10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

Commission file number 1-13293

The Hillman Companies, Inc.

(Exact name of registrant as specified in its charter)

Delaware	23-2874736
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10590 Hamilton Avenue
Cincinnati, Ohio	45231
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (513) 851-4900

Securities registered pursuant to Section 12(b) of the Act:

Title of Class	Name of Each Exchange on Which Registered
11.6% Junior Subordinated Debentures	None
Preferred Securities Guaranty	None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     YES  ¨    NO  x

On August 14, 2013, 5,000 shares of the Registrant’s common stock were issued and outstanding and 4,217,724 Trust Preferred Securities were issued and outstanding by the Hillman Group Capital Trust. The Trust Preferred Securities trade on the NYSE Amex under symbol HLM.Pr.

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

INDEX

		PAGE(S)
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets		3-4
	Condensed Consolidated Statements of Comprehensive Income		5-6
	Condensed Consolidated Statements of Cash Flows		7
	Condensed Consolidated Statements of Changes in Stockholders’ Equity		8
	Notes to Condensed Consolidated Financial Statements		9-32
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		33-46
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		47
Item 4.	Controls and Procedures		47
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		48
Item 1A.	Risk Factors		48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		48
Item 3.	Defaults upon Senior Securities		48
Item 4.	Mine Safety Disclosures		48
Item 5.	Other Information		48
Item 6.	Exhibits		49
SIGNATURES			50

Page 2 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(dollars in thousands)

	June 30, 2013		December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	20,915	$	65,548
Restricted investments		2,889		846
Accounts receivable, net		104,301		62,344
Inventories		171,796		113,838
Deferred income taxes		10,499		10,464
Other current assets		10,303		8,506
Total current assets		320,703		261,546
Property and equipment, net		85,759		68,492
Goodwill		467,657		455,338
Other intangibles, net		373,589		366,644
Restricted investments		1,160		3,399
Deferred financing fees		11,329		12,858
Investment in trust common securities		3,261		3,261
Other assets		3,077		4,255
Total assets	$	1,266,535	$	1,175,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	50,180	$	32,571
Current portion of senior term loans		3,968		3,200
Current portion of capitalized lease and other obligations		407		819
Interest payable on junior subordinated debentures		1,019		—
Accrued expenses:
Salaries and wages		8,921		9,351
Pricing allowances		5,632		4,057
Income and other taxes		2,241		2,492
Interest		2,763		2,868
Deferred compensation		2,889		846
Other accrued expenses		8,938		11,397
Total current liabilities		86,958		67,601
Long term senior term loans		380,180		307,727
Long term capitalized lease and other obligations		363		245
Long term senior notes		272,358		272,942
Junior subordinated debentures		115,040		115,132
Deferred compensation		1,160		3,399
Deferred income taxes		117,837		117,949
Other non-current liabilities		11,255		6,187
Total liabilities		985,151		891,182

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page 3 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(dollars in thousands)

LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)	June 30, 2013			December 31, 2012
Common stock with put options: Common stock, $.01 par, 5,000 shares authorized, 210.5 issued and outstanding at June 30, 2013		19,983			14,116
Commitments and contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013		—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 issued and outstanding at June 30, 2013		—			—
Additional paid-in capital		289,716			294,675
Accumulated deficit		(24,973	)		(25,051	)
Accumulated other comprehensive (loss) income		(3,342	)		871
Total stockholders’ equity		261,401			270,495
Total liabilities and stockholders’ equity	$	1,266,535		$	1,175,793

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page 4 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(dollars in thousands)

	Three Months Ended June  30, 2013			Three Months Ended June  30, 2012
Net sales	$	192,711		$	147,241
Cost of sales (exclusive of depreciation and amortization shown separately below)		100,338			72,950
Selling, general and administrative expenses		59,783			47,174
Acquisition and integration expenses		2,153			312
Depreciation		6,273			5,618
Amortization		5,559			5,429
Other expense		1,032			817
Income from operations		17,573			14,941
Interest expense, net		12,102			10,225
Interest expense on junior subordinated debentures		3,153			3,153
Investment income on trust common securities		(95	)		(94	)
Income before income taxes		2,413			1,657
Income tax provision (benefit)		(2,250	)		601
Net income	$	4,663		$	1,056
Net income (from above)	$	4,663		$	1,056
Other comprehensive loss:
Foreign currency translation adjustments		(4,133	)		(748	)
Total other comprehensive loss		(4,133	)		(748	)
Comprehensive income	$	530		$	308

