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Turning Point Brands
🇺🇸 NYSE:TPB
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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.

Total Revenue
$108M
Previous year: $90.7M
+18.7%
EPS
$0.8
Previous year: $0.51
+56.9%
Smokeless Volume Growth
5.1%
Previous year: 16.7%
-69.5%
Smokeless Price/Mix Growth
5.3%
Previous year: 0.8%
+562.5%
Gross Profit
$53.3M
Previous year: $41.4M
+28.6%
Cash and Equivalents
$167M
Previous year: $99.4M
+68.4%
Free Cash Flow
$23.4M
Previous year: $13.9M
+68.9%
Total Assets
$627M
Previous year: $449M
+39.6%

Turning Point Brands

Turning Point Brands

Turning Point Brands Revenue by Segment

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

Company Overview

Full financial data and analysis

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