• May 27, 2024

Turning Point Exceeds Quarterly Expectations

 Turning Point Exceeds Quarterly Expectations
Photo: Stocksnap from Pixabay

Turning Point Brands (TPB) announced preliminary sales results for the second quarter ended June 30, 2020, in connection with the underwritten secondary offering by certain of its stockholders of 2 million shares of TPB’s common stock. TPB plans to release its full second-quarter 2020 financial results along with updated full-year guidance on July 28, 2020.

During the second quarter of 2020, preliminary estimates of net sales exceeded $100 million compared to net sales guidance of $81 million to $87 million provided on April 28, 2020. All segments outperformed management expectations for the second quarter of 2020.

In the smokeless segment, the secular consumer downtrading trends that accelerated earlier in the year continued during the quarter as the Stoker’s MST line continues to build momentum and gain consumer acceptance.

In the smoking segment, sales benefited from increased consumption, new product penetration and recently implemented growth initiatives, which offset the Covid-related supply chain disruption experienced in the MYO cigar wraps business. In the new generation segment, market share gains and new product introductions returned the segment to positive year-over-year sales growth.

TPB announced the pricing of the previously announced underwritten public offering of 1.8 million shares of company common stock by Standard Diversified and an aggregate of 200,000 shares of company common stock by funds affiliated with Standard General (the Standard General funds) at an offering price of $23.50 per share. In addition, the Standard General funds have granted the underwriter the option to purchase up to 215,000 shares of the company’s common stock from them to cover over-allotments, which will be exercisable for two business days.

The selling stockholders will receive all the net proceeds from the offering. The closing is expected to occur on or about July 13, subject to customary closing conditions. The shares are listed on the New York Stock Exchange under the symbol TPB.