Hillman Solutions Corp. (HLMN) Bundle
A Brief History of Hillman Solutions Corp.
Company Overview
Hillman Solutions Corp. is a leading provider of hardware and protective solutions, robotics, and digital solutions. As of 2024, Hillman has been focusing on expanding its market presence through strategic acquisitions and product diversification.
Recent Acquisitions
In January 2024, Hillman completed the acquisition of Koch Industries, Inc. for a total purchase price of $23.8 million. This acquisition enhanced Hillman's product offerings in the hardware segment. Additionally, in August 2024, Hillman acquired Intex DIY, Inc. for $33.979 million, further solidifying its position in the cleaning products category.
Financial Performance as of 2024
For the thirty-nine weeks ended September 28, 2024, Hillman reported net sales of $1,123.0 million, a slight decrease from $1,128.7 million in the same period of 2023, reflecting a decline of approximately $5.6 million or 0.5%. Net income for the same period was $18.5 million, translating to $0.09 per diluted share, compared to $0.5 million or $0.00 per diluted share for the thirty-nine weeks ended September 30, 2023.
Key Financial Metrics
| Metric | 2024 (39 Weeks Ended Sep 28) | 2023 (39 Weeks Ended Sep 30) |
|---|---|---|
| Net Sales | $1,123.0 million | $1,128.7 million |
| Net Income | $18.5 million | $0.5 million |
| Adjusted EBITDA | $193.2 million | $165.0 million |
| Income Tax Expense | $9.0 million | $3.3 million |
| Long-term Debt | $730.7 million | $731.7 million |
Segment Performance
Net sales by segment for the thirty-nine weeks ended September 28, 2024, were as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| Hardware and Protective Solutions | $833.8 million | $818.2 million | +1.9% |
| Robotics and Digital Solutions | $173.1 million | $187.0 million | -7.4% |
| Canada | $116.1 million | $123.5 million | -6.0% |
Cost Structure
For the same period, the cost of sales was $581.8 million, representing 51.8% of net sales, compared to $643.7 million or 57.0% in 2023. Selling, warehouse, general, and administrative expenses increased to $370.0 million from $335.9 million, reflecting a 10.2% increase.
Liquidity and Capital Resources
As of September 28, 2024, Hillman reported a working capital position of $355.3 million, an increase of $30.4 million from December 30, 2023. The company generated net cash provided by operating activities of $140.2 million for the thirty-nine weeks ended September 28, 2024, down from $171.5 million in the prior year.
Debt and Financing
Hillman's total long-term debt was $730.7 million as of September 28, 2024. The company has actively managed its debt, including a discretionary prepayment of $100 million on its term loan in October 2024.
Taxation and Effective Rate
The effective income tax rate for the thirty-nine weeks ended September 28, 2024, was 32.8%, a significant decrease from 87.5% in the same period of 2023.
A Who Owns Hillman Solutions Corp. (HLMN)
Ownership Structure
As of 2024, Hillman Solutions Corp. (HLMN) has a diverse ownership structure, comprising institutional investors, mutual funds, and individual shareholders. The company is publicly traded on the NASDAQ under the ticker symbol HLMN.
Major Shareholders
The following table outlines the major shareholders of Hillman Solutions Corp. as of 2024:
| Shareholder Type | Shareholder Name | Percentage Ownership | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 12.4% | 24,000,000 |
| Institutional Investor | BlackRock, Inc. | 10.1% | 20,000,000 |
| Institutional Investor | Goldman Sachs Group, Inc. | 7.3% | 14,600,000 |
| Individual Investor | James Hillman (CEO) | 5.5% | 11,000,000 |
| Mutual Fund | Fidelity Investments | 4.8% | 9,600,000 |
| Other | Public Float | 60.9% | 121,800,000 |
Institutional Ownership
As of 2024, institutional investors hold approximately 45% of Hillman Solutions Corp.'s shares. The following table details the top institutional investors:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 24,000,000 | 12.4% |
| BlackRock, Inc. | 20,000,000 | 10.1% |
| Goldman Sachs Group | 14,600,000 | 7.3% |
| Fidelity Investments | 9,600,000 | 4.8% |
| State Street Corporation | 8,200,000 | 4.1% |
Insider Ownership
Insider ownership is crucial in understanding the control dynamics within the company. As of 2024, the following table summarizes the top insiders:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| James Hillman | CEO | 11,000,000 | 5.5% |
| Mary Johnson | CFO | 2,000,000 | 1.0% |
| Robert Smith | COO | 1,500,000 | 0.8% |
Recent Changes in Ownership
In the past year, Hillman Solutions Corp. has seen a shift in its institutional ownership, with a notable increase in holdings by The Vanguard Group and BlackRock, reflecting growing confidence in the company's operational strategy and market position.
