TPB - Earnings call transcript Q4 2020 | Turning Point Brands, Inc.

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Operator

Good morning and welcome to the Turning Point Brands Fourth Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. All lines have been placed on mute to prevent any background noise. [Operator Instructions] Please note that, this event is being recorded. I would now like to turn the conference over to Louie Reformina, Chief Business Development Officer. sir. ahead, go Please

Louie Reformina

morning, is Good Business Reformina, Development Officer. everyone. you. Louie This Chief Thank

will are Brands' year Bobby Turning Larry today fourth issued me Joining Point covering release This Purdy, Officer. conference In morning, our our our Operating release a IR Financial www.turningpointbrands.com, located news Wexler; plan. where and President Chief a Officer; we today's results. section this of Chief available. be and of provide website full Lavan, our quarter This we segment XXXX call Graham the progress CEO, and also and is in replay will and strategic consolidated operating discuss call, a against results our on perspective

to forward-looking risk except statements and management Exchange they can Wexler, we GAAP by As press that statements forward-looking statements. release in cited the to along publicly measures. as and factors upon from in securities why Larry cause over and laws. call turn today's Commission. reasons today's could various found will to is reconciliations our the be federal today, And materially the and projections I differ discussion In measures reliance These useful cautionary believes The you your call undue or information. now that projections should release, and with customary, CEO. statements today's provide I revise earnings place in certain forward-looking Securities reference or of the undertake direct financial in non-GAAP not them, not to filings are obligation forward-looking attention actual no our provided with update future factors guarantees performance, to be may outlines discussion. results that and disclosure of the These any we will

Lawrence Wexler

another and quarter EBITDA XX% good revenue XX% morning was $XXX for million to $XX the quarter. the We call. finished to and joining adjusted a year to Thank quarter, XXXX. was fourth you Thank up impacted the million strong compared everyone. with In Louie, you, fourth up restructuring

the units the of a the Zig-Zag aligns our cornerstones and changes compensation with businesses of and and including the the responded. segments our and highlights additional year customers, guidance The Company respectively. result temporary release IPO, the and positioning and core from environment branded we XX% Zig-Zag year above This at double importance high workers. Smoking the increases for our suited our Products, were morning, COVID-XX Products organizational highlighted our is Full-year over and not brought they our core Products finished renaming commitment Smokeless $XXX pandemic our related range. the better our change but In by strong and we up are full COVID of preplanned a line strength core consumer for previous This for segments core a a - well by we combined for that pandemic our expense press results workforce, than $X were range combined our extra led without million previous wage were this manufacturing from which servicing year of initiatives sales, with presented to Products and of to year. guiding the our to digits brands. are this difficult products the our about first as challenges Stoker's was growth EBITDA Their years million warehouse the Stoker's our an put end took stronger in few the This changes $XX million. quarter, up the expected initiatives driving year Growth growth where combined was of As place up last and XX%. our of its was revenue previous since

Zig-Zag we'll a benefits cigar leveraged strategies in continuing initiatives demand from Our tremendous internal both that environment third-party within as our segment excited the saw we stake growth the fulfilling These Zig-Zag from replenishment COVID-related demand, cigar generated during healthy channels a they wraps. relationship happening recreation dispensers. were transaction more but establishing pretty backorders business, incremental alternative us while in consolidating in built presence increasing margins. to market by supplemented improving direct growth our about in driven The to continue e-commerce, Canada, sales I'm papers up what properly expand continues enabling now by our quarter, pay by were is Products our group. meet marketing, and Zig-Zag increased wraps dividends, results and our in that disruptions with be with MYO year. which to the its to by our inventory our Durfort early manufacturer, Products production prioritize segment thus In

sets We actually have in but been all involved talent shifts and strategy, on some particularly strategies of lot my made changes. a over a these different to with skill to The cylinders. new career, accelerate one is firing and of gratifying is brand lot changes fun. bringing our I've this interesting in group

products, are by cones, mainline headlined taking new a in Our position leadership retail.

