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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 3/11/22 Turning Point Brands, Inc. 10-K 12/31/21 127:16M Edgarfilings Ltd. |
Document/Exhibit Description Pages Size
1: 10-K Annual Report HTML 2.09M
2: EX-21 Subsidiaries List HTML 35K
3: EX-23 Consent of Expert or Counsel HTML 32K
4: EX-31.1 Certification -- §302 - SOA'02 HTML 36K
5: EX-31.2 Certification -- §302 - SOA'02 HTML 36K
6: EX-31.3 Certification -- §302 - SOA'02 HTML 36K
7: EX-32.1 Certification -- §906 - SOA'02 HTML 35K
13: R1 Document and Entity Information HTML 100K
14: R2 Consolidated Balance Sheets HTML 161K
15: R3 Consolidated Balance Sheets (Parenthetical) HTML 62K
16: R4 Consolidated Statements of Income HTML 122K
17: R5 Consolidated Statements of Comprehensive Income HTML 74K
18: R6 Consolidated Statements of Comprehensive Income HTML 44K
(Parenthetical)
19: R7 Consolidated Statements of Cash Flows HTML 188K
20: R8 Consolidated Statements of Changes in HTML 121K
Stockholders' Equity
21: R9 Consolidated Statements of Changes in HTML 45K
Stockholders' Equity (Parenthetical)
22: R10 Organizations and Basis of Presentation HTML 40K
23: R11 Summary of Significant Accounting Policies HTML 153K
24: R12 Acquisitions HTML 69K
25: R13 Derivative Instruments HTML 38K
26: R14 Fair Value of Financial Instruments HTML 45K
27: R15 Inventories HTML 52K
28: R16 Other Current Assets HTML 42K
29: R17 Property, Plant and Equipment HTML 48K
30: R18 Deferred Financing Costs HTML 37K
31: R19 Goodwill and Other Intangible Assets HTML 96K
32: R20 Other Assets HTML 53K
33: R21 Accrued Liabilities HTML 45K
34: R22 Notes Payable and Long-Term Debt HTML 76K
35: R23 Income Taxes HTML 111K
36: R24 Pension and Postretirement Benefit Plans HTML 93K
37: R25 Lease Commitments HTML 89K
38: R26 Share Incentive Plans HTML 140K
39: R27 Contingencies HTML 41K
40: R28 Legal Settlement HTML 35K
41: R29 Income Per Share HTML 112K
42: R30 Segment Information HTML 138K
43: R31 Selected Quarterly Financial Information HTML 64K
(Unaudited)
44: R32 Dividends and Share Repurchase HTML 37K
45: R33 Organizations and Basis of Presentation (Policies) HTML 38K
46: R34 Summary of Significant Accounting Policies HTML 202K
(Policies)
47: R35 Summary of Significant Accounting Policies HTML 102K
(Tables)
48: R36 Acquisitions (Tables) HTML 63K
49: R37 Inventories (Tables) HTML 55K
50: R38 Other Current Assets (Tables) HTML 42K
51: R39 Property, Plant and Equipment (Tables) HTML 48K
52: R40 Deferred Financing Costs (Tables) HTML 38K
53: R41 Goodwill and Other Intangible Assets (Tables) HTML 101K
54: R42 Other Assets (Tables) HTML 41K
55: R43 Accrued Liabilities (Tables) HTML 44K
56: R44 Notes Payable and Long-Term Debt (Tables) HTML 51K
57: R45 Income Taxes (Tables) HTML 111K
58: R46 Pension and Postretirement Benefit Plans (Tables) HTML 89K
59: R47 Lease Commitments (Tables) HTML 94K
60: R48 Share Incentive Plans (Tables) HTML 137K
61: R49 Income Per Share (Tables) HTML 111K
62: R50 Segment Information (Tables) HTML 136K
63: R51 Selected Quarterly Financial Information HTML 64K
(Unaudited) (Tables)
64: R52 Organizations and Basis of Presentation (Details) HTML 36K
65: R53 Summary of Significant Accounting Policies, HTML 35K
Consolidation (Details)
66: R54 Summary of Significant Accounting Policies, HTML 39K
Derivative Instruments (Details)
67: R55 Summary of Significant Accounting Policies, HTML 34K
Shipping Costs (Details)
68: R56 Summary of Significant Accounting Policies, HTML 36K
Research and Development and Quality Assurance
Costs (Details)
69: R57 Summary of Significant Accounting Policies, HTML 44K
Property, Plant and Equipment (Details)
70: R58 Summary of Significant Accounting Policies, HTML 34K
Goodwill and Other Intangible Assets (Details)
71: R59 Summary of Significant Accounting Policies, HTML 34K
Advertising and Promotion (Details)
72: R60 Summary of Significant Accounting Policies, Master HTML 119K
Settlement Agreement (Details)
73: R61 Summary of Significant Accounting Policies, Food HTML 44K
and Drug Administration (Details)
74: R62 Summary of Significant Accounting Policies, HTML 39K
Concentration of Credit Risk (Details)
75: R63 Summary of Significant Accounting Policies, HTML 41K
Accounts Receivable (Details)
76: R64 Summary of Significant Accounting Policies, Recent HTML 54K
Accounting Pronouncements (Details)
77: R65 Summary of Significant Accounting Policies, Change HTML 47K
in Accounting Principles (Details)
78: R66 Acquisitions, Unitabac (Details) HTML 47K
79: R67 Acquisitions, Direct Value Wholesale (Details) HTML 78K
80: R68 Acquisitions, Turning Point Brands Canada HTML 93K
(formerly ReCreation Marketing) (Details)
81: R69 Acquisitions, SDI Reorganization (Details) HTML 51K
82: R70 Acquisitions, Durfort Holdings (Details) HTML 59K
83: R71 Derivative Instruments (Details) HTML 82K
84: R72 Fair Value of Financial Instruments (Details) HTML 92K
85: R73 Inventories (Details) HTML 59K
86: R74 Other Current Assets (Details) HTML 42K
87: R75 Property, Plant and Equipment (Details) HTML 52K
88: R76 Deferred Financing Costs (Details) HTML 37K
89: R77 Goodwill and Other Intangible Assets (Details) HTML 112K
90: R78 Other Assets (Details) HTML 107K
91: R79 Accrued Liabilities (Details) HTML 49K
92: R80 Notes Payable and Long-Term Debt, Summary of Notes HTML 53K
Payable and Long-Term Debt (Details)
93: R81 Notes Payable and Long-Term Debt, Senior Secured HTML 63K
Notes (Details)
94: R82 Notes Payable and Long-Term Debt, 2021 Revolving HTML 62K
Credit Facility (Details)
95: R83 Notes Payable and Long-Term Debt, 2018 Credit HTML 63K
Facility (Details)
96: R84 Notes Payable and Long-Term Debt, 2018 First Lien HTML 58K
Credit Facility (Details)
97: R85 Notes Payable and Long-Term Debt, 2018 Second Lien HTML 46K
Credit Facility (Details)
98: R86 Notes Payable and Long-Term Debt, Convertible HTML 60K
Senior Notes (Details)
99: R87 Notes Payable and Long-Term Debt, Promissory Note HTML 56K
(Details)
100: R88 Notes Payable and Long-Term Debt, Unsecured Loan HTML 46K
(Details)
101: R89 Notes Payable and Long-Term Debt, Note Payable - HTML 44K
IVG (Details)
102: R90 Income Taxes (Details) HTML 163K
103: R91 Pension and Postretirement Benefit Plans, HTML 93K
Reconciliation of Benefit Obligations, Fair Value
of Plan Assets (Details)
104: R92 Pension and Postretirement Benefit Plans, HTML 57K
Components of Net Periodic Benefit Costs (Details)
105: R93 Pension and Postretirement Benefit Plans, 401(k) HTML 47K
Retirement Savings Plan (Details)
106: R94 Lease Commitments (Details) HTML 98K
107: R95 Share Incentive Plans, Equity Incentive Plans HTML 54K
(Details)
108: R96 Share Incentive Plans, Stock Option Activity HTML 68K
(Details)
109: R97 Share Incentive Plans, Assumptions for Options HTML 64K
Granted Under 2006 Plan (Details)
110: R98 Share Incentive Plans, Assumptions for Options HTML 125K
Granted Under 2015 Plan (Details)
111: R99 Share Incentive Plans, Assumptions for Options HTML 59K
Granted Under 2021 Plan (Details)
112: R100 Share Incentive Plans, Compensation Expense HTML 41K
Related to Options (Details)
113: R101 Share Incentive Plans, Performance-Based HTML 97K
Restricted Stock Units (Details)
114: R102 Share Incentive Plans, Restricted Stock Units HTML 45K
(Details)
115: R103 Contingencies (Details) HTML 40K
116: R104 Legal Settlement (Details) HTML 36K
117: R105 Income Per Share (Details) HTML 85K
118: R106 Segment Information, Financial Information of HTML 124K
Reportable Segments (Details)
119: R107 Segment Information, Revenue Disaggregation - HTML 54K
Sales Channel (Details)
120: R108 Segment Information, Net Sales - Domestic and HTML 46K
Foreign (Details)
121: R109 Selected Quarterly Financial Information HTML 76K
(Unaudited) (Details)
122: R110 Dividends and Share Repurchase (Details) HTML 66K
125: XML IDEA XML File -- Filing Summary XML 238K
123: XML XBRL Instance -- brhc10034925_10k_htm XML 3.87M
124: EXCEL IDEA Workbook of Financial Reports XLSX 174K
9: EX-101.CAL XBRL Calculations -- tpb-20211231_cal XML 348K
10: EX-101.DEF XBRL Definitions -- tpb-20211231_def XML 1.62M
11: EX-101.LAB XBRL Labels -- tpb-20211231_lab XML 3.21M
12: EX-101.PRE XBRL Presentations -- tpb-20211231_pre XML 2.14M
8: EX-101.SCH XBRL Schema -- tpb-20211231 XSD 299K
126: JSON XBRL Instance as JSON Data -- MetaLinks 666± 963K
127: ZIP XBRL Zipped Folder -- 0001140361-22-009150-xbrl Zip 525K
| i ☑ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
| i ☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
i Delaware
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i 20-0709285
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
i 5201 Interchange Way,
i Louisville, i KY
|
i 40229
|
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(Address of principal executive offices)
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(Zip Code)
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
| i Common Stock, $0.01 par value | i TPB |
i New York Stock Exchange |
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Large accelerated filer
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☐
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i Accelerated filer
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☑
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||
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Non-accelerated filer
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☐
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Smaller reporting company
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i ☐
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||
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Emerging growth company
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i ☐
|
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Page No.
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|||
|
PART I
|
|||
|
ITEM 1.
|
4
|
||
|
ITEM 1A.
|
17
|
||
|
ITEM 1B.
|
37
|
||
|
ITEM 2.
|
37
|
||
|
ITEM 3.
|
37
|
||
|
ITEM 4.
|
37
|
||
|
PART II
|
|||
|
ITEM 5.
|
39 |
||
|
ITEM 6.
|
40
|
||
|
ITEM 7.
|
41 |
||
|
ITEM 7A.
|
56
|
||
|
ITEM 8.
|
57
|
||
|
ITEM 9.
|
100 |
||
|
ITEM 9A.
|
100
|
||
|
ITEM 9B.
|
101 |
||
|
PART III
|
|||
|
ITEM 10.
|
102 |
||
|
ITEM 11.
|
102 |
||
|
ITEM 12.
|
102 |
||
|
ITEM 13.
|
102 |
||
|
ITEM 14.
|
102
|
||
|
PART IV
|
|||
|
ITEM 15.
|
103
|
||
|
ITEM 16.
|
107
|
||
| 108 |
|||
|
•
|
Zig-Zag® is the #1 premium and overall rolling paper brand in
the U.S., with significant distribution in Canada as well. Zig-Zag® is also the #1 MYO cigar wrap brand in the
U.S., as measured by MSAi. We acquired North American rolling papers distribution rights for Zig-Zag® in 1997.
