Turning Point Brands,Inc.(TPB) 首席执行官拉里·韦克斯勒 (Larry Wexler) 公布 2019年 第三季度业绩-收益电话抄本

读者寄语: 不管是您想投资美股, 还是想投资港股, 保持好自己的心态是最重要的。特别在美股、港股市场拥有一套成熟的金融市场,市场鼓励长期持有,而不是短期的投机炒作。选择一个好的公司, 耐心的等待, 做时间的朋友。如果您想咨询美股开户、港股开户相关的问题, 或者您对美股、港股感兴趣可以添加微信交流: xiaobei060537

Turning Point Brands, Inc. (NYSE:TPB) Q3 2019 Results Earnings Conference Call November 1, 2019 10:00 AM ET

Turning Point Brands, Inc. (NYSE:TPB) Q3 2019 Results Earnings Conference Call November 1, 2019 10:00 AM ET

公司参与者

Robert Lavan - Senior Vice President and Chief Financial Officer
Larry Wexler - President and Chief Executive Officer
Graham Purdy - President New Ventures Division

  • Robert Lavan - Senior Vice President and Chief Financial Officer
  • Larry Wexler - President and Chief Executive Officer
  • Graham Purdy - President New Ventures Division

电话会议参与者

Vivien Azer - Cowen & Company
Susan Anderson - B Riley, FBR

  • Vivien Azer - Cowen

会议主持员

Good day and welcome to the Turning Point Brands Third Quarter 2019 Call. Today's conference is being recorded. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]
I would like to turn the conference over to Robert Lavan. Please go ahead.

Good day and welcome to the Turning Point Brands Third Quarter 2019 Call. Today's conference is being recorded. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would like to turn the conference over to Robert Lavan. Please go ahead.

Robert Lavan

Robert Lavan

Thank you, operator. Good morning, everyone. I'm Bobby Lavan, CFO of Turning Point Brands. Joining me today are Turning Point Brands' President and CEO, Larry Wexler; Graham Purdy, who heads the Nu-X subsidiary; and Jim Murray, Senior Vice President of Business Planning. This morning we issued a news release covering our third quarter 2019 results. This release is located in the Investor Relations section of our website, where a replay of today's conference call will be available.
In this call, we will discuss our consolidated and segment operating results and provide our perspective on our progress. As is customary, I direct your attention to the discussion of forward-looking and cautionary statements, in today's press release and Risk Factors in our filings with the Securities and Exchange Commission. The disclosure outlines various factors that could cause actual results to differ materially from projections or forward-looking statements that may be cited in today's discussion.
These forward-looking statements and projections are not guarantees of future performance and you should not place undue reliance upon them except as provided by Federal Securities Laws, and we undertake no obligation to publicly update or revise any forward-looking statements. In the call today, we will reference certain non-GAAP financial measures. These measures and reconciliations to GAAP can be found in today's earnings release, along with reasons why management believes that they provide useful information.
I'll now turn the call over to Larry Wexler, our CEO.

Thank you, operator. Good morning, everyone. I'm Bobby Lavan, CFO of Turning Point Brands. Joining me today are Turning Point Brands' President and CEO, Larry Wexler; Graham Purdy, who heads the Nu-X subsidiary; and Jim Murray, Senior Vice President of Business Planning. This morning we issued a news release covering our third quarter 2019 results. This release is located in the Investor Relations section of our website, where a replay of today's conference call will be available.

In this call, we will discuss our consolidated and segment operating results and provide our perspective on our progress. As is customary, I direct your attention to the discussion of forward-looking and cautionary statements, in today's press release and Risk Factors in our filings with the Securities and Exchange Commission. The disclosure outlines various factors that could cause actual results to differ materially from projections or forward-looking statements that may be cited in today's discussion.

These forward-looking statements and projections are not guarantees of future performance and you should not place undue reliance upon them except as provided by Federal Securities Laws, and we undertake no obligation to publicly update or revise any forward-looking statements. In the call today, we will reference certain non-GAAP financial measures. These measures and reconciliations to GAAP can be found in today's earnings release, along with reasons why management believes that they provide useful information.

I'll now turn the call over to Larry Wexler, our CEO.

Larry Wexler

Larry Wexler

Thank you, Bobby, and good morning, everyone. Thank you for joining the call. The news this quarter relating to the Company's broad portfolio of products was dominated by the controversy surrounding vaping caused by an outbreak of illness among vaping consumers. The impact on the vaping industry was substantial and has the potential to overshadow the strong and compelling results in other parts of the Company. Stoker's continues to produce accelerated growth. Smoking has begun its recovery from the Canadian inventory drawdown and Nu-X continues its growth trajectory even in this challenging environment of vaping headlines.
News on vaping illnesses dramatically disrupted our third-party distribution business starting in mid-August. The current environment of misinformed headlines and consumer confusion has impacted the behavior of both consumers and store owners. As a result, we are taking immediate action to strip costs from the TPB infrastructure to rightsize our organization. Specifically, the Company intends to accelerate cost reduction plans, which are expected to deliver $8 million to $10 million of annualized savings. These cuts will come from warehouse and business consolidation plans in various vaping properties and other related corporate activities.
The goal is to reduce costs while preserving e-commerce capabilities to support our growing assortment of our proprietary Nu-X products and to maintain sufficient strength in nicotine vaping to participate in any potential recovery. This week we implemented a 10% headcount reduction. While it pains me to lose valuable employees, it was imperative to rightsize the business in light of the changing environment. And finally, given the uncertainty and confused consumer base in the third-party vaping distribution business, the Board of Directors is simultaneously exploring strategic alternatives for some of these businesses. There could be no assurance that this process will result in the approval or completion of any particular strategic alternative or transaction in the future.
Moving to the quarter and our performance metrics, we remain particularly pleased with the strength of our core tobacco products in both smokeless and smoking and with the strong momentum at Nu-X. Stoker's MST delivered yet another record share in the quarter, propelling segment sales growth upward by 20%. Stoker's MST same-store sales velocity has strengthened by 33% versus a year ago, demonstrating genuine product satisfaction. Smoking sales increased by 7% on solid per store velocities of Zig-Zag cones and nice volume advances in Cigar Wraps, where Zig-Zag commands greater than 75% share.
Despite the vapor headlines' impact on the RipTide launch, total Nu-X sales increased from $4.3 million in second quarter to $6.3 million in the third quarter. The Nu-X product pipeline supported by our team at Solace is robust and on track to bring forward additional lines in the fourth quarter that will take the Company and Nu-X into entirely new spaces, including what I call white spaces, where there genuine voyage that represent meaningful potential sales opportunities. We are fortunate to have a strong foundation of Stoker's in smokeless and Zig Zag in smoking, which collectively delivered 82% of year-to-date EBITDA. These brands are thriving and we continue to position Nu-X to enter attractive growing markets. The vape business has been disrupted by the current controversy.

www.

