adjusted EBITDA within the original range, while adjusting net sales and free cash flow expectations due to softer sales volume and one-time cash expenses.
Positive Outlook
- Best-in-class field sales and service team continues to solve complex labor and supply chain issues.
- Fill rates for the year at 96%, gaining market share and strengthening customer relationships.
- Near record homeowner’s equity and aging U.S. housing stock drive home improvement projects.
- Direct-to-store model minimizes the impact of customer de-stocking.
- Sourcing lead times have continued to improve since the beginning of the year.
Challenges Ahead
- Sales volume has been softer than expectations, impacting the timing of planned inventory reductions.
- Incurred one-time cash expenses related to patent litigation.
- Net sales expectations for 2022 have been adjusted downwards.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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