is bear alternative beginning fruit. Our strategy to

Zig-Zag, momentum power are the get the continued. an buying these In consumer the to Amazon. disruption. particularly than They and Stoker's, e-commerce, also and Our which how trays segments. position, MST papers wrap their friends our feelings the its of They're portfolio by assert products. are I with of of more how brand in demonstrating wraps. showing from reinforces And enjoyment among starting feel reasserting is all particular endorsement leadership of accessory brand our supply portfolio consumers the their towards and brand engaging hats the the a on T-shirts, buying rebounding we're they about

XXX driven into brand keep category the Our category. in the XX% of year, sales, by footprint. to basis market the secular and distribution grew We continue remain fastest-growing well-positioned shift the another points be expanding value same-store revenue share while the for with by according for MSAI mostly growth we our to

leaf Our share years volume of significant loose had products modest growth. its one and with best gains

grew XX of announced through market action the and for the FDA by are letters the FDA's firms with process, despite competitors the It of the enforcement inventory in issued by disruption and actions. In brands warning in applications deadline that NewGen September. optionality portfolio challenging did we e-liquid submitted the place by extensive believe January, the now rebounded applications liquidating business quarter from not and PMK with encouraged in the the recent significant also holds following environment, submit exiting what the most XXXX to vape fourth we that observed FDA in is a - enforcement different ahead We've deadline. it customs.

to high-yield further We to $XXX million of the a was finalize Company. our first senior the begin expect structure. our provide step actions through submissions, FDA public of on and capital enforcement we engaging more take notes, the year. we progress with evolution secured the applicants offering as This in process, Last priced clarity big week, as a

will to million settlement We new fund and of pool week, to of pursue liquidity are welcome acquisitions about further this our $XXX to source forward. thrilled investors large After a growth. another going have this that of growth ourselves we later for to position add capital

year with to the issue additional a Officer. that, quarter XXXX. add the and performance the our that forward, from the turn Purdy, let later and in us With some Operating perspective call. over to color path and Graham our going on me call Chief improved momentum outlook business combined the carrying favorable for are when And we'll coming to into newly a balance We discuss enables sheet,

Graham Purdy

you, Thank Larry.

consecutive double-digit now US, growth me snapshot by Let the give segment MYO premium a strong the products the in Paper's quarter, led the increasing measured the papers according This from brand paper its and you growth. in double-digit by was US overall MSAi. and performance year-over-year growth the market points Zig-Zag Zig-Zag share in In leading year-over-year quick wraps. quarter Zig-Zag saw strengthened, to both realized to as of has cigar level. position X.X rolling sixth XX.X% share

the the accounted that XX% up US year. up the mentioned full a the still of business quarter during year. our back Stripping digits wraps we for orders and the out, growth majority strong for caught as built double Our in earlier grew business that on wraps previously grew

were MSAi growth. In number with the the paper quarter, fourth one also channel the XX.X segment's year. market the strong cones, to up jumped measured the brand to from in points New we products previous contributor in XX.X% a of the

paper year-over-year sales quarter Our tripled in cone for sales a US fourth year more percentage quarter. us than doubled be for in XXXX. double-digit the the the keep built our in of to ramping will and It full and fourth

to ordered that leading and only dispensaries, even during room purchased papers measured now in plenty of most the shops up product the make are XX% still There cones. in penetration is the is product where of ground and of alternative for where still the non-measured us channel from more There fourth expansion a also Zig-Zag the room head of currently quarter channel, market C-stores. underrepresented. is stores including significant in exists the growth We the and Zig-Zag of where

accounting price and accretive market. reminder, to sells rolling paper Products X.X%, that driven compared which The snuff times ramp. Cones of again share and is addressable was product US market a for a in by our partnership growth of effectively retail, one growth, a in business. of Zig-Zag more of to quarter. our moist us a of X cover cone As our majority again the year the a a Canada, highly cones regular to double-digit to with E-commerce, for individual was ago full paper share to Stoker's in market per during Recreation continues big the gains, a was year, little driver to the point convenient double according digits XX gaining quarter. for share of for In are now that at Stoker's the sales our basis. last over MSAi. consumer, are saw XX% sales an significant up sheet was on same-store as dispensaries to market usage increase non-existent Marketing growth X the is