More importantly, we own the Zig-Zag® tobacco trademark in the U.S. which we leverage for our MYO cigar wraps
product. Approximately 50% of our total 2021 Zig-Zag® branded net sales are under our own Zig-Zag® marks rather than those we license from under the Distribution and Licensing Agreements described below.
|
|
•
|
Stoker’s® is among the fastest growing MST brands in the
industry and is the #1 loose leaf chewing tobacco brand. We manufacture Stoker’s® MST using only 100% American
Leaf, utilizing a proprietary process to produce what we believe is a superior product.2
|
|
•
|
In 2009, we extended the Zig-Zag® tobacco brand into the MYO
cigar wraps market and captured a 50% market share within the first two years. We are now the market share leader for MYO cigar wraps with approximately a 56% share of the cigar wraps category and 78% of the share of the HTL cigar wraps
sub-category. 1 We believe our success was driven by the Zig-Zag® tobacco branding, which we feel is widely understood by consumers to represent a favorable, customizable experience ideally suited to MYO products. In late 2021, we extended our Zig-Zag® MYO cigar wraps offering with entries into the growing hemp wraps and natural leaf wraps markets.
|
|
•
|
We extended the Zig-Zag® brand into hemp rolling papers in
2018 and followed that with the launch of paper cones in 2019 with both products quickly establishing leading positions in their respective categories.
|
|
•
|
We leveraged the proud legacy and value of the Stoker’s® brand
to introduce a 12 oz. MST tub, a size that was not offered by any other market participant at the time of introduction. Stoker’s® MST has been among the fastest growing moist snuff brands in the industry in terms of pounds sold. While competitors have since introduced larger format tub packaging, the early entry and differentiation of the Stoker’s® product have firmly established us as the market leader with over 50% of the Tub market
as of 2021. In 2015, we introduced Stoker’s® MST in 1.2 oz. cans to further expand retail
penetration, particularly in convenience stores.
|
|
•
|
VaporBeast quickly established itself as a leading marketer and distributor of liquid vapor products to the non-traditional retail universe. With its national footprint, VaporBeast is
leveraging its regional consumer preference insights to further accelerate sales advances.
|
|
•
|
In 2019, the IVG acquisition, and specifically the VaporFi B2C marketing engine, offered us the opportunity to leverage the marketing competencies and processes to sell novel
proprietary products across multiple channels and platforms.
|
|
•
|
In 2019, the Solace acquisition provided us with a leading line of liquids and a powerful new product development platform.
|
|
•
|
In 2019, we introduced Zig-Zag® paper cones into the market
and have grown it into one of the top brands in the category.
|
|
•
|
In 2021, the acquisition of the Unitabac assets provided a platform to re-introduce the Zig-Zag® brand into a large and growing cigarillo market.
|
|
•
|
In 2022, we will be entering the lighter market through an exclusive distribution agreement for CLIPPER® lighters in the United States and Canada.
|
|
Raw materials and work in process
|
$
|
6,936
|
$
|
8,137
|
||||
|
Leaf tobacco
|
35,900
|
32,948
|
||||||
|
Finished goods - Zig-Zag Products
|
25,663
|
14,903
|
||||||
|
Finished goods - Stoker’s Products
|
8,959
|
9,727
|
||||||
|
Finished goods - NewGen Products
|
8,591
|
18,916
|
||||||
|
Other
|
1,558
|
1,225
|
||||||
|
Inventories
|
$
|
87,607
|
$
|
85,856
|
||||
|
•
|
Implementing processes to keep our team members safe with plantwide safety and cleanliness protocols, split shifts for fulfillment personnel, isolating work units where possible, and providing work from
home opportunities.
|
|
•
|
Leveraging our IT strength and implementing videoconferencing to minimize contact and travel.
|
|
•
|
Communicating regularly with our customers and suppliers to understand their challenges and ways to assist them.
|
|
•
|
Providing lunches for our employees from local restaurants that were impacted by the pandemic.
|
|
•
|
Recognizing the commitment of our employees by providing worker incentives for our team members who could not work remotely.
|
|
•
|
The Public Health, Responsible Marketing, and Youth Access Prevention Committee, provides a platform to enhance our business practices in these areas. The committee is charged with recommending and
implementing best practices in the areas of Public Health, Responsible Marketing, and Youth Access Prevention.
|
|
•
|
The Environmental Committee provides a platform to enhance our environmental practices within our business units. The committee is charged with recommending and implementing best practices in the areas of
carbon emissions, waste, water, and biodiversity within our business units.
|
|
•
|
The Supplier Committee provides a platform to assure our supply chain aligns with our Environmental, Social, and Governance practices. The committee charged with recommending and implementing best
practices in the areas of supplier environmental, social, and governance processes.
|
|
•
|
The Culture Committee provides a platform to achieve the objective of being the employer of choice. The committee is charged with recommending and implementing best practices in the areas of health and
safety, DE&I, Talent Development and Retention, and Community Engagement.
|
|
•
|
The Governance Committee as a platform to assure our governance practices are best in class. The committee is charged to recommending and implementing best practices in the areas of business ethics,
political engagement, and cybersecurity.
|
|
•
|
declining sales of tobacco products, and expected continuing decline of sales, in the tobacco industry overall;
|
|
•
|
our dependence on a small number of third-party suppliers and producers;
|
|
•
|
the possibility that we will be unable to identify or contract with new suppliers or producers in the event of a supply or product disruption, as well as other supply chain concerns,
including delays in product shipments and increases in freight cost;
|
|
•
|
the possibility that our licenses to use certain brands or trademarks will be terminated, challenged or restricted;
|
|
•
|
failure to maintain consumer brand recognition and loyalty of our customers;
|
|
•
|
our reliance on relationships with several large retailers and national chains for distribution of our products;
|
|
•
|
intense competition and our ability to compete effectively;
|
|
•
|
competition from illicit sources and the damage caused by illicit products to our brand equity;
|
|
•
|
contamination of our tobacco supply or products;
|
|
•
|
uncertainty and continued evolution of the markets for our NewGen and cigar products;
|
|
•
|
complications with the design or implementation of our new enterprise resource planning system could adversely impact our business and operations;
|
|
•
|
substantial and increasing U.S. regulation;
|
|
•
|
regulation or marketing denials of our products by the FDA, which has broad regulatory powers;
|
|
•
|
many of our products contain nicotine, which is considered to be a highly addictive substance;
|
|
•
|
requirement to maintain compliance with master settlement agreement escrow account;
|
|
•
|
possible significant increases in federal, state and local municipal tobacco- and vapor-related taxes;
|
|
•
|
our products are subject to developing and unpredictable regulation, such as court actions that impact obligations;
|
|
•
|
increase in state and local regulation of our NewGen products has been proposed or enacted;
|
|
•
|
increase in tax of our NewGen products could adversely affect our business;
|
|
•
|
sensitivity of end-customers to increased sales taxes and economic conditions including significant increases in the rate of inflation and other declines in purchasing power;
|
|
•
|
possible increasing international control and regulation;
|
|
•
|
failure to comply with environmental, health and safety regulations;
|
|
•
|
imposition of significant tariffs on imports into the U.S.;
|
|
•
|
the scientific community’s lack of information regarding the long-term health effects of certain substances contained in some of our products;
|
|
•
|
significant product liability litigation;
|
|
•
|
the effect of the COVID-19 pandemic on our business;
|
|
•
|
our amount of indebtedness;
|
|
•
|
the terms of our indebtedness, which may restrict our current and future operations;
|
|
•
|
our loss of emerging growth status on December 31, 2021 and ability to comply with the additional disclosure requirements applicable to non-emerging growth companies;
|
|
•
|
identification a material weakness in our internal control related to ineffective information technology general controls which, if not remediated appropriately or timely, could
result in loss of investor confidence and adversely impact our stock price;
|
|
•
|
Changes in the method for determining LIBOR or the replacement of LIBOR with an alternative reference rate, may adversely affect interest expense related to outstanding debt;
|
|
•
|
our certificate of incorporation and bylaws, as well as Delaware law and certain regulations, could discourage or prohibit acquisition bids or merger proposals, which may adversely
affect the market price of our common stock;
|
|
•
|
our certificate of incorporation limits the ownership of our common stock by individuals and entities that are Restricted Investors. These restrictions may affect the liquidity of our common stock and may
result in Restricted Investors (as defined in our Certificate of Incorporation) being required to sell or redeem their shares at a loss or relinquish their voting, dividend and distribution rights;
|
|
•
|
future sales of our common stock in the public market could reduce our stock price, and any additional capital raised by us through the sale of equity or convertible securities may
dilute your ownership in us;
|
|
•
|
we may issue preferred stock whose terms could adversely affect the voting power or value of our common stock;
|
|
•
|
our business may be damaged by events outside of our or our suppliers’ control, such as the impact of epidemics (e.g., coronavirus), political upheavals, or natural disasters;
|
|
•
|
our reliance on information technology;
|
|
•
|
cybersecurity and privacy breaches;
|
|
•
|
failure to manage our growth;
|
|
•
|
failure to successfully integrate our acquisitions or otherwise be unable to benefit from pursuing acquisitions;
|
|
•
|
fluctuations in our results;
|
|
•
|
exchange rate fluctuations;
|
|
•
|
adverse U.S. and global economic conditions;
|
|
•
|
departure of key management personnel or our inability to attract and retain talent;
|
|
•
|
infringement on or misappropriation of our intellectual property;
|
|
•
|
third-party claims that we infringe on their intellectual property; and
|
|
•
|
failure to meet expectations relating to environmental, social and governance factors
|
|
•
|
the levying of substantial and increasing tax and duty charges;
|
|
•
|
restrictions or bans on advertising, marketing and sponsorship;
|
|
•
|
the display of larger health warnings, graphic health warnings and other labeling requirements;
|
|
•
|
restrictions on packaging design, including the use of colors and generic packaging;
|
|
•
|
restrictions or bans on the display of tobacco product packaging at the point of sale, and restrictions or bans on cigarette vending machines;
|
|
•
|
requirements regarding testing, disclosure and performance standards for tar, nicotine, carbon monoxide and other smoke constituents levels;
|
|
•
|
requirements regarding testing, disclosure and use of tobacco product ingredients;
|
|
•
|
increased restrictions on smoking in public and work places and, in some instances, in private places and outdoors;
|
|
•
|
elimination of duty-free allowances for travelers; and
|
|
•
|
encouraging litigation against tobacco companies.
|
|
•
|
obtain necessary additional financing for working capital, capital expenditures or other purposes in the future;
|
|
•
|
plan for, or react to, changes in our business and the industries in which we operate;
|
|
•
|
make future acquisitions or pursue other business opportunities;
|
|
•
|
react in an extended economic downturn; and
|
|
•
|
pay dividends.
|
|
•
|
incur additional debt, disqualified stock and preferred stock;
|
|
•
|
pay dividends and make other restricted payments;
|
|
•
|
create liens;
|
|
•
|
make investments and acquisitions;
|
|
•
|
engage in sales of assets and subsidiary stock;
|
|
•
|
enter into sale-leaseback transactions;
|
|
•
|
enter into transactions with affiliates; and
|
|
•
|
transfer all or substantially all of our assets or enter into merger or consolidation transactions.
|
|
•
|
our reputation may be adversely affected and our business and operating results could be harmed;
|
|
•
|
the market price of our stock could decline;
|
|
•
|
we could fail to meet our financial reporting obligations; and
|
|
•
|
we could be subject to litigation and/or investigations or sanctions by the Securities and Exchange Commission (the “SEC”), the New York Stock Exchange or other regulatory
authorities.
|
|
•
|
limitations on the removal of directors;
|
|
•
|
limitations on the ability of our stockholders to call special meetings;
|
|
•
|
limitations on stockholder action by written consent;
|
|
•
|
establishing advance notice provisions for stockholder proposals and nominations for elections to the board of directors to be acted upon at meetings of stockholders; and
|
|
•
|
limitations on the ability of our stockholders to fill vacant directorships or amend the number of directors constituting our board of directors.
|
|
•
|
difficulties integrating personnel from acquired entities and other corporate cultures into our business;
|
|
•
|
difficulties integrating information systems;
|
|
•
|
the potential loss of key employees of acquired companies;
|
|
•
|
the assumption of liabilities and exposure to undisclosed or unknown liabilities of acquired companies; or
|
|
•
|
the diversion of management attention from existing operations
|
|
Period
|
Total Number
of Shares
Purchased
|
Average
Price Paid
per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Maximum Number
(or Approximate
Dollar Value)
of Shares that
May Yet Be
Purchased Under the
Plans or Programs
|
||||||||||||
|
October 1 to October 31
|
-
|
$
|
-
|
-
|
$
|
50,028,385
|
||||||||||
|
November 1 to November 30
|
253,000
|
$
|
39.30
|
253,000
|
$
|
40,085,485
|
||||||||||
|
December 1 to December 31
|
224,707
|
$
|
36.73
|
224,707
|
$
|
31,831,997
|
||||||||||
|
Total
|
477,707
|
477,707
|
||||||||||||||
|
Brand
|
Product
|
TPB Segment
|
Market Share(1)
|
Category Rank(1)
|
||||
|
Zig-Zag®
|
Cigarette Papers
|
Zig-Zag Products
|
33.6%
|
#1 premium, #1 overall
|
||||
|
Zig-Zag®
|
MYO Cigar Wraps
|
Zig-Zag Products
|
56.2%
|
#1 overall
|
||||
|
Stoker’s®
|
Moist Snuff
|
Stoker’s Products
|
5.6%
|
#3 discount, #6 overall
|
||||
|
Stoker’s®
|
Chewing Tobacco
|
Stoker’s Products
|
25.6%
|
#1 discount, #1 overall
|
||||
|
(1) Market share and category rank data for all products are derived from MSAi data 52 weeks ended 12/25/21.
|
||||||||
|
•
|
Our ability to further penetrate markets with our existing products;
|
|
•
|
Our ability to introduce new products and product lines that complement our core business;
|
|
•
|
Decreasing interest in tobacco products among consumers;
|
|
•
|
Price sensitivity in our end-markets;
|
|
•
|
Marketing and promotional initiatives, which cause variability in our results;
|
|
•
|
General economic conditions, including consumer access to disposable income and other conditions affecting purchasing power such as inflation;
|
|
•
|
Cost and increasing regulation of promotional and advertising activities;
|
|
•
|
Cost of complying with regulation, including “deeming regulation”;
|
|
•
|
Increasing and unpredictable regulation of NewGen products;
|
|
•
|
Counterfeit and other illegal products in our end-markets;
|
|
•
|
Currency fluctuations;
|
|
•
|
Our ability to identify attractive acquisition opportunities; and
|
|
•
|
Our ability to successfully integrate acquisitions.
|
|
•
|
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets at the measurement date.
