Turning Point Brands Announces Third Quarter 2024 Results
Turning Point Brands (TPB) reported strong Q3 2024 results with consolidated net sales increasing 3.8% to $105.6 million. The company's Adjusted EBITDA grew 11.3% to $27.2 million, while net income rose 14.3% to $12.4 million. Zig-Zag Products segment (47% of sales) grew 5.5%, and Stoker's Products (39% of sales) increased 12.1%. The company raised its full-year 2024 adjusted EBITDA guidance to $101-103 million. TPB ended the quarter with $33.6 million in cash and total liquidity of $92.4 million.
Turning Point Brands (TPB) ha riportato risultati solidi per il terzo trimestre del 2024, con vendite nette consolidate in aumento del 3,8% a 105,6 milioni di dollari. L'EBITDA rettificato dell'azienda è cresciuto dell'11,3%, raggiungendo i 27,2 milioni di dollari, mentre l'utile netto è aumentato del 14,3% a 12,4 milioni di dollari. Il segmento dei prodotti Zig-Zag (47% delle vendite) è cresciuto del 5,5%, e i prodotti Stoker (39% delle vendite) hanno registrato un aumento del 12,1%. L'azienda ha sollevato la sua stima per l'EBITDA rettificato per l'intero anno 2024 a 101-103 milioni di dollari. TPB ha chiuso il trimestre con 33,6 milioni di dollari in contante e una liquidità totale di 92,4 milioni di dollari.
Turning Point Brands (TPB) reportó resultados sólidos en el tercer trimestre de 2024, con ventas netas consolidadas que aumentaron un 3,8% a 105,6 millones de dólares. El EBITDA Ajustado de la compañía creció un 11,3% hasta alcanzar los 27,2 millones de dólares, mientras que el ingreso neto aumentó un 14,3% a 12,4 millones de dólares. El segmento de productos Zig-Zag (47% de las ventas) creció un 5,5%, y los productos Stoker (39% de las ventas) aumentaron un 12,1%. La compañía elevó su guía de EBITDA ajustado para todo el año 2024 a 101-103 millones de dólares. TPB terminó el trimestre con 33,6 millones de dólares en efectivo y una liquidez total de 92,4 millones de dólares.
Turning Point Brands (TPB)는 2024년 3분기에 강력한 실적을 보고했으며, 연결 순매출은 3.8% 증가하여 1억 560만 달러에 이르렀습니다. 회사의 조정된 EBITDA는 11.3% 증가하여 2천720만 달러에 도달했으며, 순이익은 14.3% 증가하여 1천240만 달러로 상승했습니다. 지그재그 제품 부문(판매의 47%)은 5.5% 성장했으며, 스토커 제품 (판매의 39%)는 12.1% 증가했습니다. 회사는 2024년 전체 연도 조정 EBITDA 전망을 1억 1천만~1억 3천만 달러로 상향 조정했습니다. TPB는 분기를 3천360만 달러의 현금과 9천240만 달러의 총 유동성으로 마감했습니다.
Turning Point Brands (TPB) a annoncé de solides résultats pour le troisième trimestre 2024, avec des ventes nettes consolidées en hausse de 3,8% à 105,6 millions de dollars. Le EBITDA Ajusté de la société a augmenté de 11,3% pour atteindre 27,2 millions de dollars, tandis que le bénéfice net a bondi de 14,3% à 12,4 millions de dollars. Le segment des produits Zig-Zag (47% des ventes) a crû de 5,5%, et les produits Stoker (39% des ventes) ont augmenté de 12,1%. La société a relevé ses prévisions d'EBITDA ajusté pour l'année 2024 entre 101 et 103 millions de dollars. TPB a terminé le trimestre avec 33,6 millions de dollars en liquidités et une liquidité totale de 92,4 millions de dollars.
Turning Point Brands (TPB) hat starke Ergebnisse für das dritte Quartal 2024 gemeldet, wobei die konsolidierten Nettoverkäufe um 3,8% auf 105,6 Millionen Dollar gestiegen sind. Das Adjusted EBITDA des Unternehmens wuchs um 11,3% auf 27,2 Millionen Dollar, während der Nettogewinn um 14,3% auf 12,4 Millionen Dollar anstieg. Der Zig-Zag Produkte Sektor (47% der Verkäufe) wuchs um 5,5%, und die Stoker Produkte (39% der Verkäufe) stiegen um 12,1%. Das Unternehmen hat seine Prognose für das angepasste EBITDA für das Gesamtjahr 2024 auf 101-103 Millionen Dollar angehoben. TPB schloss das Quartal mit 33,6 Millionen Dollar in bar und einer GesamtlLiquidität von 92,4 Millionen Dollar ab.
