Tue, Apr 29, 11:39 AM (14 days ago)
**Hillman Solutions Corp. (HLMN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $359.3 million, up 2.6% from Q1 2024 ($350.3 million). - **Net Loss:** $0.3 million, improved from a net loss of $1.5 million in Q1 2024. - **Profit Margins:** Gross margin was 46.9%, down from 47.6% in Q1 2024. Operating margin was 4.2%, down from 4.7% in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $0.7 million, a decline from a positive $11.7 million in Q1 2024. - **Earnings Changes:** EPS was $(0.00), improved from $(0.01) in Q1 2024. - **Adjusted EBITDA:** $54.5 million, up from $52.3 million in Q1 2024. **Segment Performance:** - **Hardware and Protective Solutions:** Revenue up 5.6% to $274.4 million. Adjusted EBITDA up 15.8% to $37.4 million. - **Robotics and Digital Solutions:** Revenue up 1.9% to $56.5 million. Adjusted EBITDA down 10.5% to $15.4 million. - **Canada:** Revenue down 18.7% to $28.4 million. Adjusted EBITDA down 43.1% to $1.7 million. **Trends and Uncertainties:** - **Tariffs:** Potential impact from U.S. tariffs on imported products, with uncertain effects on future demand and pricing. - **Currency Fluctuations:** Exposure to foreign exchange rate changes, particularly with the Canadian dollar and Chinese yuan. - **Economic Conditions:** Sensitivity to North American retail market trends, including inflation and consumer spending. **Future Operations:** - **Debt Repricing:** Completed a term loan repricing in Q1 2025, reducing interest rates. - **Acquisitions:** Completed the acquisition of Intex DIY, Inc., expanding offerings in the cleaning products category. - **Capital Expenditures:** Invested in key duplicating kiosks and merchandising racks. **Impact on Future Operations:** - **Tariffs and Currency Fluctuations:** May increase costs and impact working capital. - **Economic Uncertainties:** Potential adverse effects on consumer spending and demand. - **Strategic Initiatives:** Focus on innovation, cost management, and strategic acquisitions to drive growth.