Fasteners and other hardware products distributor Hillman Solutions reported its 2023 fourth quarter and full-year financial results on Feb. 22, showing a modest comparable increase in year-over-year sales that decelerated sequentially.

The Cincinnati-based company — No. 23 on MDM’s 2023 Top Industrial Distributors List — posted total 4Q sales of $348 million, down 0.8% year-over-year, with comparable sales up 3.8% as 4Q 2022 had an additional selling week. That comparable figure was down from 3Q’s 5.4% increase.

The company’s 4Q adjusted gross margin of 48.2% jumped 480 basis points year-over-year, while adjusted EBITDA margin likewise jumped 280 bps to 15.6%.

Hillman took a 4Q net loss of $10 million, compared to a $13.9 million loss a year earlier.

By business segment during 4Q:

• Hardware Solutions sales were down 1% year-over-year, with comparable sales up 4%
• Protective Solutions sales were up 4% year-over-year, with comparable sales up 11%
• Robotics and Digital Solutions sales were up 3% year-over-year, with comparable sales up 11%
• Canada sales were down 14% year-over-year (also comparable)

Full Year

For the full year, Hillman posted 2023 total sales of $1.48 billion, down 0.7% vs. 2022, with comparable sales up 0.4% due to 2022’s additional selling week.

By business segment during 2023:

• Hardware Solutions sales were up 4% vs. 2022, with comparable sales up 5%
• Protective Solutions sales were down 11% vs. 2022, with comparable sales down 2.5% (excludes COVID-related PPE sales
• Robotics and Digital Solutions sales were down 0.1% vs. 2022, with comparable sales up 2%
• Canada sales were down 9% (also comparable)

Hillman’s 2023 adjusted gross margin of 44.2% was up 120 bps vs. 2022, while adjusted EBITDA totaled $219 million, up from 2022’s $210 million. The company took a 2023 net loss of $9.6 million, improved from 2022’s $16 million loss.

“2023 was a remarkable operational year for the Hillman team,” Hilman Chairman, President and CEO Doug Cahill said in the company’s earnings release. “During the year we paid down $160 million of debt and reduced our inventory by $100 million while maintaining fill rates over 94% for our customers – all while moving into our new Kansas City distribution hub. This is some of the best work I have seen a team do in my career and sets us up to be more efficient during 2024 and beyond.”

2024 Outlook

In its 2024 full-year guidance, Hillman said it forecasts total sales of $1.475 billion to $1.555 billion, with adjusted EBITDA of $230 million to $240 million.

2024 is HIllman’s 60th year in business.