- Net sales increased 3.8% to $105.6 million
- Net income grew 14.3% to $12.4 million
- Adjusted EBITDA increased 11.3% to $27.2 million
- Stoker's Products sales grew 12.1%
- Company raised full-year 2024 adjusted EBITDA guidance
- Board approved $77.9 million increase in share repurchase authorization
- Creative Distribution Solutions sales decreased 17.4%
- Zig-Zag Products gross margin declined 180 basis points to 55.4%
- SG&A expenses increased to $33.2 million from $31.4 million
Insights
TPB delivered a strong Q3 with notable growth across key metrics. Net sales increased
The company's improved guidance, raising full-year adjusted EBITDA to
-
Q3 2024 Adjusted EBITDA of
, up$27.2 million 11% over prior year -
Zig-Zag and Stoker’s Products Net Sales for Q3 2024 Increased
8% Year-Over-Year -
Company increases full-year 2024 adjusted EBITDA guidance to
to$101 $103 million
Q3 2024 vs. Q3 2023
-
Total consolidated net sales increased
3.8% to$105.6 million -
Zig-Zag Products net sales increased
5.5% -
Stoker’s Products net sales increased
12.1% -
Creative Distribution Solutions net sales decreased
17.4%
-
Zig-Zag Products net sales increased
-
Gross profit increased
4.0% to$53.7 million -
Net income increased
14.3% to$12.4 million -
Adjusted net income increased
9.8% to (see Schedule B for a reconciliation to net income)$15.9 million -
Adjusted EBITDA increased
11.3% to (see Schedule A for a reconciliation to net income)$27.2 million -
Diluted EPS of
and Adjusted Diluted EPS of$0.68 compared to$0.87 and$0.58 , respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS)$0.76
Graham Purdy, President and CEO, commented, “We were pleased by our third quarter results. We believe Zig-Zag is on a sustainable growth trajectory. Stoker’s MST continued to grow market share, while FRE sales more than quadrupled versus year-ago and grew
Zig-Zag Products Segment (
For the third quarter, Zig-Zag Products net sales increased
For the quarter, the Zig-Zag Products segment gross profit increased
Stoker’s Products Segment (
For the third quarter, Stoker’s Products net sales increased
For the quarter, the Stoker’s Products segment gross profit increased
Creative Distribution Solutions (“CDS”) (
For the third quarter, CDS net sales were
Performance Measures in the Third Quarter
Third quarter consolidated selling, general and administrative (“SG&A”) expenses were
The third quarter SG&A included the following notable items:
-
of FDA PMTA-related expenses for modern oral products compared to$1.2 million in the year-ago period; and$0.3 million -
of transaction related costs compared to$0.9 million in the year-ago period$0.1 million
Total gross debt as of September 30, 2024 was
2024 Outlook
The Company is increasing its previous full-year 2024 adjusted EBITDA guidance from
During the quarter, the Company re-purchased 26,978 shares of common stock at a cost of
On November 6, 2024, the Board of Directors of the Company increased the Company’s share repurchase authorization by
Earnings Conference Call
As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 10:00 a.m. Eastern on Thursday, November 7, 2024. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (800) 751-9871 (international participants should call (646) 307-1963) and follow the audio prompts after typing in the event ID: 6640134. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the site two hours following the call.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles in
About Turning Point Brands, Inc.
Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and consumables with active ingredients through its iconic Zig-Zag® and Stoker’s® brands. TPB’s products are available in more than 217,000 retail outlets in
Forward-Looking Statements
This press release 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," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the “SEC”) and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to those included it the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
Financial Statements Follow on Subsequent Pages
Turning Point Brands, Inc. | |||||||
Consolidated Statements of Income | |||||||
(dollars in thousands except share data) | |||||||
(unaudited) | |||||||
Three Months Ended September 30, | |||||||
|
2024 |
|
|
2023 |
|
||
Net sales (1) | $ |
105,617 |
|
$ |
101,722 |
|
|
Cost of sales |
|
51,918 |
|
|
50,100 |
|
|
Gross profit |
|
53,699 |
|
|
51,622 |
|
|
Selling, general, and administrative expenses |
|
33,169 |
|
|
31,385 |
|
|
Operating income |
|
20,530 |
|
|
20,237 |
|
|
Interest expense, net |
|
3,773 |
|
|
3,984 |
|
|
Investment (gain) loss |
|
(203 |
) |
|
2,101 |
|
|
Gain on extinguishment of debt |
|
- |
|
|
(481 |
) |
|
Income before income taxes |
|
16,960 |
|
|
14,633 |
|
|
Income tax expense |
|
4,601 |
|
|
3,767 |
|
|
Consolidated net income |
|
12,359 |
|
|
10,866 |
|
|
Net (loss) income attributable to non-controlling interest |
|
(16 |
) |
|
35 |
|
|
Net income attributable to Turning Point Brands, Inc. | $ |
12,375 |
|
$ |
10,831 |
|
|
Basic income per common share: | |||||||
Net income attributable to Turning Point Brands, Inc. | $ |
0.70 |
|
$ |
0.62 |
|
|
Diluted income per common share: | |||||||
Net income attributable to Turning Point Brands, Inc. | $ |
0.68 |
|
$ |
0.58 |
|
|
Weighted average common shares outstanding: | |||||||
Basic |
|
17,722,855 |
|
|
17,595,980 |
|
|
Diluted |
|
18,448,720 |
|
|
20,098,450 |
|
|
(1) Net sales include excise taxes billed to customers of |
|||||||
Turning Point Brands, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(dollars in thousands except share data) | |||||||
(unaudited) | |||||||
September 30, | December 31, | ||||||
ASSETS |
|
2024 |
|
|
2023 |
|
|
Current assets: | |||||||
Cash | $ |
33,557 |
|
$ |
117,886 |
|
|
Accounts receivable, net of allowances of |
|
10,582 |
|
|
9,989 |
|
|
Inventories, net |
|
106,416 |
|
|
98,960 |
|
|
Other current assets |
|
34,197 |
|
|
40,781 |
|
|
Total current assets |
|
184,752 |
|
|
267,616 |
|
|
Property, plant, and equipment, net |
|
26,082 |
|
|
25,300 |
|
|
Deferred income taxes |
|
919 |
|
|
1,468 |
|
|
Right of use assets |
|
10,788 |
|
|
11,480 |
|
|
Deferred financing costs, net |
|
1,984 |
|
|
2,450 |
|
|
Goodwill |
|
136,413 |
|
|
136,250 |
|
|
Other intangible assets, net |
|
78,621 |
|
|
80,942 |
|
|
Master Settlement Agreement (MSA) escrow deposits |
|
29,482 |
|
|
28,684 |
|
|
Other assets |
|
18,968 |
|
|
15,166 |
|
|
Total assets | $ |
488,009 |
|
$ |
569,356 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ |
13,436 |
|
$ |
8,407 |
|
|
Accrued liabilities |
|
30,475 |
|
|
33,635 |
|
|
Current portion of long-term debt |
|
- |
|
|
58,294 |
|
|
Total current liabilities |
|
43,911 |
|
|
100,336 |
|
|
Notes payable and long-term debt |
|
248,282 |
|
|
307,064 |
|
|
Lease liabilities |
|
9,057 |
|
|
9,950 |
|
|
Total liabilities |
|
301,250 |
|
|
417,350 |
|
|
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock, |
|
- |
|
|
- |
|
|
Common stock, voting, |
|||||||
and 17,716,847 outstanding shares at September 30, 2024, and 19,922,137 issued shares and | |||||||
17,605,677 outstanding shares at December 31, 2023 |
|
202 |
|
|
199 |
|
|
Common stock, nonvoting, |
|||||||
issued and outstanding shares -0- |
|
- |
|
|
- |
|
|
Additional paid-in capital |
|
123,833 |
|
|
119,075 |
|
|
Cost of repurchased common stock | |||||||
(2,450,333 shares at September 30, 2024, and 2,316,460 shares at December 31, 2023) |
|
