CINCINNATI, May 07, 2024 (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 weeks ended March 30, 2024. First Quarter 2024 Highlights (Thirteen weeks ended March 30, 2024) Net sales increased 0.2% to $350.3 million compared to $349.7 million in the prior year quarter Net loss totaled $(1.5) million, or $(0.01) per diluted share, compared to net loss of $(9.1) million, or $(0.05) per diluted share, in the prior year quarter Adjusted diluted EPS1 was $0.10 per diluted share compared to $0.06 per diluted share in the prior year quarter Adjusted EBITDA1 totaled $52.3 million compared to $40.2 million in the prior year quarter Net cash provided by operating activities was $11.7 million compared to $31.5 million in the prior year quarter Free Cash Flow1 totaled $(6.1) million compared to $13.4 million in the prior year quarter Balance Sheet and Liquidity at March 30, 2024 Gross debt was $778.2 million, compared to $760.9 million on December 30, 2023; net debt1 outstanding was $747.5 million, compared to $722.4 million on December 30, 2023 Liquidity available totaled approximately $242.3 million, consisting of $211.6 million of available borrowing under the revolving credit facility and $30.7 million of cash and equivalents Net debt1 to trailing twelve month Adjusted EBITDA improved to 3.2x from 3.3x at the end of 2023 Management Commentary "We started 2024 off on the right foot with strong bottom-line results driven by healthy margins," stated Doug Cahill, Chairman, President, and Chief Executive Officer of Hillman. "Hillman's differentiated strategy and competitive moat continue to demonstrate resilience in the current market environment. Our performance has been the result of our operational execution, our commitment to taking care of our customers and the resilience of our end markets." "Early in the first quarter, we finalized the acquisition of Koch Industries, which marks an important milestone for Hillman. This not only expands our product portfolio and enhances our leading position in the market, but it also marks our first recent acquisition of what we expect to be many over the coming years. M&A will be an important part of our growth strategy as we believe we can make accretive acquisitions and then leverage our moat to create additional value for our customers and shareholders. "As we celebrate our 60th year in business in 2024, we remain steadfast in our commitment to taking care of our customers, our people, and driving profitable growth for years to come. With a solid foundation in place and a focused strategy, we are confident in our ability to deliver strong results throughout 2024 and beyond." Full Year 2024 Guidance - ReiteratedHillman reiterated the following guidance based on its current view of the market and its performance expectations during the fifty-two weeks ended December 28, 2024. This guidance was originally provided on February 22, 2024 with Hillman's fourth quarter 2023 results.   Full year 2024 Guidance Net Sales $1.475 to $1.555 billion Adjusted EBITDA1 $230 to $240 million Free Cash Flow1 $100 to $120 million 1) Denotes Non-GAAP metric. For additional information, including our definitions, use of, and reconciliations of these metrics to the most directly comparable financial measures under GAAP, please see the reconciliations toward the end of the press release. First Quarter 2024 Results Presentation Hillman plans to host a conference call and webcast presentation today, May 7, 2024, at 8:30 a.m. Eastern Time to discuss its results. Chairman, President, and Chief Executive Officer Doug Cahill, Chief Financial Officer Rocky Kraft, and Chief Operating Officer Jon Michael Adinolfi will host the results presentation. Date: Tuesday, May 7, 2024 Time: 8:30 a.m. Eastern Time Listen-Only Webcast: https://edge.media-server.com/mmc/p/ogiyyfvu/ A webcast replay will be available approximately one hour after the conclusion of the call using the link above. Hillman's quarterly presentation and Form 10-Q are expected to be filed with the SEC and posted to its Investor Relations website, https://ir.hillmangroup.com, prior to the webcast presentation. About Hillman Solutions Corp. Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman Solutions Corp. ("Hillman") and its subsidiaries are leading North American providers of complete hardware solutions, delivered with outstanding customer service to over 46,000 locations. Hillman is celebrating 60 years of service this year, a significant milestone achieved by maintaining strong company values, an innovative culture, and delivering a "small business" experience with "big business" efficiency. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & industrial customers. For more information on Hillman, visit www.hillmangroup.com. Forward Looking Statements All statements made in this press release that are consider to be forward-looking are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. 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) direct and indirect costs associated with the May 2023 ransomware attack, and our receipt of expected insurance receivables associated with that cyber security incident; (6) seasonality; (7) large customer concentration; (8) the ability to recruit and retain qualified employees; (9) the outcome of any legal proceedings that may be instituted against the Company; (10) adverse changes in currency exchange rates; or (11) 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 the Annual Report on Form 10-K filed on February 22, 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 KoehlerVice President of Investor Relations &        HILLMAN SOLUTIONS CORP. Condensed Consolidated Statement of Net Loss, GAAP Basis(dollars in thousands) Unaudited   Thirteen Weeks EndedMarch 30, 2024   Thirteen Weeks EndedApril 1, 2023 Net sales $ 350,305     $ 349,707   Cost of sales (exclusive of depreciation and amortization shown separately below)   183,434       204,509   Selling, warehouse, general and administrative expenses   118,565       111,065   Depreciation   16,338       16,705   Amortization   15,254       15,572   Other expense, net   410       767   Income from operations   16,304       1,089   Interest expense, net   15,271       18,077   Refinancing costs   3,008       —   Loss before income taxes   (1,975 )     (16,988 ) Income tax benefit   (483 )     (7,856 ) Net loss $ (1,492 )   $ (9,132 )         Basic loss per share $ (0.01 )   $ (0.05 ) Weighted average basic shares outstanding   195,365       194,548                   HILLMAN SOLUTIONS CORP. Condensed Consolidated Balance Sheets(dollars in thousands)Unaudited   March 30, 2024   December 30, 2023 ASSETS       Current assets:       Cash and cash equivalents $ 30,672     $ 38,553   Accounts receivable, net of allowances of $2,433 ($2,770 - 2023)   127,332       103,482   Inventories, net   404,060       382,710   Other current assets   25,130       23,235   Total current assets   587,194       547,980   Property and equipment, net of accumulated depreciation of $345,363 ($333,875 - 2023)   205,025       200,553   Goodwill   828,279       825,042   Other intangibles, net of accumulated amortization of $485,751 ($470,791 - 2023)   643,359       655,293   Operating lease right of use assets   87,334       87,479   Other assets   15,155       14,754   Total assets $ 2,366,346     $ 2,331,101   LIABILITIES AND STOCKHOLDERS' EQUITY       Current liabilities:       Accounts payable $ 156,827     $ 140,290   Current portion of debt and financing lease liabilities   10,061       9,952   Current portion of operating lease liabilities   15,288       14,407   Accrued expenses:       Salaries and wages   16,083       22,548   Pricing allowances   8,002       8,145   Income and other taxes   5,981       6,469   Interest   864       343   Other accrued liabilities   23,059