Hillman Reports First Quarter 2025 Results
CINCINNATI, April 29, 2025 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the "Company" or "Hillman"), a leading provider of hardware products and merchandising solutions, reported financial results for the thirteen weeks ended March 29, 2025.
First Quarter 2025 Highlights (Thirteen weeks ended March 29, 2025)
-- Net sales increased 2.6% to $359.3 million compared to $350.3 million in
the prior year quarter
-- Net loss totaled $(0.3) million, or $(0.00) per diluted share, compared
to $(1.5) million, or $(0.01) per diluted share, in the prior year
quarter
-- Adjusted diluted EPS1 was $0.10 per diluted share compared to $0.10 per
diluted share in the prior year quarter
-- Adjusted EBITDA1 increased to $54.5 million compared to $52.3 million in
the prior year quarter
-- Net cash used by operating activities was $(0.7) million compared to net
cash generated by operating activities of $11.7 million in the prior year
quarter
-- Free Cash Flow1 totaled $(21.3) million compared to $(6.1) million in the
prior year quarter
Balance Sheet and Liquidity at March 29, 2025
-- Gross debt was $740.0 million compared to $718.6 million on December 28,
2024
-- Net debt1 was $703.7 million compared to $674.0 million on December 28,
2024
-- Liquidity available totaled $200.9 million; consisting of $164.6 million
of available borrowing under the revolving credit facility and $36.3
million of cash and equivalents
-- Net debt1 to trailing twelve month Adjusted EBITDA was 2.9x at quarter
end compared to 2.8x on December 28, 2024
Management Commentary
"We got off to a good start during 2025, posting both top and bottom line growth which was driven by contributions from Intex DIY, which we acquired in August of 2024, and new business wins," commented Jon Michael Adinolfi, President and CEO of Hillman. "Our current focus has shifted to working with our customers and suppliers to mitigate the impact from tariffs. Considering our long-term partnerships with our top customers and our plan to continue diversifying our supply chain, we believe we are well positioned given the current markets."
"Because the majority of Hillman's 111,000 SKUs are small-ticket items required to complete repair and maintenance projects around the home, Hillman has proven resilient throughout multiple market cycles during our 60-year history. We remain confident our team will successfully navigate this environment while continuing to take great care of our customers."
Full Year 2025 Guidance - Updated
Based on year-to-date performance and its expectations for the remainder of the year, management is updating its guidance most recently provided on February 18, 2025 with Hillman's fourth quarter 2024 results.
Original FY 2025 Guidance Updated FY 2025 Guidance
------------------ ------------------------- -------------------------
Net Sales $1.495 to $1.575 billion Reiterated
Adjusted EBITDA(1) $255 to $275 million Reiterated
Free Cash Flow(1) $90 to $110 million 2.5x leverage at year end
------------------ ------------------------- -------------------------
Rocky Kraft, Hillman's chief financial officer commented: "We remain confident in both our top- and bottom-line expectations for the year and are reiterating our Net Sales and Adjusted EBITDA full year guidance. Because of the uncertainties around the timing and magnitude of tariffs, we are withdrawing our free cash flow guidance. However, we believe we can manage our business in order to end the year with a leverage ratio of around 2.5 times."
1) Denotes Non-GAAP metric. For additional information, including our definitions, use of, and reconciliations of these metrics to the most directly comparable financial measures under GAAP, please see the reconciliations toward the end of the press release.
First Quarter 2025 Results Presentation
Hillman plans to host a conference call and webcast presentation today, April 29, 2025, at 8:30 a.m. Eastern Time to discuss its results. President and Chief Executive Officer Jon Michael Adinolfi and Chief Financial Officer Rocky Kraft will host the results presentation.
Date: Tuesday, April 29, 2025
Time: 8:30 a.m. Eastern Time
Listen-Only Webcast: https://edge.media-server.com/mmc/p/4ojzhxqt
A webcast replay will be available approximately one hour after the conclusion of the call using the link above.
Hillman's quarterly presentation and Form 10-Q are expected to be filed with the SEC and posted to its Investor Relations website, https://ir.hillmangroup.com, prior to the webcast presentation.
About Hillman Solutions Corp.
Hillman Solutions Corp. ("Hillman") is a leading provider of hardware-related products and solutions to home improvement, hardware, and farm and fleet retailers across North America. Renowned for its commitment to customer service, Hillman has differentiated itself with its competitive moat built on direct-to-store shipping, a dedicated in-store sales and service team of over 1,200 professionals, and over 60 years of product and industry experience. Hillman's extensive portfolio includes hardware solutions (fasteners, screws, nuts and bolts), protective solutions (work gloves, jobsite storage and protective gear), and robotic and digital solutions (key duplication and tag engraving). Leveraging its world-class distribution network, Hillman regularly earns vendor of the year recognition from top customers. For more information on Hillman, visit www.hillman.com.
