Hillman Solutions Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Hillman Solutions Corp. has filed its 2023 10-K, detailing its financial performance and operational information for the fiscal year ending December 30, 2023.</b>

AI Summary

Hillman Solutions Corp. (HLMN) filed a Annual Report (10-K) with the SEC on February 22, 2024. Hillman Solutions Corp. filed its 2023 Form 10-K on February 22, 2024, reporting for the fiscal year ending December 30, 2023. The company was formerly known as Landcadia Holdings III, Inc., with a name change effective August 25, 2020. Hillman Solutions Corp. operates within the Cutlery, Handtools & General Hardware industry (SIC code 3420). The filing includes financial data for the fiscal years ending December 30, 2023, December 31, 2022, and December 26, 2021. The company's principal business address is located at 1280 Kemper Meadow Dr., Cincinnati, OH 45240.

Why It Matters

For investors and stakeholders tracking Hillman Solutions Corp., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Hillman Solutions Corp.'s financial health, operational structure, and strategic positioning for the fiscal year 2023, crucial for investors and stakeholders to assess performance and future outlook. The detailed financial statements and risk factors within this report are essential for understanding the company's market standing, potential challenges, and compliance with regulatory requirements in the hardware industry.

Risk Assessment

Risk Level: medium — Hillman Solutions Corp. shows moderate risk based on this filing. The company operates in the hardware industry, which can be subject to economic downturns and competitive pressures, as indicated by its SIC code 3420 and the need for detailed financial reporting.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Hillman Solutions Corp.'s performance and strategic direction.

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed period of report)
• 2024-02-22 — Filing Date (Date the report was filed)
• 3420 — SIC Code (Standard Industrial Classification for the company)
• 001-39609 — SEC File Number (SEC file number assigned to the company)

Key Players & Entities

• Hillman Solutions Corp. (company) — Filer name
• Landcadia Holdings III, Inc. (company) — Former company name
• 2023-12-30 (date) — Fiscal year end
• 2024-02-22 (date) — Filing date
• 1280 Kemper Meadow Dr., Cincinnati, OH 45240 (address) — Business address
• 3420 (industry) — Standard Industrial Classification

FAQ

Industry Context

Hillman Solutions Corp. operates in the Cutlery, Handtools & General Hardware industry, a sector that supplies essential tools and hardware for various consumer and professional applications.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies to provide a comprehensive overview of their business and financial condition.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section to understand potential challenges and mitigation strategies.
3. Compare the reported fiscal year 2023 performance against previous years and industry benchmarks.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.0001 — ich Registered Common Stock, par value $0.0001 per share HLMN The Nasdaq Stock Market
• $1,476.5 million — n, which had net sales of approximately $1,476.5 million in 2023. Hillman sells its products to
• $835.0 million — for a new funded term loan facility of $835.0 million and a delayed draw term loan facility o
• $200.0 million — nd a delayed draw term loan facility of $200.0 million (of which $16.0 million was drawn). As
• $16.0 million — an facility of $200.0 million (of which $16.0 million was drawn). As of July 2023, the delaye
• $8.1 million — the refinancing, we incurred a loss of $8.1 million and paid $38.7 million in financing fee
• $38.7 million — ncurred a loss of $8.1 million and paid $38.7 million in financing fees, of which $21.0 milli
• $21.0 million — 8.7 million in financing fees, of which $21.0 million were recorded as a financing activity.
• $1,074.6 m — ctive Solutions generated approximately $1,074.6 million, $1,068.7 million and $1,017.6 mi
• $1,068.7 million — nerated approximately $1,074.6 million, $1,068.7 million and $1,017.6 million of revenues in the
• $1,017.6 million — $1,074.6 million, $1,068.7 million and $1,017.6 million of revenues in the years ended December
• $245.4 m — gital Solutions generated approximately $245.4 million, $245.6 million, and $246.5 milli
• $245.6 m — generated approximately $245.4 million, $245.6 million, and $246.5 million of revenues i
• $246.5 million — ely $245.4 million, $245.6 million, and $246.5 million of revenues in the years ended December
• $156.5 m — Canada segment generated approximately $156.5 million, $172.0 million and $161.9 millio