谢谢鲍比,大家早上好。感谢您加入通话。本季度有关该公司广泛产品组合的新闻主要由围绕电子烟的争议所引起,这些争议是由电子烟消费者中的疾病爆发引起的。对电子烟行业的影响是巨大的,并且有可能使公司其他部门的强劲和令人信服的业绩黯然失色。 Stoker的业务继续加速增长。吸烟已从加拿大库存减少中恢复过来,Nu-X继续保持增长轨迹,即使在这个充满标题的充满挑战的环境中也是如此。

从八月中旬开始,有关雾化疾病的新闻极大地破坏了我们的第三方分销业务。当前的误导性新闻标题和消费者困惑的环境已经影响了消费者和商店所有者的行为。因此,我们将立即采取行动,从TPB基础设施中剥离成本,以调整组织的规模。具体来说,公司打算加快成本削减计划,预计将实现800万至1000万美元的年度节省。这些削减将来自各种vaping属性和其他相关公司活动中的仓库和业务合并计划。

目标是在降低成本的同时保留电子商务功能,以支持我们不断增长的专有Nu-X产品分类,并保持足够的尼古丁雾化强度,以参与任何潜在的恢复。本周,我们裁员了10%。尽管失去宝贵的员工让我很痛苦,但必须根据不断变化的环境调整业务规模。最后,鉴于第三方vaping分销业务的不确定性和混乱的消费者基础,董事会正在同时探索其中一些业务的战略选择。不能保证此过程将导致将来任何特定战略选择或交易的批准或完成。

进入季度和我们的绩效指标,我们对核心烟草产品在无烟和吸烟方面的实力以及Nu-X的强劲势头感到特别满意。 Stoker的MST在本季度再次创造了创纪录的份额,推动分部销售额增长了20%。 Stoker的MST同店销售速度比一年前提高了33%,这证明了其真正的产品满意度。 Zig-Zag锥筒的每店固体零售速度提高了烟熏销售额,而Cigar Wraps的卷烟销量则增长了7%,Zig-Zag占据了75%以上的份额。

尽管头条新闻对RipTide的发布产生了影响,但Nu-X的总销售额从第二季度的430万美元增加到第三季度的630万美元。我们在Solace团队的支持下,Nu-X产品线非常强大,有望在第四季度推出更多产品线,从而将公司和Nu-X带入全新的空间,包括我所说的空白区域。代表有意义的潜在销售机会的航程。我们很幸运,Stoker在无烟领域和Zig Zag在吸烟领域拥有强大的基础,这些领域合计实现了年初至今EBITDA的82%。这些品牌正在蓬勃发展,我们继续将Nu-X定位为进入有吸引力的不断增长的市场。 vape业务已因当前争议而中断。

We have plans already in motion to reduce our financial exposure to third-party aspects of these businesses. At the same time, TPB remains heavily committed to capitalizing on our core competencies in branding, distribution, product development, and regulatory affairs to create market leading adult actives products. This includes investing in the FDA PMTA process for TPB's proprietary brands, as well as growing the CBD and other actives businesses. Over the last few years, we have made investments acquiring powerful e-commerce platforms for both B2B and B2C environments, We now fully intend to leverage these capabilities to propel our proprietary product portfolio of products. These investments are not going to waste.
On the contrary, we have millions of data points on consumer purchase behavior and preferences that we can leverage to emerge out of the FDA PMTA process as one of the few marketers of open systems. I've seen major shifts in tobacco business over my 36 years in the industry. The PMTA is one of those moments, and we are confident that we will be able to be on the right side of that process. We've got some additional color on year-to-date and upcoming Nu-X activities.
Let me turn the call over to Graham Purdy, President of Nu-X.

We have plans already in motion to reduce our financial exposure to third-party aspects of these businesses. At the same time, TPB remains heavily committed to capitalizing on our core competencies in branding, distribution, product development, and regulatory affairs to create market leading adult actives products. This includes investing in the FDA PMTA process for TPB's proprietary brands, as well as growing the CBD and other actives businesses. Over the last few years, we have made investments acquiring powerful e-commerce platforms for both B2B and B2C environments, We now fully intend to leverage these capabilities to propel our proprietary product portfolio of products. These investments are not going to waste.

On the contrary, we have millions of data points on consumer purchase behavior and preferences that we can leverage to emerge out of the FDA PMTA process as one of the few marketers of open systems. I've seen major shifts in tobacco business over my 36 years in the industry. The PMTA is one of those moments, and we are confident that we will be able to be on the right side of that process. We've got some additional color on year-to-date and upcoming Nu-X activities.

Let me turn the call over to Graham Purdy, President of Nu-X.