up quarter. receiving full share Stoker's the points was fourth last but runway quarter impressive XX.X% according leaves gained the XXX the saw is points moist further from share X for still Our in share and in MSAi. Chew with now representing snuff year's above year. of an during volumes, sales stores one up quarter previous number during basis X.X industry Stoker's X.X%, brand growth level, a the growth. XX.X% was in at And points low long to the stores tobacco single-digit Chewing the a product

earlier previous year every share year. we XX% more during the sales year the business. to Stoker's initiatives compared owned to Stoker's have in quarter to gain ordering continued stores Our led the a has the

brand, value is leading into With the shift forward. of and provide a to annuity with Stoker's the placed positioning the chewing us secular tobacco stable going category the business continued flow value as stream cash well

PMTA environment. quarter the away and the continued to during in where had we growth as the On disruptive the saw distribution against a September. their encouraging progression comped Moving margins previous NewGen, a we gross an deadline around in moved exiting resilient the further In business, vape our nice a PMTA competitive our market quarter once competitors year we challenging again note, double-digit liquidated quarter from in market the in pressure strong in inventory. monthly recorded we despite as a

double-digit with Our momentum continues growth. build to strong Nu-X business

contributed Solace the growth. and both Nu-X products to

results. stores pouch early our We by white launched X,XXX encouraged in product roughly also and free the nicotine are

of turn with the our products a stands increase for to year-to-date. strategy mix. product push to industry continue lay products, NewGen with The quarter PMTA continued consolidation it our with groundwork in roughly financial overall the review expected at submitted Bobby? introductions the along I'll And that, and is Our this of fourth our segment Bobby proprietary of the XX% to which Nu-X will performance.

Robert Lavan

Graham. you, Thank

alternative make to big with identified multiple, It of we our strong over drive business. for our mid-XXXX, turn distribution an comments our leading and E-commerce to revitalizing was In we more brought the Zig-Zag drive initiatives. but to on e-commerce business. I resources lacking We brand, like it. a incredibly importantly, biggest Zig-Zag Solace. with saw we In XXXX, strategy relates needed the expertise, M&A Before a though even growth presence. we how some acquisition the opportunities became of results, accretive helps brand, and it vape that our the the e-commerce rest is of I'd other But acquired Zig-Zag. an us and the company incremental to initiative acquired one at

quarter. push the Zig-Zag fourth products revamped new now Our US sales in of paper helped website over our cone XX% our

gaps versus was calls brand A alternative and with shops happy in underrepresented our offer new to debt can initiative a volume The gives visits channel. very where strong with in chest pushing X,XXX war via but our products carry happening. the that in over on and alternative in XXx products XX to head only and Another in paper industry distributors in shop that I'm stores drove was recent approach. Zig-Zag deploy the Solace our SKUs infrastructure. XXXX, was and Nu-X other over not a the books sells we X Zig-Zag via growth place the M&A, raise made hard accessories, capital team us where typical that fill head our portfolio presence partnered in-person our XX of in this channel the the to In Zig-Zag focus omnichannel different C-stores, the in to we are or but accessories C-store, was dispensaries, C-store.

We to capital will continue to come. more deploy accretive

results. our to Now

Our ahead was of plan again. the in fourth once quarter performance

segment growing from $X XX.X%, $XXX,XXX. to increased during MYO sales Zig-Zag to to the quarter more million Total our increased Non-focus $XX.X US million MYO papers volumes with double-digit reviews. increased our papers the price MSAi, Canadian segment cigarette increased volume double rate and cigar US X.X%. for digits, quarter sales XX% According the with industry volumes strong Papers fourth while mix million wraps. than X.Xx up in growth from decline alternative by in Turning business. seeing cigar wraps the market. net This growth we rolling Products $X.X benefited $X to quarter. the million the were quarter. and offset double wrap MYO channels. an MYO incremental are overall strong of increased cigar inventory in in volumes e-commerce cigars volume declined pipe restock, digits This strong the in industry excludes the

