Hillman Solutions Corp. Reports Mixed Financial Results for 13 and 39 Weeks Ended September 28, 2024

Hillman Solutions Corp. reported its financial results for the thirteen and thirty-nine weeks ended September 28, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the thirteen weeks, net sales totaled $393.3 million, a decrease of approximately $5.6 million or 1.4% from $398.9 million in the same period of 2023. The decline was attributed to reduced sales volumes in the Hardware and Protective Solutions segment, despite a $10.3 million contribution from the recently acquired Koch Industries. The cost of sales also decreased to $203.7 million (51.8% of net sales) from $222.6 million (55.8% of net sales) in the prior year, reflecting an 8.5% reduction. However, selling, general, and administrative (SG&A) expenses rose to $130.3 million (33.1% of net sales) from $113.4 million (28.4% of net sales), driven by increased general and administrative costs, including a $7.5 million write-off related to True Value's bankruptcy.

Income from operations for the thirteen weeks was $26.9 million, down from $34.7 million in 2023, while net income improved to $7.4 million, or $0.04 per diluted share, compared to $5.1 million, or $0.03 per diluted share, in the prior year.

For the thirty-nine weeks ended September 28, 2024, net sales were $1.123 billion, a slight decrease of $5.6 million or 0.5% from $1.128 billion in the same period of 2023. However, net income surged to $18.5 million, or $0.09 per diluted share, compared to $0.5 million, or $0.00 per diluted share, in the previous year. Adjusted EBITDA for the thirty-nine weeks increased to $193.2 million from $165.0 million.

The company completed several strategic acquisitions, including Koch Industries on January 11, 2024, for $23.8 million, and Intex DIY, Inc. on August 23, 2024, for $34.0 million. These acquisitions contributed positively to revenue, particularly in the Hardware and Protective Solutions segment, which saw an increase in income from operations to $46.5 million, up 143.6% from the previous year.

Hillman also faced challenges due to True Value Company, LLC's Chapter 11 bankruptcy filing on October 14, 2024, which accounted for approximately $9.7 million in net sales for the thirteen weeks ended September 28, 2024. The company recorded a charge of $7.8 million for net receivable balances related to True Value, reflecting expected recoveries under bankruptcy provisions.

Overall, Hillman Solutions Corp. demonstrated resilience in profitability despite slight declines in revenue, bolstered by strategic acquisitions and improved operational efficiencies.