(82,263 |
) |
|
(78,093 |
) |
|
Accumulated other comprehensive loss |
|
(2,112 |
) |
|
(2,648 |
) |
|
Accumulated earnings |
|
146,014 |
|
|
112,443 |
|
|
Non-controlling interest |
|
1,085 |
|
|
1,030 |
|
|
Total stockholders' equity |
|
186,759 |
|
|
152,006 |
|
|
Total liabilities and stockholders' equity | $ |
488,009 |
|
$ |
569,356 |
|
|
Turning Point Brands, Inc. | |||||||
Consolidated Statements of Cash Flows | |||||||
(dollars in thousands) | |||||||
(unaudited) | |||||||
Nine Months Ended September 30, |
|||||||
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: | |||||||
Consolidated net income | $ |
37,455 |
|
$ |
27,916 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Gain on extinguishment of debt |
|
- |
|
|
(1,858 |
) |
|
Loss on sale of property, plant, and equipment |
|
38 |
|
|
34 |
|
|
Gain on MSA investments |
|
(14 |
) |
|
- |
|
|
Depreciation and other amortization expense |
|
3,393 |
|
|
2,388 |
|
|
Amortization of other intangible assets |
|
2,337 |
|
|
2,315 |
|
|
Amortization of deferred financing costs |
|
1,947 |
|
|
1,795 |
|
|
Deferred income tax expense |
|
349 |
|
|
694 |
|
|
Stock compensation expense |
|
5,720 |
|
|
4,660 |
|
|
Noncash lease income |
|
(317 |
) |
|
(48 |
) |
|
Loss on investments |
|
2,722 |
|
|
11,162 |
|
|
Changes in operating assets and liabilities: | |||||||
Accounts receivable |
|
(412 |
) |
|
(2,112 |
) |
|
Inventories |
|
(7,281 |
) |
|
3,036 |
|
|
Other current assets |
|
3,075 |
|
|
(1,384 |
) |
|
Other assets |
|
(1,031 |
) |
|
(5,110 |
) |
|
Accounts payable |
|
5,019 |
|
|
2,865 |
|
|
Accrued liabilities and other |
|
(3,679 |
) |
|
(6,348 |
) |
|
Net cash provided by operating activities | $ |
49,321 |
|
$ |
40,005 |
|
|
Cash flows from investing activities: | |||||||
Capital expenditures | $ |
(3,516 |
) |
$ |
(4,206 |
) |
|
Purchases of investments |
|
(8,865 |
) |
|
(200 |
) |
|
Proceeds from sale of investments |
|
4,520 |
|
|
- |
|
|
Purchases of non-marketable equity investments |
|
(1,250 |
) |
|
- |
|
|
Proceeds on the sale of property, plant and equipment |
|
3 |
|
|
3 |
|
|
MSA escrow deposits, net |
|
44 |
|
|
- |
|
|
Net cash used in investing activities | $ |
(9,064 |
) |
$ |
(4,403 |
) |
|
Cash flows from financing activities: | |||||||
Convertible Senior Notes repurchased | $ |
- |
|
$ |
(41,794 |
) |
|
Payment of Convertible Senior Notes |
|
(118,541 |
) |
|
- |
|
|
Proceeds from call options |
|
- |
|
|
114 |
|
|
Payment of financing costs |
|
(133 |
) |
|
- |
|
|
Payment of dividends |
|
(3,644 |
) |
|
(3,354 |
) |
|
Exercise of options |
|
1,341 |
|
|
419 |
|
|
Redemption of options |
|
(328 |
) |
|
(346 |
) |
|
Redemption of restricted stock units |
|
(840 |
) |
|
- |
|
|
Redemption of performance based restricted stock units |
|
(1,212 |
) |
|
(995 |
) |
|
Common stock repurchased |
|
(4,170 |
) |
|
- |
|
|
Net cash used in financing activities | $ |
(127,527 |
) |
$ |
(45,956 |
) |
|
Net decrease in cash | $ |
(87,270 |
) |
$ |
(10,354 |
) |
|
Effect of foreign currency translation on cash | $ |
(29 |
) |
$ |
22 |
|
|
Cash, beginning of period: | |||||||
Unrestricted | $ |
117,886 |
|
$ |
106,403 |
|
|
Restricted |
|
4,929 |
|
|
4,929 |
|
|
Total cash at beginning of period | $ |
122,815 |
|
$ |
111,332 |
|
|
Cash, end of period: | |||||||
Unrestricted | $ |
33,557 |
|
$ |
96,071 |
|
|
Restricted |
|
1,959 |
|
|
4,929 |
|
|
Total cash at end of period | $ |
35,516 |
|
$ |
101,000 |
|
|
Non-GAAP Financial Measures
To supplement our financial information presented in accordance with generally accepted accounting principles in
We define “EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define “Adjusted EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Net Income” as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Diluted EPS” as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Operating Income (Loss)” as operating income (loss) excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance.