|
|
•
|
Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities
in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
|
•
|
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
|
|
For the year ended December 31,
|
||||||||||||||||||||
|
2020
|
% Change
|
2019
|
% Change
|
|||||||||||||||||
|
Consolidated Results of Operations Data:
|
||||||||||||||||||||
|
Net sales
|
||||||||||||||||||||
|
Zig-Zag products
|
$
|
176,491
|
$
|
132,812
|
32.9
|
%
|
$
|
108,733
|
22.1
|
%
|
||||||||||
|
Stoker’s products
|
124,280
|
115,866
|
7.3
|
%
|
99,894
|
16.0
|
%
|
|||||||||||||
|
NewGen products
|
144,700
|
156,433
|
-7.5
|
%
|
153,362
|
2.0
|
%
|
|||||||||||||
|
Total net sales
|
445,471
|
405,111
|
10.0
|
%
|
361,989
|
11.9
|
%
|
|||||||||||||
|
Cost of sales
|
227,637
|
215,121
|
5.8
|
%
|
224,872
|
-4.3
|
%
|
|||||||||||||
|
Gross profit
|
||||||||||||||||||||
|
Zig-Zag products
|
102,739
|
78,278
|
31.2
|
%
|
59,414
|
31.8
|
%
|
|||||||||||||
|
Stoker’s products
|
68,084
|
61,764
|
10.2
|
%
|
52,620
|
17.4
|
%
|
|||||||||||||
|
NewGen products
|
47,011
|
49,948
|
-5.9
|
%
|
25,083
|
99.1
|
%
|
|||||||||||||
|
Total gross profit
|
217,834
|
189,990
|
14.7
|
%
|
137,117
|
38.6
|
%
|
|||||||||||||
|
Selling, general, and administrative expenses
|
127,513
|
125,563
|
1.6
|
%
|
109,887
|
14.3
|
%
|
|||||||||||||
|
Operating income
|
90,321
|
64,427
|
40.2
|
%
|
27,230
|
136.6
|
%
|
|||||||||||||
|
Interest expense, net
|
20,500
|
13,487
|
52.0
|
%
|
14,435
|
-6.6
|
%
|
|||||||||||||
|
Investment loss (income)
|
6,673
|
(198
|
)
|
-3470.2
|
%
|
(2,648
|
)
|
-92.5
|
%
|
|||||||||||
|
(Gain) loss on extinguishment of debt
|
(2,154
|
)
|
-
|
NM
|
1,308
|
-100.0
|
%
|
|||||||||||||
|
Net periodic benefit cost (income), excluding service cost
|
-
|
989
|
-100.0
|
%
|
(4,961
|
)
|
-119.9
|
%
|
||||||||||||
|
Income before income taxes
|
65,302
|
50,149
|
30.2
|
%
|
19,096
|
162.6
|
%
|
|||||||||||||
|
Income tax expense
|
14,040
|
11,957
|
17.4
|
%
|
2,863
|
317.6
|
%
|
|||||||||||||
|
Consolidated net income
|
51,262
|
38,192
|
34.2
|
%
|
16,233
|
135.3
|
%
|
|||||||||||||
|
Net loss attributable to non-controlling interest
|
(797
|
)
|
-
|
NM
|
-
|
NM
|
||||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
$
|
52,059
|
$
|
38,192
|
36.3
|
%
|
$
|
16,233
|
135.3
|
%
|
||||||||||
|
(in thousands)
|
Years ended December 31,
|
|||||||||||
|
2020
|
2019
|
|||||||||||
|
Consolidated net income
|
$
|
52,059
|
$
|
38,192
|
$
|
16,233
|
||||||
|
Add:
|
||||||||||||
|
Interest expense, net
|
20,500
|
13,487
|
14,435
|
|||||||||
|
(Gain) loss on extinguishment of debt
|
(2,154
|
)
|
-
|
1,308
|
||||||||
|
Income tax expense
|
14,040
|
11,957
|
2,863
|
|||||||||
|
Depreciation expense
|
3,105
|
3,237
|
2,638
|
|||||||||
|
Amortization expense
|
1,907
|
1,781
|
1,451
|
|||||||||
|
EBITDA
|
$
|
89,457
|
$
|
68,654
|
$
|
38,928
|
||||||
|
Components of Adjusted EBITDA
|
||||||||||||
|
Other (a)
|
-
|
988
|
(11
|
)
|
||||||||
|
Stock options, restricted stock, and incentives expense (b)
|
7,557
|
2,555
|
4,626
|
|||||||||
|
Transactional expenses and strategic initiatives (c)
|
1,267
|
3,087
|
1,764
|
|||||||||
|
New product launch costs (d)
|
-
|
-
|
6,185
|
|||||||||
|
FDA PMTA (e)
|
1,668
|
14,435
|
2,153
|
|||||||||
|
Corporate and vapor restructuring (f)
|
1,026
|
517
|
19,214
|
|||||||||
|
Non-cash asset impairment (g)
|
7,100
|
-
|
-
|
|||||||||
|
Vendor settlement (h)
|
-
|
-
|
(5,522
|
)
|
||||||||
|
Adjusted EBITDA
|
$
|
108,075
|
$
|
90,236
|
$
|
67,337
|
||||||
|
(a)
|
Represents non-cash pension expense (income) and foreign exchange hedging.
|
|
(b)
|
Represents non-cash stock options, restricted stock, incentives expense and Solace performance stock units.
|
|
(c)
|
Represents the fees incurred for transaction expenses and strategic initiatives.
|
|
(d)
|
Represents product launch costs for our new product lines.
|
|
(e)
|
Represents costs associated with applications related to FDA premarket tobacco product application (“PMTA”).
|
|
(f)
|
Costs during the year ended December 31, 2021, represent the write-down and disposal cost of discontinued vape inventory and cost of retail store lease termination. Costs during the
year ended December 31, 2020, represent the costs from the retirement of a senior executive. Costs during the year ended December 31, 2019, represent the costs associated with corporate and vapor restructuring including severance and
inventory reserves
|
|
(g)
|
Represents impairment of investment in dosist.
|
|
(h)
|
Represents net gain associated with the settlement of a vendor contract.
|
|
As of
|
||||||||
|
(in thousands)
|
||||||||
|
Current assets
|
$
|
120,849
|
$
|
121,638
|
||||
|
Current liabilities
|
40,336
|
56,629
|
||||||
|
Working capital
|
$
|
80,513
|
$
|
65,009
|
||||
|
Senior Secured Notes
|
$
|
250,000
|
$
|
-
|
||||
|
2018 First Lien Term Loan
|
-
|
130,000
|
||||||
|
Convertible Senior Notes
|
172,500
|
172,500
|
||||||
|
Note payable - Promissory Note
|
-
|
10,000
|
||||||
|
Note payable - Unsecured Loan
|
-
|
7,485
|
||||||
|
Gross notes payable and long-term debt
|
422,500
|
319,985
|
||||||
|
Less deferred finance charges
|
(8,328
|
)
|
(5,873
|
)
|
||||
|
Less current maturities
|
-
|
(12,000
|
)
|
|||||
|
Net notes payable and long-term debt
|
$
|
414,172
|
$
|
302,112
|
||||
|
Sales
|
Deposits as of December 31,
|
|||||||
|
Year
|
2021
|
2020
|
||||||
|
1999
|
$
|
211
|
$
|
211
|
||||
|
2000
|
1,017
|
1,017
|
||||||
|
2001
|
1,673
|
1,673
|
||||||
|
2002
|
2,271
|
2,271
|
||||||
|
2003
|
4,249
|
4,249
|
||||||
|
2004
|
3,714
|
3,714
|
||||||
|
2005
|
4,553
|
4,553
|
||||||
|
2006
|
3,847
|
3,847
|
||||||
|
2007
|
4,167
|
4,167
|
||||||
|
2008
|
3,364
|
3,364
|
||||||
|
2009
|
1,619
|
1,619
|
||||||
|
2010
|
406
|
406
|
||||||
|
2011
|
193
|
193
|
||||||
|
2012
|
199
|
199
|
||||||
|
2013
|
173
|
173
|
||||||
|
2014
|
143
|
143
|
||||||
|
2015
|
101
|
101
|
||||||
|
2016
|
91
|
91
|
||||||
|
2017
|
82
|
83
|
||||||
|
Total
|
$
|
32,073
|
$
|
32,074
|
||||
|
•
|
Evaluating the reasonableness of
management’s forecasts of revenue growth rates by comparing the projections to historical results and to publicly available market data.
|
|
•
|
Tested the accuracy of management’s estimation process by comparing current year results to prior year estimates.
|
|
•
|
We utilized valuation specialists to assist in the following, among others:
|
|
o
|
Evaluating the appropriateness of the valuation method used by management and testing its mathematical accuracy.
|
|
o
|
Evaluating the appropriateness of the methodology used by management to estimate the terminal value, comparing the
inputs used by management to estimate the terminal value to market data, and testing its mathematical accuracy.
|
|
o
|
Evaluating the reasonableness of the discount rate by comparing the underlying source information to publicly
available market data and testing the accuracy of the calculation.
|
|
•
|
Evaluating the relevance and reliability of the underlying business-related data by comparing it to the investee’s historical financial
results.
|
|
•
|
Comparing the rights and preferences of the various dosistTM equity classes to the governance
documents of dosistTM.
|
|
•
|
Utilizing valuation specialists to
assist in developing a range of independent estimates of the fair value of the dosistTM investment through the use of market data, including guideline public
companies and guideline transactions.
|
|
•
|
Comparing the range of the independent estimate of fair value developed by our valuation specialists to management’s estimate of fair
value.
|
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash
|
$
|
i 128,320
|
$
|
i 41,765
|
||||
|
Accounts receivable, net of allowances of $ i 262 in 2021 and $ i 150 in 2020
|
i 6,496
|
i 9,331
|
||||||
|
Inventories
|
i 87,607
|
i 85,856
|
||||||
|
Other current assets
|
i 26,746
|
i 26,451
|
||||||
|
Total current assets
|
i 249,169
|
i 163,403
|
||||||
|
Property, plant, and equipment, net
|
i 18,650
|
i 15,524
|
||||||
| Deferred income taxes |
i 1,363 | i 610 | ||||||
|
Right of use assets
|
i 15,053
|
i 17,918
|
||||||
|
Deferred financing costs, net
|
i 388
|
i 641
|
||||||
|
Goodwill
|
i 162,333
|
i 159,621
|
||||||
|
Other intangible assets, net
|
i 87,485
|
i 79,422
|
||||||
|
Master Settlement Agreement (MSA) escrow deposits
|
i 31,720
|
i 32,074
|
||||||
|
Other assets
|
i 35,399
|
i 26,836
|
||||||
|
Total assets
|
$
|
i 601,560
|
$
|
i 496,049
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$
|
i 7,361
|
$
|
i 9,201
|
||||
|
Accrued liabilities
|
i 32,937
|
i 35,225
|
||||||
|
Current portion of long-term debt
|
i -
|
i 12,000
|
||||||
|
Other current liabilities
|
i 38
|
i 203
|
||||||
|
Total current liabilities
|
i 40,336
|
i 56,629
|
||||||
|
Notes payable and long-term debt
|
i 414,172
|
i 302,112
|
||||||
|
Lease liabilities
|
i 13,336
|
i 16,117
|
||||||
|
Other long-term liabilities
|
i -
|
i 3,704
|
||||||
|
Total liabilities
|
i 467,844
|
i 378,562
|
||||||
|
Commitments and contingencies
|
i | i | ||||||
|
Stockholders’ equity:
|
||||||||
|
Preferred stock; $ i i 0.01 /
par value; authorized shares i i 40,000,000 / ; issued and outstanding
shares - i i i i 0 / / / -
|
i -
|
i -
|
||||||
|
Common stock, voting, $ i i 0.01 /
par value; authorized shares, i i 190,000,000 / ;
i 19,690,884 issued shares, i 18,395,476
outstanding shares at December 31, 2021, and i 19,532,464 issued shares, i 19,133,794
outstanding shares at December 31,
2020
|
i 197
|
i 195
|
||||||
|
Common stock, nonvoting, $ i i 0.01 /
par value; authorized shares, i i 10,000,000 / ;
issued and
outstanding shares - i i i i 0 / / / -
|
i -
|
i -
|
||||||
|
Additional paid-in capital
|
i 108,811
|
i 102,423
|
||||||
|
Cost of repurchased common stock ( i 1,295,408 shares at December 31, 2021 and i 398,670 shares at December 31,
2020)
|
( i 48,869
|
)
|
( i 10,191
|
)
|
||||
|
Accumulated other comprehensive loss
|
( i 195
|
)
|
( i 2,635
|
)
|
||||
|
Accumulated earnings
|
i 71,460
|
i 23,645
|
||||||
|
Non-controlling interest
|
i 2,312
|
i 4,050
|
||||||
|
Total stockholders’ equity
|
i 133,716
|
i 117,487
|
||||||
|
Total liabilities and stockholders’ equity
|
$
|
i 601,560
|
$
|
i 496,049
|
||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Net sales
|
$
|
i 445,471
|
$
|
i 405,111
|
$
|
i 361,989
|
||||||
|
Cost of sales
|
i 227,637
|
i 215,121
|
i 224,872
|
|||||||||
|
Gross profit
|
i 217,834
|
i 189,990
|
i 137,117
|
|||||||||
|
Selling, general, and administrative expenses
|
i 127,513
|
i 125,563
|
i 109,887
|
|||||||||
|
Operating income
|
i 90,321
|
i 64,427
|
i 27,230
|
|||||||||
|
Interest expense, net
|
i 20,500
|
i 13,487
|
i 14,435
|
|||||||||
|
Investment loss (income)
|
i 6,673
|
( i 198
|
)
|
( i 2,648
|
)
|
|||||||
|
(Gain) loss on extinguishment of debt
|
( i 2,154
|
)
|
i -
|
i 1,308
|
||||||||
|
Net periodic benefit cost (income), excluding service cost
|
i -
|
i 989
|
( i 4,961
|
)
|
||||||||
|
Income before income taxes
|
i 65,302
|
i 50,149
|
i 19,096
|
|||||||||
|
Income tax expense
|
i 14,040
|
i 11,957
|
i 2,863
|
|||||||||
|
Consolidated net income
|
|
i 51,262
|
|
i 38,192
|
|
i 16,233
|
||||||
| Net loss attributable to non-controlling interest |
( i 797 | ) | i - | i - | ||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
$ |
i 52,059 | $ |
i 38,192 | $ |
i 16,233 | ||||||
|
Basic income per common share:
|
||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
$
|
i 2.75
|
$
|
i 1.97
|
$
|
i 0.83
|
||||||
|
Diluted income per common share:
|
||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
$
|
i 2.52
|
$
|
i 1.85
|
$
|
i 0.78
|
||||||
|
Weighted average common shares outstanding:
|
||||||||||||
|
Basic
|
i 18,917,570
|
i 19,398,474
|
i 19,627,093
|
|||||||||
|
Diluted
|
i 22,381,994
|
i 22,937,441
|
i 23,240,348
|
|||||||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Consolidated net income
|
$
|
i 51,262
|
$
|
i 38,192
|
$
|
i 16,233
|
||||||
|
Other comprehensive income (loss), net of tax
|
||||||||||||
|
Amortization of unrealized pension and postretirement gain (loss), net of tax of $ i 0 in 2021, $ i 57
in 2020, and $ i 136 in 2019
|
i -
|
i 1,830
|
( i 1,150
|
)
|
||||||||
|
Unrealized (loss) gain on MSA investments, net of tax of $ i 81 in 2021 and $ i 0
in 2020 and $ i 351 in 2019
|
( i 272
|
)
|
i -
|
i 1,174
|
||||||||
|
Foreign currency translation, net of tax of $ i i i 0 / /
in 2021, 2020 and 2019
|
i 260 | i - | i - | |||||||||
|
Unrealized gain (loss) on derivative instruments, net of tax of $ i 813 in 2021, $ i 233
in 2020 and $ i 377 in 2019
|
i 2,634
|
( i 692
|
)
|
( i 1,261
|
)
|
|||||||
|
i 2,622
|
i 1,138
|
( i 1,237
|
)
|
|||||||||
| Consolidated comprehensive income |
i 53,884 | i 39,330 | i 14,996 | |||||||||
| Comprehensive loss attributable to non-controlling interest |
( i 615 | ) | i - | i - | ||||||||
|
Comprehensive income attributable to Turning Point Brands, Inc.