Graham Purdy

Graham Purdy

Thank you, Larry. Third quarter Nu-X sales of $6.3 million were up from $4.3 million in Q2. While the 45% advance is a nice step onward in our journey toward accelerated growth, I'm not satisfied, we're not satisfied. As we discussed before, there is a swelling demand for alternative products, most notably hemp derived CBD products. In the third quarter, we introduced Nu-X CBD pens across the TPB platform. These disposable CBD pens position us favorably in the traditional retail with a first-mover advantage. There are five products in the line each carrying a particular mood positioning like relax, focus or happy.
The retail price point of $19.99 each has been very well received by both the trade and consumers alike. I'm pleased to report that initial results are in fact very encouraging, and we sold out this month. Further retail expansion is in queue for the fourth quarter. While exploring potential product development concepts with Premier retailers, we incurred a compelling narrative that gives us an especially high level of enthusiasm for the Nu-X portfolio of novel alternative products.
Leading retailers are actively engaged in trying to assemble a suite of quality CBD products, but only from trusted partners and suppliers into TPB. We have a long track record of not only bringing winning, high velocity products and brands to our partners, but also an industry-leading reputation for standing behind our products. When we discuss our new products with them, the enthusiasm is palpable. They are eager to work with us to chart their path forward with alternative products. In the fourth quarter, we will be broadening the suite of Nu-X CBD products to meet the demands and desires of our retail partners and consumers. The Q4 product selection flows out of learnings and understandings from our e-commerce and retail experience.
A few of those Q4 introductions include Nu-X CBD liquid shots. These two ounce bottles with 30 milligrams of CBD in energy and stress relieving flavor profiles are new and unique formats that are sure to create speedy interest, trial and sales. Shots are scheduled for late November shipment to the trade. Also in November, Nu-X CBD Tincture's in 15 ml bottle, with 250 milligrams of CBD will be available in four flavors. This product will be well-positioned as an entry point for new consumers and in December, Nu-X CBD gummies and gel capsules. With almost 40% of CBD consumers purchasing edibles, these product formats have emerged as specialty integral.
The products are available in a wide range of flavors and are infused with CBD rather than being sprayed on, a better solution for the consumers. In the coming months, we'll be focused on introducing the CBD portfolio within traditional retail. The discussions to-date indicate a great deal of trade enthusiasm for products supported by a company who can be trusted on product quality and merchandising support. We appreciate dealing with one company, who delivers quality products across the formats that cover 70% of sales in the category. We see this as a unique opportunity to build on the early success of the Nu-X pens, establish the brand and propel us to the forefront of this growing category.

www.

谢谢拉里Nu-X第三季度的销售额为630万美元,高于第二季度的430万美元。尽管45%的进步是迈向加速增长的良好一步,但我不满意,我们不满意。正如我们之前所讨论的,对替代产品的需求激增,最引人注目的是大麻衍生的CBD产品。在第三季度,我们在TPB平台上推出了Nu-X CBD笔。这些一次性CBD笔具有先发优势,使我们在传统零售领域处于有利地位。该系列中有五种产品,每种产品具有特定的情绪定位,例如放松,专注或快乐。

每个零售价$ 19.99都受到了业界和消费者的一致好评。我很高兴地报告说,最初的结果实际上非常令人鼓舞,我们本月售罄。第四季度进一步的零售扩张正在排队。在与Premier零售商探讨潜在的产品开发概念时,我们引人入胜的叙述使我们对Nu-X新替代产品组合的热情特别高。

领先的零售商积极参与尝试组装一套优质的CBD产品,但仅限于将可信赖的合作伙伴和供应商纳入TPB。我们拥有长期的记录,不仅为合作伙伴带来了获奖的高速产品和品牌,而且在支持我们的产品方面享有行业领先的声誉。当我们与他们讨论我们的新产品时,热情是显而易见的。他们渴望与我们合作,共同开发替代产品。在第四季度,我们将扩展Nu-X CBD产品套件,以满足我们的零售合作伙伴和消费者的需求。第四季度的产品选择来自对我们的电子商务和零售经验的学习和理解。

Q4的一些介绍包括Nu-X CBD液体镜头。这两盎司瓶装的30毫克CBD的能量和应力消除了风味,它们是新颖独特的格式,一定会引起人们的兴趣,试用和销售。镜头定于11月下旬运抵该行业。同样在11月,将以四种口味提供15毫升瓶装的Nu-X CBD cture剂和250毫克的CBD。该产品将很好地定位于新消费者的切入点,并在12月推出Nu-X CBD软糖和凝胶胶囊。随着近40%的CBD消费者购买食品,这些产品形式已经成为专业的组成部分。

该产品具有多种口味,并注入了CBD,而不是喷在上面,对消费者而言是更好的解决方案。在接下来的几个月中,我们将专注于在传统零售中引入CBD产品组合。迄今为止的讨论表明,对于可以在产品质量和销售支持方面值得信赖的公司支持的产品,他们具有极大的贸易热情。我们很高兴与一家公司打交道,该公司以涵盖该类别销售70%的格式提供高质量的产品。我们认为这是一个难得的机会,可以在Nu-X笔的早期成功的基础上继续发展,建立品牌并推动我们走在这一不断增长的类别的最前沿。

Looking forward to Q1, 2020 and beyond, our new product pipeline remains especially robust, with highly innovative products, uniquely positioned to meet specific consumer needs and desires. While we are certainly focused on attaining a market leadership position in the rapidly growing CBD market, Nu-X means much more than just CBDs. Nu-X is all about bringing forth innovation in a wide variety of new alternative products. As we move into 2020, you'll begin to see the creativity and depth of our innovation development team.
Moving to RipTide. In the quarter, we expanded U.S. retail footprint by approximately 7,000 doors, including two large leading convenience store chains. Early traction has been good, albeit a bit muted by the vape headlines. In looking at same store sales to evaluate early consumer satisfaction, we are observing a steady increase in velocity rates in the associated share gains. At the present time, we are doing a deep dive research project to fully understand progress through an intensive targeted store revisit program. In the 3,000 stores that we have revisited already, our RipTide share is now up to 6%. Based upon preliminary findings in late Q3, we have already implemented a number of packaging and product improvements, which will hit retail later this quarter.
Importantly, we are finalizing the Canadian retail introduction with our partners at ReCreation Marketing. ReCreation placed their opening PO and preliminary feedback from large account presentations is highly encouraging with major players in the queue for RipTide distribution. RipTide was well presented at the Vapex for the largest vape show in the UK last week. All of us at TPB are especially excited with not only our Nu-X progress to-date, but more so with the building momentum and enthusiasm of our trade partners. Results to-date are encouraging, but only a shadow what's to come.
And with that, I'll turn it to Bobby for a review of our third quarter financial performance. Bobby?

www.

