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Dec 31, 2022

Turning Point Brands Q4 2022 Earnings Report

Turning Point Brands' Q4 2022 results reflected solid segment execution amidst regulatory challenges and strategic realignments.

Key Takeaways

Turning Point Brands reported a slight decrease in net sales for Q4 2022, with growth in Zig-Zag and Stoker's products offsetting declines in the NewGen segment. The company faced a net loss due to non-cash asset impairments, though adjusted net income remained positive. Strategic measures, including share repurchases and debt purchases, were undertaken while maintaining a strong cash balance.

Consolidated net sales decreased by 1.8% to $103.4 million.

Combined net sales for Zig-Zag and Stoker’s Products increased by 1.6%.

Net income decreased significantly to a loss of $16.3 million due to non-cash asset impairments.

Adjusted EBITDA decreased by 2.9% to $23.1 million.

Total Revenue
$103M
Previous year: $105M
-1.8%
EPS
$0.69
Previous year: $0.66
+4.5%
Smokeless Volume Growth
-6.1%
Previous year: 2.1%
-390.5%
Smokeless Price/Mix Growth
8.7%
Previous year: 6.2%
+40.3%
Gross Profit
$49.6M
Previous year: $50.3M
-1.5%
Cash and Equivalents
$106M
Previous year: $128M
-17.1%
Free Cash Flow
$12.9M
Previous year: $16.9M
-23.8%
Total Assets
$572M
Previous year: $602M
-4.9%

Turning Point Brands

Turning Point Brands

Turning Point Brands Revenue by Segment

Forward Guidance

The Company expects full-year 2023 adjusted EBITDA to be $88 to $94 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income