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Jun 30, 2020
Turning Point Brands Q2 2020 Earnings Report
Turning Point Brands reported an increase in net sales and gross profit, but a decrease in net income due to PMTA costs. The company saw growth in its Smokeless, Smoking, and NewGen segments.
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
Revenue by Segment
Stoker's Products Sales Revenue
CapyFin.comZig-Zag Products Sales Revenue
CapyFin.com 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