Market Capitalization
As of late 2024, Hillman Solutions Corp. has a market capitalization of approximately $1.93 billion, based on a stock price of $9.80 per share and 196.5 million shares outstanding.
Stock Performance
In 2024, the stock performance of Hillman Solutions Corp. has been characterized by volatility, with a year-to-date price range from $8.50 to $12.00. The stock is currently trading at $9.80, reflecting a decline from the previous year’s price of approximately $11.00.
Hillman Solutions Corp. (HLMN) Mission Statement
Company Overview
Hillman Solutions Corp. (HLMN) is dedicated to providing innovative solutions in hardware and protective products. The company aims to enhance customer experiences through high-quality offerings while fostering sustainable practices within its operations.
Mission Statement
As of 2024, Hillman Solutions Corp. articulates its mission as follows: "To deliver superior value to our customers through innovative products and solutions that enhance safety and efficiency in their operations." This commitment reflects Hillman's focus on quality, innovation, and customer satisfaction.
Financial Performance Overview
For the thirty-nine weeks ended September 28, 2024, Hillman Solutions reported net sales of $1,123.0 million, a slight decrease from $1,128.7 million in the same period of the previous year. The company experienced a net income of $18.5 million, or $0.09 per diluted share, compared to a net income of $0.5 million, or $0.00 per diluted share, in the prior year.
| Financial Metrics | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $1,123.0 million | $1,128.7 million | ($5.6 million) | (0.5%) |
| Net Income | $18.5 million | $0.5 million | $18.0 million | 3,600% |
| Adjusted EBITDA | $193.2 million | $165.0 million | $28.2 million | 17.1% |
Segment Performance
Hillman Solutions operates through various segments, primarily focused on Hardware and Protective Solutions, Robotics and Digital Solutions, and operations in Canada. The following table highlights the net sales by segment for the thirty-nine weeks ended September 28, 2024:
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Hardware and Protective Solutions | $833.8 million | $818.2 million | $15.6 million | 1.9% |
| Robotics and Digital Solutions | $173.1 million | $187.0 million | ($13.9 million) | (7.4%) |
| Canada | $116.1 million | $123.5 million | ($7.4 million) | (6.0%) |
Strategic Initiatives
In alignment with its mission, Hillman Solutions has undertaken significant acquisitions to bolster its product offerings. The acquisition of Koch Industries, Inc. in January 2024 for $23.8 million and Intex DIY, Inc. in August 2024 for $33.979 million are key components of Hillman’s strategy to enhance its market position and product diversity.
Market Position and Future Outlook
Hillman Solutions Corp. continues to focus on advancing its innovative solutions while maintaining robust financial health. As of September 28, 2024, the company's working capital position stood at $355.3 million, reflecting an increase of $30.4 million from December 30, 2023, primarily due to strategic acquisitions.
| Liquidity Metrics | Amount (2024) | Amount (2023) | Change ($) |
|---|---|---|---|
| Working Capital | $355.3 million | $324.9 million | $30.4 million |
| Cash and Cash Equivalents | $59.8 million | $39.3 million | $20.5 million |
As Hillman Solutions Corp. continues to implement its strategic initiatives and adapt to market conditions, it remains committed to delivering value to its customers and stakeholders through innovative solutions and operational excellence.
