Turning Point Brands, Inc. (NYSE:TPB) Q2 2020 Earnings Conference Call - Final Transcript
Jul 28, 2020 • 10:00 am ET
Good day, and welcome to the Turning Point Brands Second Quarter Earnings Conference Call. [Operator Instructions] Please note that, this event is being recorded.
I would now like to turn the conference over to Louie Reformina, Vice President of Business Development. Please go ahead, sir.
Thank you. Good morning, everyone. This is Louie Reformina, Vice President of Business Development. Joining me are Turning Point Brands' President and CEO, Larry Wexler; Graham Purdy, Chief Operating Officer; and Bobby Lavan, Chief Financial Officer.
This morning, we issued a news release covering our second quarter 2020 results. This release is located in the IR section of our website, www.turningpointbrands.com, where a replay of today's conference call will also be available.
In this call, we will discuss our consolidated and segment operating results and provide a perspective on our progress against our strategic plan.
As is customary, I direct your attention to the discussion of forward-looking and cautionary statement in today's press release and the risk factors in our filings with the Securities and Exchange Commission. The disclosure outlines various factors that could cause actual results to differ materially from projections or forward-looking statements that may be cited in today's discussion. These forward-looking statements and projections are not guarantees of future performance, and you should not place undue reliance upon them, except as provided by federal securities laws. And we undertake no obligation to publicly update or revise any forward-looking statements.
In 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 Larry Wexler, our CEO.
Lawrence S. Wexler
Thank you, Louie, and good morning, everyone. Thank you for joining the call. Our second quarter exceeded our expectations, delivering $105 million in revenue. Our internal initiatives drove meaningful improvements within each of our segments, building momentum for longer-term growth. In addition, the payback from the loading [Phonetic] that we had anticipated did not materialize during the quarter, that was instead mostly absorbed for our improved positioning and increased consumption of our products.
Within Smokeless, most of our growth continues to be driven by MST same-store sales, with distribution wins from the past few years contributing to the momentum. Secular consumer trade down trends across the Smokeless category that predated COVID are accelerating in this environment. And with our offering of a premium product at a fair price, our value proposition is clearly connecting with the consumer. We discussed in the first quarter the impact of COVID on delaying normal price increases. We took a price increase on tubs, of which we are the market leader in May, and we took a price increase on cans in July, along with the industry.
We also saw a nice growth with our loose leaf chew business. We entered the quarter with a targeted sales force initiative and benefited from market conditions impacted by COVID. For the first time in