Durfort, This gross segment's cigar for average. in a MYO and basis XX.X%. quarter, e-commerce accretive which During significantly product, above wrap of our the of by is royalty currently to financial resulting we saw expand result higher points eliminating margin XXX was the margin to benefits segment payments from contribution trending our the business,

Additionally, related we transition. $XXX,XXX wrote quarter, to product during approximately line the a off

Net done net sales the its $XX.X year XX% portfolio the Look heart our a our that the for now Our million quarter to price/mix XX% in more of into for fastest-growing grew far front. XX.X% our X.X% a so of great sales represented with Stoker's quarter. team from the is volume XX% quarter, us income turning XXXX, of MST in including segment Products of segment. earlier. up segment. to in increased the to XX% increased segment for the job XX% fourth X.X% in and has operating story, the from come Total Smokeless advancing revenues on

catch-up of the X%. in industry for last by benefited to share by of in chewing chewing declining retail growing its both outpace in and allowances price/mix industry Year-over-year faster expected tobacco approximately a shipments approximately quarter, volumes MST. MSAi Stoker's continue comping Our the MST from X%, to ramp-up a with than against chain year wins. grew to pool tobacco related our

growth million. saw Moving increased Net to the businesses. segment. distribution both our XX% NewGen $XX in sales and We to Nu-X base double-digit

For the to loss was million. disruption. associated to vapor reserves previous business profit gross with XX.X% quarter, gross Segment margin and NewGen year write-offs $XX.X the the compared related was a

benefits the the $XX.X that, XX% incremental for compensation the EBITDA Leveraging and fixed accrue prior quarter going the our $X cost into quarter consolidated something achieved entire and margins from to performance a and XX% Adjusted was new quarter the team extra Despite cost we our our the Moving reductions during SG&A focus for the did as expense million an million. XXXX. approximately year. compared strong in for core the the story XX% business. structure the of to in made to to year, was segments reflecting We in up year.

strong $XXX focus to incrementals In XXXX strong by continue While SG&A we on returns our XXXX our full later There consideration, to to expected guide follows. fiscal year and is this getting impact million, assumptions mostly to in future of expect and the our help rather science. to of which to variables here on generating investment in Net external art the is as EBITDA $XXX more of measures I than our factors will To guidance $XX we color some include growth, were around an will some million COVID-XX year incremental be we initial I sales your release, to will and those morning's issued $XXX be guidance, in XXXX managing million to on million the spend. $XX the had for an in support million is guidance. for quarter, which which models, adjusted million. COVID-XX, we $XXX is assumptions, caveat consumer. including With give consider guidance, a several our the some on first government

expect For we disruptions million double-digit was This which sales second cigar in XXXX, by our fourth In made impacted is Zig-Zag, manufacturing-related the quarter. in business the we wraps from $X for exciting. growth. up quarter,

was the impact the So on but XXXX. the have basis. manufactured that $X was quarterly the segment net from year, We for on overall will an estimate million COVID awash benefit in a impact

middle being sales of net benefit business, so was tough we For million COVID year Stoker's estimate leaf the benefit some we from growth from We had for competitor of the year. a growth. the XXXX loose comp We initiatives while Stoker's, high then. $X place, expect approximately our the temporarily have in in our in that we for saw in single-digit chewing out the market

drag as distribution market vape in NewGen, PACT the view against offset our $X mid-single-digit the out off-line. take benefit tailwinds, expect a sale second This million continued and retail a of in particularly as of in the quarter from double-digit COVID, growth On previously we our vape FDA we business second being for comping implementation, front in by includes begins quarter, COVID revenue. pragmatic disruption from a competitor the called stores of Nu-X the million actions. enforcement Act in a declines of the For we XXXX in $X of decline

