On May 9, Cincinnati-based hardware manufacturer and distributor Hillman Solutions announced its 2023 first-quarter earnings, showing that sales and profit were both down compared to the prior year.
Hillman reported 1Q net sales of $349.7 million, a decline of 3.7% year-over-year and down 1% sequentially from 4Q 2022. Hillman posted net loss of $9.1 million in 1Q 2023, up significantly from a loss of $1.9 million in 1Q 2022, but down sequentially from 4Q 2022’s loss of $13.9 million.
Contributing to Hillman’s decrease in sales in 1Q were poor weather conditions in the western U.S., according to Chairman, President and CEO Doug Cahill.
1Q adjusted EBITDA of $40.2 million decreased 3.8% year-over-year. Free cash flow in 1Q was $13.4 million, compared to -$16.1 million in 1Q 2022.
“First quarter 2023 results represent a solid start to the year during which we produced strong Adjusted EBITDA and free cash flow,” Cahill said in a news release. “While severe weather conditions in certain parts of the West impacted a portion of volume, our sales performed well in our other markets and we saw the benefit of our multiple price actions flow through our top line results. Free cash flow came in strong as we worked down inventory levels ahead of schedule while maintaining excellent fill rates of 97% at the shelf.
“In our largest category, Hardware Solutions, our hardware products are used for small-ticket repair, remodel and maintenance projects and have negligible exposure to new housing starts, which drives consistent results and positions us to perform well throughout the year. Our moat, which consists of direct-to-store shipping model and our 1,100-memeber field sales and service teams, continues to deliver best-in-class service and solutions to our customers, and we are proud of our team’s relentless efforts to drive our business forward. We are confident that our differentiated strategy, experienced team, and our ability to execute will drive strong results in 2023 and beyond.”
Hillman Promotes 3 Executives
Hillman announced three promotions with in its executive leadership team on May 15.
Aaron Parker has been named Vice President of Human Resources. He previously held prominent roles with both Macy’s and Fifth Third Bank before joining Hillman as Director of Human Resources in 2020.
“Hillman has grown 58 out of the 59 years of its existence, and I’m so excited to be the champion of our greatest asset: our people,” Parker said in a news release. “As Vice President of Human Resources, I want to make the Hillman HR function more data-driven, as this will allow us to make more accurate, well-informed decisions for the benefit of our people and the company as a whole.”
Amanda Kitzberger has been appointed Vice President General Counsel and Secretary. She joined Hillman in 2019 as Assistant General Counsel before becoming Vice President of Human Resources in 2021.
“My leadership style involves empowering teammates to develop and make decisions that they feel are best for the company and our people,” Kitzberger said in the release. “Understanding the fundamental needs of all three of our stakeholders is important to me, as I know that translates to doing business well. This remains true as I continue my work leading Hillman’s Environmental, Social and Governance program.”
Hillman has named Scott Moore as Chief Technology Officer (CTO). Before joining Hillman, Moore held multiple leadership positions at IBM and founded several startups, according to the release.
“My goal as CTO is to further Hillman’s use of technology, to drive innovation and efficiency, and bring even greater value and service to Hillman’s customers,” Moore said in the release. “I am focused on identifying priorities and creating a framework that makes it easier for our teams to deliver results.”