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Sep 30, 2023

Turning Point Brands Q3 2023 Earnings Report

Turning Point Brands reported third quarter results, showing a decrease in net sales but growth in the Stoker's segment and strategic financial maneuvers.

Key Takeaways

Turning Point Brands reported a 5.6% decrease in total consolidated net sales to $101.7 million, with declines in Zig-Zag and Creative Distribution Solutions segments offset by growth in Stoker's Products. The company repurchased $15 million of convertible bonds and closed a new $75 million ABL facility to enhance liquidity. Adjusted EBITDA guidance for the full year was revised upward to $92 to $95 million.

Total consolidated net sales decreased by 5.6% year-over-year to $101.7 million.

Stoker’s Products net sales increased by 10.1%, driven by double-digit growth in MST.

The company repurchased $15 million of outstanding convertible bonds, reducing debt.

Full-year 2023 adjusted EBITDA guidance was revised to $92 to $95 million.

Total Revenue
$102M
Previous year: $108M
-5.6%
EPS
$0.76
Previous year: $0.72
+5.6%
Smokeless Volume Growth
2.2%
Previous year: 2.4%
-8.3%
Smokeless Price/Mix Growth
7.9%
Previous year: 7.6%
+3.9%
Gross Profit
$51.6M
Previous year: $52.7M
-2.1%
Cash and Equivalents
$96.1M
Previous year: $106M
-9.1%
Free Cash Flow
$11.3M
Previous year: $8.27M
+36.1%
Total Assets
$554M
Previous year: $600M
-7.6%

Turning Point Brands

Turning Point Brands

Turning Point Brands Revenue by Segment

Forward Guidance

The Company expects full-year 2023 adjusted EBITDA to be $92 to $95 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income