|
$
|
i 54,499
|
$
|
i 39,330
|
$
|
i 14,996
|
||||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Cash flows from operating activities:
|
||||||||||||
|
Consolidated net income
|
$
|
i 51,262
|
$
|
i 38,192
|
$
|
i 16,233
|
||||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
|
(Gain) loss on extinguishment of debt
|
( i 2,154
|
)
|
i -
|
i 1,308
|
||||||||
|
Pension settlement and curtailment loss
|
i -
|
i 1,188
|
i -
|
|||||||||
|
(Gain) loss on sale of property, plant, and equipment
|
( i 54
|
)
|
i 123
|
i 7
|
||||||||
|
Impairment loss
|
i -
|
i 149
|
i 301
|
|||||||||
|
Gain on postretirement plan termination
|
i -
|
i -
|
( i 4,915
|
)
|
||||||||
|
Loss (gain) on investments
|
i 7,100
|
i -
|
( i 2,000
|
)
|
||||||||
|
Depreciation expense
|
i 3,105
|
i 3,237
|
i 2,638
|
|||||||||
|
Amortization of other intangible assets
|
i 1,907
|
i 1,781
|
i 1,451
|
|||||||||
|
Amortization of deferred financing costs
|
i 2,541
|
i 2,230
|
i 1,458
|
|||||||||
|
Deferred income taxes
|
( i 1,485
|
)
|
i 4,742
|
( i 3,400
|
)
|
|||||||
|
Stock compensation expense
|
i 7,557
|
i 2,554
|
i 3,629
|
|||||||||
|
Noncash lease (income) expense
|
( i 167
|
)
|
i 370
|
i 357
|
||||||||
|
Gain on MSA escrow deposits
|
( i 255 | ) | i - | i - | ||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||
|
Accounts receivable
|
i 3,317
|
( i 2,112
|
)
|
( i 3,464
|
)
|
|||||||
|
Inventories
|
( i 9
|
)
|
( i 8,004
|
)
|
i 20,665
|
|||||||
|
Other current assets
|
( i 134
|
)
|
( i 5,373
|
)
|
( i 1,196
|
)
|
||||||
|
Other assets
|
i 996
|
i 2,076
|
( i 2,864
|
)
|
||||||||
|
Accounts payable
|
( i 2,367
|
)
|
( i 5,064
|
)
|
i 6,608
|
|||||||
|
Accrued postretirement liabilities
|
i -
|
( i 54
|
)
|
( i 168
|
)
|
|||||||
|
Accrued liabilities and other
|
( i 2,943
|
)
|
i 7,643
|
i 1,147
|
||||||||
|
Net cash provided by operating activities
|
$
|
i 68,217
|
$
|
i 43,678
|
$
|
i 37,795
|
||||||
|
Cash flows from investing activities:
|
||||||||||||
|
Capital expenditures
|
$
|
( i 6,156
|
)
|
$
|
( i 6,135
|
)
|
$
|
( i 4,815
|
)
|
|||
|
Acquisitions, net of cash acquired
|
( i 16,416
|
)
|
( i 39,441
|
)
|
( i 7,704
|
)
|
||||||
|
Payments for investments
|
( i 16,657 | ) | ( i 19,250 | ) | ( i 1,421 | ) | ||||||
|
Restricted cash, MSA escrow deposits
|
( i 19,664 | ) | i - | i 29,718 | ||||||||
|
Proceeds on sale of property, plant and equipment
|
i 54
|
i 3
|
i 123
|
|||||||||
|
Net cash (used in) provided by investing activities
|
$
|
( i 58,839
|
)
|
$
|
( i 64,823
|
)
|
$
|
i 15,901
|
||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Cash flows from financing activities:
|
||||||||||||
|
Proceeds from Senior Notes
|
$
|
i 250,000
|
$
|
i -
|
$
|
i -
|
||||||
|
Payments of 2018 first lien term loan
|
( i 130,000
|
)
|
( i 16,000
|
)
|
( i 8,000
|
)
|
||||||
|
Settlement of interest rate swaps
|
( i 3,573
|
)
|
i -
|
i -
|
||||||||
|
Payments of 2018 second lien term loan
|
i -
|
i -
|
( i 40,000
|
)
|
||||||||
|
Payments of 2018 revolving credit facility
|
i -
|
i -
|
( i 26,000
|
)
|
||||||||
|
Proceeds from Convertible Senior Notes
|
i -
|
i -
|
i 172,500
|
|||||||||
|
Payment of promissory note
|
( i 9,625 | ) | i - | i - | ||||||||
|
Payment of IVG note
|
i -
|
( i 4,240
|
)
|
i -
|
||||||||
|
Proceeds from unsecured note
|
i -
|
i 7,485
|
i -
|
|||||||||
|
Standard Diversified Inc. reorganization, net of cash acquired
|
i -
|
( i 1,737
|
)
|
i -
|
||||||||
|
Payments for call options
|
i -
|
i -
|
( i 20,528
|
)
|
||||||||
|
Payment of dividends
|
( i 4,096
|
)
|
( i 3,802
|
)
|
( i 3,531
|
)
|
||||||
|
Payments of financing costs
|
( i 6,921
|
)
|
( i 194
|
)
|
( i 7,117
|
)
|
||||||
|
Exercise of options
|
i 2,071
|
i 862
|
i 738
|
|||||||||
|
Redemption of options
|
( i 2,111
|
)
|
( i 1,523
|
)
|
( i 12
|
)
|
||||||
|
Surrender of restricted stock
|
i -
|
i -
|
( i 84
|
)
|
||||||||
|
Common stock repurchased
|
( i 38,678
|
)
|
( i 10,191
|
)
|
i -
|
|||||||
|
Net cash provided by (used in) financing activities
|
$
|
i 57,067
|
$
|
( i 29,340
|
)
|
$
|
i 67,966
|
|||||
|
Net increase (decrease) in cash
|
$
|
i 66,445
|
$
|
( i 50,485
|
)
|
$
|
i 121,662
|
|||||
|
Effect of foreign currency translation on cash
|
$ | i 191 | $ | i - | $ | i - | ||||||
|
Cash, beginning of period:
|
||||||||||||
|
Unrestricted
|
i 41,765
|
i 95,250
|
i 3,306
|
|||||||||
|
Restricted
|
i 35,074
|
i 32,074
|
i 2,356
|
|||||||||
|
Total cash at beginning of period
|
i 76,839
|
i 127,324
|
i 5,662
|
|||||||||
|
Cash, end of period:
|
||||||||||||
|
Unrestricted
|
i 128,320
|
i 41,765
|
i 95,250
|
|||||||||
|
Restricted
|
i 15,155
|
i 35,074
|
i 32,074
|
|||||||||
|
Total cash at end of period
|
$
|
i 143,475
|
$
|
i 76,839
|
$
|
i 127,324
|
||||||
|
Supplemental disclosures of cash flow information:
|
||||||||||||
|
Cash paid during the period for interest
|
$
|
i 12,539
|
$
|
i 11,455
|
$
|
i 11,828
|
||||||
|
Cash paid during the period for income taxes, net
|
$
|
i 16,063
|
$
|
i 3,384
|
$
|
i 11,332
|
||||||
|
Supplemental schedule of noncash financing activities:
|
||||||||||||
|
Issuance of note payable for acquisition
|
$
|
i -
|
$
|
i 10,000
|
$
|
i -
|
||||||
|
Dividends declared not paid
|
$
|
i 1,261
|
$
|
i 1,099
|
$
|
i 962
|
||||||
|
Voting
Shares
|
Common
Stock,
Voting
|
Additional
Paid-In
Capital
|
Cost of
Repurchased
Common Stock
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Accumulated
Earnings
(Deficit)
|
Non-
Controlling
Interest
|
Total
|
|||||||||||||||||||||||||
|
Beginning balance January 1, 2019
|
i 19,553,857
|
$
|
i 196
|
$
|
i 110,466
|
$
|
i -
|
$
|
( i 2,536
|
)
|
$
|
( i 21,526
|
)
|
$
|
i -
|
$
|
i 86,600
|
|||||||||||||||
|
Unrecognized pension and postretirement cost adjustment, net of tax of $ i 136
|
-
|
|
i -
|
|
i -
|
|
i -
|
|
( i 1,150
|
)
|
|
i -
|
|
i -
|
|
( i 1,150
|
)
|
|||||||||||||||
|
Unrealized gain on MSA investments, net of tax of $ i 351
|
-
|
i -
|
i -
|
i -
|
i 1,174
|
i -
|
i -
|
i 1,174
|
||||||||||||||||||||||||
|
Unrealized loss on derivative instruments, net of tax of $ i 377
|
-
|
i -
|
i -
|
i -
|
( i 1,261
|
)
|
i -
|
i -
|
( i 1,261
|
)
|
||||||||||||||||||||||
|
Stock compensation expense
|
-
|
i -
|
i 3,600
|
i -
|
i -
|
i -
|
i -
|
i 3,600
|
||||||||||||||||||||||||
|
Restricted stock forfeitures
|
( i 1,947
|
)
|
i -
|
( i 84
|
)
|
i -
|
i -
|
i -
|
i -
|
( i 84
|
)
|
|||||||||||||||||||||
|
Exercise of options
|
i 128,763
|
i 1
|
i 738
|
i -
|
i -
|
i -
|
i -
|
i 739
|
||||||||||||||||||||||||
|
Redemption of options
|
-
|
i -
|
( i 12
|
)
|
i -
|
i -
|
i -
|
i -
|
( i 12
|
)
|
||||||||||||||||||||||
|
Dividends
|
-
|
i -
|
i -
|
i -
|
i -
|
( i 3,579
|
)
|
i -
|
( i 3,579
|
)
|
||||||||||||||||||||||
|
Purchase of call options, net of tax of $ i 5,195
|
-
|
i -
|
( i 15,333
|
)
|
i -
|
i -
|
i -
|
i -
|
( i 15,333
|
)
|
||||||||||||||||||||||
|
Fair value of earn-out
|
-
|
i -
|
i 1,155
|
i -
|
i -
|
i -
|
i -
|
i 1,155
|
||||||||||||||||||||||||
|
Net income
|
-
|
i -
|
i -
|
i -
|
i -
|
i 16,233
|
i -
|
i 16,233
|
||||||||||||||||||||||||
|
Ending balance December 31, 2019
|
i 19,680,673
|
$
|
i 197
|
$
|
i 100,530
|
$
|
i -
|
$
|
( i 3,773
|
)
|
$
|
( i 8,872
|
)
|
$
|
i -
|
$
|
i 88,082
|
|||||||||||||||
|
Unrecognized pension and postretirement cost adjustment, net of tax of $ i 57
|
-
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
i 1,830
|
$
|
i -
|
$
|
i -
|
$
|
i 1,830
|
|||||||||||||||||
|
Unrealized loss on derivative instruments, net of tax of $ i 233
|
-
|
i -
|
i -
|
i -
|
( i 692
|
)
|
i -
|
i -
|
( i 692
|
)
|
||||||||||||||||||||||
|
Stock compensation expense
|
-
|
i -
|
i 2,554
|
i -
|
i -
|
i -
|
i -
|
i 2,554
|
||||||||||||||||||||||||
|
Exercise of options
|
i 96,005
|
i -
|
i 862
|
i -
|
i -
|
i -
|
i -
|
i 862
|
||||||||||||||||||||||||
|
Redemption of options
|
-
|
i -
|
( i 1,523
|
)
|
i -
|
i -
|
i -
|
i -
|
( i 1,523
|
)
|
||||||||||||||||||||||
|
Cost of repurchased common stock
|
( i 398,670 | ) | i - | i - | ( i 10,191 | ) | i - | i - | i - | ( i 10,191 | ) | |||||||||||||||||||||
|
Standard Diversified Inc. reorganization, net
|
( i 244,214 | ) | ( i 2 | ) | i - | i - | i - | ( i 1,735 | ) | i - | ( i 1,737 | ) | ||||||||||||||||||||
|
Dividends
|
-
|
i -
|
i -
|
i -
|
i -
|
( i 3,940
|
)
|
i -
|
( i 3,940
|
)
|
||||||||||||||||||||||
|
ReCreation acquisition
|
- | i - | i - | i - | i - | i - | i 4,050 | i 4,050 | ||||||||||||||||||||||||
|
Net income
|
-
|
i -
|
i -
|
i -
|
i -
|
i 38,192
|
i -
|
i 38,192
|
||||||||||||||||||||||||
|
Ending balance December 31, 2020
|
i 19,133,794
|
$
|
i 195
|
$
|
i 102,423
|
$
|
( i 10,191
|
)
|
$
|
( i 2,635
|
)
|
$
|
i 23,645
|
$
|
i 4,050
|
$
|
i 117,487
|
|||||||||||||||
|
Unrealized loss on MSA investments, net of tax of $ i 81
|
-
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
$
|
( i 272
|
)
|
$
|
i -
|
$
|
i -
|
$
|
( i 272
|
)
|
|||||||||||||||
|
Unrealized gain on derivative instruments, net of tax of $ i 813
|
-
|
i -
|
i -
|
i -
|
i 2,634
|
i -
|
i -
|
i 2,634
|
||||||||||||||||||||||||
|
Foreign currency translation, net of tax of $ i 0
|
- | i - | i - | i - | i 78 | i - | i 182 | i 260 | ||||||||||||||||||||||||
|
Stock compensation expense
|
-
|
i -
|
i 7,557
|
i -
|
i -
|
i -
|
i -
|
i 7,557
|
||||||||||||||||||||||||
|
Exercise of options
|
i 158,420
|
i 2
|
i 2,069
|
i -
|
i -
|
i -
|
i -
|
i 2,071
|
||||||||||||||||||||||||
|
Redemption of options
|
-
|
i -
|
( i 2,111
|
)
|
i -
|
i -
|
i -
|
i -
|
( i 2,111
|
)
|
||||||||||||||||||||||
|
Cost of repurchased common stock
|
( i 896,738
|
)
|
i -
|
i -
|
( i 38,678
|
)
|
i -
|
i -
|
i -
|
( i 38,678
|
)
|
|||||||||||||||||||||
|
Acquisition of ReCreation Marketing interest
|
-
|
i -
|
( i 1,127
|
)
|
i -
|
i -
|
i -
|
( i 1,123
|
)
|
( i 2,250
|
)
|
|||||||||||||||||||||
|
Dividends
|
-
|
i -
|
i -
|
i -
|
i -
|
( i 4,244
|
)
|
i -
|
( i 4,244
|
)
|
||||||||||||||||||||||
|
Net income
|
-
|
i -
|
i -
|
i -
|
i -
|
i 52,059
|
( i 797
|
)
|
i 51,262
|
|||||||||||||||||||||||
|
Ending balance December 31, 2021
|
i 18,395,476
|
$
|
i 197
|
$
|
i 108,811
|
$
|
( i 48,869
|
)
|
$
|
( i 195
|
)
|
$
|
i 71,460
|
$
|
i 2,312
|
$
|
i 133,716
|
|||||||||||||||
| • |
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets at the measurement date.