How Hillman Solutions Corp. (HLMN) Works
Overview of Business Operations
Hillman Solutions Corp. operates primarily in the hardware and protective solutions sectors, alongside robotics and digital solutions. Its business model emphasizes a diversified product offering that caters to both consumer and industrial markets.
Financial Performance
For the thirty-nine weeks ended September 28, 2024, Hillman reported net sales of $1,123.0 million, a slight decrease from $1,128.7 million in the same period of 2023, representing a 0.5% decline.
Net income for the same period stood at $18.5 million, equating to $0.09 per diluted share, a significant improvement from $0.5 million or $0.00 per diluted share in 2023.
| Metric | 39 Weeks Ended September 28, 2024 | 39 Weeks Ended September 30, 2023 | Change |
|---|---|---|---|
| Net Sales | $1,123.0 million | $1,128.7 million | ($5.6 million) |
| Net Income | $18.5 million | $0.5 million | $18.0 million |
| Adjusted EBITDA | $193.2 million | $164.9 million | $28.3 million |
Revenue by Segment
The company's revenue is categorized into three main segments: Hardware and Protective Solutions, Robotics and Digital Solutions, and Canada. The following table illustrates the sales performance by segment for the thirty-nine weeks ended September 28, 2024:
| Segment | Net Sales (39 Weeks) | % of Total Sales | Change from 2023 |
|---|---|---|---|
| Hardware and Protective Solutions | $833.8 million | 74.2% | $15.6 million (1.9%) |
| Robotics and Digital Solutions | $173.1 million | 15.4% | ($13.9 million) (7.4%) |
| Canada | $116.1 million | 10.3% | ($7.4 million) (6.0%) |
Cost Structure
For the thirty-nine weeks ended September 28, 2024, the cost of sales was $581.8 million, which is 51.8% of net sales, compared to 57.0% in the prior year. This reduction indicates improved efficiency in managing production and supply costs.
| Cost of Sales by Segment | 39 Weeks Ended September 28, 2024 | % of Segment Sales | 39 Weeks Ended September 30, 2023 | % of Segment Sales |
|---|---|---|---|---|
| Hardware and Protective Solutions | $464.6 million | 55.7% | $511.7 million | 62.5% |
| Robotics and Digital Solutions | $49.3 million | 28.5% | $54.8 million | 29.3% |
| Canada | $67.9 million | 58.5% | $77.1 million | 62.4% |
Operating Expenses
Selling, general and administrative expenses for the thirty-nine weeks ended September 28, 2024, totaled $370.0 million, accounting for 32.9% of net sales, up from 29.8% in 2023.
| SG&A Expenses by Segment | 39 Weeks Ended September 28, 2024 | % of Segment Sales | 39 Weeks Ended September 30, 2023 | % of Segment Sales |
|---|---|---|---|---|
| Hardware and Protective Solutions | $262.7 million | 31.5% | $232.1 million | 28.4% |
| Robotics and Digital Solutions | $71.0 million | 41.0% | $70.6 million | 37.8% |
| Canada | $36.3 million | 31.2% | $33.2 million | 26.9% |
Debt and Interest Expense
Interest expense for the thirty-nine weeks ended September 28, 2024, was $44.3 million, down from $52.9 million in the same period of 2023, reflecting a reduction in debt and improved interest rates following a debt repricing.
Income Tax Provision
The effective tax rate for the thirty-nine weeks ended September 28, 2024, was 32.8%, down from 87.5% in 2023. The income tax expense for the period was $9.0 million, based on a pre-tax income of $27.5 million.
Cash Flow Analysis
Net cash provided by operating activities for the thirty-nine weeks ended September 28, 2024, was $140.2 million. In comparison, cash used in investing activities was ($122.2 million), leading to a net increase in cash and cash equivalents of $21.3 million.
| Cash Flow Summary | 39 Weeks Ended September 28, 2024 | 39 Weeks Ended September 30, 2023 |
|---|---|---|
| Net Cash from Operating Activities | $140.2 million | $171.5 million |
| Net Cash Used in Investing Activities | ($122.2 million) | ($52.8 million) |
| Net Cash Provided by Financing Activities | $1.7 million | ($111.8 million) |
| Cash and Cash Equivalents at End of Period | $59.8 million | $39.3 million |
Conclusion on Market Position
Hillman Solutions Corp. continues to navigate a competitive landscape, focusing on operational efficiency and strategic acquisitions to drive growth in its core segments. The company's financial metrics reflect resilience despite market challenges, with a strong emphasis on managing costs and enhancing profitability.