Non-
In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures.
Schedule A | ||||||||
Turning Point Brands, Inc. | ||||||||
Reconciliation of GAAP Net Income to Adjusted EBITDA | ||||||||
(dollars in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended |
||||||||
September 30, |
||||||||
|
2024 |
|
2023 |
|
||||
Net income attributable to Turning Point Brands, Inc. | $ |
12,375 |
$ |
10,831 |
|
|||
Add: | ||||||||
Interest expense, net |
|
3,773 |
|
3,984 |
|
|||
Gain on extinguishment of debt |
|
- |
|
(481 |
) |
|||
Income tax expense |
|
4,601 |
|
3,767 |
|
|||
Depreciation expense |
|
981 |
|
782 |
|
|||
Amortization expense |
|
1,204 |
|
844 |
|
|||
EBITDA | $ |
22,934 |
$ |
19,727 |
|
|||
Components of Adjusted EBITDA | ||||||||
Corporate and CDS restructuring (a) |
|
186 |
|
190 |
|
|||
ERP/CRM (b) |
|
154 |
|
138 |
|
|||
Stock options, restricted stock, and incentives expense (c) |
|
1,769 |
|
1,824 |
|
|||
Transactional expenses and strategic initiatives (d) |
|
873 |
|
76 |
|
|||
FDA PMTA (e) |
|
1,242 |
|
275 |
|
|||
Non-cash asset impairment (f) |
|
- |
|
2,173 |
|
|||
Adjusted EBITDA | $ |
27,158 |
$ |
24,403 |
|
|||
(a) |
Represents costs associated with corporate and CDS restructuring, including severance. |
|||||||
(b) |
Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses. |
|||||||
(c) |
Represents non-cash stock options, restricted stock, incentives expense and Solace performance stock units. |
|||||||
(d) |
Represents the fees incurred for transaction expenses. |
|||||||
(e) |
Represents costs associated with applications related to FDA premarket tobacco product application ("PMTA"). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete. |
|||||||
(f) |
Represents impairment of investment assets. |
|||||||
Schedule B | ||||||||||||||||||||||||||||||||||||
Turning Point Brands | ||||||||||||||||||||||||||||||||||||
Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS | ||||||||||||||||||||||||||||||||||||
(dollars in thousands except share data) | ||||||||||||||||||||||||||||||||||||
(unaudited) | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
September 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||||
Income before income taxes | Income tax expense (h) | Net loss attributable to non-controlling interest | Adjusted Net Income | Adjusted Diluted EPS | Income before income taxes | Income tax expense (h) | Net loss attributable to non-controlling interest | Net Income | Diluted EPS | |||||||||||||||||||||||||||
GAAP Net Income and Diluted EPS | $ |
16,960 |
$ |
4,601 |
|
$ |
(16 |
) |
$ |
12,375 |
$ |
0.68 |
$ |
14,633 |
|
$ |
3,767 |
|
$ |
35 |
$ |
10,831 |
|
$ |
0.58 |
|
||||||||||
Gain on extinguishment of debt (a) |
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
(481 |
) |
|
(124 |
) |
|
- |
|
(357 |
) |
|
(0.02 |
) |
||||||||||
Corporate restructuring (b) |
|
186 |
|
50 |
|
|
- |
|
|
136 |
|
0.01 |
|
190 |
|
|
49 |
|
|
- |
|
141 |
|
|
0.01 |
|
||||||||||
ERP/CRM (c) |
|
154 |
|
42 |
|
|
- |
|
|
112 |
|
0.01 |
|
138 |
|
|
36 |
|
|
- |
|
102 |
|
|
0.01 |
|
||||||||||
Stock options, restricted stock, and incentives expense (d) |
|
1,769 |
|
480 |
|
|
- |
|
|
1,289 |
|
0.07 |
|
1,824 |
|
|
470 |
|
|
- |
|
1,354 |
|
|
0.07 |
|
||||||||||
Transactional expenses and strategic initiatives (e) |
|
873 |
|
237 |
|
|
- |
|
|
636 |
|
0.03 |
|
76 |
|
|
20 |
|
|
- |
|
56 |
|
|
0.00 |
|
||||||||||
FDA PMTA (f) |
|
1,242 |
|
337 |
|
|