|
| • |
Level 2 – Inputs to the valuation methodology include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets
or liabilities in inactive markets; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
| • |
Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
|
|
As of December 31, 2021
|
As of December 31, 2020
|
|||||||||||||||||||
|
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
Cost and Estimated
Fair Value
|
||||||||||||||||
|
Cash and cash equivalents
|
$
|
i 12,155
|
$
|
i -
|
$
|
i -
|
$
|
i 12,155
|
$
|
i i 32,074 /
|
||||||||||
|
U.S. Governmental agency obligations
(unrealized gain position < 12 months)
|
i 19,918
|
i 4
|
( i 357
|
)
|
i 19,565
|
i i - /
|
||||||||||||||
|
Total
|
$
|
i 32,073
|
$
|
i 4
|
$
|
( i 357
|
)
|
$
|
i 31,720
|
$
|
i i 32,074 /
|
|||||||||
|
As of
|
||||
|
Less than one year
|
$
|
i -
|
||
|
One to five years
|
i 5,996
|
|||
|
Five to ten years
|
i 12,966
|
|||
|
Greater than ten years
|
i 956
|
|||
|
Total
|
$
|
i 19,918
|
||
|
Sales
|
Deposits as of December 31,
|
|||||||
|
Year
|
2021
|
2020
|
||||||
|
1999
|
$
|
i 211
|
$
|
i 211
|
||||
|
2000
|
i 1,017
|
i 1,017
|
||||||
|
2001
|
i 1,673
|
i 1,673
|
||||||
|
2002
|
i 2,271
|
i 2,271
|
||||||
|
2003
|
i 4,249
|
i 4,249
|
||||||
|
2004
|
i 3,714
|
i 3,714
|
||||||
|
2005
|
i 4,553
|
i 4,553
|
||||||
|
2006
|
i 3,847
|
i 3,847
|
||||||
|
2007
|
i 4,167
|
i 4,167
|
||||||
|
2008
|
i 3,364
|
i 3,364
|
||||||
|
2009
|
i 1,619
|
i 1,619
|
||||||
|
2010
|
i 406
|
i 406
|
||||||
|
2011
|
i 193
|
i 193
|
||||||
|
2012
|
i 199
|
i 199
|
||||||
|
2013
|
i 173
|
i 173
|
||||||
|
2014
|
i 143
|
i 143
|
||||||
|
2015
|
i 101
|
i 101
|
||||||
|
2016
|
i 91
|
i 91
|
||||||
|
2017
|
i 82
|
i 83
|
||||||
|
Total
|
$
|
i 32,073
|
$
|
i 32,074
|
||||
|
Balance at beginning of period
|
$
|
i 150
|
$
|
i 280
|
||||
|
Additions to allowance account during period
|
i 237
|
i 86
|
||||||
|
Deductions of allowance account during period
|
( i 125
|
)
|
( i 216
|
)
|
||||
|
Balance at end of period
|
$
|
i 262
|
$
|
i 150
|
||||
|
Total consideration transferred
|
$
|
i 3,462
|
||
|
Adjustments to consideration transferred:
|
||||
|
Cash acquired
|
( i 43
|
)
|
||
|
Accrued consideration
|
i 472
|
|||
|
Adjusted consideration transferred
|
i 3,891
|
|||
|
Assets acquired:
|
||||
|
Working capital (primarily AR and inventory)
|
i 1,334
|
|||
|
Fixed assets and Other long term assets
|
i 27
|
|||
|
Net assets acquired
|
$
|
i 1,361
|
||
|
Goodwill
|
$
|
i 2,530
|
|
Total consideration transferred
|
$
|
i 4,000
|
||
|
Adjustments to consideration transferred:
|
||||
|
Cash acquired
|
( i 3,711
|
)
|
||
|
Working capital
|
i 418
|
|||
|
Debt eliminated in consolidation
|
i 2,000
|
|||
|
Adjusted consideration transferred
|
i 2,707
|
|||
|
Assets acquired:
|
||||
|
Working capital (primarily AR and inventory)
|
i 1,551
|
|||
|
Fixed assets and Other long term assets
|
i 70
|
|||
|
Other liabilities
|
( i 203
|
)
|
||
|
Non-controlling interest
|
( i 4,050
|
)
|
||
|
Net assets acquired
|
$
|
( i 2,632
|
)
|
|
|
Goodwill
|
$
|
i 5,339
|
|
Raw materials and work in process
|
$
|
i 6,936
|
$
|
i 8,137
|
||||
|
Leaf tobacco
|
i 35,900
|
i 32,948
|
||||||
|
Finished goods - Zig-Zag Products
|
i 25,663
|
i 14,903
|
||||||
|
Finished goods - Stoker’s Products
|
i 8,959
|
i 9,727
|
||||||
|
Finished goods - NewGen Products
|
i 8,591
|
i 18,916
|
||||||
|
Other
|
i 1,558
|
i 1,225
|
||||||
|
Inventories
|
$
|
i 87,607
|
$
|
i 85,856
|
||||
|
2021
|
2020
|
|||||||
|
Balance at beginning of period
|
$
|
( i 9,924
|
)
|
$
|
( i 21,502
|
)
|
||
|
Charged to cost and expense
|
( i 2,795
|
)
|
( i 2,867
|
)
|
||||
|
Deductions for inventory disposed
|
i 5,051
|
i 14,445
|
||||||
|
Balance at end of period
|
$
|
( i 7,668
|
)
|
$
|
( i 9,924
|
)
|
||
|
Inventory deposits
|
$
|
i 12,091
|
$
|
i 7,113
|
||||
|
Insurance deposit
|
i 3,000
|
i 3,000
|
||||||
|
Prepaid taxes
|
i -
|
i 813
|
||||||
|
Other
|
i 11,655
|
i 15,525
|
||||||
|
Total
|
$
|
i 26,746
|
$
|
i 26,451
|
||||
|
Land
|
$
|
i 22
|
$
|
i 22
|
||||
|
Buildings and improvements
|
i 3,096
|
i 2,750
|
||||||
|
Leasehold improvements
|
i 5,374
|
i 4,702
|
||||||
|
Machinery and equipment
|
i 19,591
|
i 15,612
|
||||||
|
Furniture and fixtures
|
i 9,402
|
i 9,025
|
||||||
|
Gross property, plant and equipment
|
i 37,485
|
i 32,111
|
||||||
|
Accumulated depreciation
|
( i 18,835
|
)
|
( i 16,587
|
)
|
||||
|
Net property, plant and equipment
|
$
|
i 18,650
|
$
|
i 15,524
|
||||
|
Deferred financing costs, net of accumulated amortization of $ i 94 and $ i 705, respectively
|
$
|
i 388
|
$
|
i 641
|
||||
|
Zig-Zag
|
Stoker’s
|
NewGen
|
Total
|
|||||||||||||
|
Balance as of December 31, 2019
|
$
|
i 96,107
|
$
|
i 32,590
|
$
|
i 25,585
|
$
|
i 154,282
|
||||||||
|
Acquisitions
|
i 5,339
|
i -
|
i -
|
i 5,339
|
||||||||||||
|
Balance as of December 31, 2020
|
$
|
i 101,446
|
$
|
i 32,590
|
$
|
i 25,585
|
$
|
i 159,621
|
||||||||
|
Acquisitions
|
i 2,530
|
i -
|
i -
|
i 2,530
|
||||||||||||
| Cumulative translation adjustment |
i 182 | i - | i - | i 182 | ||||||||||||
|
Balance as of December 31, 2021
|
$
|
i 104,158
|
$
|
i 32,590
|
$
|
i 25,585
|
$
|
i 162,333
|
||||||||
|
Zig-Zag
|
Stoker’s
|
NewGen
|
Total
|
Zig-Zag
|
Stoker’s
|
NewGen
|
Total
|
|||||||||||||||||||||||||
|
Unamortized, indefinite life intangible assets:
|
||||||||||||||||||||||||||||||||
|
Trade names
|
$
|
i -
|
$
|
i 8,500
|
$
|
i 10,786
|
$
|
i 19,286
|
$ |
i - |
$
|
i 8,500
|
$
|
i 10,786
|
$
|
i 19,286
|
||||||||||||||||
|
Formulas
|
i 52,217
|
i 53
|
i -
|
i 52,270
|
i 42,245 |
i 53
|
i -
|
i 42,298
|
||||||||||||||||||||||||
|
Total
|
$
|
i 52,217
|
$
|
i 8,553
|
$
|
i 10,786
|
$
|
i 71,556
|
$ |
i 42,245 |
$
|
i 8,553
|
$
|
i 10,786
|
$
|
i 61,584
|
||||||||||||||||
|
Gross
Carrying
|
Accumulated
Amortization
|
Gross
Carrying
|
Accumulated
Amortization
|
|||||||||||||
|
Amortized intangible assets:
|
||||||||||||||||
|
Customer relationships (useful life of i 8- i 10 years)
|
$
|
i 6,936
|
$
|
i 3,939
|
$
|
i 6,936
|
$
|
i 3,111
|
||||||||
|
Trade names (useful life of i 15 years)
|
i 9,530
|
i 1,993
|
i 9,530
|
i 1,375
|
||||||||||||
|
Master distribution agreement (useful life of i 15 years)
|
i 5,489
|
i 549
|
i 5,489
|
i 183
|
||||||||||||
|
Franchise agreements (useful life of i 8 years)
|
i 780
|
i 325
|
i 780
|
i 228
|
||||||||||||
|
Non-compete agreements (useful life of i 3.5 years)
|
i 100
|
i 100
|
i 100
|
i 100
|
||||||||||||
|
Total
|
$
|
i 22,835
|
$
|
i 6,906
|
$
|
i 22,835
|
$
|
i 4,997
|
||||||||
|
Equity investments
|
$
|
i 25,649
|
$
|
i 24,018
|
||||
|
Debt security investment
|
i 8,000
|
i -
|
||||||
|
Other
|
i 1,750
|
i 2,818
|
||||||
|
Total
|
$
|
i 35,399
|
$
|
i 26,836
|
||||
|
Accrued payroll and related items
|
$
|
i 6,974
|
$
|
i 9,459
|
||||
|
Customer returns and allowances
|
i 6,497
|
i 5,259
|
||||||
|
Taxes payable
|
i 2,053
|
i 4,326
|
||||||
|
Lease liabilities
|
i 2,976
|
i 3,228
|
||||||
|
Accrued interest
|
i 7,318
|
i 2,096
|
||||||
|
Other
|
i 7,119
|
i 10,857
|
||||||
|
Total
|
$
|
i 32,937
|
$
|
i 35,225
|
||||
| Senior Secured Notes |
$ |
i 250,000 | $ |
i - | ||||
|
2018 First Lien Term Loan
|
|
i -
|
|
i 130,000
|
||||
|
Convertible Senior Notes
|
i 172,500
|
i 172,500
|
||||||
|
Note payable - Promissory Note
|
i -
|
i 10,000
|
||||||
|
Note payable - Unsecured Loan
|
i -
|
i 7,485
|
||||||
|
Gross notes payable and long-term debt
|
i 422,500
|
i 319,985
|
||||||
|
Less deferred finance charges
|
( i 8,328
|
)
|
( i 5,873
|
)
|
||||
|
Less current maturities
|
i -
|
( i 12,000
|
)
|
|||||
|
Net notes payable and long-term debt
|
$
|
i 414,172
|
$
|
i 302,112
|
||||
|
2021
|
2020
|
2019
|
||||||||||||||||||||||||||||||||||
|
Current
|
Deferred
|
Total
|
Current
|
Deferred
|
Total
|
Current
|
Deferred
|
Total
|
||||||||||||||||||||||||||||
|
Federal
|
$
|
i 11,315
|
$
|
( i 583
|
)
|
$
|
i 10,732
|
$
|
i 5,285
|
$
|
i 3,642
|
$
|
i 8,927
|
$
|
i 5,281
|
$
|
( i 2,626
|
)
|
$
|
i 2,655
|
||||||||||||||||
|
State and Local
|
i 4,210
|
( i 637
|
)
|
i 3,573
|
i 1,930
|
i 1,100
|
i 3,030
|
i 982
|
( i 774
|
)
|
i 208
|
|||||||||||||||||||||||||
| Foreign |
i - | ( i 265 | ) | ( i 265 | ) | i - | i - | i - | i - | i - | i - | |||||||||||||||||||||||||
|
Total
|
$
|
i 15,525
|
$
|
( i 1,485
|
)
|
$
|
i 14,040
|
$
|
i 7,215
|
$
|
i 4,742
|
$
|
i 11,957
|
$
|
i 6,263
|
$
|
( i 3,400
|
)
|
$
|
i 2,863
|
||||||||||||||||
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
|||||||||||||
|
Inventory
|
$
|
i 2,096
|
$
|
i 2
|
$
|
i 2,567
|
$
|
i -
|
||||||||
|
Property, plant, and equipment
|
i -
|
i 3,259
|
i -
|
i 3,107
|
||||||||||||
|
Goodwill and other intangible assets
|
i -
|
i 8,573
|
i -
|
i 8,144
|
||||||||||||
|
Foreign NOL carryforward
|
i 265
|
-
|
i -
|
-
|
||||||||||||
|
State NOL carryforward
|
i 2,421
|
-
|
i 2,236
|
-
|
||||||||||||
|
Unrealized loss on investments
|
i 81
|
-
|
i 876
|
-
|
||||||||||||
|
Leases
|
i 4,150
|
i 3,826
|
i 4,920
|
i 4,557
|
||||||||||||
|
Original issue discount
|
i 2,720
|
i -
|
i 3,800
|
i -
|
||||||||||||
|
Other
|
i 10,244
|
i 2,305
|
i 6,611
|
i 2,356
|
||||||||||||
|
Gross deferred income taxes
|
i 21,977
|
i 17,965
|
i 21,010
|
i 18,164
|
||||||||||||
|
Valuation allowance
|
( i 2,649
|
)
|
-
|
( i 2,236
|
)
|
-
|
||||||||||
|
Net deferred income taxes
|
$
|
i 19,328
|
$
|
i 17,965
|
$
|
i 18,774
|
$
|
i 18,164
|
||||||||
|
2021
|
2020
|
2019
|
||||||||||
|
Federal statutory rate
|
i 21.0
|
%
|
i 21.0
|
%
|
i 21.0
|
%
|
||||||
| Foreign rate differential |
- i 0.1 | % | i 0.0 | % | i 0.0 | % | ||||||
|
State taxes
|
i 3.4
|
%
|
i 2.9
|
%
|
i 0.7
|
%
|
||||||
|
Permanent differences
|
