Turning Point Brands, Inc. · NYSE:TPB
Turning Point Brands — Q3 2022 Earnings Presentation
12 slides from Turning Point Brands's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 Results
Turning Point Brands (NYSE: TPB) Q3 2022 Results October 26, 2022 | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
Slide 2: Disclaimer
Disclaimer Turning Point Brands (NYSE: TPB) FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "inten
Slide 3: TPB Business Segments
Turning Point Brands (NYSE: TPB) TPB Business Segments Zig-Zag Products Stoker’s Products NewGen Products Rolling papers and Make-Your-Own Loose leaf chewing tobacco and moist Innovative vapor products (“MYO”) cigar wraps snuff tobacco LTM Sales1 $190mm $130mm $97mm Key Brands Continue strong grow
Slide 4: Consolidated Results Q3 2022 Commentary
Turning Point Brands (NYSE: TPB) Consolidated Results Q3 2022 Commentary NewGen Products 0% ($ in millions) Q3 21 Q3 22 YoY YTD 21 YTD 22 YoY NewGen Q2 2022 Products Sales $109.9 $107.8 -2% $340.2 $311.6 -8% Operating Stoker's Q3 2022 21% Products Zig-Zag Income Zig-Zag Gross Profit $54.3 $52.7 -3%
Slide 5: Zig-Zag Products Q3 2022 Commentary
Turning Point Brands (NYSE: TPB) Zig-Zag Products Q3 2022 Commentary ($ in millions) Q3 21 Q3 22 YoY YTD 21 YTD 22 YoY Wraps $17.4 $16.9 -3% $58.9 $52.7 -10% US Papers & E-Commerce 16.9 20.1 19% 48.9 59.7 22% Canada 6.5 8.5 30% 18.1 20.9 15% Cigars and Other 1.4 6.6 355% 4.5 10.6 134% Total Sales $4
Slide 6: Stoker's Products Q3 2022 Commentary
Turning Point Brands (NYSE: TPB) Stoker’s Products Q3 2022 Commentary ($ in millions) Q3 21 Q3 22 YoY YTD 21 YTD 22 YoY 1 MST $19.4 $22.8 18% $58.4 $66.2 13% Looseleaf 11.1 10.7 -4% 34.7 32.7 -6% Total Sales $30.5 $33.5 10% $93.1 $98.8 6% Gross Profit $17.1 $18.3 7% $51.1 $54.0 6% Margin 56.1% 54.5%
Slide 7: NewGen Products Q3 2022 Commentary
Turning Point Brands (NYSE: TPB) NewGen Products Q3 2022 Commentary ($ in millions) Q3 21 Q3 22 YoY YTD 21 YTD 22 YoY Sales $37.2 $22.2 -40% $116.7 $68.8 -41% Gross Profit $13.5 $6.4 -52% $40.0 $21.1 -47% Margin 36.2% 28.8% 34.3% 30.7% Operating Income $2.0 $0.1 -93% $5.7 $1.4 -76% Margin 5.4% 0.6%
Slide 8: Balance Sheet and Liquidity
Turning Point Brands (NYSE: TPB) Balance Sheet and Liquidity ($ in millions) FY 2021 Q3 22 5.625% Senior Secured Due 2/26 250.0 250.0 2.5% Convertible Note Due 7/24 172.5 172.5 Gross Debt $422.5 $422.5 Cash 128.3 105.7 Net Debt $294.2 $316.8 LTM Adj EBITDA $108.1 $98.3 Net Leverage 2.7x 3.2x ▪ Ended
Slide 9: FY 2022 Outlook
Turning Point Brands (NYSE: TPB) FY 2022 Outlook ▪ The Company updated its guidance to reflect the current market environment and now expects the following full-year 2022 results: ▪ Zig-Zag Products sales of $186 to $191 million (compared to previous outlook of $193 to $200 million) vs. $176 million
Slide 10: Thank You
Turning Point Brands (NYSE: TPB) THANK YOU | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
Slide 11: Appendix
Turning Point Brands (NYSE: TPB) Appendix | NYSE: TPB | 5201 INTERCHANGE WAY, LOUISVILLE KY | TURNINGPOINTBRANDS.COM |
Slide 12: EBITDA Adjustment Detail
Turning Point Brands (NYSE: TPB) EBITDA Adjustment Detail Schedule A Turning Point Brands, Inc. Reconciliation of GAAP Net Income to Adjusted EBITDA (dollars in thousands) (unaudited) Three Months Ended September 30, 2022 2021 Net income attributable to Turning Point Brands, Inc. $ 11,536 $ 13,468 A