Forward Looking Statements
All statements made in this press release that are consider to be forward-looking are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget, " "forecast," "anticipate," "intend," "plan," "target", "goal", "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect our and our customers', suppliers' and other business partners' operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including tariffs, raw materials, sourcing, transportation and energy; (3) the highly competitive nature of the markets that we serve; (4) the ability to continue to innovate with new products and services; (5) seasonality; (6) large customer concentration; (7) the ability to recruit and retain qualified employees; (8) the outcome of any legal proceedings that may be instituted against the Company; (9) adverse changes in currency exchange rates; or (10) regulatory changes and potential legislation that could adversely impact financial results. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Annual Report on Form 10-K filed on February 20, 2025. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward looking statements.
Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.
Contact:
Michael Koehler
Vice President of Investor Relations & Treasury
513-826-5495
IR@hillmangroup.com
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Net Loss, GAAP Basis
(dollars in thousands) Unaudited
Thirteen Weeks Ended Thirteen Weeks Ended
March 29, 2025 March 30, 2024
------------------------ ------------------------ ------------------------
Net sales $ 359,343 $ 350,305
Cost of sales (exclusive
of depreciation and
amortization shown
separately below) 190,740 183,434
Selling, warehouse,
general and
administrative
expenses 119,052 118,565
Depreciation 19,395 16,338
Amortization 15,415 15,254
Other (income) expense (274) 410
--- --------------- --- ---------------
Income from
operations 15,015 16,304
Interest expense, net 14,460 15,271
Refinancing costs 906 3,008
--- --------------- --- ---------------
loss before income
taxes (351) (1,975)
Income tax benefit (34) (483)
--- --------------- --- ---------------
Net loss $ (317) $ (1,492)
=== =============== === ===============
Basic and diluted loss
per share $ (0.00) $ (0.01)
Weighted average basic
and diluted shares
outstanding 197,284 195,365
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Balance Sheets
(dollars in thousands)
Unaudited
March 29, 2025 December 28, 2024
--------------------------------- ---------------- ---------------------
ASSETS
Current assets:
Cash and cash equivalents $ 36,309 $ 44,510
Accounts receivable, net of
allowances of $1,732 ($2,827 -
2024) 134,244 109,788
Inventories, net 396,891 403,673
Other current assets 16,876 15,213
----------- --------------
Total current assets 584,320 573,184
Property and equipment, net of
accumulated depreciation of
$388,776 ($376,150 - 2024) 232,911 224,174
Goodwill 828,727 828,553
Other intangibles, net of
accumulated amortization of
$545,911 ($530,398 - 2024) 590,635 605,859
Operating lease right of use
assets 77,764 81,708
Other assets 16,560 17,025
Total assets $ 2,330,917 $ 2,330,503
=========== ==============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 150,648 $ 139,057
Current portion of debt and
financing lease liabilities 13,661 12,975
Current portion of operating
lease liabilities 17,210 16,850
Accrued expenses:
Salaries and wages 14,199 34,977
Pricing allowances 5,556 7,651
Income and other taxes 8,577 10,377
Other accrued liabilities 27,515 31,843
----------- --------------
Total current liabilities 237,366 253,730
Long-term debt 713,450 691,726
Deferred tax liabilities 124,280 124,611
Operating lease liabilities 66,977 71,474
Other non-current liabilities 6,791 6,591
----------- --------------
Total liabilities $ 1,148,864 $ 1,148,132
=========== ==============
Commitments and contingencies
(Note 6)
Stockholders' equity:
Common stock: $0.0001 par
value, 500,000,000 shares
authorized, 197,380,504 and
196,705,710 issued and
outstanding in 2025 and 2024,
respectfully 20 20
Additional paid-in capital 1,444,265 1,442,958
Accumulated deficit (219,268) (218,951)
Accumulated other comprehensive
loss (42,964) (41,656)
----------- --------------
Total stockholders' equity 1,182,053 1,182,371
----------- --------------
Total liabilities and
stockholders' equity $ 2,330,917 $ 2,330,503
=========== ==============
HILLMAN SOLUTIONS CORP.
