On November 5, 2024, Hillman Solutions Corp (HLMN, Financial) released its 8-K filing detailing the financial results for the third quarter of 2024. Hillman Solutions Corp, a prominent provider of hardware-related products and merchandising services in North America, reported a mixed performance with a decline in net sales but an improvement in earnings per share (EPS).
Company Overview
Hillman Solutions Corp is known for its extensive range of hardware products and related services, catering to various retail markets including hardware stores, home centers, and mass merchants across North America. The company's product lines encompass fasteners, keys, builder's hardware, and personal protective equipment, among others. Hillman operates through segments such as Hardware and Protective Solutions, Robotics and Digital Solutions, and Canada, with a significant presence in the US, Canada, and Mexico.
Q3 2024 Financial Performance
For the third quarter ending September 28, 2024, Hillman Solutions Corp reported net sales of $393.3 million, a 1.4% decrease from the previous year's $398.9 million. Despite the decline in sales, the company achieved a net income of $7.4 million, or $0.04 per diluted share, surpassing the prior year's $5.1 million, or $0.03 per diluted share. Notably, the adjusted diluted EPS was $0.16, significantly higher than the $0.11 reported in the same quarter last year.
Key Achievements and Challenges
Hillman Solutions Corp's acquisition of Intex DIY, a supplier of cleaning textiles, marks a strategic expansion into new product categories and customer bases. The company also received recognition as the 2024 Vendor Partner of the Year in Hardlines at Lowe's and Partner of the Year in Hardware at Home Depot, underscoring its strong customer relationships.
Our strong results for the third quarter were driven by efficient operations across the organization while taking great care of our customers," commented Doug Cahill, Chairman, President, and CEO of Hillman.
Financial Metrics and Analysis
Adjusted EBITDA for the quarter was $72.6 million, up from $66.8 million in the prior year, reflecting operational efficiency. However, the company's net sales for the year-to-date period decreased slightly by 0.5% to $1,123.0 million. The balance sheet showed a reduction in net debt to $698.7 million from $771.8 million a year ago, with liquidity available totaling $324.6 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $393.3 million | $398.9 million |
| Net Income | $7.4 million | $5.1 million |
| Adjusted EBITDA | $72.6 million | $66.8 million |
| Adjusted Diluted EPS | $0.16 | $0.11 |
Conclusion and Outlook
Hillman Solutions Corp's Q3 2024 results highlight its ability to maintain profitability and operational efficiency despite a slight decline in sales. The company's strategic acquisitions and strong customer partnerships position it well for future growth. As Hillman continues to navigate market challenges, its focus on expanding product offerings and enhancing customer service remains crucial for sustaining its competitive edge in the industrial products sector.
Explore the complete 8-K earnings release (here) from Hillman Solutions Corp for further details.