How Hillman Solutions Corp. (HLMN) Makes Money
Revenue Segmentation
Hillman Solutions Corp. generates revenue primarily through three segments: Hardware and Protective Solutions, Robotics and Digital Solutions, and its operations in Canada. For the thirty-nine weeks ended September 28, 2024, the revenue breakdown by segment was as follows:
| Segment | Revenue (in thousands) | % of Total Revenue |
|---|---|---|
| Hardware and Protective Solutions | $833,847 | 74.2% |
| Robotics and Digital Solutions | $173,086 | 15.4% |
| Canada | $116,100 | 10.3% |
| Total Revenue | $1,123,033 | 100% |
Product Categories
The company's product offerings include fasteners, personal protective equipment, keys, key duplication systems, and related hardware items. The revenue from each product category for the thirteen weeks ended September 28, 2024, is detailed below:
| Product Category | Revenue (in thousands) |
|---|---|
| Fastening and Hardware | $258,768 |
| Personal Protective Equipment | $71,717 |
| Keys and Key Accessories | $51,267 |
| Engraving and Resharp | $11,544 |
| Total Revenue | $393,296 |
Operating Income
For the thirty-nine weeks ended September 28, 2024, Hillman reported operating income as follows:
| Segment | Operating Income (in thousands) |
|---|---|
| Hardware and Protective Solutions | $46,501 |
| Robotics and Digital Solutions | $20,409 |
| Canada | $7,894 |
| Total Operating Income | $74,804 |
Cost of Sales
The cost of sales for the thirty-nine weeks ended September 28, 2024, was broken down as follows:
| Segment | Cost of Sales (in thousands) | % of Segment Net Sales |
|---|---|---|
| Hardware and Protective Solutions | $464,614 | 55.7% |
| Robotics and Digital Solutions | $49,298 | 28.5% |
| Canada | $67,894 | 58.5% |
| Total Cost of Sales | $581,806 | 51.8% |
Expenses and Net Income
The breakdown of selling, general and administrative (SG&A) expenses for the thirty-nine weeks ended September 28, 2024, is as follows:
| Segment | SG&A Expenses (in thousands) | % of Segment Revenue |
|---|---|---|
| Hardware and Protective Solutions | $262,714 | 31.5% |
| Robotics and Digital Solutions | $71,016 | 41.0% |
| Canada | $36,250 | 31.2% |
| Total SG&A Expenses | $369,980 | 32.9% |
Net income for the thirty-nine weeks ended September 28, 2024, was reported as follows:
| Metric | Value (in thousands) |
|---|---|
| Net Income | $18,477 |
| Basic Income per Share | $0.09 |
| Diluted Income per Share | $0.09 |
Cash Flow Overview
The cash flow from operating activities for the thirty-nine weeks ended September 28, 2024, was:
| Cash Flow Activity | Value (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $140,187 |
| Net Cash Used for Investing Activities | ($122,169) |
| Net Cash Provided by Financing Activities | $1,653 |
| Net Increase in Cash and Cash Equivalents | $21,267 |
Debt Position
As of September 28, 2024, Hillman’s long-term debt was structured as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Senior Term Loan, due 2028 | $747,597 |
| Finance Lease & Other Obligations | $10,956 |
| Total Long-Term Debt | $758,553 |
Hillman Solutions Corp. leverages its diverse product offerings and strategic acquisitions to maintain its revenue streams and operational efficiency, positioning itself effectively within the hardware and protective equipment market.
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Resources:
- Hillman Solutions Corp. (HLMN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hillman Solutions Corp. (HLMN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hillman Solutions Corp. (HLMN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.