Filing Documents

• hlmn-20231230.htm (10-K) — 2150KB
• ex191-insidertradingpolicy.htm (EX-19.1) — 66KB
• exhibit211-123023.htm (EX-21.1) — 8KB
• ex231-hillmanconsent2023.htm (EX-23.1) — 2KB
• ex232-hillmanconsent2023.htm (EX-23.2) — 2KB
• exhibit311-123023.htm (EX-31.1) — 10KB
• exhibit312-123023.htm (EX-31.2) — 10KB
• exhibit321-123023.htm (EX-32.1) — 4KB
• exhibit322-123023.htm (EX-32.2) — 4KB
• ex97compensationrecoverypo.htm (EX-97) — 47KB
• hlmn-20231230_g1.jpg (GRAPHIC) — 118KB
• hlmn-20231230_g2.jpg (GRAPHIC) — 9KB
• hlmn-20231230_g3.jpg (GRAPHIC) — 28KB
• hlmn-20231230_g4.jpg (GRAPHIC) — 28KB
• hlmn-20231230_g5.jpg (GRAPHIC) — 23KB
• hlmn-20231230_g6.jpg (GRAPHIC) — 79KB
• 0001822492-24-000023.txt (&nbsp;) — 12677KB
• hlmn-20231230.xsd (EX-101.SCH) — 68KB
• hlmn-20231230_cal.xml (EX-101.CAL) — 104KB
• hlmn-20231230_def.xml (EX-101.DEF) — 417KB
• hlmn-20231230_lab.xml (EX-101.LAB) — 947KB
• hlmn-20231230_pre.xml (EX-101.PRE) — 675KB
• hlmn-20231230_htm.xml (XML) — 2108KB

BUSINESS

BUSINESS 2 ITEM 1A.

RISK FACTORS

RISK FACTORS 9 ITEM 1B. UNRESOLVED STAFF COMMENTS 17 I TEM 1 C. C YB ERSECURITY 17 ITEM 2.

PROPERTIES

PROPERTIES 19 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 20 ITEM 4. MINE SAFETY DISCLOSURES 20 PART II. ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASE OF EQUITY SECURITIES 20 ITEM 6. [RESERVED] 21 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION S

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION S 22 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 33 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 34 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 79 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 79 ITEM 9B. OTHER INFORMATION 82 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 82 PART III. ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE 82 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 83 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 83 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 83 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 83 PART IV. ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 84 ITEM 16. FORM 10-K SUMMARY 87 PART I

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This annual report contains certain forward-looking statements, including, but not limited to, certain disclosures related to acquisitions, refinancing, capital expenditures, resolution of pending litigation, and realization of deferred tax assets, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. All forward-looking statements are made in good faith by the Company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "target", "goal", "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including raw materials, sourcing, transportation and energy; (3) the highly compet

- BUSINESS

ITEM 1 - BUSINESS. General Hillman Solutions Corp. and its wholly-owned subsidiaries (collectively, "Hillman" or "Company") are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America. Our principal business is operated through our wholly-owned subsidiary, Hillman, which had net sales of approximately $1,476.5 million in 2023. Hillman sells its products to hardware stores, home centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, Mexico, Latin America, and the Caribbean. Product lines include thousands of small parts such as fasteners and related hardware items; threaded rod and metal shapes; keys and accessories; builder's hardware; personal protective equipment, such as gloves and eye-wear; and identification items, such as tags and letters, numbers, and signs. We support product sales with services that include design and installation of merchandising systems, maintenance of appropriate in-store inventory levels, and break-fix for our robotics kiosks. 2 | December 30, 2023 Form 10-K Hillman's corporate headquarters is located at 1280 Kemper Meadow Drive, Cincinnati, Ohio. We maintain a website at www.hillmangroup.com . Information contained or linked on our website is not incorporated by reference into this annual report and should not be considered a part of this annual report. History In 1964, Max Hillman established Hillman Bolt & Screw Corporation in Cincinnati, Ohio when he purchased a franchise operation from Sharon Bolt & Screw, a hardware fastener company. Max began distributing fasteners to independent hardware stores in southern Ohio and northern Kentucky, with a relentless commitment to service. Max's two sons, Mick Hillman and Rick Hillman, joined their father's company in 1969, as Hillman's customer base and distribution network continued to grow. In 1982, Hillman Bolt & Screw was purchased by Sun Distributors fo

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View this 10-K filing on SEC EDGAR