展望2020年第一季度及以后,我们的新产品线将保持特别强劲的状态,提供高度创新的产品,其独特的定位可以满足特定的消费者需求和期望。虽然我们当然致力于在迅速增长的CBD市场中获得市场领先地位,但Nu-X的意义远不止CBD。 Nu-X致力于在各种新的替代产品中进行创新。随着我们进入2020年,您将开始看到我们创新开发团队的创造力和深度。

转到RipTide。在本季度,我们在美国的零售店面扩大了大约7,000门,其中包括两家大型领先的便利店。早期的牵引力一直很好,尽管vape的头条新闻对此有些无语。在查看同家商店的销售以评估早期消费者满意度时,我们观察到相关份额增长中的速度稳步上升。目前,我们正在进行一项深入的研究项目,以通过深入的针对性商店重新访问计划全面了解进度。在我们已经重新访问的3,000家商店中,我们的RipTide份额现在高达6%。根据第三季度末的初步调查结果,我们已经实施了一些包装和产品改进措施,并将于本季度末开始零售。

重要的是,我们正在与ReCreation Marketing的合作伙伴敲定加拿大的零售介绍。 ReCreation放置了他们的开场订单,来自大型帐户演示文稿的初步反馈在主要参与者参加RipTide分发的过程中非常令人鼓舞。上周,RipTide在Vapex上进行了英国最大的vape展会的出色展示。迄今为止,TPB的所有人不仅对Nu-X的进步感到特别兴奋,而且对贸易伙伴的建设势头和热情也更加感到兴奋。迄今为止的结果令人鼓舞,但这只是阴影。

因此,我将它交给Bobby来回顾我们的第三季度财务业绩。鲍比?

Robert Lavan

Robert Lavan

Thank you, Graham. Company results in the third quarter were a bit of a mix, as we move swiftly to address the vapor disruption. Performance in our smokeless and smoking businesses were positive and consistent with our long-term growth plan. Total company net sales were up 16.1% with gross profit advancing 18.2% in gross margins expanding in each of our three reportable segments. Before I dive into the segment and consolidated performance in the quarter, let me update on our ReCreation Marketing investment in Canada. As we announced on last quarter's call, in July, we made a strategic investment in ReCreation Marketing in Canada.
ReCreation is a specialty marketing and distribution firm that targets up to 30,000 retail outlets including convenient stores, newly established cannabis dispensaries. We are also readying other alternative products for ReCreation team to introduce in Canada in 2020 and I'm personally excited about this ventures impact on our future financials. In smokeless, the Stoker's brand continues to generate great momentum. Smokeless net sales increased 20.4% to $26.2 million in the quarter. Net sales for the moist portfolio represented 58% of smokeless revenues in the quarter, up from 48% a year earlier, a trend we continue to expect to accelerate. The smokeless volume increased 15.1% with price mix advancing 5.3%.
Notably, TPB followed the October industry price increase on moist products, the third price increase in 2019. Year-over-year industry volumes for chewing tobacco and moist declined by approximately 6% and 2% in the quarter, respectively. Stoker's shipments to retail outpaced the smokeless industry in the quarter, growing its share in both chewing tobacco and moist. Smokeless gross profit increased 23.3% to $13.6 million. Stoker's moist robust volume gains are now overtaking the scale of our chewing tobacco business and we're beginning to see the favorable impact of operational leverage. Our capital expenditure projects this year will reap incremental benefits next year.
Turning to smoking products, segment net sales increased 7.6% to $30.2 million on particularly strong promotional results on Zig-Zag cigar wraps. Cigar wraps trade inventories increased on strong promotional participation rate, while U.S. rolling paper inventory is depleted, essentially offsetting each other. Non-focused cigar in MYO pipe products declined $0.5 million. Smoking volume increased 3.6% and price mix increased 4%. Zig-Zag's U.S. paper share increased sequentially and versus year ago on new products momentum and remains the number one premium rolling paper brand.
Zig Zag's expansion into the Canadian alternative channels is scheduled to begin early next year. U.S. rolling consumers continue to migrate to super convenient products like paper cones. The Zig Zag cones introduction continues with store count standing at 16,000 at quarter end, while we have much more distribution gain preliminary results are encouraging with Zig-Zag capturing 20% of cones category volumes in the MSA measured universe. According to MSA, third quarter industry volumes for U.S. cigarette papers and MYO cigar wraps increased by low single digits and mid single digits, respectively.

www.

谢谢格雷厄姆。由于我们迅速采取行动以解决蒸汽中断问题,因此第三季度的公司业绩有些复杂。我们的无烟和吸烟业务的业绩良好,并符合我们的长期增长计划。在我们三个可报告分部中的每个分部中,公司总净销售额增长了16.1%,毛利率提高了18.2%,毛利率也有所提高。在我深入探讨本季度的细分市场和合并业绩之前,让我更新一下我们在加拿大的ReCreation Marketing投资。正如我们在上个季度的电话会议中宣布的那样,我们在7月对加拿大的ReCreation Marketing进行了战略投资。

ReCreation是一家专业的营销和分销公司,其目标是多达30,000个零售店,包括便利店,新成立的大麻药房。我们还准备为ReCreation团队准备其他替代产品,以便于2020年在加拿大推出,我个人对此合资企业对我们未来财务的影响感到兴奋。在无烟的情况下,斯托克的品牌继续保持强劲势头。本季度无烟净销售额增长20.4%,达到2620万美元。潮湿的投资组合的净销售额占该季度无烟收入的58%,高于去年同期的48%,我们将继续预计这一趋势将加速。无烟量增加了15.1%,价格结构提高了5.3%。

值得注意的是,TPB紧随10月份湿产品的行业价格上涨,2019年第三次涨价。咀嚼烟草和湿润的行业同比销量分别下降了约6%和2%。斯托克(Stoker)的零售出货量在本季度超过了无烟行业,在咀嚼烟草和湿润烟草方面的份额均增加了。无烟毛利润增长了23.3%,达到1360万美元。斯托克潮湿而强劲的销量增长现在已经超过了咀嚼烟草业务的规模,并且我们开始看到运营杠杆的有利影响。我们今年的资本支出项目将在明年获得更多收益。

吸烟产品方面,由于之字形雪茄烟包装的促销特别强劲,该部门的净销售额增长了7.6%,达到3020万美元。雪茄套的贸易库存由于强劲的促销参与率而增加,而美国的卷纸库存却减少了,从而基本抵消了。 MYO烟斗产品中的非聚焦雪茄下降了50万美元。吸烟量增加了3.6%,价格构成增加了4%。在新产品的推动下,Zig-Zag在美国的纸张份额比上年同期有所增长,并且仍然是优质卷纸品牌的第一名。