We overall second people year in as the BXC $XX home, the in in stayed the with for estimate from business at million, our We increase NewGen more the $XX also an second e-commerce impact was quarter. to quarter. especially million benefited

We ended of balance to $XXX liquidity. cash secured $XX the this puts of position balance closing sheet execute million sheet. to million Moving over quarter business. and balance senior us in of $XX our notes of million evaluating to sheet available our we're and After on on active our the pipeline the cash $XXX million have with week, of we'll grow liquidity. strong an on an approximately currently opportunities incredibly of million This $XXX

longer we XXXX call will charge Larry and amortized standards, July on Amount convertible new I'll the XXXX, amortize notes. comments. back adoption to For no expense so turn interest was that, of the With OID closing million. early elect $X we'll our for XX accounting convertible in

Lawrence Wexler

Bobby. you, Thank

XXXX. did acquisition the talent in and to bringing we made the the We several Solace several We report Company viewpoints of pleased in years, this the We and accelerated both and growth. help position progress organically new skill-sets. business to with through are for last different made key the restructuring including changes in

that the benefits the strategies. XXXX we place. starting reflected results see initiatives and in these of moves We are put to these

for create Stoker's continue to should core forward. portfolio. us especially across momentum its businesses, momentum going Stoker's Our has - value Zig-Zag,

continue execute once with hard questions. with up today. them in increased and positioned and Thank would work call not their better and in to I'd process another our I difficult the our momentum expect have a products. business again employees and who possible success. new of been without unfolds to and strong for participating open we in in that, for to times, And Overall, This commitment be to Company business call our as strong the optionality to XXXX. like year in our want these the you with the thank personally tremendous liquidity, NewGen have contribution as PMTA We our never

Operator

comes today [Operator Instructions] Cowen. with from Your proceed first line Vivien question. of Please with Azer your the question

Gerald Pascarelli

hoping Pascarelli Gerald taking regarding current for can is dialogue with Larry, much Vivien. maybe that for color us around was update, provide This first PMTA. Thanks you question, the questions. with your FDA on very an some Thanks I the My

Lawrence Wexler

Look, the FDA is making progress.

we're large interacting starting slow notes, see somewhat my which as of with in very know, to backlog. They've terrific. been is in enforcement mentioned I have some they action, As you companies. terms And a

the for and through forward think and expect the movement some in products portfolio see forward open to And execute we're marketplace. terrific be the a quarter. got systems, We in that to of we've tank We to looking getting we're process able it. on eagerly looking the to upcoming

Gerald Pascarelli

helpful, Super thanks.

I I Next you the and pricing. aggressive but know have seeing prepared one some been just we briefly pricing. is mentioned Smokeless. around in cigarette know remarks, - around

environment course And Smokeless, so some Thanks. would or the pricing look be for if as could the you you around environment view over overall color your at of the XXXX, just provide helpful. that

Lawrence Wexler

Smokeless, not but least increasing, of seen Yes, of have price in accelerated per year. pricing seen increases number you've pattern a terms price necessarily following at we in cigarettes,

expect to through XXXX. continue We that

Gerald Pascarelli

your for Last around me. evolution been one products. related to cannabinoid thinking There's some

relative just how opportunity And between and thoughts THC. so that both the said, your you're thinking get about to would on CBD with love

Graham Purdy

Yes.

baby. the split let's So

we've So of market XXXX. CBD a bring had presence in products made got sort But kind to Farm into signing home, of soon in the something stay strong the the with a is on on reticent XXXX to we've Bill late been down CBD portfolios. COVID, of retailers focused with as at their we their dialogue The really portfolio. continue and majors new e-commerce

the to Now of a it everyone I sort think pattern still as in FDA. relates holding is

that that at that the did is can't of year. of flower. we to FDA something an it And there really large until dosist clarity THC we invested basically point invest very a a we the we're continue where this From market there like, that we we It's that's we not in the it in is count until continue said, a government for is evolution on us the we accessories touching from directly in, touch from flower That sort going - on, rule is focus but and pavement of policy. in. structure this so to to is. being perspective, us kept that we're our And something make on get investment sort

Operator

next today Your comes from proceed question B. of Anderson line the with question. your with Susan Please Riley.

