Turning Point Brands, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Turning Point Brands, Inc. has filed its 2023 10-K annual report, detailing financial performance and corporate information.</b>

AI Summary

Turning Point Brands, Inc. (TPB) filed a Annual Report (10-K) with the SEC on February 28, 2024. Filing is a 10-K annual report for the fiscal year ending December 31, 2023. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name on May 17, 2004. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement items such as Cost of Goods and Services Sold, Interest Income/Expense, and Accrued Liabilities are referenced. The company is incorporated in Delaware and operates in the Tobacco Products industry (SIC 2100).

Why It Matters

For investors and stakeholders tracking Turning Point Brands, Inc., this filing contains several important signals. This filing provides a comprehensive overview of the company's financial health and operational results for the past fiscal year, crucial for investors and stakeholders to assess performance and make informed decisions. The inclusion of historical financial data allows for trend analysis and comparison, offering insights into the company's growth trajectory and stability within the tobacco products sector.

Risk Assessment

Risk Level: medium — Turning Point Brands, Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine disclosure for public companies. While it contains detailed financial information, it does not inherently signal immediate positive or negative events, placing its risk profile at a medium level for analysis purposes.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Turning Point Brands' performance and potential challenges in the tobacco industry.

Key Numbers

• 20231231 — Fiscal Year End (Reporting period for the 10-K)
• 20240228 — Filing Date (Date the report was submitted)
• 2023 — SIC Code (Standard Industrial Classification for Tobacco Products)
• 001-37763 — SEC File Number (SEC filing identifier)

Key Players & Entities

• Turning Point Brands, Inc. (company) — Filer and subject of the report
• North Atlantic Holding Company, Inc. (company) — Former name of the company
• DE (jurisdiction) — State of incorporation

FAQ

Industry Context

Turning Point Brands operates within the tobacco products industry, a sector subject to significant regulation and evolving consumer preferences.

Regulatory Implications

The tobacco industry is heavily regulated by government bodies concerning manufacturing, marketing, and sales, impacting operational strategies and product development.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-K to assess revenue, profitability, and cash flow for FY 2023.
2. Review the 'Risk Factors' section (if available in the full document) for potential challenges and uncertainties facing the company.
3. Compare the FY 2023 results with previous years to identify trends and performance changes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K
• 2024-02-28: Filing Date — Date the 10-K was officially filed with the SEC

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the detailed financial and operational overview for Turning Point Brands for the fiscal year 2023.)

SIC Code

Standard Industrial Classification code used to classify industries. (Indicates Turning Point Brands operates within the Tobacco Products industry.)

Year-Over-Year Comparison

This is the initial filing data extracted. A comparison to a prior filing would require additional data.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value TPB New York Stock Exchan
• $29.6 billion — t in the U.S. is projected to grow from $29.6 billion in 2023 to $45 billion by 2027, represe
• $45 billion — d to grow from $29.6 billion in 2023 to $45 billion by 2027, representing an 11.0% compound
• $4.8 million — apital expenditures have ranged between $4.8 million and $7.7 million per year over the prev
• $7.7 million — es have ranged between $4.8 million and $7.7 million per year over the previous five years.
• $26 million — . To date, we have spent approximately $26 million in order to file and supplement applica

Filing Documents

• ef20015303_10k.htm (10-K) — 3988KB
• ef20015303_ex10-37.htm (EX-10.37) — 849KB
• ef20015303_ex10-38.htm (EX-10.38) — 105KB
• ef20015303_ex21.htm (EX-21) — 8KB
• ef20015303_ex23.htm (EX-23) — 2KB
• ef20015303_ex31-1.htm (EX-31.1) — 12KB
• ef20015303_ex31-2.htm (EX-31.2) — 12KB
• ef20015303_ex31-3.htm (EX-31.3) — 12KB
• ef20015303_ex32-1.htm (EX-32.1) — 8KB
• ef20015303_ex97.htm (EX-97) — 25KB
• image01.jpg (GRAPHIC) — 39KB
• 0001140361-24-010142.txt (&nbsp;) — 20762KB
• tpb-20231231.xsd (EX-101.SCH) — 98KB
• tpb-20231231_cal.xml (EX-101.CAL) — 144KB
• tpb-20231231_def.xml (EX-101.DEF) — 596KB
• tpb-20231231_lab.xml (EX-101.LAB) — 1378KB
• tpb-20231231_pre.xml (EX-101.PRE) — 871KB
• ef20015303_10k_htm.xml (XML) — 4221KB

Business

Business 5 ITEM 1A.

Risk Factors

Risk Factors 17 ITEM 1B. Unresolved Staff Comments 36 ITEM 1C. Cybersecurity 36 ITEM 2.

Properties

Properties 37 ITEM 3.

Legal Proceedings

Legal Proceedings 37 ITEM 4. Mine Safety Disclosures 37 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 ITEM 6.

Selected Financial Data

Selected Financial Data 40 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 58 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 96 ITEM 9A.

Controls and Procedures

Controls and Procedures 96 ITEM 9B. Other Information 98 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 98 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 99 ITEM 11.

Executive Compensation

Executive Compensation 99 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 99 ITEM 14. Principal Accountant Fees and Services 99 PART IV ITEM 15. Exhibits and Financial Statement Schedules 100 ITEM 16. Form 10-K Summary 103

Signatures

Signatures 104 3 Table of Contents Cautionary Note Regarding Forward-Looking Statements This annual report on Form 10-K (this "Annual Report") contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified using words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Some, but not all, of these risks are described under Item 1A "Risk Factors" and elsewhere throughout this Annual Report. As a result, actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by us in this Annual Report on Form 10-K speaks only as of the date hereof. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect it. We have no obligation, and do not intend, to update any

forward-looking statements after the date hereof, except as required by federal securities laws

forward-looking statements after the date hereof, except as required by federal securities laws. 4 Table of Contents PART I

Business

Item 1. Business Overview Turning Point Brands, Inc. (the "Company," "we," "our," or "us") is a leading manufacturer, marketer and distributor of branded consumer products. We sell a wide range of products to adult consumers consisting of staple products with our iconic brands Zig-Zag and Stoker's and our next generation products to fulfill evolving consumer preferences. Among other markets, we compete in the alternative smoking accessories and Other Tobacco Products ("OTP") industries. The alternative smoking accessories market is a dynamic market experiencing robust secular growth driven by cannabinoid legalization in the U.S. and Canada, and positively evolving consumer perception and acceptance in North America. The OTP industry, which consists of non-cigarette tobacco products, exhibited low-single-digit consumer unit annualized growth over the four-year period ended 2023 as reported by Management Science Associates, Inc. ("MSAi"), a third-party analytics and information company. Our segments are led by our core proprietary and iconic brands: Zig-Zag and CLIPPER in the Zig-Zag Products segment and Stoker's along with Beech-Nut and Trophy in the Stoker's Products segment. Our businesses generate solid cash flow which we use to invest in our business, finance acquisitions, increase brand support, expand our distribution infrastructure, and strengthen our capital position. We currently ship to approximately 820 distributors with an additional 650 secondary, indirect wholesalers in the U.S. that carry and sell our products. Under the leadership of a senior management team with extensive experience in the consumer products, alternative smoking accessories and tobacco industries, we have grown and diversified our business through new product launches, category expansions, and acquisitions while concurrently improving operational efficiency. We believe there are meaningful opportunities to grow through investing in organic growth, acquisitions and joint ventures a

View Full Filing

View this 10-K filing on SEC EDGAR