Zig Zag计划于明年初开始向加拿大的替代频道扩展。美国滚动消费者继续迁移到纸锥等超级方便的产品。 Zig Zag视锥盆的推出继续进行,到季度末商店数量达到16,000,而我们获得了更多的分销收益,初步结果令人鼓舞,因为Zig-Zag捕捉了MSA测量宇宙中20%的视锥盆类别的体积。据MSA称,美国卷烟纸和MYO雪茄纸的第三季度行业销量分别增长了低个位数和中个位数。

Moving to our NewGen segment, our vaping product sales were disrupted on significant media headlines. In the quarter, total NewGen segment sales grew 20.5% to $40.4 million. Importantly, total NewGen sales in September were approximately 30% below August. Not knowing the duration or the trajectory of the current disruption or the specific nature of any regulatory changes on flavored vaping products, we are moving swiftly to right-size the business. These warehouse and business consolidation plans will be completed in the fourth quarter. Nu-X, which has been our primary focus in NewGen generated a 45% increase in sales from the prior quarter to $6.3 million.
The spread of gross sales to net sales on RipTide hit almost 30% due to heavier than expected introductory promotion. We continue to gain share with RipTide, but not at all costs. Year-to-date Nu-X net sales were $11.4 million. We expect this trajectory to continue. Late fourth quarter initiatives include significant new product introductions into growing in novel spaces. To recap the quarter, third quarter NewGen gross profit increased 21.5% to $12.6 million. In the quarter, there were $2.6 million of tariff expenses.
Moving to the consolidated business consolidated SG&A expense in the quarter was $29.8 million. Nu-X specific SG&A expenses in the quarter totaled $2.5 million. Adjusted EBITDA for the quarter was $18.8 million as compared to $16.5 million in the prior year. We continue to balance growing EBITDA investing in the business. Net debt to adjusted EBITDA was 3.3 times inside our targeted range of 2.5 times to 3.5 times. In this morning's release, we also updated our 2019 guidance, which includes the following.
Projected 2019 total net sales of $360 million to $367 million comprised of base business net sales of $343 million to $347 million and Nu-X sales of $18 million to $20 million. This is a reduction from prior guidance due to the aforementioned vaping disruption. Importantly, we still intend to fully invest Nu-X gross profits to maximize sales in market achievements. The Company expects certain SG&A expenses in 2019, including $2 million in restructuring and warehouse organization costs, which includes $600,000 in severance that will be expense in the fourth quarter. $1.6 million in transaction expenses resulting from the Solace acquisition and IVG earn-out payments, $5 million to support Nu-X infrastructure, which is primarily RipTide launch costs.
We expect to spend $3 million to $5 million in preparation for the FDA's PMTA pathway during 2019. We expect the Final Regulation for PMTAs in the coming months. Stock compensation and non-cash incentive expense in 2019 is projected to be $4.5 million, which has increased due to accounting requirements to expense the performance-based restricted stock units that were part of the Solace acquisition. We project 2019 adjusted EBITDA of $69 million to $72 million. We expect the 2019 effective income tax rate to come in at the low end of the range of 21%.

www.

转移到NewGen细分市场后,我们的电子产品销售在重要的媒体头条上受到了干扰。在本季度,NewGen部门的总销售额增长了20.5%,达到4,040万美元。重要的是,9月份NewGen的总销量比8月份低约30%。我们不知道当前中断的持续时间或轨迹,也不知道调味vaping产品的任何法规更改的特殊性质,因此我们正在迅速采取措施以适当地确定业务规模。这些仓库和业务合并计划将在第四季度完成。 Nu-X一直是我们在NewGen中的主要业务,它的销售额比上一季度增长了45%,达到630万美元。

RipTide上的销售总额与净销售额之间的差额达到了近30%,这是由于比预期的促销活动重。我们将继续与RipTide共享份额,但并非不惜一切代价。迄今为止,Nu-X的净销售额为1140万美元。我们希望这一轨迹将继续下去。第四季度末的举措包括将大量新产品引入新颖空间中。回顾本季度,NewGen第三季度的毛利润增长了21.5%,达到1,260万美元。在本季度,有260万美元的关税支出。

转到合并业务后,本季度的综合SG&A支出为2980万美元。 Nu-X在本季度的特殊销售,管理及行政总支出为250万美元。本季度调整后的EBITDA为1,880万美元,而去年同期为1,650万美元。我们继续平衡不断增长的EBITDA投资业务。调整后EBITDA的净债务为我们的2.5倍至3.5倍目标范围的3.3倍。在今天早上的发布中,我们还更新了我们的2019年指南,其中包括以下内容。

预计2019年的总净销售额为3.6亿美元至3.67亿美元,其中基本业务净销售额为3.43亿美元至3.47亿美元,Nu-X销售额为1800万美元至2000万美元。由于前面提到的vaping中断,这比先前的指导有所减少。重要的是,我们仍打算充分投资Nu-X的毛利润,以最大程度地提高市场成就。公司预计2019年的某些SG&A支出,包括200万美元的重组和仓库组织成本,其中包括60万美元的遣散费,这将在第四季度支出。 Solace收购和IVG收益付款产生的交易费用为160万美元,Nu-X基础设施的支持费用为500万美元,主要是RipTide的启动成本。

我们预计将在2019年花费300万到500万美元为FDA的PMTA途径做准备。我们预计在未来几个月内,将制定PMTA最终法规。 2019年的股票补偿和非现金激励费用预计为450万美元,由于会计要求而增加,这是作为对Solace收购的一部分的基于绩效的限制性股票单位的支出所致。我们预计2019年调整后的EBITDA为6900万美元至7200万美元。我们预计2019年的有效所得税率将处于21%范围的低端。

Capital expenditures are expected to be approximately $4 million, including certain investments in our MST operations, where we will reap the benefits from operational leverage next year. And finally, net sales for the fourth quarter of 2019, are expected to be $79 million to $85 million. M&A discussions continue as we evaluate potential partners and targets, very excited about this potential part of the business. You should expect us to do deals in the next year. The third quarter proved to be challenging on the vapor side, and rewarding on smokeless, smoking NU-X, which remain the company's priorities. Fourth quarter, we will be implementing our cost savings and integration initiatives, while delivering compelling new products to consumer.
With that, I'll turn the call back to Larry for closing comments.

www.

