Hillman Solutions Corp. · NASDAQ:HLMN
Hillman Solutions — Q4 2024 Earnings Presentation
25 slides from Hillman Solutions's earnings presentation, Feb 18, 2025
Slide 1: Quarterly Earnings Results Presentation
Quarterly Earnings Results Presentation Q4 2024 (February 2025)
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that
Slide 3: Q4 2024 Financial Review
Q4 2024 Financial Review Highlights for the 13 Weeks Ended December 28, 2024 • Net sales increased 0.5% to $350 million versus Q4 2023 ◦ Hardware and Protective Solutions +2% – Hardware Solutions decreased (4)% – Protective Solutions +24% ◦ Robotics and Digital Solutions ("RDS") decreased (2)% ◦ Can
Slide 4: Full Year 2024 Financial Review
Full Year 2024 Financial Review Highlights for the 52 Weeks Ended December 28, 2024 • Net sales decreased (0.3)% to $1,473 million versus 2023 ◦ Hardware and Protective Solutions +2% – Hardware Solutions remained consistent – Protective Solutions +8% ◦ Robotics and Digital Solutions ("RDS") decrease
Slide 5: Full Year 2024 Operational Review
Full Year 2024 Operational Review Highlights for the 52 Weeks Ended December 28, 2024 • Successfully rolled out new business wins across product portfolio with existing and new customers across all business segments • Effectively managed costs and operations across our global supply chain • Maintain
Slide 6: Quarterly Financial Performance
Quarterly Financial Performance Net Sales Adjusted Gross Margin Adjusted EBITDA (millions $) (millions $ and % of Net Sales) (millions $ and % of Net Sales) $347.8 $349.6 $167.5 $166.7 $54.4 $56.3 48.2% 47.7% 16.1% 15.6% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Please see reconciliation of no
Slide 7: Full Year Financial Performance
Full Year Financial Performance Net Sales Adjusted Gross Margin Adjusted EBITDA (millions $) (millions $ and % of Net Sales) (millions $ and % of Net Sales) $1,476.5 $1,472.6 2024 Adj. EBITDA includes an $8.6m write off of receivables $707.9 from True Value $652.5 $241.8 $219.4 48.1% 44.2% 16.4% 14.
Slide 8: Quarterly Performance by Product Category
Quarterly Performance by Product Category Hardware & Protective Q4 2024 Q4 2023 Δ Thirteen weeks ended 12/28/2024 12/30/2023 Comments Net Sales $260,530 $256,421 1.6% New business and M&A offset by market volume and price Adjusted EBITDA $34,444 $35,777 (3.7)% Price headwinds Adjusted EBITDA Margin
Slide 9: Annual Performance by Product Category
Annual Performance by Product Category Hardware & Protective 2024 2023 Δ Year ended 12/28/2024 12/30/2023 Comments Net Sales $1,094,377 $1,074,619 1.8% New business and M&A offset by market volume and price Lower COGS in 2024; cost control, includes the impact of Adjusted EBITDA $151,298 $123,163 22
Slide 10: Quarterly Revenue by Product Category
Quarterly Revenue by Product Category Hardware & Robotics & Canada Revenue (QTD) Protective Digital Thirteen Weeks Ended December 28, 2024 Fastening and Hardware $198,530 $— $27,859 $226,389 Personal protective 62,000 — 1,120 63,120 Keys and key accessories — 44,858 2,812 47,670 Engraving and Reshar
Slide 11: Annual Revenue by Product Category
Annual Revenue by Product Category Hardware & Robotics & Canada Revenue (YTD) Protective Digital 52 Weeks Ended December 28, 2024 Fastening and Hardware $868,899 $— $133,968 $1,002,867 Personal protective 225,478 — 4,447 229,925 Keys and key accessories — 182,253 9,446 191,699 Engraving and Resharp
Slide 12: Capital Structure
Capital Structure Leverage continues to improve while executing M&A 4.0x Total Net Leverage (Net Debt / TTM Adj. EBITDA) December 28, 2024 3.5x 3.3x 3.2x ABL Revolver ($189 million capacity) $62.0 3.0x 2.9x 2.9x Term Note $645.5 2.8x 2.5x Finance Leases and other obligations $11.1 Total Debt $718.6
Slide 13: 2025 Full Year Guidance
2025 Full Year Guidance On February 18, 2025, Hillman provided the following guidance based on its current view of the market and its performance expectations during the fifty-two weeks ending December 27, 2025. (in millions USD) Full Year 2025 Guidance Range Midpoint Net sales $1.485 to $1.585 bill
