Hillman Reports Record Fourth Quarter 2024 Results; Provides 2025 Guidance

CINCINNATI, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the "Company” or "Hillman”), a leading provider of hardware products and merchandising solutions, reported financial results for the thirteen and fifty-two weeks ended December 28, 2024.

Fourth Quarter 2024 Highlights (Thirteen Weeks Ended December 28, 2024)

• Net sales increased 0.5% to $349.6 million compared to $347.8 million in the prior year quarter
• Net loss totaled $(1.2) million, or $(0.01) per diluted share, compared to net loss of $(10.1) million, or $(0.05) per diluted share, in the prior year quarter
• Adjusted diluted EPS¹ was $0.10 per diluted share compared to $0.10 per diluted share in the prior year quarter
• Adjusted EBITDA¹ totaled $56.3 million compared to $54.4 million in the prior year quarter
• On February 13, 2025, Jon Michael Adinolfi, Hillman's president and chief executive officer, was appointed to the Hillman Board of Directors; following the appointment, the board consists of ten members, eight of which are independent

Full Year 2024 Highlights (Fifty-Two Weeks Ended December 28, 2024)

• Net sales decreased (0.3)% to $1.47 billion compared to $1.48 billion in the prior year
• Net income totaled $17.3 million, or $0.09 per diluted share, compared to net loss of $(9.6) million, or $(0.05) per diluted share, in the prior year
• Adjusted diluted EPS¹ was $0.49 per diluted share, which includes the impact of a $0.03 per diluted share write off of receivables from True Value, compared to $0.41 per diluted share in the prior year
• Adjusted EBITDA¹ totaled a record $241.8 million, which includes the impact of a $8.6 million write off of receivables from True Value, compared to $219.4 million in the prior year
• Net cash provided by operating activities totaled $183.3 million compared to $238.0 million in the prior year
• Free Cash Flow¹ totaled $98.1 million compared to $172.3 million in the prior year
• Acquired Koch Industries, a provider of rope and twine, chain and wire rope, and related hardware products in January 2024; and Intex DIY, a supplier of wiping cloths, consumable rags and cleaning textiles in August 2024

Balance Sheet and Liquidity at December 28, 2024

• Gross debt decreased to $718.6 million from $760.9 million at December 30, 2023
• Net debt¹ decreased to $674.0 million from $722.4 million at December 30, 2023
• Liquidity available totaled $233 million, consisting of $189 million of available borrowing under the revolving credit facility and $45 million of cash and equivalents
• Net debt¹ to trailing twelve month Adjusted EBITDA improved to 2.8x times from 3.3x at December 30, 2023

Management Commentary

Doug Cahill, Hillman's executive chairman commented: "During 2024, Hillman delivered record bottom line results despite the soft macro environment. Our focus on disciplined execution and taking care of our customers added to Hillman's 60-year legacy of service, which resulted in us winning vendor of the year awards at our two biggest customers: Home Depot and Lowe's."

"Throughout the year we reduced our net debt by $48 million while strategically expanding our portfolio through the acquisitions of Koch and Intex DIY, further strengthening our position in these key product categories. These accomplishments underscore our focus on creating value for our customers and shareholders, positioning us for continued success in the years ahead."

Jon Michael Adinolfi, Hillman's newly appointed chief executive officer added: "The progress we made during 2024 has set us up for a successful 2025, as we expect to grow both our top and bottom line during the year. Our focus remains unchanged - taking great care of our customers, securing new business wins to drive organic growth, and expanding our offerings by way of acquisitions."

"During 2025, we will continue our measured and prudent capital investments into our MinuteKey 3.5 fleet and other growth opportunities, which we expect to generate healthy returns on invested capital in the future. We are confident we can drive strong results for our shareholders during 2025 and beyond."

Full Year 2025 Guidance

Hillman has provided the following guidance based on its current view of the market and its performance expectations during the fifty-two weeks ended December 27, 2025.

1. Adjusted EBITDA, Adjusted Diluted EPS, Net Debt, and Free Cash Flow are non-GAAP financial measures. Refer to the "Reconciliation of Adjusted EBITDA”, "Reconciliation of Adjusted Earnings per Share", "Reconciliation of Net Debt" and "Reconciliation of Free Cash Flow" sections of this press release for additional information as well as reconciliations between the company's GAAP and non-GAAP financial results

Fourth Quarter and Full Year 2024 Results Presentation

Hillman plans to host a conference call and webcast presentation today, February 18, 2025, at 8:30 a.m. Eastern Time to discuss its results and guidance. Executive Chairman Doug Cahill; President and Chief Executive Officer Jon Michael Adinolfi; and Chief Financial Officer Rocky Kraft will host the results presentation.

Date: Today, February 18, 2025

Time: 8:30 am Eastern Time

Listen-only Webcast: https://edge.media-server.com/mmc/p/33zifmes

A webcast replay will be available approximately one hour after the conclusion of the call using the Audio-Only Webcast link above.

Hillman's earnings release and results presentation are expected to be filed with the SEC and posted to its website, https://ir.hillmangroup.com, before the webcast presentation begins, with the 10-K being filed and posted subsequent to the call.

About Hillman Solutions Corp.

Hillman Solutions Corp. ("Hillman”) is a leading provider of hardware-related products and solutions to home improvement, hardware, and farm and fleet retailers across North America. Renowned for its commitment to customer service, Hillman has differentiated itself with its competitive moat built on direct-to-store shipping, a dedicated in-store sales and service team of over 1,200 professionals, and over 60 years of product and industry experience. Hillman's extensive portfolio includes hardware solutions (fasteners, screws, nuts and bolts), protective solutions (work gloves, jobsite storage and protective gear), and robotic and digital solutions (key duplication and tag engraving). Leveraging its world-class distribution network, Hillman regularly earns vendor of the year recognition from top customers. For more information on Hillman, visit www.hillman.com.

Forward Looking Statements

You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "target”, "goal”, "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including raw materials, sourcing, transportation and energy; (3) the highly competitive nature of the markets that we serve; (4) the ability to continue to innovate with new products and services; (5) seasonality; (6) large customer concentration; (7) the ability to recruit and retain qualified employees; (8) the outcome of any legal proceedings that may be instituted against the Company; (9) adverse changes in currency exchange rates; or (10) regulatory changes and potential legislation that could adversely impact financial results.. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company's filings with the Securities and Exchange Commission ("SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 28, 2024. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward looking statements.

Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Contact:

Michael Koehler

Vice President of Investor Relations & Treasury

513-826-5495

[email protected]

HILLMAN SOLUTIONS CORP.

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