资本支出预计约为400万美元,其中包括对MST业务的某些投资,我们将在明年从MST业务中获得收益。 最后,2019年第四季度的净销售额预计将在7900万美元至8500万美元之间。 当我们评估潜在的合作伙伴和目标时,并购讨论仍在继续,对此业务的这一潜在部分感到非常兴奋。 您应该期望我们在明年进行交易。 事实证明,第三季度在蒸气方面具有挑战性,在无烟,吸烟的NU-X上获得回报,这仍然是公司的首要任务。 第四季度,我们将实施成本节约和集成计划,同时向消费者提供引人注目的新产品。

这样,我将回电给拉里,以结束评论。

Larry Wexler

Larry Wexler

Thank you, Bobby. As you heard this morning, the vapor challenge is a disruption to an otherwise exceptionally strong quarter for the company. I'm confident in our cost savings and process integration initiatives will produce to revitalize engine that can drive forward and deliver compelling growth for the company. My confidence is supported by simple math. First, smokeless and smoking products represent 82% of year-to-date adjusted EBITDA. Both categories performed well in the third quarter.
Second, our cost savings initiatives of $8 million to $10 million annually are likely do establish a positive operating foundation from which we can weather the current environment. Third, releveraging our distribution capabilities to aggressively enter the CBD category within traditional retail. The category with great potential, another building block for the Nu-X brand.
Looking forward, we will continue to execute our strategic plan by driving focused brand growth, expanding through acquisitions and innovation and strengthening our corporate infrastructure , while simultaneously delivering the designated cost savings and synergies. Our company remains solid and resilient, and our people remain committed to the journey. Thank you for participating in the call today.
And with that, I'd like to open the call to questions.

www.

谢谢你,鲍比。正如您今天早上听到的那样,蒸气挑战对公司本来异常强劲的季度造成了干扰。我对我们的成本节省和流程集成计划充满信心,这些举措将使引擎恢复活力,从而推动公司发展并实现令人瞩目的增长。我的信心得到了简单数学的支持。首先,无烟和吸烟产品占年初至今调整后EBITDA的82%。这两个类别在第三季度均表现良好。

其次,我们每年节省800万至1000万美元的成本的举措很可能会建立一个良好的运营基础,使我们可以度过当前的环境。第三,利用我们的分销能力,在传统零售领域积极进入CBD类别。潜力巨大的类别,是Nu-X品牌的另一个基础。

展望未来,我们将继续执行战略计划,以推动有针对性的品牌增长,通过收购和创新扩展并加强我们的企业基础设施,同时实现指定的成本节省和协同效应。我们的公司保持稳固,富有韧性,我们的员工始终致力于这一旅程。感谢您参加今天的通话。

至此,我想开始提问。

问答环节

Thank you. We will now begin the question-and-answer session. [Operator Instructions] First question comes from Vivien Azer with Cowen & Company.

www.

谢谢。 现在,我们将开始问答环节。 [操作员说明]第一个问题来自Cowen&Company的Vivien Azer。

Vivien Azer

Hi. Good morning.

www.

你好 早上好。

Larry Wexler

Larry Wexler

Good morning.

www.

早上好。

Graham Purdy

Graham Purdy

Hi Vivien.

www.

嗨薇薇安

Vivien Azer

So Larry, I was intrigued by your comment on the consumer insights that you've gathered from millions of data points. I'm sure there is a lot, still to analyze, but can you give us a little teaser on some of the high level takeaways that you've discerned from all that consumer data? Thank you.

www.

因此,拉里(Larry),您对从数百万个数据点收集的消费者见解的评论感到很感兴趣。 我敢肯定还有很多东西需要分析,但是您能不能从一些消费者数据中看出一些高层次的建议呢? 谢谢。

Larry Wexler

Larry Wexler

Yes. As you know, we have a very deep B2C database where we communicate and have age profiles and flavor preferences from those consumers. When you look at our products we sell on B2C, it has a fairly older profile, which takes us away from the whole youth issue. And we also have a very good understanding of the age distributions among different flavors. I think this would be very important in the PMTA process. When you look at it on this,, the science, but you also have all the behavioral. We are on top of the behavioral and we know what our products are doing and where the consumers are buying and who, which consumers are buying them. So we think this gives us a huge advantage in that process.

www.

是。 如您所知,我们拥有一个非常深入的B2C数据库,我们可以在该数据库中进行交流并拥有这些消费者的年龄特征和口味偏好。 当您查看我们在B2C上销售的产品时,它的年纪比较大,这使我们摆脱了整个青年问题。 我们对不同口味之间的年龄分布也有很好的了解。 我认为这在PMTA流程中非常重要。 当您从科学的角度对此进行研究时,您还将拥有所有的行为方式。 我们在行为上处于领先地位,我们知道我们的产品在做什么,消费者在哪里购买以及谁在购买哪些产品。 因此,我们认为这为我们提供了巨大的优势。

Vivien Azer

Is it possible at all to offer any kind of high level commentary on mix across different flavors in particular given that your consumer base does skew a little bit older on, I'm kind of, I think about these flavors in three buckets. So you've got traditional tobacco, you've got mint flash menthol and then you've got everything else. Do you have any insight you can offer there? Thanks.

www.

是否有可能针对不同口味的混合口味提供任何形式的高级评论,特别是考虑到您的消费群确实偏老了一点,我想,我会在三个时段中考虑这些口味。 因此,您拥有传统的烟草,薄荷薄荷薄荷醇,然后您拥有其他所有东西。 您有什么可以提供的见解吗? 谢谢。

Larry Wexler

Larry Wexler

Yes. Everything else has the dominant profile among consumers. It is, is there a submission and our understanding is that when people move away from combustion, they want to move away from tobacco and menthol type flavors. The other thing is interesting is that you see some of these flavors that have names that on the surface may appear to appeal to younger audiences. Now, we don't sell to anybody under 21 currently. But if you look at these age profiles, you'd be surprised at how old some of the age profiles are and some of these, I guess notorious or at least flavor names that seem to draw a lot of attention. It's sort of interesting to look at the data Vivien, and we'll try to give you a little more insight sometime in the future.

www.