- i 4.1
|
%
|
- i 1.6
|
%
|
- i 5.6
|
%
|
||||||
|
Other
|
i 0.7
|
%
|
i 4.7
|
%
|
- i 3.1
|
%
|
||||||
|
Valuation allowance
|
i 0.6
|
%
|
- i 3.2
|
%
|
i 2.0
|
%
|
||||||
|
Effective income tax rate
|
i 21.5
|
%
|
i 23.8
|
%
|
i 15.0
|
%
|
||||||
|
Pension
Benefits
|
Postretirement
Benefits
|
|||||||
|
2020
|
2020
|
|||||||
|
Reconciliation of benefit obligations:
|
||||||||
|
Benefit obligation at January 1
|
$
|
i 14,217
|
$
|
i 115
|
||||
|
Service cost
|
i -
|
i -
|
||||||
|
Interest cost
|
i 190
|
i -
|
||||||
|
Actuarial loss (gain)
|
i 249
|
( i 83
|
)
|
|||||
|
Assumptions
|
i -
|
i -
|
||||||
|
Settlement/curtailment
|
( i 1,869
|
)
|
i -
|
|||||
|
Annuities purchased
|
( i 12,116
|
)
|
i -
|
|||||
|
Benefits paid
|
( i 671
|
)
|
( i 32
|
)
|
||||
|
Benefit obligation at December 31
|
$
|
i -
|
$
|
i -
|
||||
|
Reconciliation of fair value of plan assets:
|
||||||||
|
Fair value of plan assets at January 1
|
$
|
i 15,903
|
$
|
i -
|
||||
|
Actual return on plan assets
|
i 1,139
|
i -
|
||||||
|
Employer contributions
|
i -
|
i 32
|
||||||
|
Settlement/curtailment
|
( i 1,869
|
)
|
i -
|
|||||
|
Annuities purchased
|
( i 12,116
|
)
|
i -
|
|||||
|
Benefits paid
|
( i 671
|
)
|
( i 32
|
)
|
||||
|
Asset reversion upon termination
|
( i 2,386
|
)
|
i -
|
|||||
|
Fair value of plan assets at December 31
|
$
|
i -
|
$
|
i -
|
||||
|
Pension Benefits
|
Postretirement Benefits
|
|||||||||||||||||||||||
|
2021
|
2020
|
2019
|
2021
|
2020
|
2019
|
|||||||||||||||||||
|
Service cost
|
$
|
i -
|
$
|
i -
|
$
|
i 104
|
$
|
i -
|
$
|
i -
|
$
|
i -
|
||||||||||||
|
Interest cost
|
i -
|
i 190
|
i 520
|
i -
|
i -
|
i 101
|
||||||||||||||||||
|
Expected return on plan assets
|
i -
|
( i 322
|
)
|
( i 645
|
)
|
i -
|
i -
|
i -
|
||||||||||||||||
|
Amortization of (gains) losses
|
i -
|
i 72
|
i 147
|
i -
|
( i 131
|
)
|
( i 169
|
)
|
||||||||||||||||
|
Settlement and Curtailment loss (gain)
|
i -
|
i 1,180
|
i -
|
i -
|
i -
|
( i 4,915
|
)
|
|||||||||||||||||
|
Net periodic benefit cost (income)
|
$
|
i -
|
$
|
i 1,120
|
$
|
i 126
|
$
|
i -
|
$
|
( i 131
|
)
|
$
|
( i 4,983
|
)
|
||||||||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019 |
|||||||||||
|
Operating lease cost
|
||||||||||||
|
Cost of sales
|
$
|
i 907
|
$
|
i 908
|
$ | i 874 | ||||||
|
Selling, general and administrative
|
i 3,001
|
i 2,402
|
i 2,973 | |||||||||
|
Variable lease cost (1)
|
i 1,182
|
i 587
|
i 463 | |||||||||
|
Short-term lease cost
|
i 48
|
i 131
|
i 147 | |||||||||
|
Sublease income
|
( i 60
|
)
|
( i 120
|
)
|
( i 110 | ) | ||||||
|
Total
|
$
|
i 5,078
|
$
|
i 3,908
|
$ | i 4,347 | ||||||
| (1) |
Variable lease cost includes elements of a contract that
do not represent a good or service but for which the lessee is responsible for paying.
|
|
Assets:
|
||||||||
|
Right of use assets
|
$
|
i 15,053
|
$
|
i 17,918
|
||||
|
Total lease assets
|
$
|
i 15,053
|
$
|
i 17,918
|
||||
|
Liabilities:
|
||||||||
|
Current lease liabilities (2)
|
$
|
i 2,976
|
$
|
i 3,228
|
||||
|
Long-term lease liabilities
|
i 13,336
|
i 16,117
|
||||||
|
Total lease liabilities
|
$
|
i 16,312
|
$
|
i 19,345
|
||||
| (2) |
Reported within accrued liabilities on the balance sheet
|
|
As of December 31,
|
||||||||
|
2020
|
||||||||
|
Weighted-average remaining lease term - operating leases
|
i 6.7 years
|
i 7.2 years
|
||||||
|
Weighted-average discount rate - operating leases
|
i 4.92
|
%
|
i 4.93
|
%
|
||||
|
2022
|
$
|
i 3,674
|
||
|
2023
|
i 3,613
|
|||
|
2024
|
i 2,439
|
|||
|
2025
|
i 2,125
|
|||
|
2026
|
i 2,084
|
|||
|
Years thereafter
|
i 5,344
|
|||
|
Total lease payments
|
$
|
i 19,279
|
||
|
Less: Imputed interest
|
i 2,967
|
|||
|
Present value of lease liabilities
|
$
|
i 16,312
|
||
|
Year
|
Payments
|
|||
|
2022
|
$
|
i 2,596
|
||
|
2023
|
i 2,568
|
|||
|
2024
|
i 2,396
|
|||
|
2025
|
i 2,125
|
|||
|
2026
|
i 2,084
|
|||
|
Years thereafter
|
i 5,344
|
|||
|
Total
|
$
|
i 17,113
|
||
|
Stock
Option
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Grant Date
Fair Value
|
||||||||||
|
Outstanding, December 31, 2019
|
i 696,716
|
$
|
i 18.13
|
$
|
i 6.17
|
|||||||
|
Granted
|
i 155,000
|
i 14.85
|
i 4.41
|
|||||||||
|
Exercised
|
( i 135,146
|
)
|
i 6.37
|
i 2.74
|
||||||||
|
Forfeited
|
( i 5,510
|
)
|
i 27.25
|
i 8.64
|
||||||||
|
Outstanding, December 31, 2020
|
i 711,060
|
i 19.58
|
i 6.42
|
|||||||||
|
Granted
|
i 119,500
|
i 50.93
|
i 13.58
|
|||||||||
|
Exercised
|
( i 202,768
|
)
|
i 10.22
|
i 6.35
|
||||||||
|
Forfeited
|
( i 7,957
|
)
|
i 33.22
|
i 9.63
|
||||||||
|
Outstanding, December 31, 2021
|
i 619,835
|
$
|
i 28.51
|
$
|
i 8.70
|
|||||||
|
Number of options granted
|
i 40,000
|
i 93,819
|
i 98,100
|
i 155,780
|
i 25,000
|
i 155,000
|
i 100,000 | i 12,000 | ||||||||||||||||||||||||
|
Options outstanding at December 31, 2021
|
i 27,050
|
i 47,483
|
i 67,417
|
i 142,284
|
i 25,000
|
i 106,361
|
i 97,400 | i 12,000 | ||||||||||||||||||||||||
|
Number exercisable at December 31, 2021
|
i 27,050
|
i 47,483
|
i 67,417
|
i 110,015
|
i 16,750
|
i 33,167
|
i 9,500 | i - | ||||||||||||||||||||||||
|
Exercise price
|
$
|
i 13.00
|
$
|
i 15.41
|
$
|
i 21.21
|
$
|
i 47.58
|
$
|
i 20.89
|
$
|
i 14.85
|
$ |
i 51.75 | $ |
i 47.76 | ||||||||||||||||
|
Remaining lives
|
i 5.12
|
i 5.38
|
i 6.19
|
i 7.22
|
i 7.82
|
i 8.22
|
i 9.14 | i 9.34 | ||||||||||||||||||||||||
|
Risk free interest rate
|
i 1.89
|
%
|
i 1.76
|
%
|
i 2.65
|
%
|
i 2.34
|
%
|
i 1.58
|
%
|
i 0.79
|
%
|
i 0.56 | % | i 0.84 | % | ||||||||||||||||
|
Expected volatility
|
i 27.44
|
%
|
i 26.92
|
%
|
i 28.76
|
%
|
i 30.95
|
%
|
i 31.93
|
%
|
i 35.72
|
%
|
i 28.69 | % | i 29.03 | % | ||||||||||||||||
|
Expected life
|
i 6.000
|
i 6.000
|
i 6.000
|
i 6.000
|
i 6.000
|
i 6.000
|
i 6.000 | i 6.000 | ||||||||||||||||||||||||
|
Dividend yield
|
i -
|
i -
|
i 0.83
|
%
|
i 0.42
|
%
|
i 0.95
|
%
|
i 1.49
|
%
|
i 0.55 | % | i 0.59 | % | ||||||||||||||||||
|
Fair value at grant date
|
$
|
i 3.98
|
$
|
i 4.60
|
$
|
i 6.37
|
$
|
i 15.63
|
$
|
i 6.27
|
$
|
i 4.41
|
$ |
i 13.77 | $ |
i 13.06 | ||||||||||||||||
|
Number of options granted
|
i 7,500
|
|||
|
Options outstanding at December 31, 2021
|
i 7,500
|
|||
|
Number exercisable at December 31, 2021
|
i -
|
|||
|
Exercise price
|
$
|
i 45.05
|
||
|
Remaining lives
|
i 9.38
|
|||
|
Risk free interest rate
|
i 0.84
|
%
|
||
|
Expected volatility
|
i 31.50
|
%
|
||
|
Expected life
|
i 6.000
|
|||
|
Dividend yield
|
i 0.63
|
%
|
||
|
Fair value at grant date
|
$
|
i 13.23
|
||
|
Number of PRSUs granted
|
i 94,000
|
i 96,000
|
i 92,500
|
i 88,582
|
i 94,000
|
i 88,169
|
i 100,000 | |||||||||||||||||||||
|
PRSUs outstanding at December 31, 2021
|
i 83,000
|
i 93,000
|
i 84,600
|
i 21,342
|
i 91,350
|
i 88,169
|
i 97,200 | |||||||||||||||||||||
|
Fair value as of grant date
|
$
|
i 15.60
|
$
|
i 21.21
|
$
|
i 47.58
|
$
|
i 52.15
|
$
|
i 14.85
|
$
|
i 46.42
|
$ |
i 51.75 | ||||||||||||||
|
Remaining lives
|
-
|
i 1.00
|
i 2.00
|
i 1.00
|
i 3.00
|
i 2.00
|
i 4.00 | |||||||||||||||||||||
|
Income
|
Shares
|
Per
Share
|
Income
|
Shares
|
Per
Share
|
Income
|
Shares
|
Per
Share
|
||||||||||||||||||||||||||||
|
Basic EPS:
|
||||||||||||||||||||||||||||||||||||
|
Numerator
|
||||||||||||||||||||||||||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
$
|
i 52,059
|
$
|
i 38,192
|
$
|
i 16,233
|
||||||||||||||||||||||||||||||
|
Denominator
|
||||||||||||||||||||||||||||||||||||
|
Weighted average
|
i 18,917,570
|
$
|
i 2.75
|
i 19,398,474
|
$
|
i 1.97
|
i 19,627,093
|
$
|
i 0.83
|
|||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Diluted EPS:
|
||||||||||||||||||||||||||||||||||||
|
Numerator
|
||||||||||||||||||||||||||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
$
|
i 52,059
|
$
|
i 38,192
|
$
|
i 16,233
|
||||||||||||||||||||||||||||||
|
Interest expense related to Convertible Senior Notes, net of tax
|
i 4,317
|
i 4,188
|
i 1,958
|
|||||||||||||||||||||||||||||||||
|
Diluted consolidated net income
|
$
|
i 56,376
|
$
|
i 42,380
|
$
|
i 18,191
|
||||||||||||||||||||||||||||||
|
Denominator
|
||||||||||||||||||||||||||||||||||||
|
Basic weighted average
|
i 18,917,570
|
i 19,398,474
|
i 19,627,093
|
|||||||||||||||||||||||||||||||||
|
Convertible Senior Notes
|
i 3,208,172
|
i 3,202,808
|
i 3,202,808
|
|||||||||||||||||||||||||||||||||
|
Stock options
|
i 256,252
|
i 336,159
|
i 410,447
|
|||||||||||||||||||||||||||||||||
|
i 22,381,994
|
$
|
i 2.52
|
i 22,937,441
|
$
|
i 1.85
|
i 23,240,348
|
$
|
i 0.78
|
||||||||||||||||||||||||||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Net sales
|
||||||||||||
|
Zig-Zag products
|
$
|
i 176,491
|
$
|
i 132,812
|
$
|
i 108,733
|
||||||
|
Stoker’s products
|
i 124,280
|
i 115,866
|
i 99,894
|
|||||||||
|
NewGen products
|
i 144,700
|
i 156,433
|
i 153,362
|
|||||||||
|
Total
|
$
|
i 445,471
|
$
|
i 405,111
|
$
|
i 361,989
|
||||||
|
Gross profit
|
||||||||||||
|
Zig-Zag products
|
$
|
i 102,739
|
$
|
i 78,278
|
$
|
i 59,414
|
||||||
|
Stoker’s products
|
i 68,084
|
i 61,764
|
i 52,620
|
|||||||||
|
NewGen products
|
i 47,011
|
i 49,948
|
i 25,083
|
|||||||||
|
Total
|
$
|
i 217,834
|
$
|
i 189,990
|
$
|
i 137,117
|
||||||
|
Operating income (loss)
|
||||||||||||
|
Zig-Zag products
|
$
|
i 77,109
|
$
|
i 61,932
|
$
|
i 45,086
|
||||||
|
Stoker’s products
|
i 52,073
|
i 45,042
|
i 35,008
|
|||||||||
|
NewGen products
|
i 2,263
|
i 5,801
|
( i 20,629
|
)
|
||||||||
|
Corporate unallocated (1)(2)
|
( i 41,124 | ) | ( i 48,348 | ) | ( i 32,235 | ) | ||||||
|
Total
|
$
|
i 90,321
|
$
|
i 64,427
|
$
|
i 27,230
|
||||||
|
Interest expense, net
|
i 20,500
|
i 13,487
|
i 14,435
|
|||||||||
|
Investment loss (income)
|
i 6,673
|
( i 198
|
)
|
( i 2,648
|
)