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page 5 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(dollars in thousands)

	Six Months Ended June  30, 2013			Six Months Ended June  30, 2012
Net sales	$	336,630		$	275,614
Cost of sales (exclusive of depreciation and amortization shown separately below)		173,984			136,539
Selling, general and administrative expenses		108,152			92,094
Acquisition and integration expenses		4,182			464
Depreciation		11,815			11,507
Amortization		11,005			10,900
Other expense		2,135			334
Income from operations		25,357			23,776
Interest expense, net		24,055			20,327
Interest expense on junior subordinated debentures		6,305			6,305
Investment income on trust common securities		(189	)		(189	)
Loss before income taxes		(4,814	)		(2,667	)
Income tax benefit		(4,892	)		(1,136	)
Net income (loss)	$	78		$	(1,531	)
Net income (loss) (from above)	$	78		$	(1,531	)
Other comprehensive (loss) income:
Foreign currency translation adjustments		(4,213	)		489
Total other comprehensive (loss) income		(4,213	)		489
Comprehensive loss	$	(4,135	)	$	(1,042	)

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page 6 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(dollars in thousands)

	Six Months Ended June  30, 2013			Six Months Ended June  30, 2012
Cash flows from operating activities:
Net income (loss)	$	78		$	(1,531)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		22,820			22,407
Dispositions of property and equipment		39			3
Deferred income tax benefit		(5,618	)		(1,562	)
Deferred financing and original issue discount amortization		1,223			1,042
Stock-based compensation expense		4,841			—
Other non-cash interest and change in value of interest rate swap		(418	)		(372	)
Changes in operating items:
Accounts receivable		(24,698	)		(14,038	)
Inventories		(2,907	)		(12,547	)
Other assets		2,037			(873	)
Accounts payable		4,805			9,444
Interest payable on junior subordinated debentures		1,019			1,019
Other accrued liabilities		(1,253	)		2,023
Other items, net		(940	)		(1,480	)
Net cash provided by operating activities		1,028			3,535
Cash flows from investing activities:
Paulin acquisition		(103,416	)		—
Proceeds from sale of property and equipment		—			3
Capital expenditures		(14,604	)		(10,496	)
Net cash used for investing activities		(118,020	)		(10,493	)
Cash flows from financing activities:
Borrowings of senior term loans		76,800			—
Repayments of senior term loans		(1,792	)		(1,600	)
Discount on senior term loans		(2,152	)		—
Borrowings of revolving credit loans		—			19,000
Payment of additional acquisition consideration		—			(12,387	)
Principal payments under capitalized lease obligations		(41	)		(17	)
Repayments of other credit obligations		(456	)		—
Net cash provided by financing activities		72,359			4,996
Net decrease in cash and cash equivalents		(44,633	)		(1,962	)
Cash and cash equivalents at beginning of period		65,548			12,027
Cash and cash equivalents at end of period	$	20,915		$	10,065
Supplemental schedule of noncash activities:
Fixed assets acquired under capital lease	$	202		$	33

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page 7 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

(dollars in thousands)

	Common Stock		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
Balance at December 31, 2012	$	—	$	294,675		$	(25,051	)	$	871		$	270,495
Net income		—		—			78			—			78
FMV adjustment to common stock with put options		—		(4,959	)		—			—			(4,959	)
Change in cumulative foreign currency translation adjustment		—		—			—			(4,213	)		(4,213	)
Balance at June 30, 2013	$	—	$	289,716		$	(24,973	)	$	(3,342	)	$	261,401

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Page 8 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

1. Basis of Presentation:

The accompanying financial statements include the condensed consolidated accounts of The Hillman Companies, Inc. (“Hillman Companies”) and its wholly-owned subsidiaries (collectively “Hillman” or the “Company”). All significant intercompany balances and transactions have been eliminated.

