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Mar 31, 2021
Turning Point Brands Q1 2021 Earnings Report
Turning Point Brands demonstrated solid execution with year-over-year growth significantly outpacing end markets.
Key Takeaways
Turning Point Brands reported an increase in net sales by 18.7% to $107.6 million, gross profit increased by 28.6% to $53.3 million, and net income increased to $11.8 million. Adjusted EBITDA increased by 57.4% to $28.0 million, with diluted EPS at $0.57 and Adjusted Diluted EPS at $0.80.
Net sales increased 18.7% year-over-year to $107.6 million.
Gross profit increased 28.6% year-over-year to $53.3 million.
Net income increased $7.3 million to $11.8 million.
Adjusted EBITDA increased 57.4% year-over-year to $28.0 million.
Turning Point Brands
Turning Point Brands
Turning Point Brands Revenue by Segment
Revenue by Segment
Stoker's Products Sales Revenue
CapyFin.comZig-Zag Products Sales Revenue
CapyFin.com Forward Guidance
With the strength of the first quarter results, the Company is revising its guidance provided on February 10, 2021 as follows: Absent any further acquisitions, TPB projects the following for 2021:
Positive Outlook
- Net Sales of $422 to $440 million (up from previous guidance of $412 to $432 million)
- Strong double-digit sales growth for Zig-Zag Products (up from previous guidance of double-digit sales growth)
- High-single-digit sales growth for Stoker’s Products (unchanged)
- Mid-to-low-single digit declines for NewGen Products (up from previous guidance of mid-single-digit sales declines), which includes single-digit declines for vape distribution (up from previous guidance of double-digit declines) offset by growth in Nu-X
- Adjusted EBITDA of $103 to $108 million (up from previous guidance of $99 to $105 million)
Challenges Ahead
- Stock compensation and non-cash incentive expense of $7 million
- Cash interest expense of $19 million and GAAP interest expense of $22 million which no longer includes debt discount amortization related to the 2024 convertible notes and reflects the recently priced senior secured notes
- Effective income tax rate of 23% to 24%
- Capital expenditures of $5 to $6 million
- Net Sales of $103 to $109 million for the second quarter of 2021
Revenue & Expenses
Visualization of income flow from segment revenue to net income