Slide 14: Key Takeaways
Key Takeaways Resilient Business; Focused on Execution & Acquisitions • Hillman celebrated its 60th anniversary in 2024, long-term track record of success; proven to be resilient through multiple economic cycles • Repair, Remodel and Maintenance industry has meaningful long-term tailwinds; near-reco
Slide 15: Appendix
HILLMAN Appendix
Slide 16: Investment Highlights
Investment Highlights Indispensable partner embedded with winning retailers Customers love us, trust us and rely on us Market and innovation leader across multiple categories Large, predictable, growing and resilient end markets Significant runway for incremental growth: Organic + M&A Management tea
Slide 17: Hillman: Overview
Hillman: Overview Who We Are 2024: By The Numbers • We are a leading North American provider of hardware products and solutions, including; ~19 billion ~222 million 106+ million Fasteners Pairs of Work Keys ◦ Hardware and home improvement products Sold Gloves Sold Duplicated ◦ Protective and job sit
Slide 18: Primary Product Categories
Primary Product Categories Hardware Solutions Protective Solutions Robotics & Digital Solutions #1 in Segment #1 in Segment #1 in Segment Fasteners Construction Work Gear Gloves Key and Fob Duplication & Specialty Fasteners Picture Builders Hardware Hanging & Metal Shapes Personalized Knife Tags Sha
Slide 19: Adjusted EBITDA Reconciliation Q4
Adjusted EBITDA Reconciliation Q4 Thirteen weeks ended December 28, 2024 December 30, 2023 Net loss $(1,222) $(10,059) Income tax (benefit) expense 294 (1,071) Interest expense, net 14,925 15,430 Depreciation 18,183 14,392 Amortization 15,417 15,576 EBITDA $47,597 $34,268 Stock compensation expense
Slide 20: Adjusted EBITDA Reconciliation Full Year 2024
Adjusted EBITDA Reconciliation Full Year 2024 52 Weeks Ended December 28, 2024 December 30, 2023 Net (loss) income $17,255 $(9,589) Income tax expense 9,297 2,207 Interest expense, net 59,241 68,310 Depreciation 68,766 59,331 Amortization 61,274 62,309 EBITDA $215,833 $182,568 Stock compensation exp
Slide 21: Adjusted Gross Profit Margin Reconciliation
Adjusted Gross Profit Margin Reconciliation Thirteen weeks ended December 28, 2024 December 30, 2023 Net Sales $349,562 $347,808 Cost of sales (exclusive of depreciation and amortization) 182,885 185,304 Gross margin (exclusive of depreciation and amortization) $166,677 $162,504 Gross margin % (excl
Slide 22: Adjusted SG&A Expense Reconciliation
Adjusted SG&A Expense Reconciliation December 28, December 30, Thirteen weeks ended 2024 2023 Net sales $349,562 $347,808 Selling, general and administrative expenses $118,722 $116,234 SG&A as a % of Net Sales 34.0 % 33.4 % Adjusting Items (1): Stock compensation expense 3,721 2,893 Restructuring an
Slide 23: Net Debt & Free Cash Flow Reconciliations
Net Debt & Free Cash Flow Reconciliations Reconciliation of Net Debt As of December 28, 2024 December 30, 2023 Revolving loans $62,000 $— Senior term loan 645,470 751,852 Finance leases and other obligations 11,085 9,097 Gross debt $718,555 $760,949 Less cash 44,510 38,553 Net debt $674,045 $722,396
Slide 24: Segment Adjusted EBITDA Reconciliations
Segment Adjusted EBITDA Reconciliations Thirteen Weeks Ended December 28, 2024 HPS RDS Canada Operating Income $10,289 $3,488 $220 Depreciation & amortization 21,075 11,331 1,194 Stock compensation expense 3,121 373 227 Restructuring and other costs (289) (59) 134 Litigation expense — 5,000 — Transa
Slide 25: Segment Adjusted EBITDA Reconciliations
Segment Adjusted EBITDA Reconciliations 52 Weeks ended December 28, 2024 HPS RDS Canada Operating Income $56,528 $24,159 $8,114 Depreciation & amortization 81,861 43,245 4,934 Stock Compensation Expense 11,360 1,319 784 Restructuring 342 688 1,948 Litigation expense — 5,000 — Transaction and integra