Hillman Solutions (HLMN) Shares Surge on Positive Guidance

By Tamara Parker • Thursday, February 22 11:07 • Permanent Link

Hillman Solutions Corp. (NASDAQ: HLMN) has reported its financial results for the fourth quarter and full year of 2023 and has provided its guidance for 2024. The company, a leading provider of hardware products and merchandising solutions, announced that net sales for the fourth quarter of 2023 decreased by 0.8% to $347.8 million compared to $350.7 million in the prior year quarter. However, excluding the 14th week during 2022, net sales increased by 3.8% from $335.0 million in 2022. The net loss for the fourth quarter of 2023 totaled $(10.1) million, or $(0.05) per diluted share, compared to a net loss of $(13.9) million, or $(0.07) per diluted share, in the prior year quarter. Adjusted diluted earnings per share (EPS) were $0.10 per diluted share compared to $0.05 per diluted share in the prior year quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $54.4 million compared to $45.0 million in the prior year quarter.

For the full year 2023, net sales decreased by 0.7% to $1.48 billion compared to $1.49 billion in the prior year period. However, excluding the 53rd week during 2022, net sales increased by 0.4% from $1.47 billion in 2022. The net loss for the full year 2023 totaled $(9.6) million, or $(0.05) per diluted share, compared to a loss of $(16.4) million, or $(0.08) per diluted share, in the prior year period. Adjusted diluted EPS was $0.41 per diluted share compared to $0.43 per diluted share in the prior year period. Adjusted EBITDA totaled $219.4 million compared to $210.2 million in the prior year period.

Doug Cahill, Chairman, President, and Chief Executive Officer of Hillman, expressed his satisfaction with the company's performance, stating, “2023 was a remarkable operational year for the Hillman team." He also mentioned the company's successful debt reduction and inventory management efforts, and highlighted the acquisition of Koch Industries as marking the company's entrance into a new product category. Looking ahead, Cahill expressed confidence in the company's ability to drive strong results for its shareholders during 2024 and beyond.

Hillman has provided guidance for the full year 2024, expecting net sales in the range of $1.475 billion to $1.555 billion, adjusted EBITDA in the range of $230 million to $240 million, and free cash flow in the range of $100 million to $120 million.

The company's shares have moved 9.5%, and are now trading at a price of $9.71.

The company's full 8-K submission is available here.

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