是。 其他所有东西在消费者中都占主导地位。 就是有意见吗,我们的理解是,当人们远离燃烧时,他们希望远离烟草和薄荷醇类香料。 另一有趣的是,您会看到其中一些名称在表面上似乎吸引年轻观众的口味。 现在,我们目前不出售给21岁以下的任何人。 但是,如果您查看这些年龄特征,您会惊讶于其中一些年龄特征以及其中一些年龄,我猜这是臭名昭著的,或者至少是风味名称似乎引起了很多关注。 查看Vivien的数据很有意思,我们将在将来的某个时候为您提供更多的见解。

Robert Lavan

Robert Lavan

Yes. Tobacco and menthol on the open-systems is about 10% to 15% of flavor sales, of our sales. The rest being other flavors, which is a hodgepodge of 130 different combination. So I mean, it's adults use certain flavors and we think that we have the data to prove that.

www.

是。 开放系统中的烟草和薄荷醇约占我们香料销售额的10%至15%。 其余为其他口味,是130种不同组合的大杂烩。 所以我的意思是,成年人使用某些口味,我们认为我们有数据证明这一点。

Vivien Azer

Well, that's far lower than I would have guessed for tobacco, menthol and mint. That's very helpful. Thank you for that, Graham. On the CBD vapes, very encouraging that you guys sold out this month. Can you quantify it all what retail distribution looks like now and then maybe expand on your commentary around expanded retail distribution going forward? Thank you.

www.

好吧,这远远低于我对烟草,薄荷醇和薄荷的猜测。 那很有帮助。 谢谢你,格雷厄姆。 在CBD vape上,非常令人鼓舞的是,这个月大家都卖光了。 您能否量化一下零售分销现在的状况,然后再扩展您对未来扩展零售分销的评论? 谢谢。

Robert Lavan

Robert Lavan

Thank you. Right now, Vivien, it seems there's a couple of thousand stores we started late. We ran out of stock, but great qualitative take away from retail in terms of velocity rates, take rates, etc, very, very encouraged. We have supply coming in right now, but we're early in the process, a couple of thousand stores at the present time.

谢谢。 薇薇恩(Vivien)现在看来,我们开店晚了几千家。 我们没货了,但是从速度,拿取速度等方面来看,从质量上来说,零售业占了上风,这非常非常令人鼓舞。 我们现在有大量货源,但是我们还处于早期阶段,目前有数千家商店。

Vivien Azer

That's really helpful. And then given your commentary around the disconnect between growth and net sales on RipTide. I'm curious whether there is any promotional spending happening on the CBD vapes as well? Thank you.

www.

这真的很有帮助。 然后给出您对RipTide增长与净销售额之间脱节的评论。 我很好奇CBD vapes是否也有任何促销支出? 谢谢。

Larry Wexler

Larry Wexler

There is nothing on CBD. Frankly at this point CBD margins are dramatically stronger than the segment margins. I think the promotional spending on RipTide is fairly unique, and from our perspective, can't last. And so it's, but that is what's going on in the market, but you won't see that same sort of spread between gross and net on the CBD side.

www.

CBD上没有任何东西。 坦率地说,在这一点上,CBD的利润率要远远高于细分市场的利润率。 我认为RipTide的促销支出是相当独特的,并且从我们的角度来看,这不会持久。 就是这样,但这就是市场上正在发生的事情,但是您不会在CBD端看到相同的总价和净价差。

Vivien Azer

Very helpful. And then just last one for me. Given the out-of-stocks on CBD in your aspirations to expand distribution, are there capacity bottlenecks that you have to work through, and how are you going to address those, if so? Thank you.

www.

很有帮助。 然后是我的最后一个。 鉴于您希望扩大CBD的库存而感到库存不足,您是否有需要解决的容量瓶颈?如果可以,您将如何解决这些瓶颈? 谢谢。

Larry Wexler

Larry Wexler

There is no capacity bottlenecks. It's just, we're selling out faster than we thought. Frankly, we feel our CBD pen is unique. We feel the four, five products that are coming over the next months are extremely unique and we're using our data to sort of ramp up there. There is a massive market that still has been on touch on the CBD side in national chains that we were pretty excited about.

www.

没有容量瓶颈。 只是,我们的销售速度超出了我们的预期。 坦白地说,我们认为CBD笔是独一无二的。 我们认为接下来几个月将要推出的四,五种产品非常独特,我们正在使用我们的数据进行逐步升级。 在国家链中,CBD方面仍然有一个巨大的市场,我们对此感到非常兴奋。

Graham Purdy

Graham Purdy

Yes, Vivien. This is Graham here. We launched this, our pen amid the sort of the firestorm that hit vape. So we had sort of throttled down our expectations from a retail distribution perspective, like a take rate perspective and that proved to be, to not actually play out. So it was very encouraging from that perspective.

是的,薇薇安。 这是格雷厄姆。 我们在笔电中扑灭了vape,推出了这款笔。 因此,我们从零售分销的角度(如采取率的角度)降低了我们的期望,事实证明事实是,这种期望实际上并没有发挥出来。 因此,从这个角度来看,这是非常令人鼓舞的。

Vivien Azer

That's terrific. Thank you very much.

那太好了。 非常感谢你。

会议主持员

And our next question comes from Susan Anderson of B Riley, FBR.

我们的下一个问题来自FBR B Riley的Susan Anderson。

苏珊安德森

Hi. Good morning, thanks for all the details this morning, very helpful. And I was wondering, I guess with the pressure on vapors, curious what you're seeing. It looks like your other more traditional categories saw some pretty good strength this quarter. Are you seeing consumers now switch back, maybe if there is any color you can give on that, if it's benefiting your other more traditional categories? Thanks.

你好 早上好,感谢今天早上的所有细节,非常有帮助。 我想知道,随着蒸气的压力,我想知道您所看到的。 看起来您其他较传统的类别在本季度中表现出不错的实力。 您是否看到消费者现在又转回去,也许它可以给您提供任何颜色,如果它可以使您的其他更传统的商品受益呢? 谢谢。

Larry Wexler

Larry Wexler

On the margin that may be happening, but, I think the strength of our, strength of the core tobacco business is strength of the brands. Stoker's has been on a roll for a while pre-dated that rolled, predated the vaping controversy and Zig-Zag in smoking, you're seeing a little bit bounce back that we told you about that was coming from the Canadian restocking. I think these brands are thriving. I think they are strong independent of any of the controversy. But again on the margin, I think it probably is helping. It certainly is not hurting those brands.

www.