- |
|
|
905 |
|
0.05 |
|
275 |
|
|
71 |
|
|
- |
|
204 |
|
|
0.01 |
|
||||||||||
Non-cash asset impairment (g) |
|
- |
|
- |
|
|
- |
|
|
- |
|
- |
|
2,173 |
|
|
559 |
|
|
- |
|
1,614 |
|
|
0.08 |
|
||||||||||
Tax benefit (i) |
|
- |
|
(494 |
) |
|
- |
|
|
494 |
|
0.03 |
|
- |
|
|
(575 |
) |
|
- |
|
575 |
|
|
0.03 |
|
||||||||||
Adjusted Net Income and Adjusted Diluted EPS | $ |
21,184 |
$ |
5,253 |
|
$ |
(16 |
) |
$ |
15,947 |
$ |
0.87 |
$ |
18,828 |
|
$ |
4,272 |
|
$ |
35 |
$ |
14,521 |
|
$ |
0.76 |
|
||||||||||
Totals may not foot due to rounding | ||||||||||||||||||||||||||||||||||||
(a) |
Represents gain on extinguishment of debt. |
|||||||||||||||||||||||||||||||||||
(b) |
Represents costs associated with corporate and CDS restructuring, including severance. |
|||||||||||||||||||||||||||||||||||
(c) |
Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses. |
|||||||||||||||||||||||||||||||||||
(d) |
Represents non-cash stock options, restricted stock, incentives expense and Solace PRSUs. |
|||||||||||||||||||||||||||||||||||
(e) |
Represents the fees incurred for transaction expenses. |
|||||||||||||||||||||||||||||||||||
(f) |
Represents costs associated with applications related to FDA premarket tobacco product application ("PMTA"). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete. |
|||||||||||||||||||||||||||||||||||
(g) |
Represents impairment of investment assets. |
|||||||||||||||||||||||||||||||||||
(h) |
Income tax expense calculated using the effective tax rate for the quarter of |
|||||||||||||||||||||||||||||||||||
(i) |
Represents adjustment from quarterly tax rate to annual projected tax rate of |
|||||||||||||||||||||||||||||||||||
Schedule C | |||||||||||||||||||||||||
Turning Point Brands, Inc. | |||||||||||||||||||||||||
Reconciliation of GAAP Operating Income (Loss) to Adjusted Operating Income (Loss) | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
Consolidated | Zig-Zag Products | Stoker's Products | Creative Distribution Solutions | ||||||||||||||||||||||
3rd Quarter |
|
3rd Quarter |
|
3rd Quarter |
|
3rd Quarter |
|
3rd Quarter |
|
3rd Quarter |
|
3rd Quarter |
|
3rd Quarter |
|||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||
Net sales | $ |
105,617 |
$ |
101,722 |
$ |
49,324 |
$ |
46,754 |
$ |
41,380 |
$ |
36,916 |
$ |
14,913 |
|
$ |
18,052 |
|
|||||||
Gross profit | $ |
53,699 |
$ |
51,622 |
$ |
27,327 |
$ |
26,745 |
$ |
23,071 |
$ |
20,572 |
$ |
3,301 |
|
$ |
4,305 |
|
|||||||
Operating income (loss) | $ |
20,530 |
$ |
20,237 |
$ |
17,378 |
$ |
16,672 |
$ |
17,162 |
$ |
15,703 |
$ |
(278 |
) |
$ |
(460 |
) |
|||||||
Adjustments: | |||||||||||||||||||||||||
Corporate restructuring |
|
186 |
|
190 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
190 |
|
|||||||
ERP/CRM |
|
154 |
|
138 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
- |
|
|||||||
Transactional expenses and strategic initiatives |
|
873 |
|
76 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
- |
|
|||||||
FDA PMTA |
|
1,242 |
|
275 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
- |
|
|||||||
Adjusted operating income (loss) | $ |
22,985 |
$ |
20,916 |
$ |
17,378 |
$ |
16,672 |
$ |
17,162 |
$ |
15,703 |
$ |
(278 |
) |
$ |
(270 |
) |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107220943/en/
Investor Contacts
Turning Point Brands, Inc.
ir@tpbi.com
Source: Turning Point Brands, Inc.
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