Turning Point Brands announces preliminary Q4 results below consensus

Turning Point Brands, Inc. (NYSE: TPB) provided preliminary estimated financial results for the fourth quarter and full year ended December 31, 2024, in a recent SEC filing dated today. The company expects to fully report its financial outcomes no later than March 15, 2025.

For the fourth quarter, Turning Point Brands estimates net sales of approximately $93.6 million which compares to the consensus of $102.27 million. The company sees income before income taxes from continuing operations ranging from $13.0 million to $14.0 million, EBITDA between $18.3 million and $19.3 million, and Adjusted EBITDA from $25.3 million to $26.3 million. The company maintains strong financial health with a current ratio of 4.21, indicating robust liquidity. InvestingPro subscribers have access to 15+ additional key financial metrics and insights about TPB's performance.

The annual figures for 2024 show estimated net sales between $360.0 million and $361.0 million, which compares to the consensus of $413.47 million. The see annual income before taxes from continuing operations anticipated to be between $63.5 million and $64.5 million. EBITDA is projected to be in the range of $83.2 million to $84.2 million, and Adjusted EBITDA between $103.5 million and $104.5 million.

The company also announced that due to the divestiture of its Creative Distribution Solutions (CDS) segment to General Wireless Operations, Inc., it will report the CDS segment's results as discontinued operations starting with its 2024 annual report. Therefore, the provided financial figures exclude the CDS segment's results.

The preliminary data is unaudited and subject to finalization, which may lead to material changes. The company cautions that these estimates should not be considered a substitute for full financial statements prepared in accordance with U.S. GAAP.

In addition to the preliminary results, Turning Point Brands also revealed a proposed private offering of $300 million in senior secured notes due 2032. The proceeds from this offering are intended for the redemption or refinancing of its existing senior secured notes due 2026, alongside covering related expenses and for general corporate purposes. The offering is contingent upon market conditions and will only be available to qualified institutional buyers or non-U.S. persons outside the United States.

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