On May 28, 2010, Hillman Companies was acquired by an affiliate of Oak Hill Capital Partners (“OHCP”) and certain members of Hillman’s management and Board of Directors. Pursuant to the terms and conditions of an Agreement and Plan of Merger dated as of April 21, 2010, the Company was merged with an affiliate of OHCP with the Company surviving the merger (the “Merger Transaction”). As a result of the Merger Transaction, Hillman Companies is a wholly-owned subsidiary of OHCP HM Acquisition Corp. (“Holdco”).

The accompanying unaudited condensed consolidated financial statements present information in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. Accordingly, they do not include all information or footnotes required by generally accepted accounting principles for complete financial statements. Management believes the financial statements include all normal recurring accrual adjustments necessary for a fair presentation. Operating results for the six month period ended June 30, 2013 do not necessarily indicate the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report filed on Form 10-K for the year ended December 31, 2012.

Nature of Operations:

The Company comprises five separate business segments, the largest of which is (1) The Hillman Group, Inc. (the “Hillman Group”) operating primarily in the United States. The other business segments consist of separate subsidiaries of the Hillman Group operating in (2) Canada under the names The Hillman Group Canada ULC and H. Paulin & Co., (3) Mexico under the name SunSource Integrated Services de Mexico SA de CV, (4) Florida under the name All Points Industries, Inc. and (5) Australia under the name The Hillman Group Australia Pty. Ltd. The Hillman Group provides merchandising services and products such as fasteners and related hardware items; threaded rod and metal shapes; keys, key duplication systems and accessories; builder’s hardware; and identification items, such as tags, and letters, numbers and signs, to retail outlets, primarily hardware stores, home centers and mass merchants, pet supply stores, grocery stores and drug stores. Our Canada segment also produces fasteners, stampings, fittings and processes threaded parts for automotive suppliers, industrial Original Equipment Manufacturers (“OEM”) and industrial distributors. Through its field sales and service organization, Hillman complements its extensive product selection with value-added services for the retailer.

Page 9 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

2. Summary of Significant Accounting Policies:

The significant accounting policies should be read in conjunction with the significant accounting policies included in the Form 10-K for the year ended December 31, 2012. Policies included herein were updated for activity in the interim period.

Use of Estimates in the Preparation of Financial Statements:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results may differ from estimates.

Accounts Receivable and Allowance for Doubtful Accounts:

The Company establishes the allowance for doubtful accounts using the specific identification method and also provides a reserve in the aggregate. The estimates for calculating the aggregate reserve are based on historical collection experience. Increases to the allowance for doubtful accounts result in a corresponding expense. The Company writes off individual accounts receivable when collection becomes improbable. The allowance for doubtful accounts was $799 at June 30, 2013 and $1,105 at December 31, 2012.

Property and Equipment and Accumulated Depreciation:

Property and equipment, including assets acquired under capital leases, are carried at cost and include expenditures for new facilities and major renewals. Maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective accounts, and the resulting gain or loss is reflected in income from operations. The accumulated depreciation was $52,535 at June 30, 2013 and $44,089 at December 31, 2012.

Shipping and Handling:

The costs incurred to ship product to customers, including freight and handling expenses, are included in selling, general and administrative (“SG&A”) expenses on the Company’s condensed consolidated statements of comprehensive income. The Company’s shipping and handling costs were $7,142 and $6,119 in the three month periods ended June 30, 2013 and 2012, respectively. The Company’s shipping and handling costs were $12,756 and $11,498 in the six month periods ended June 30, 2013 and 2012, respectively.

3. Recent Accounting Pronouncements:

In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income”. The update amended the Accounting Standards Codification (“ASC”) to require entities to provide information about amounts reclassified out of other comprehensive income by component. The Company is required to present, either on the face of the financial statements or in the notes, the amounts reclassified from other comprehensive income to the respective line items in the Condensed Consolidated Statements of Comprehensive Income. This amendment was effective for interim and annual periods beginning after December 15, 2012. The adoption of this amendment did not have an impact on the Company’s disclosure or the Company’s consolidated results of operations or financial condition.