在某种程度上可能会发生,但是,我认为我们的实力,核心烟草业务的实力就是品牌的实力。 Stoker的病情早于卷烟,早于卷烟争议和Zig-Zag吸烟,您已经看到一些反弹,我们告诉您这是来自加拿大补给。 我认为这些品牌正在蓬勃发展。 我认为他们很坚强,不受任何争议。 但再次保证金,我认为这可能会有所帮助。 当然,这并没有伤害那些品牌。

苏珊安德森

Great. That's helpful. And then I guess looking out to next year, how should we think about kind of where the vape business settles out in terms of revenue or EBIT if there is any color you can provide just from a modeling perspective?

www.

大。 有帮助 然后我想展望明年,如果仅从建模角度可以提供任何颜色,我们应该如何考虑vape业务在收入或EBIT方面的结算方式?

Larry Wexler

Larry Wexler

It's still early days. So let's talk about EBIT in October sales. From an EBIT perspective, we're committed to growing EBITDA, right. We're not in the business of losing money. So that's a key dynamic on the vape side. From a sales perspective, we believe that there is still a business in selling open-systems, vape products. We are committed to going through the PMTA. So we will derive numbers through proprietary products. So I think that kind of from a modeling perspective, you should sort of look at the trend lines today and that's directionally correct, but then there is stuff to put on top of that, which is our proprietary products, our proprietary open-systems products through the PMTA.

还很早。 因此,让我们谈谈10月份销售的息税前收益。 从EBIT的角度来看,我们致力于增加EBITDA。 我们不亏本。 因此,这是vape方面的关键动态。 从销售的角度来看,我们认为销售开放系统的vape产品仍然存在业务。 我们致力于通过PMTA。 因此,我们将通过专有产品得出数字。 因此,我认为从建模的角度来看,您应该某种程度看待当今的趋势线,这在方向上是正确的,但除此之外,还有很多东西,那就是我们的专有产品,专有的开放系统产品。 通过PMTA。

苏珊安德森

Okay. Great. That's really helpful. And then I guess maybe just shifting to Stoker's, very nice growth there. I guess how should we think about that trajectory? How many additional doors can you expand into, how are you guys thinking about that growth over the next year?

好的。 大。 这真的很有帮助。 然后我想也许只是转移到Stoker那里,那里的增长非常好。 我猜我们应该如何考虑这一轨迹? 您可以扩展几扇门,你们如何看待明年的增长?

Larry Wexler

Larry Wexler

Yes. We're in about 50% of the weighted market share at this point. So there is, there are 200,000 doors that sell moist, but we really are focused on the extra 50,000 that will close that 50% gap and so that's, there is multiple years of growth trajectory still here and we are, not only are we focused on growing store count, but we are focused on same-store sales growth, which is becoming a very important performance metric for the management team, and so it's a dual-prong approach. And so there is years of growth in that business.

是。 目前,我们在加权市场份额中占大约50%。 因此,有200,000个门出售湿气,但是我们确实专注于额外的50,000个,这将缩小50%的差距,因此,仍然有多年的增长轨迹,我们不仅专注于 关于不断增长的店铺数量,但我们专注于同店销售额的增长,这对于管理团队而言已成为非常重要的绩效指标,因此这是双管齐下的方法。 因此,该业务已有数年的增长。

苏珊安德森

Great. And then, I guess, just one last one on RipTide. You talked about selling in Canada and UK. I guess what's the opportunity there? How should we think about that opportunity versus the U.S., as we look out over the next couple of years?

大。 然后,我想,RipTide上只有倒数第一。 您谈到了在加拿大和英国的销售。 我猜那里有什么机会? 在接下来的几年中,我们应该如何考虑与美国相比的机会?

Larry Wexler

Larry Wexler

Yes, I think the way to think about it is from a modeling perspective, if you've got, you've got the U.S. vape market, which is $4 billion, $5 billion at the manufacturer level. You've got, Canada and the UK have a higher propensity of vaping, but you have smaller populations, right? And so that you can sort of play with that math. We gave you our market share in the independents that we're focused on is 6%. I mean that's, you guys work on these assumptions, but that's what we're sort of underwriting to.

是的,我认为思考的方法是从建模角度出发,如果有的话,您将拥有40亿美元的美国vape市场,在制造商层面是50亿美元。 您已经知道,加拿大和英国的电子烟倾向较高,但人口较少,对吧? 这样您就可以使用该数学了。 我们为您提供了我们所关注的独立企业的市场份额,为6%。 我的意思是,你们按照这些假设进行工作,但这就是我们要承担的责任。

苏珊安德森

Great. That's helpful. Thanks so much guys.

大。 有帮助 非常感谢你们。

会议主持员

[Operator Instructions] At this time, we have no further questions in queue. This concludes our question-and-answer session. I would like to turn the conference back over to the presenters for any closing remarks.

[操作员说明]目前,我们没有其他问题在排队。 至此,我们的问答环节结束。 对于结束发言,我想将会议转交给主持人。

Larry Wexler

Larry Wexler

Thank you everybody. Look forward to talking to you in the next quarter.

谢谢大家。 期待在下个季度与您交谈。

会议主持员

Thank you, ladies and gentlemen. This concludes today's teleconference. You may now disconnect.

谢谢女士们先生们。 今天的电话会议到此结束。 您现在可以断开连接。

相关问题

  • Turning Point Brands, Inc. 电话会议
  • Turning Point Brands, Inc. 财务报告

互联网券商的港股、美股开户教程

如果您对美股 或者 港股也感兴趣, 或者想要了解如何开户, 可以加我wechat: xiaobei060537 , 同时也可以拉您进美股交流群哦。
最后的最后 祝大家都有一个美好的投资生活哦。

大家也可以关注【美股指南】公众号, 即可获得《小白投资美股指南(雪球「岛」系列)》电子书

写在最后
  • 美股开户教程, 请查看
  • 港股开户教程, 请查看
  • 美股、港股入金教程, 请查看
  • 美股、港股投资交流群, 请查看
  • 美股、港股开户优惠汇总, 请查看
  • 如何购买Turning Point Brands, Inc.股票
  • 美股、港股付费交流群, 请查看

友情提示 转载请注明出处: https://investguider.com/topics/14694
暂无回复。
需要 登录 后方可回复, 如果你还没有账号请点击这里 注册