What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-02-22 compared with 2023-02-27 · 27 added, 20 removed, 211 unchanged (18% of the section changed)

2 unchanged sentences

and its wholly-owned subsidiaries (collectively, “Hillman” or “Company”) are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America.

Our principal business is operated through our wholly-owned subsidiary, The Hillman Solutions Corp.

and its wholly-owned subsidiaries (collectively, “Hillman Group”), which had net sales of approximately $1,486.3 million in 2022.

Hillman Group sells its products to hardware stores, home centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, Mexico, Latin America, and the Caribbean.

Our principal business is operated through our wholly-owned subsidiary, Hillman, which had net sales of approximately $1,476.5 million in 2023.

Hillman sells its products to hardware stores, home centers, mass merchants, pet supply stores, and other retail outlets principally in the United States, Canada, Mexico, Latin America, and the Caribbean.

Product lines include thousands of small parts such as fasteners and related hardware items;

6 unchanged sentences

2 | December 30, 2023 Form 10-K

In November 2022, Hillman's corporate headquarters moved from 10590 Hamilton Avenue, Cincinnati, Ohio to 1280 Kemper Meadow Drive, Forest Park, Ohio.

Hillman's corporate headquarters is located at 1280 Kemper Meadow Drive, Cincinnati, Ohio.

We maintain a website at www.hillmangroup.com .

21 unchanged sentences

In connection with the Closing, the Company entered into a new credit agreement (the “Term Credit Agreement”), which provided for a new funded term loan facility of $835.0 million and a delayed draw term loan facility of $200.0 million (of which $16.0 million was drawn).

As of July 2023, the delayed draw term loan facility expired.

The Company also entered into an amendment to their existing asset-based revolving credit agreement, extending the maturity and conformed certain provisions to the Term Credit Agreement.

33 unchanged sentences

Letters, Numbers, and Signs ("LNS");

and Personal Protection Equipment.

and Personal Protective Equipment.

Our Fastener business consists of three categories:

27 unchanged sentences

The portfolio offers a “one stop shop” for leading retailers with an expansive assortment to meet the needs of both the pro and DIYer.

Our safety products include face masks, safety vests, and sanitizing wipes and sprays sold under a variety of brands including Firm Grip®, AWP®, and Premium Defense®.

Our safety products include face masks and safety vests sold under a variety of brands including Firm Grip®, AWP®, and Premium Defense®.

Focusing on innovative materials, intuitive design, and industry trends, we expect growth in the Hardware and Protective Solutions segment.

3 unchanged sentences

Robotics and Digital Solutions products are located in high-traffic environments where retailers can provide consumers with on-the-spot, customized licensed and unlicensed key and engraving options.

Our offerings include store associated assisted and self-service robotic engraving and key duplication kiosks;

Our offerings include store associate assisted key duplication and self-service robotic engraving and key duplication kiosks;

together with related software, systems, keys, and key accessories sold in proximity to the kiosks.

6 unchanged sentences

Our self-service solutions are driven by our MinuteKey technology, while store associate assisted duplication currently uses the state-of-the-art KeyKrafter® equipment and other legacy duplication machines.

In 2018, we completed the acquisition of MinuteKey, the world’s first self-service robotic key duplication machine.

The accuracy of robotics technology put to work in an innovative way makes MinuteKey machines easy to use, convenient, fast and highly reliable.

Our MinuteKey self-service kiosk uses robotics technology in an innovative way that is accurate, easy to use, convenient, fast and highly reliable.

We utilize a proprietary network integration software within our MinuteKey kiosks to maintain high levels of machine up-time and ensure machines have the optimal mix of key types available for duplication.

26 unchanged sentences

The Canada segment also produces made to order screws and self-locking fasteners for automotive suppliers, OEMs, and industrial distributors.

In the first quarter of 2023, the Company realigned its Canada segment to include the Canada portions of the Protective Solutions and MinuteKey businesses, which are now operating under the Canada segment leadership team.

Previously, the results of the Canada portion of the Protective Solutions business were reported in the Hardware and Protective Solutions segment and the Canada portion of the MinuteKey business was reported in the Robotics and Digital Solutions segment and were operating under those respective segment leadership teams.

Our Canada segment generated approximately $156.5 million, $172.0 million and $161.9 million of revenues in the years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively.

22 unchanged sentences

We believe that our primary competitive advantage is rooted in our ability to provide a greater level of customer service than our competitors.

We partner with our customers to understand the unmet needs of consumers, design creative solutions, and commercialize those solutions, bringing them to life in both physical and digital channels through a tight alignment between the product management, marketing communications, and channel marketing functions.

6 | December 30, 2023 Form 10-K

marketing functions.

We provide best in class support and customer service at every touch point for our retail partners.

3 unchanged sentences

Many of our largest customers use Electronic Data Interchange (“EDI”) for processing of orders and invoices.

6 | December 31, 2022 Form 10-K

We employ what we believe to be the largest direct sales force in the industry.

12 unchanged sentences

The Quick-Tag®, FIDO®, and TagWorks® systems have patent protected technology that is a major barrier to entry and helps to preserve this market segment.

The principal competitor for our franchise and independent business is Midwest Fastener in the hardware store marketplace.

The principal competitor for our franchise and independent hardware store customers is Midwest Fastener Corporation.

The hardware outlets that purchase our products without regularly scheduled sales representative visits may also purchase products from local and regional distributors and cooperatives.

1 unchanged sentence

Insurance Arrangements

Under our current insurance programs, commercial umbrella coverage is obtained for catastrophic exposure and aggregate losses in excess of expected claims.

We retain the exposure on certain expected losses related to workers' compensation, general liability, and automobile claims.

Under our current large deductible insurance programs, we retain the exposure on certain expected losses related to workers' compensation, general liability, and automobile claims up to the applicable deductibles.

Our primary and umbrella policies provide coverage for catastrophic exposure and aggregate losses in excess of applicable deductibles.

We also retain the exposure on expected losses related to health benefits of certain employees.

6 unchanged sentences

Employee health and safety is a top priority in all aspects of our business.

We are committed to providing a healthy environment and safe workplace at all of our facilities and in the field.

We maintain a safety compliance program.

We regularly conduct self-assessments to examine our safety culture and processes.

In addition, we have invested in our safety team to provide oversight and ensure robust safety protocols are present across all of our operations.

We are committed to providing a healthy environment and safe workplace at all our facilities and in the field.

Our dedicated Safety Team oversees our health & safety program and procedures.

We implement robust safety protocols across all operations, maintain a Safety Compliance Program, and regularly conduct self-assessments to examine our safety culture and processes.

SAFETY MEASURE HILLMAN

Total Recordable Incident Rate (TRIR)

Lost-Time Incident Rate (LTIR) 1

1 Data spans 12 months between January 2023 and December 2023.

7 | December 30, 2023 Form 10-K

Attraction, Development, and Retention

3 unchanged sentences

We offer employees resources to continuously improve their skills and performance with the goal of further cultivating the diverse talent on our team.

We seek people who are demonstrate our core values, absolute integrity, accountability to our team and customers, the ability to build on difference, trust and respect.

We seek people who are demonstrate our core values:

absolute integrity, accountability to our team and customers, the ability to build on difference, trust and respect.

Diversity and Inclusion

7 | December 31, 2022 Form 10-K

We are committed to actions that build an inclusive and equitable workplace where diversity is valued and leveraged.

10 unchanged sentences

We do not intend the address to be an active link or to incorporate the contents of the website into this report.

8 | December 30, 2023 Form 10-K

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business