Page 10 of 57

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

4. Acquisitions:

On February 19, 2013, pursuant to the terms of the previously announced plan of arrangement dated December 17, 2012, the Company acquired all of the issued and outstanding Class A common shares of H. Paulin & Co., Limited (the “Paulin Acquisition”). The aggregate purchase price of the Paulin Acquisition was $103,416 paid in cash. On March 31, 2013, H. Paulin & Co., Limited (“Paulin”) was amalgamated with The Hillman Group Canada ULC.

Paulin is a leading Canadian distributor and manufacturer of fasteners, fluid system products, automotive parts and retail hardware components. Paulin’s distribution facilities are located across Canada in Vancouver, Edmonton, Winnipeg, Toronto, Montreal and Moncton, as well as in Flint, Michigan and Cleveland, Ohio. Paulin’s four manufacturing facilities are located in Ontario, Canada. Annual revenues of Paulin for 2012 were approximately $145,700.

The following table reconciles the estimated fair value of the acquired assets and assumed liabilities to the total purchase price of the Paulin Acquisition:

Accounts receivable	$	17,259
Inventory		55,051
Other current assets		2,656
Property and equipment		14,937
Goodwill		12,970
Intangibles		18,814
Total assets acquired		121,687
Less:
Deferred income taxes		5,832
Liabilities assumed		12,439
Total purchase price	$	103,416

The excess of the purchase price over the net assets has been preliminarily allocated to goodwill and intangible assets pending final valuation by an independent appraisal. The Company is determining whether or not to make a Section 338(g) election which will impact the deductibility of goodwill for tax purposes.

The following table indicates the pro-forma financial statements of the Company for the three and six months ended June 30, 2013 and 2012. The pro-forma financial statements give effect to the acquisition of Paulin as if it had occurred on January 1, 2012:

	(Unaudited) Three Months Ended June 30, 2013		(Unaudited) Six Months Ended June 30, 2013			(Unaudited) Three Months Ended June 30, 2012		(Unaudited) Six Months Ended June 30, 2012
Net Sales	$	192,711	$	352,560		$	189,916	$	353,962
Net Income		4,663		(387	)		2,951		97

The pro-forma results are based on assumptions that the Company believes are reasonable under the circumstances. The pro-forma results are not necessarily indicative of the operating results that would have occurred if the acquisition had been effective January 1, 2012, nor are they intended to be indicative of results that may occur in the future. The underlying pro-forma information includes the historical results of the Company and Paulin, the Company’s financing arrangements related to the Paulin Acquisition, and certain purchase accounting adjustments.

Page 11 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

5. Other Intangibles:

Intangible assets are amortized over their useful lives and are subject to impairment testing. The values assigned to intangible assets in connection with the Paulin Acquisition were determined by management pending independent appraisal. The Paulin intangible asset values may be adjusted by management for any changes upon completion of the independent appraisal. Other intangibles, net, as of June 30, 2013 and December 31, 2012 consist of the following:

	Estimated Useful Life (Years)	June 30, 2013		December 31, 2012
Customer relationships	20	$	341,608	$	328,382
Trademarks - All Others	Indefinite		54,114		49,413
Trademarks - TagWorks	5		240		240
Patents	5-20		20,250		20,250
Quick Tag license	6		11,500		11,500
Laser Key license	5		1,250		1,250
KeyWorks license	10		4,100		4,100
Non-compete agreements	5-10		4,450		4,450
Lease agreement	0.5		240		240
Intangible assets, gross			437,752		419,825
Less: Accumulated amortization			64,163		53,181
Other intangibles, net		$	373,589	$	366,644

Intangible assets are amortized over their useful lives. The amortization expense for amortizable assets was $5,559 and $5,429 for the three month periods ended June 30, 2013 and 2012, respectively. The amortization expense for amortizable assets was $11,005 and $10,900 for the six month periods ended June 30, 2013 and 2012, respectively. The amortization expense for amortizable assets for the year ended December 31, 2013 is estimated to be $22,095. For the years ended December 31, 2014, 2015, 2016, 2017, and 2018, the amortization expense for amortizable assets is estimated to be $22,206, $21,545, $19,614, $18,759 and $18,759, respectively.

