Turning Point Brands Q2 2020 Earnings Report
Key Takeaways
Turning Point Brands announced positive financial results for Q2 2020, with net sales increasing by 12.5% to $105.0 million and gross profit increasing by 16.8% to $48.1 million. However, net income decreased to $9.2 million due to PMTA-related expenses. The company's Smokeless, Smoking, and NewGen segments all experienced growth during the quarter.
Net sales increased 12.5% to $105.0 million.
Gross profit increased 16.8% to $48.1 million.
Diluted EPS was $0.47, and Adjusted Diluted EPS was $0.71.
The company increased its full-year guidance for net sales and Adjusted EBITDA.
Turning Point Brands
Turning Point Brands
Turning Point Brands Revenue by Segment
Forward Guidance
The company projects 2020 net sales to be $370 to $382 million and 2020 Adjusted EBITDA of $78 million to $83 million.
Positive Outlook
- Net sales are projected to be $370 to $382 million.
- Adjusted EBITDA is projected to be $78 million to $83 million.
- The projections assume no upside from the PMTA process in 2020.
- Stock compensation and non-cash incentive expense in 2020 is projected to be $2.8 million.
- Capital expenditures for 2020 are anticipated to be approximately $4 to $6 million.
Challenges Ahead
- There is uncertainty in the current environment.
- There is on-going government support for the consumer.
- There are expected near-term volatility within our NewGen segment.
- The company expects to spend a total of $16 to $18 million on the PMTA process.
- Net Sales for the third quarter 2020 are expected to be $90 to $95 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income