Susan Anderson

again job being good each guess, I XXXX? of another about Nice margin growth on you growth segment think should all - And we very if for for this maybe gross in the talk three base quarter. as wondering you drivers margin margin in I was gross for about could about the a segments, each very how good thinking new segments. are XXXX?

Robert Lavan

Yes.

margins Smokeless Stoker's, sorry, - going. and going and So new are Zig-Zag continue to segment on

manufacture Stoker's moist. side, we on our So the

So XX% gross sell of XX% business. sort flatness of every to And we of XX% that product margin. our chew incremental being in comes the the offset will business

creep to up. actually I think that in the few continue will it years. accelerate So margin And next see you'll

change that big the in bought segment, Zig-Zag the was we On Durfort.

a So Durfort for margins change took that's to sort XXs, high in our of and us. mid-XXs the the huge wraps

a to this effectively margin year dollars that or sub business had double-digit of we a million. gone that few Additionally, XXXX, other was flat a that'll be from has - and sales segment

not of expect XXXX going. a you should expect - was baseline, continue it I should to sort think you So

do FDA in proprietary sort of enforcement do Nu-X, there our be vape. they're proprietary up but of moving margin segments, to it's the still of in sort more NewGen perspective. do will but invest think the products, for products us in because We And have medium-term from are come to while than slightly profile a - able On the of new products sell we at need they this we more continue that the better to them. margin segment,

focused that So trajectory. XXs a moving that's but that's low we're XXs, medium-term something into that the on very

Susan Anderson

over at And guess, market nice then thinking year just where we growth ago. how you over mid-single-digit that on as you again. think now few see pretty Where I about could I the share I guess years said it it a was is now, years? time? which amazing are mid-single-digit out next based this Stoker's, you share look think go several on think that to I do

Robert Lavan

Larry? Yes.

Lawrence Wexler

No, that product growth. Yes. consumers' And business. it's about growth has and think it particularly it's we're driven a principally in this the And we Stoker's What about can if very marketplace. was advantage distinct optimistic we're substantial was important year's hands, quite sales on very in by the the MSP buy the will focused in they continuing trend. get We same-store it.

thing us. presented some that the is outperformed our also chew opportunities and business The other the significantly that market - for happened

products think So going got forward, we there growth the grab our that to out of weighted still sales business, and and XX% get same-store we will continue drive distributed to into. the distribution

we very So look we're medium - optimistic over the term.

Susan Anderson

And just one follow-up on the Zig-Zag growth year. for this

quarter. digits. pretty growth significant double some Obviously, think said was you in fourth I there

XX% at should looking we or you digits, double think thinking about Or are range? teens when that? So how

Robert Lavan

Teens.

Operator

the Capital. next your Your question of question. from comes Lauriers Instructions] with Des Please proceed Craig-Hallum line with [Operator Eric

Eric Des Lauriers

great business. the Congrats on Really amazing and Zig-Zag execution all-around guys to quarter. you

between industry brand cannabis is new how impacting channels you mean, with talk impacting do sales? Focusing cannabis Can users. booming, the little normalizing see bit. you it's whether or about forward, and about legal where product association strong is you at looking users then with there's types? a sales are for room And mix can just that new growth, how just is But sales? I on obviously, a time when cannabis tobacco cannabis traditional Zig-Zag talk a association the and

Robert Lavan

first from early think Yes. legalization I was decriminalization we the I with sort on, wraps. saw mean, of so strength actually dynamic more a

demographic. sort because doesn't of just something the any of pressure competitive is that Our wraps from form have product factors other

tailwinds into And XXXX. so as you that and had decriminalization, we accelerated saw on that really

cones massive, papers the that I happens so think is On some ultimately. it that TAM But the that. opportunity form factors, there on offsets is other cannibalization from business,

the to of shops our not but that didn't cannabis tied where because the was into happening. in head measured industry, less We is we data selling this weren't in see Additionally, dispensaries channels. or industry it's the sort growth all

as channels of and those a that's attacked so well, And really growth. we lot the driven

decriminalization tailwinds, great, next. great what's so cones is And was

Eric Des Lauriers

strong sense give us number I in then terms of how business? dispensary you upside could us of Just this head some big large already you of shop maybe get and the So channels? you of to guys of some a doors in compared those into that the of could is guess kind and sense the opportunity just give see alternative, base

Robert Lavan

Louie?