|
|||||||
|
(Gain) loss on extinguishment of debt
|
( i 2,154
|
)
|
i -
|
i 1,308
|
||||||||
|
Net periodic benefit (income) cost, excluding service cost
|
i -
|
i 989
|
( i 4,961
|
)
|
||||||||
|
Income before income taxes
|
$
|
i 65,302
|
$
|
i 50,149
|
$
|
i 19,096
|
||||||
|
Capital expenditures
|
||||||||||||
|
Zig-Zag products
|
$
|
i 141
|
$
|
i -
|
$
|
i -
|
||||||
|
Stoker’s products
|
i 5,960
|
i 5,815
|
i 2,823
|
|||||||||
|
NewGen products
|
i 55
|
i 320
|
i 1,992
|
|||||||||
|
Total
|
$
|
i 6,156
|
$
|
i 6,135
|
$
|
i 4,815
|
||||||
|
Depreciation and amortization
|
||||||||||||
|
Zig-Zag products
|
$
|
i 388
|
$
|
i 182
|
$
|
i -
|
||||||
|
Stoker’s products
|
i 2,565
|
i 2,215
|
i 1,608
|
|||||||||
|
NewGen products
|
i 2,059
|
i 2,621
|
i 2,481
|
|||||||||
|
Total
|
$
|
i 5,012
|
$
|
i 5,018
|
$
|
i 4,089
|
||||||
| (1) |
Includes corporate costs that are not allocated to any
of the i three reportable segments.
|
| (2) |
Includes costs related to PMTA of $ i 2.6 million, $ i 14.4
million and $ i 2.2 million in 2021, 2020 and 2019, respectively.
|
|
Assets
|
||||||||
|
Zig-Zag products
|
$
|
i 227,554
|
$
|
i 206,900
|
||||
|
Stoker’s products
|
i 142,334
|
i 133,016
|
||||||
|
NewGen products
|
i 72,746
|
i 91,116
|
||||||
|
Corporate unallocated (1)
|
i 158,926
|
i 65,017
|
||||||
|
Total
|
$
|
i 601,560
|
$
|
i 496,049
|
||||
| (1) |
Includes assets not assigned to the i three
reportable segments. All goodwill has been allocated to the reportable segments.
|
|
NewGen Segment
|
||||||||||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Business to Business
|
$
|
i 107,235
|
$
|
i 107,976
|
$
|
i 112,580
|
||||||
|
Business to Consumer - Online
|
i 37,069
|
i 43,517
|
i 31,348
|
|||||||||
|
Business to Consumer - Corporate store
|
i -
|
i 4,751
|
i 9,273
|
|||||||||
|
Other
|
i 396
|
i 189
|
i 161
|
|||||||||
|
Total
|
$
|
i 144,700
|
$
|
i 156,433
|
$
|
i 153,362
|
||||||
|
For the year ended December 31,
|
||||||||||||
|
2020
|
2019
|
|||||||||||
|
Domestic
|
$
|
i 415,514
|
$
|
i 391,705
|
$
|
i 347,616
|
||||||
|
Foreign
|
i 29,957
|
i 13,406
|
i 14,373
|
|||||||||
|
Total
|
$
|
i 445,471
|
$
|
i 405,111
|
$
|
i 361,989
|
||||||
|
1st
|
2nd
|
3rd
|
4th
|
|||||||||||||
|
2021
|
||||||||||||||||
|
Net sales
|
$
|
i 107,641
|
$
|
i 122,643
|
$
|
i 109,904
|
$
|
i 105,283
|
||||||||
|
Gross profit
|
i 53,261
|
i 59,973
|
i 54,269
|
i 50,331
|
||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
i 11,783
|
i 15,355
|
i 13,468
|
i 11,454
|
||||||||||||
|
Basic net income attributable to Turning Point Brands, Inc. per share
|
i 0.62
|
i 0.81
|
i 0.71
|
i 0.61
|
||||||||||||
|
Diluted net income attributable to Turning Point Brands, Inc. per share
|
$
|
i 0.57
|
$
|
i 0.73
|
$
|
i 0.65
|
$
|
i 0.57
|
||||||||
|
2020
|
||||||||||||||||
|
Net sales
|
$
|
i 90,689
|
$
|
i 104,963
|
$
|
i 104,174
|
$
|
i 105,285
|
||||||||
|
Gross profit
|
i 41,431
|
i 47,936
|
i 48,307
|
i 52,316
|
||||||||||||
|
Net income attributable to Turning Point Brands, Inc.
|
i 4,499
|
i 10,295
|
i 9,020
|
i 14,378
|
|
|||||||||||
|
Basic net income attributable to Turning Point Brands, Inc. per share
|
i 0.23
|
i 0.53
|
i 0.47
|
i 0.75
|
||||||||||||
|
Diluted net income attributable to Turning Point Brands, Inc. per share
|
$
|
i 0.22
|
(1) |
$
|
i 0.49
|
$
|
i 0.44
|
$
|
i 0.68
|
|||||||
| (1) |
The effect of i 3,202,808 shares issuable upon conversion of the Convertible Senior Notes were excluded from the diluted net income per share calculation because
the effect would have been antidilutive.
|
|
/s/ Yavor Efremov
|
/s/ Luis Reformina
|
/s/ Brian Wigginton
|
| Luis Reformina | ||
|
President and Chief Executive Officer
|
Chief Financial Officer
|
Chief Accounting Officer
|
| Date: March 11, 2022 |
Date: March 11, 2022 | Date: March 11, 2022 |
|
a)
|
Financial Information
|
|
(1)
|
Financial Statements: See “Index to Consolidated Financial Statements” in Part II, Item 8 of this Annual Report on Form 10-K.
|
|
(2)
|
Financial Statement Schedule: Information required by this item is included within the consolidated financial statements or notes in Item 8 of this Annual Report on Form 10-K.
|
|
(3)
|
Exhibits – See (b) below
|
|
b)
|
Exhibits Index to Exhibits
|
|
Exhibit No.
|
Description
|
|
International Vapor Group Stock Purchase Agreement dated as of September 5, 2018, between Turning Point Brands, Inc. and International Vapor Group, LLC (incorporated by reference to Exhibit 2.1 to the
Registrant’s Quarterly Report on Form 10-Q filed on November 7, 2018).
|
|
|
Agreement and Plan of Merger and Reorganization, dated as of April 7, 2020, by and among TPB, SDI and Merger Sub. (incorporated by reference to Exhibit 2.1 to the Registrant’s Current
Report on Form 8-K filed on April 8, 2020).
|
|
|
Second Amended and Restated Certificate of Incorporation of Turning Point Brands, Inc. (incorporated by reference to Exhibit 3.1 to
the Registrant’s Current Report on Form 8-K filed on May 16, 2016).
|
|
|
|
|
|
Second Amended and Restated By-laws (incorporated by reference to Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q filed on October 27, 2020).
|
|
|
|
|
|
Registration Rights Agreement of Turning Point Brands, Inc. dated May 10, 2016, between Turning Point Brands, Inc. and the
Stockholders named therein (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on May 16, 2016).
|
|
|
Description of Securities. (incorporated by reference to Exhibit 4.2 to the Registrant’s Annual Report on Form 10-K filed on March 12,
2020).
|
|
|
|
Indenture dated as of February 11, 2021, between Turning Point Brands, Inc. and GLAS Trust Company LLC, (including the form of Note as Exhibit A thereto) (incorporated by reference to
Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q filed on May 5, 2021).
|
|
Turning Point Brands, Inc. 2015 Equity Incentive Plan (the “2015 Plan”) (incorporated by reference to Exhibit 10.1 to the
Registrant’s Registration Statement on Form S-1/A (File No. 333-207816) filed on November 5, 2015). †
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Form of Stock Option Award Agreement under the 2015 Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Annual
Report on Form 10-K filed on March 13, 2017). †
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Form of Performance-Based Restricted Stock Unit Award Agreement under the Turning Point Brands, Inc. 2015 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly
Report on Form 10-Q filed on May 11, 2017). †
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2006 Equity Incentive Plan of Turning Point Brands, Inc. (incorporated by reference to Exhibit 10.3 to the Registrant’s
Registration Statement on Form S-1/A (File No. 333-207816) filed on November 5, 2015). †
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Amendment No. 1 to the 2006 Equity Incentive Plan of North Atlantic Holding Company, Inc. (incorporated by reference to Exhibit
10.4 to the Registrant’s Annual Report on Form 10-K filed on March 13, 2017). †
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Amendment No. 2 to the 2006 Equity Incentive Plan of North Atlantic Holding Company, Inc. (incorporated by reference to Exhibit
10.5 to the Registrant’s Annual Report on Form 10-K filed on March 13, 2017). †
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Amendment No. 3 to the 2006 Equity Incentive Plan of North Atlantic Holding Company, Inc. (incorporated by reference to Exhibit
10.1 to the Registrant’s Current Report on Form 8-K filed on February 7, 2017). †
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Amendment No. 4 to the 2006 Equity Incentive Plan of North Atlantic Holding Company, Inc. (incorporated by reference to Exhibit
10.54 to the Registrant’s Annual Report on Form 10-K filed on March 13, 2017). †
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Form of Award Agreement under the 2006 Plan (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement
on Form S-1/A (File No. 333-207816) filed on November 5, 2015). †
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Form of Cash-Out Agreement under the 2006 Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on February 7, 2017). †
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Form of Indemnification Agreement between Turning Point Brands, Inc. and certain directors and officers (incorporated by reference
to Exhibit 10.10 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-207816) filed on November 24, 2015).
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Form of Indemnification Agreement between Turning Point Brands, Inc. and Standard General Master Fund, L.P. (incorporated by
reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-207816) filed on November 24, 2015).
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Employment Agreement between Turning Point Brands, Inc. and Lawrence Wexler dated November 23, 2015 (incorporated by reference to Exhibit 10.9 to the Registrant’s Current
Report on Form 8-K filed on May 16, 2016). †
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Employment Agreement between Turning Point Brands, Inc. and Mr. Robert M. Lavan dated March 13, 2018 (incorporated by reference to Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed on March 19, 2018). †
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Contract Manufacturing, Packaging and Distribution Agreement dated as of September 4, 2008, between National Tobacco Company, L.P.
and Swedish Match North America, Inc. (incorporated by reference to Exhibit 10.17 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-207816) filed on November 24, 2015).
