Turning Point Brands, Inc. (NYSE:TPB) Q3 2023 Results Conference Call November 8, 2023 10:00 AM ET

Company Participants

Louie Reformina - CFO

Graham Purdy - President and CEO

Summer Frein - Chief Revenue Officer

Conference Call Participants

Vivien Azer - TD Cowen

Michael Legg - The Benchmark Company

Eric Des Lauriers - Craig-Hallum

Operator

Good morning, and welcome to the Turning Point Brands' Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I will now turn the call over to Louie Reformina Chief Financial Officer. Please go ahead.

Louie Reformina

Thank you. Good morning, everyone. This is Louie Reformina, Chief Financial Officer. Joining me are Turning Point Brands' President and CEO, Graham Purdy and Chief Revenue Officer, Summer Frein.

This morning, we issued the news release covering our third quarter results. This release is located in the IR section of our website, www.turningpointbrands.com. During this call, we will discuss our consolidated and segment operating results and provide a perspective on the operating environment and our progress against our strategic plan.

As discussed, may I direct your attention to the discussion of forward-looking and cautionary statements in today's press release and the risk factors in our filings with the SEC. On the call today, we will reference certain non-GAAP financial measures. These measures and reconciliations to GAAP can be found in today's earnings release, along with reasons why management believes that they provide useful information.

I will now turn the call over to our CEO, Graham Purdy.

Graham Purdy

Thanks, Louie. Good morning, everyone, and thank you for joining our call. Our third quarter results were in line with our expectations and demonstrated continued progress against our plan. During the September quarter, we showed double-digit revenue growth at Stoker's and sequential stability in the Zig-Zag segment, notwithstanding the year-over-year comparison as we continue to gain traction from the alternative channel initiatives we have put in place. Given our performance through the first 9 months of the year, we are raising the bottom end of our EBITDA guidance from $90 million to $92 million, with the range now $92 million to $95 million from $90 million to $95 million.

As we finish up this year and move into 2024, we are particularly excited about our national rollout of our modern oral white pouch nicotine product called FRE, that's F-R-E. This product will compete in a category that's already worth over $1 billion in wholesale revenue and is currently growing 40% to 50% per MSAi.