Condensed Consolidated Statement of Cash Flows
(dollars in thousands)
Unaudited
Thirteen Weeks Ended Thirteen Weeks Ended
March 29, 2025 March 30, 2024
------------------------ ------------------------ ------------------------
Cash flows from
operating activities:
Net loss $ (317) $ (1,492)
Adjustments to
reconcile net loss to
net cash (used for)
provided by operating
activities:
Depreciation and
amortization 34,810 31,592
Deferred income
taxes (974) (386)
Deferred financing
and original issue
discount
amortization 1,257 1,330
Stock-based
compensation
expense 3,278 2,829
Loss on debt
restructuring 906 3,008
Cash paid to third
parties in
connection with
debt restructuring (906) (1,554)
Loss on disposal of
property and
equipment (139) 56
Change in fair value
of contingent
consideration (326) 332
Changes in operating
items:
Accounts
receivable, net (24,617) (25,095)
Inventories, net 7,319 (2,341)
Other assets (2,152) (4,014)
Accounts payable 11,340 14,632
Accrued salaries
and wages (20,769) (6,315)
Other accrued
expenses (9,365) (906)
Net cash (used for)
provided by
operating
activities (655) 11,676
--- --------------- --- ---------------
Net cash from investing
activities
Acquisition of
business, net of cash
received -- (23,956)
Capital expenditures (20,658) (17,759)
Other investing
activities (67) (67)
--- --------------- --- ---------------
Net cash used for
investing
activities (20,725) (41,782)
--- --------------- --- ---------------
Cash flows from
financing activities:
Repayments of senior
term loans (2,128) (2,128)
Financing fees -- (33)
Borrowings on
revolving credit
loans 62,000 45,000
Repayments of
revolving credit
loans (44,000) (27,000)
Principal payments
under finance lease
obligations (1,270) (875)
Proceeds from exercise
of stock options 306 5,899
Payments of contingent
consideration (75) (72)
Other financing
activities (440) (380)
Net cash provided by
financing
activities 14,393 20,411
--- --------------- --- ---------------
Effect of exchange rate
changes on cash (1,214) 1,814
Net decrease in cash and
cash equivalents (8,201) (7,881)
Cash and cash
equivalents at
beginning of period 44,510 38,553
--- --------------- --- ---------------
Cash and cash
equivalents at end of
period $ 36,309 $ 30,672
=== =============== === ===============
Reconciliations of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
The Company uses non-GAAP financial measures to analyze underlying business performance and trends. The Company believes that providing these non-GAAP financial measures enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance. These non-GAAP financial measures are provided as supplemental information to the financial measures presented in this press release that are calculated and presented in accordance with GAAP. Non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures determined or calculated in accordance with GAAP. The Company's definitions of its non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, reconciliations to GAAP financial measures are not provided for forward-looking non-GAAP measures. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Non-GAAP financial measures such as consolidated adjusted EBITDA and Adjusted Diluted Earnings per Share (EPS) exclude from the relevant GAAP metrics items that neither relate to the ordinary course of the Company's business, nor reflect the Company's underlying business performance.
Reconciliation of Adjusted EBITDA (Unaudited)
(dollars in thousands)
Adjusted EBITDA is a non-GAAP financial measure and is the primary basis used to measure the operational strength and performance of our businesses as well as to assist in the evaluation of underlying trends in our businesses. This measure eliminates the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of our businesses and from intangible assets recognized in business combinations. It is also unaffected by our capital and tax structures, as our management excludes these results when evaluating our operating performance. Our management use this financial measure to evaluate our consolidated operating performance and the operating performance of our operating segments as well as to allocate resources and capital to our operating segments. Additionally, we believe that Adjusted EBITDA is useful to investors because it is one of the bases for comparing our operating performance with that of other companies in our industries, although our measure of Adjusted EBITDA may not be directly comparable to similar measures used by other companies.
Thirteen Weeks Ended Thirteen Weeks Ended
March 29, 2025 March 30, 2024
------------------------ ------------------------ ------------------------
Net loss $ (317) $ (1,492)
Income tax expense (34) (483)
Interest expense, net 14,460 15,271
Depreciation 19,395 16,338
Amortization 15,415 15,254
EBITDA $ 48,919 $ 44,888
--- --------------- --- ---------------
Stock compensation
expense 3,278 2,829
Restructuring and other
(1) 1,691 991
Transaction and
integration expense
(2) 58 274
Change in fair value of
contingent
consideration (326) 332
Refinancing costs (3) 906 3,008
Total adjusting items 5,607 7,434
--- --------------- --- ---------------
Adjusted EBITDA $ 54,526 $ 52,322
=== =============== === ===============
(1) Includes consulting and other costs associated with severance related to our distribution center relocations and corporate restructuring activities.
(2) Transaction and integration expense includes professional fees and other costs related to the Koch Industries, Inc. and Intex DIY, Inc acquisitions.
(3) In the first quarters of 2025 and 2024, we entered into a Repricing Amendment (2025 Repricing Amendment and 2024 Repricing Amendment) on our existing Senior Term Loan due July 14, 2028.