Louie Reformina

sure. Yes,

volumes So kind of from think overall relative in the we to it XX% of the the - be market. volume terms perspective, alternative, like could of XX% like of the a to measure

underrepresented I XX% would the alternative well share digits we're low in there. closer in so the measured digits, to channel. we're say And double single market, we're when

So lot of space there. there's a white

In what cones. a you book basis, alternative cones, market. there's times is on XX is the of wrap And paper higher we is a before, of use size as X, the addition, mentioned in per see channel, percentage

also So there's the the significant in just through on headroom alternative keep penetration growing to our for our and channel through increased booklets us share business. in cones

Eric Des Lauriers

Yes.

of M&A. certainly Okay. me follow-up a Great. No, on guess that I for sense exciting. and a just makes lot

it right of mostly get sometime if is Just Reform market the bit Reform What direct in guys dosist? but you're you're a for table you've on You next is us change what operator, here? about could M&A get XX now? of more of brands sectors may you a M&A bit, you we at XX, we help potentially done if focused and do whatever be, market? a months, that Federal guys? Or on looking can the kind then how Cannabis Cannabis the understand Thanks. on do it touched And talk is that like seeing current M&A with in Federal it kind

Robert Lavan

now right focus we're feel primary on times the in, product There Zig-Zag that aggressively. EBITDA we at like is deals jump synergies and basis we XX So are very some expanding a portfolio. M&A are lines not of to the the that We've our significant. on in can pre-synergy looked X range sort in

it are portfolio And growth time into stores see that. lot there. You'll into They're these really XXX,XXX-plus of from spending can pretty the product push our acquisitions a - we're it us quickly. swap opportunities the very of types And plug-and-play. we - and about excited

we On the flowing question assets. on cannabis, like MSOs, cash so

think should can thread wants of But and don't needle, be have multiples at we seen MSO at there. to as to multiple you expect a think attractive opportunities very us us I EBITDA go we you're buy that an going trade the I that to So see revenues.

Operator

Greg question comes from Company. of line next the Your & Sidoti Pendy proceed with with question. your Please

Greg Pendy

one price/mix. Just Stoker's on on the

there catch-up price/mix? a was in you said you quantify that the think accruals. Can on I

Robert Lavan

It a dynamic. was year-over-year

an of we fourth about it in $X the quarter take was of had So - XXXX. to accruals extra million

Greg Pendy

X.X price/mix then that was And the prior the - in anniversarying year? so

Robert Lavan

Correct.

Greg Pendy

XQ quarterly just say be about in headwind about that the then the in in to we then million cadence as - it And headwind a think growth is year? Zig-Zag, anniversarying I million $X double-digit fair? think We'd throughout tailwind we a sorry, - as fair $X I'm XQ. anniversarying mean, a we'll be Is and

Robert Lavan

Yes. Yes.

Greg Pendy

segment Okay. think margins? we the And at impact that about purely all on the that as then given wrap fact side margins does the it's

Robert Lavan

and significantly quarter margins Well, be June of start than XQ quarter the acquired didn't our July. in the flowing for second we first it 'XX XXXX of and through XQ will financials because Durfort until higher and

Operator

back the time, And the turn questions I this Instructions] in queue. no [Operator to more further remarks. any at presenters call for there are

Lawrence Wexler

for Thank your time. you very much

Operator

concludes your this conference you And Thank today's for participation. call.

You disconnect. now may

Turning Point Brands (TPB) 10 Feb 212020 Q4 Earnings call transcript