Slide 1: Investor Presentation Second Quarter 2021
Investor Presentation Second Quarter 2021
Slide 2: Safe Harbor Statement Forward Looking Statements
Safe Harbor Statement Forward Looking Statements 1 This presentation may contain “forward - looking statements” within the meaning of federal securities laws. All statements other t han statements of historical fact included in this presentation are forward - looking statements made in good faith by
Slide 3: 2Q21 Review
2Q21 Review 1 et HILLMAN’
Slide 4: 2Q21 & YTD Highlights
2Q21 & YTD Highlights 3 2Q21 Sales of $375.7 million (+8.4% y/y) and Adjusted EBITDA of $64.5 million (+4.6% y/y) YTD Sales of $717.0 million (+11.6% y/y) and Adjusted EBITDA of $112.2 million (+8.9% y/y) Completed merger with Landcadia III, began trading on NASDAQ under “HLMN” ticker Recapi
Slide 5: Solid Start to 2021
Solid Start to 2021 4 Second Quarter 6 - Month YTD 8.4 % $347 $376 2Q20 2Q21 Sales $62 $64 17.8% 17.2% 2Q20 2Q21 Adj. EBITDA Adj. EBITDA Margin 4.6 % 11.6% $643 $717 2020-YTD 2021-YTD Sales $103 $112 16.1% 15.7% 2020-YTD 2021-YTD Adj. EBITDA Adj. EBITDA Margin 8.9 % Sales Adjusted EBITDA Sales Adjus
Slide 6: 2Q21 Segment Results Summary
2Q21 Segment Results Summary 5 Hardware & Protective 2Q20 2Q21 $ For Quarter Ended 6/27/2020 6/26/2021 Change Comments Revenues $269,499 $263,129 ($6,370) Lower gloves & mask sales partially offset by hardware growth Adjusted EBITDA $45,704 $36,114 ($9,590) Lower mask sales, higher operating expense
Slide 7: Year-To-Date Segment Results
Year - To - Date Segment Results 6 Robotics & Digital Solutions YTD YTD $ For Six Months Ended 6/27/2020 6/26/2021 Change Comments Revenues $98,505 $122,230 $23,725 Recovery in key and engraving sales post Covid Adjusted EBITDA $29,943 $41,113 $11,170 Margin 30.4% 33.6% 320 bps Operating leverage fr
Slide 8: 2Q21 Two-Year Growth Comparison
2Q21 Two - Year Growth Comparison 7 Hardware & Protective 2Q19 2Q21 % YTD 2019 YTD 2021 % For Quarter Ended 6/29/2019 6/26/2021 Change 6/29/2019 6/26/2021 Change Revenues $226.4 $263.1 16.2% $428.0 $514.1 20.1% Adjusted EBITDA $31.4 $36.1 15.0% $51.6 $65.1 26.2% Margin 13.9% 13.7% (30 bps) 12.1% 12.
Slide 9: Strong Capital Structure Supports Growth
Strong Capital Structure Supports Growth 8 Total Net Leverage Based on TTM Adj. EBITDA 7.1x 3.8x 6/26/2021 7/14/2021 Total Leverage Based on TTM Adj. EBITDA Note: Adjusted EBITDA is a non - GAAP measure. Please see page 14 for a reconciliation of Adjusted EBITDA to Net Income. ($ millions) 7/14/2021
Slide 10: Outlook
Outlook 9 Long - term Growth Revenue - +6% Adj EBITDA - +10% Other SGA – 25% fixed, 75% driven by revenues Interest Expense - ~$30 million/year Income Tax – cash taxpayer late 2022, then ~25% effective tax rate Capital Expenditures - ~$60 million/year, $40 million growth Shares outstan
Slide 11: EES ee eee
EES ee eee ASSEN HILLMAN’
Slide 12: Investment Highlights
Significant runway for incremental growth: organic and via M&A Management team with proven operational and M&A expertise Strong financial profile with 56 - year track record Market and innovation leader across compelling categories Indispensable partner embedded with winning retailers Customers love
Slide 13: Hillman at a Glance
Hillman at a Glance 12 Founded in 1964; HQ in Cincinnati, OH The leading distributor of hardware and home improvement products, personal protective equipment and robotic kiosk technologies to a broad range of winning retailers in the U.S., Canada and Mexico The predominance of our sales come f
Slide 14: Segment Position
13 Segment Position #1 #1 #1 Hardware Solutions Protective Solutions Robotics and Digital Solutions Our Primary Business Segments Key and Fob Duplication Personalized Tags Knife Sharpening Fasteners &Specialty Gloves Builders Hardware & Metal Shapes Safety / PPE Construction Fasteners Work Gear Pict
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 14 1 2 3 4 5 7 6 8 9 1 Stock compensation 2 CCMP management fees 3 Costs associated with the closure of facility in San Antonio, Texas 4 Inventory write - offs, severance, rent, labor costs, etc. related to restructuring initiatives 5 Professional fees related to non -
Slide 16: 2021 Segment Adjusted EBITDA Reconciliations
2021 Segment Adjusted EBITDA Reconciliations 15 Note: Adjusted EBITDA is a non - GAAP measure. Please see above for a reconciliation of Adjusted EBITDA to Operating Income .. Thirteen Weeks Ended June 26, 2021 HPS RDS Canada Consolidated Operating Income (Loss) $9,995 $6,546 $2,968 $19,509 Depreciat
Slide 17: 2020 Segment Adjusted EBITDA Reconciliations
2020 Segment Adjusted EBITDA Reconciliations 16 Note: Adjusted EBITDA is a non - GAAP measure. Please see above for a reconciliation of Adjusted EBITDA to Operating Income .. Thirteen Weeks Ended June 27, 2020 HPS RDS Canada Consolidated Operating Income (Loss) $24,423 ($4,510) $815 $20,728 Deprecia
Slide 18: 2019 Segment Adjusted EBITDA Reconciliations
2019 Segment Adjusted EBITDA Reconciliations 17 Note: Adjusted EBITDA is a non - GAAP measure. Please see above for a reconciliation of Adjusted EBITDA to Operating Income .. Thirteen Weeks Ended June 29, 2019 HPS RDS Canada Consolidated Operating Income (Loss) $10,914 ($3,412) $1,044 $8,546 Depreci