Reconciliation of Adjusted Diluted Earnings Per Share
(in thousands, except per share data)
Unaudited
We define Adjusted Diluted EPS as reported diluted EPS excluding the effect of one-time, non-recurring activity and volatility associated with our income tax expense. The Company believes that Adjusted Diluted EPS provides further insight and comparability in operating performance as it eliminates the effects of certain items that are not comparable from one period to the next. The following is a reconciliation of reported diluted EPS from continuing operations to Adjusted Diluted EPS from continuing operations:
Thirteen Weeks Ended Thirteen Weeks Ended
March 29, 2025 March 30, 2024
------------------------ ------------------------ ------------------------
Reconciliation to
Adjusted Net Loss
Net loss $ (317) $ (1,492)
Remove adjusting
items (1) 5,607 7,434
Remove amortization
expense 15,415 15,254
Remove tax benefit
on adjusting items
and amortization
expense (2) (1,720) (2,236)
--- --------------- --- ---------------
Adjusted Net Income $ 18,985 $ 18,960
=== =============== === ===============
Reconciliation to
Adjusted Diluted
Earnings per Share
Diluted Earnings per
Share $ (0.00) $ (0.01)
Remove adjusting
items (1) 0.03 0.04
Remove amortization
expense 0.08 0.08
Remove tax benefit
on adjusting items
and amortization
expense (2) (0.01) (0.01)
--- --------------- --- ---------------
Adjusted Diluted
Earnings per Share $ 0.10 $ 0.10
=== =============== === ===============
Reconciliation to
Adjusted Diluted Shares
Outstanding
Diluted Shares, as
reported 197,284 195,365
Non-GAAP dilution
adjustments:
Dilutive effect of
stock options and
awards 2,553 2,287
--- --------------- --- ---------------
Adjusted Diluted Shares 199,837 197,652
=== =============== === ===============
Note: Adjusted EPS may not add due to rounding.
(1) Please refer to "Reconciliation of Adjusted EBITDA" table above for additional information on adjusting items. See "Per share impact of Adjusting Items" table below for the per share impact of each adjustment.
(2) We have calculated the income tax effect of the non-GAAP adjustments shown above at the applicable statutory rate of 25% for the U.S. and 26.2% for Canada except for the following items:
1. The tax impact of stock compensation expense was calculated using the
statutory rate of 25%, excluding certain awards that are non-deductible.
2. The tax impact of acquisition and integration expense was calculated
using the statutory rate of 25%, excluding certain charges that were
non-deductible.
3. Amortization expense for financial accounting purposes was offset by the
tax benefit of deductible amortization expense using the statutory rate
of 25%.
Per Share Impact of Adjusting Items
Thirteen Weeks Ended Thirteen Weeks Ended
March 29, 2025 March 30, 2024
------------------------ ---------------------- ------------------------
Stock compensation
expense $ 0.02 $ 0.01
Restructuring and other
costs 0.01 0.01
Transaction and
integration expense 0.00 0.00
Change in fair value of
contingent
consideration 0.00 0.00
Refinancing costs 0.00 0.02
Total adjusting items $ 0.03 $ 0.04
==== ================ ==== ================
Note: Adjusting items may not add due to rounding.
Reconciliation of Net Debt
We define Net Debt as reported gross debt less cash on hand. Net debt is not defined under U.S. GAAP and may not be computed the same as similarly titled measures used by other companies. The Company believes that Net Debt provides further insight and comparability into liquidity and capital structure. The following is the calculation of Net Debt:
March 29, 2025 December 28, 2024
--------------------------------- ---------------- ---------------------
Revolving loans $ 80,000 $ 62,000
Senior term loan, due 2028 643,343 645,470
Finance leases and other
obligations 16,629 11,085
------------ --- --------------
Gross debt $ 739,972 $ 718,555
------------ --- --------------
Less cash 36,309 44,510
------------ --- --------------
Net debt $ 703,663 $ 674,045
============ === ==============
Reconciliation of Free Cash Flow
We calculate free cash flow as cash flows from operating activities less capital expenditures. Free cash flow is not defined under U.S. GAAP and may not be computed the same as similarly titled measures used by other companies. We believe free cash flow is an important indicator of how much cash is generated by our business operations and is a measure of incremental cash available to invest in our business and meet our debt obligations.
Thirteen Weeks Ended Thirteen Weeks Ended
March 29, 2025 March 30, 2024
------------------------ ------------------------ ------------------------
Net cash provided by
operating activities $ (655) $ 11,676
Capital expenditures (20,658) (17,759)
--- --------------- --- ---------------
Free cash flow $ (21,313) $ (6,083)
=== =============== === ===============
Source: Hillman Solutions Corp.
(END) Dow Jones Newswires
April 29, 2025 07:30 ET (11:30 GMT)
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。