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Amended and Restated Distribution and License Agreement dated as of November 30, 1992, between Bolloré Technologies, S.A. and North
Atlantic Trading Company, Inc., as predecessor to North Atlantic Operating Company, Inc. (U.S.) (incorporated by reference to Exhibit 10.2 to Amendment No. 2 to the Registrant’s Registration Statement (Reg. No. 333-31931) on Form
S-4/A filed with the Commission on September 17, 1997).
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Amended and Restated Distribution and License Agreement dated as of November 30, 1992, between Bolloré Technologies, S.A. and North
Atlantic Trading Company, Inc., as predecessor to North Atlantic Operating Company, Inc. (Canada) (incorporated by reference to Exhibit 10.4 to Amendment No. 2 to the Registrant’s Registration Statement (Reg. No. 333-31931) on Form
S-4/A filed with the Commission on September 17, 1997).
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Amendment to the Amended and Restated Distribution and License Agreement dated March 31, 1993 between Bolloré Technologies, S.A.
and North Atlantic Trading Company, Inc. (U.S. & Canada) (incorporated by reference to Exhibit 10.22 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment to the Amended and Restated Distribution and License Agreements dated June 10, 1996, between Bolloré Technologies, S.A.
and North Atlantic Trading Company, Inc. (U.S. & Canada) (incorporated by reference to Exhibit 10.23 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment to the Amended and Restated Distribution and License Agreement dated September 1996, between Bolloré Technologies, S.A.
and North Atlantic Trading Company, Inc. (U.S. & Canada) (incorporated by reference to Exhibit 10.24 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Restated Amendment to the Amended and Restated Distribution and License Agreement between Bolloré Technologies, S.A. and North
Atlantic Operating Company, Inc. dated June 25, 1997 (U.S. & Canada) (incorporated by reference to Exhibit 10.5 to Amendment No. 2 to the Registrant’s Registration Statement (Reg. No. 333-31931) on Form S-4/A filed with the
Commission on September 17, 1997).
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Amendment to the Amended and Restated Distribution and License Agreement dated October 22, 1997, between Bolloré Technologies, S.A.
and North Atlantic Operating Company, Inc. (U.S. & Canada) (incorporated by reference to Exhibit 10.31 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1997).
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Amendment to the Amended and Restated Distribution and License Agreement dated June 19, 2002, between Bolloré S.A. and North
Atlantic Operating Company, Inc. (U.S. & Canada) (incorporated by reference to Exhibit 10.31 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Trademark Consent Agreement, dated March 26, 1997, between Bolloré Technologies, S.A. and North Atlantic Trading Company, Inc.
(incorporated by reference to Exhibit 10.25 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment to the Amended and Restated Distribution and License Agreement dated February 28, 2005, between Bolloré S.A. and North
Atlantic Operating Company, Inc. (U.S. & Canada) (incorporated by reference to Exhibit 10.33 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment to the Amended and Restated Distribution and License Agreement dated April 20, 2006, between Bolloré S.A. and North Atlantic Operating Company, Inc. (U.S. & Canada) (incorporated by
reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006).
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Amendment to the Amended and Restated Distribution and License Agreement dated March 10, 2010, between Bolloré S.A. and North Atlantic Operating Company, Inc. (U.S. & Canada)
(incorporated by reference to Exhibit 10.35 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Consent Agreement dated as of April 4, 1997, between Bolloré Technologies, S.A. and North Atlantic Trading Company, Inc. (incorporated by reference to Exhibit 10.26 to the
Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment No. 1 to Consent Agreement dated as of April 9, 1997, between Bolloré Technologies, S.A. and North Atlantic Operating Company, Inc. (incorporated by reference to Exhibit
10.27 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment No. 2 to Consent Agreement dated as of June 25, 1997, between Bolloré Technologies, S.A. and North Atlantic Operating Company, Inc. (incorporated by reference to Exhibit
10.28 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Trademark Consent Agreement dated July 31, 2003, among Bolloré Technologies, S.A., North Atlantic Trading Company, Inc. and North Atlantic Operating Company, Inc. (incorporated by
reference to Exhibit 10.32 to the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Amendment No. 2 to Trademark Consent Agreement dated December 17, 2012, between Bolloré S.A. and North Atlantic Operating Company, Inc. (incorporated by reference to Exhibit 10.36 to
the Registrant’s Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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License and Distribution Agreement dated March 19, 2013 between Bolloré S.A. and North Atlantic Operating Company, Inc. (incorporated by reference to Exhibit 10.37 to the Registrant’s
Registration Statement on Form S-1 (File No. 333-207816) filed on November 5, 2015).
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Distributors Supply Agreement dated as of April 1, 2013, between National Tobacco Company, L.P. and JJA Distributors, LLC (incorporated by reference to Exhibit 10.38 to the
Registrant’s Registration Statement on Form S-1/A (File No. 333-207816) filed on November 24, 2015).
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Credit Agreement, dated as of February 11, 2021, by and among Turning Point Brands, Inc., as obligor, Barclays Bank PLC, as administrative agent, and the lenders party thereto
(incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on May 5, 2021).
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Form of Capped Call Agreement (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 31, 2019).
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Consulting Agreement dated August 19, 2020, effective November 1, 2020, between Turning Point Brands, Inc. and James Dobbins. (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly
Report on Form 10-Q filed on October 27, 2020) †
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Employment Agreement by and between the Company and Graham A. Purdy, dated as of March 2, 2021. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form
8-K filed on March 5, 2021) †
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Employment Agreement by and between the Company and Luis Reformina, dated as of March 23, 2021. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on
Form 8-K filed on March 24, 2021) †
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Employment Agreement by and between the Company and Yavor Efremov dated December 15, 2021. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form
8-K filed on December 16, 2021) †
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First Lien Pari Passu Intercreditor Agreement, dated as of February 11, 2021, by and among Turning Point Brands, Inc., and the other grantors party thereto, Barclays Bank PLC, as
first lien collateral agent, and GLAS Trust Company LLC, as other collateral agent (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on May 5, 2021).
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Pledge and Security Agreement, dated as of February 11, 2021, by and among Turning Point Brands, Inc., as grantor, the other grantors party thereto, Barclays Bank PLC, as
collateral agent, and the lenders party thereto. (incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q filed on May 5, 2021).
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Guaranty Agreement, dated as of February 11, 2021, by and among Turning Point Brands, Inc. and certain of its subsidiaries, as guarantors, Barclays Bank PLC, as administrative
agent, and the lenders party thereto. (incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q filed on May 5, 2021).
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Pledge and Security Agreement, dated as of February 11, 2021, by and among Turning Point Brands, Inc., as grantor, the other grantors party thereto and GLAS Trust Company LLC, as
collateral agent (incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q filed on May 5, 2021).
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Subsidiaries of Turning Point Brands, Inc.*
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Consent of RSM US LLP.*
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Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
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Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
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Certification of Principal Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
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Certifications of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
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101
|
XBRL (eXtensible Business Reporting Language). The following materials from Turning Point Brands, Inc.’s Annual Report on Form 10-K for the years ended December 31, 2021, 2020, and 2019, formatted in
Inline XBRL: (i) consolidated balance sheets, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of changes in stockholder’s equity (deficit), (v) consolidated
statements of cash flows, and (vi) notes to the consolidated financial statements.*
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|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).*
|
|
By:
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/s/ Yavor Efremov
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|
|
Name:
|
|
Title:
|
Chief Executive Officer
|
|
By:
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/s/ Luis Reformina
|
|
|
Name:
|
|
Title:
|
Chief Financial Officer
|
|
By:
|
/s/ Brian Wigginton
|
|
|
Name:
|
|
Title:
|
Chief Accounting Officer
|
|
Signature
|
Title
|
Date
|
|||
|
By:
|
/s/ Yavor Efremov
|
Director, Chief Executive Officer
|
|||
|
By:
|
/s/ Luis Reformina
|
Chief Financial Officer
|
|||
|
By:
|
/s/ Brian Wigginton
|
Chief Accounting Officer
|
|||
|
By:
|
/s/ David Glazek
|
Chairman of the Board of Directors
|
|||
|
By:
|
Director
|
||||
|
By:
|
Director
|
||||
|
By:
|
Director
|
||||
|
By:
|
/s/ Arnold Zimmerman
|
Director
|
|||
|
By:
|
Director
|
||||
|
By:
|
/s/ Stephen Usher
|
Director
|
|||
|
By:
|
Director
|
||||
| This ‘10-K’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 3/21/31 | ||||
| 7/31/26 | ||||
| 4/27/26 | ||||
| 2/15/26 | ||||
| 8/11/25 | ||||
| 7/15/24 | ||||
| 3/7/24 | ||||
| 6/30/23 | ||||
| 4/13/23 | ||||
| 3/31/23 | ||||
| 3/7/23 | ||||
| 2/15/23 | ||||
| 11/19/22 | ||||
| 6/30/22 | ||||
| 4/27/22 | 10-Q, 8-K, DEF 14A | |||
| 4/17/22 | ||||
| 3/15/22 | 4, 4/A, DEF 14A, DEFA14A | |||
| Filed on: | 3/11/22 | |||
| 3/4/22 | ||||
| 2/24/22 | ||||
| 1/7/22 | ||||
| 1/1/22 | ||||
| For Period end: | 12/31/21 | |||
| 12/25/21 | ||||
| 12/17/21 | ||||
| 12/16/21 | 8-K | |||
| 12/15/21 | ||||
| 11/4/21 | ||||
| 10/25/21 | ||||
| 10/21/21 | ||||
| 10/15/21 | ||||
| 10/8/21 | ||||
| 10/7/21 | ||||
| 10/5/21 | ||||
| 9/30/21 | 10-Q | |||
| 9/23/21 | ||||
| 9/14/21 | ||||
| 9/9/21 | ||||
| 8/23/21 | ||||
| 8/15/21 | ||||
| 7/23/21 | ||||
| 7/21/21 | ||||
| 6/30/21 | 10-Q | |||
| 5/17/21 | 4 | |||
| 5/5/21 | 10-Q, 4, 8-K, SC 13D/A | |||
| 5/3/21 | 3, 4 | |||
| 4/29/21 | ||||
| 4/19/21 | ||||
| 4/13/21 | ||||
| 3/24/21 | 8-K | |||
| 3/23/21 | 8-K | |||
| 3/22/21 | 3 | |||
| 3/5/21 | 8-K | |||
| 3/2/21 | 8-K | |||
| 2/19/21 | 10-K | |||
| 2/18/21 | 4, 8-K, SC 13D/A | |||
| 2/11/21 | 8-K | |||
| 1/1/21 | ||||
| 12/31/20 | 10-K, 8-K | |||
| 12/28/20 | ||||
| 12/27/20 | ||||
| 12/15/20 | ||||
| 11/1/20 | 3 | |||
| 10/27/20 | 10-Q, 8-K | |||
| 10/26/20 | ||||
| 10/9/20 | ||||
| 9/10/20 | ||||
| 9/9/20 | ||||
| 8/19/20 | 8-K | |||
| 7/16/20 | 4, 8-K, SC 13D/A | |||
| 6/30/20 | 10-Q | |||
| 6/10/20 | 8-K, CORRESP, S-4/A | |||
| 4/27/20 | ||||
| 4/17/20 | DEFA14A | |||
| 4/8/20 | 425, 8-K | |||
| 4/7/20 | 4, 8-K | |||
| 4/6/20 | ||||
| 3/18/20 | 4 | |||
| 3/12/20 | 10-K, 4 | |||
| 3/5/20 | ||||
| 2/25/20 | ||||
| 1/15/20 | ||||
| 12/31/19 | 10-K | |||
| 10/24/19 | ||||
| 7/31/19 | 8-K | |||
| 7/19/19 | ||||
| 3/20/19 | 4 | |||
| 1/1/19 | ||||
| 11/7/18 | 10-Q, 4 | |||
| 9/5/18 | 4, 4/A, 8-K | |||
| 6/30/18 | 10-Q | |||
| 3/19/18 | 8-K | |||
| 3/13/18 | 3, 4, 8-K | |||
| 3/7/18 | 4, 8-K | |||
| 12/15/17 | ||||
| 11/27/17 | ||||
| 11/9/17 | 10-Q, 8-K | |||
| 7/27/17 | ||||
| 5/17/17 | 4, 8-K, DEF 14A | |||
| 5/11/17 | 10-Q, 8-K | |||
| 3/31/17 | 10-Q | |||
| 3/13/17 | 10-K, 8-K | |||
| 2/10/17 | ||||
| 2/7/17 | 4, 8-K | |||
| 8/8/16 | ||||
| 5/16/16 | 4, 8-K, SC 13G | |||
| 5/11/16 | 4, 424B4, EFFECT | |||
| 5/10/16 | 3, 4, 8-K, EFFECT | |||
| 4/28/16 | S-1/A | |||
| 11/24/15 | CORRESP, S-1/A | |||
| 11/23/15 | ||||
| 11/5/15 | CORRESP, DRS, S-1 | |||
| 11/4/15 | ||||
| 4/1/13 | ||||
| 3/19/13 | ||||
| 12/17/12 | ||||
| 3/22/11 | ||||
| 3/10/10 | ||||
| 6/22/09 | ||||
| 9/4/08 | ||||
| 2/15/07 | ||||
| 4/20/06 | ||||
| 3/31/06 | 10-K, 10-Q | |||
| 2/8/06 | 8-K | |||
| 2/28/05 | ||||
| 7/31/03 | ||||
| 6/19/02 | ||||
| 11/23/98 | ||||
| 12/31/97 | ||||
| 10/22/97 | ||||
| 9/17/97 | ||||
| 6/25/97 | ||||
| 4/9/97 | ||||
| 4/4/97 | ||||
| 3/26/97 | ||||
| 6/10/96 | ||||
| 3/31/93 | ||||
| 11/30/92 | ||||
| List all Filings | ||||