Page 12 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

6. Commitments and Contingencies:

The Company self-insures its product liability, automotive, workers’ compensation and general liability losses up to $250 per occurrence. Catastrophic coverage has been purchased from third party insurers for occurrences in excess of $250 up to $40,000. The two risk areas involving the most significant accounting estimates are workers’ compensation and automotive liability. Actuarial valuations performed by the Company’s outside risk insurance expert were used by the Company’s management to form the basis for workers’ compensation and automotive liability loss reserves. The actuary contemplated the Company’s specific loss history, actual claims reported, and industry trends among statistical and other factors to estimate the range of reserves required. Risk insurance reserves are comprised of specific reserves for individual claims and additional amounts expected from development of these claims, as well as for incurred but not yet reported claims. The Company believes the liability of approximately $1,494 recorded for such risk insurance reserves is adequate as of June 30, 2013.

As of June 30, 2013, the Company has provided certain vendors and insurers letters of credit aggregating $3,481 related to its product purchases and insurance coverage of product liability, workers’ compensation and general liability.

The Company self-insures its group health claims up to an annual stop loss limit of $200 per participant. Aggregate coverage is maintained for annual group health insurance claims in excess of 125% of expected claims. Historical group insurance loss experience forms the basis for the recognition of group health insurance reserves. Provisions for losses expected under these programs are recorded based on an analysis of historical insurance claim data and certain actuarial assumptions. The Company believes the liability of approximately $2,053 recorded for such group health insurance reserves is adequate as of June 30, 2013.

In addition, legal proceedings are pending which are either in the ordinary course of business or incidental to the Company’s business. Those legal proceedings incidental to the business of the Company are generally not covered by insurance or other indemnity. In the opinion of the Company’s management, the ultimate resolution of the pending litigation matters will not have a material adverse effect on the consolidated financial position, operations or cash flows of the Company.

Page 13 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

7. Related Party Transactions:

Gregory Mann and Gabrielle Mann are employed by the All Points subsidiary of Hillman. All Points leases an industrial warehouse and office facility from companies under the control of the Manns. The Company has recorded rental expense for the lease of this facility on an arm’s length basis. The rental expense for the lease of this facility was $82 for each of the three month periods ended June 30, 2013 and 2012. The rental expense for the lease of this facility was $165 for each of the six month periods ended June 30, 2013 and 2012.

In connection with the Paulin Acquisition, the Company entered into three leases for five properties containing industrial warehouse, manufacturing plant, and office facilities on February 19, 2013. The owners of the properties under one lease are relatives of Richard Paulin, who is employed by The Hillman Group Canada ULC, and the owner of the properties under the other two leases is a company which is owned by Richard Paulin and certain of his relatives. The Company has recorded rental expense for the three leases on an arm’s length basis. The rental expense for the three leases was $205 and $274 for the three and six month periods ended June 30, 2013, respectively.

8. Income Taxes:

The Company’s policy is to estimate income taxes for interim periods based on estimated annual effective tax rates. These are derived, in part, from expected pre-tax income. Accordingly, the Company applied an estimated annual effective tax rate to the interim period pre-tax income (loss) in the six and three month periods ended June 30, 2013 and 2012 to calculate the income tax benefit / provision in accordance with the principal method prescribed by ASC 740-270, the accounting guidance established for computing income taxes in interim periods.

The effective income tax rates were 101.6% and 42.6% for the six month periods ended June 30, 2013 and 2012, respectively. The effective income tax rates were -93.2% and 36.3% for the three month periods ended June 30, 2013 and 2012, respectively. The effective income tax rate differed from the federal statutory rate in the six and three month periods ended June 30, 2013 primarily due to a current period benefit caused by the effect of changes in certain state income tax rates on the Company’s deferred tax assets and liabilities and the reduction of valuation reserves related to certain deferred tax assets. The effective income tax rate differed from the federal statutory rate in the six and three month periods ended June 30, 2012 due in part to a reduction of the valuation reserve related to a deferred tax asset that was utilized in the period. The remaining differences between the federal statutory rate and the effective tax rate in the six and three month periods ended June 30, 2013 and 2012 were primarily due to state and foreign income taxes.

Page 14 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

9. Long-Term Debt:

Effective November 7, 2012, the Company entered into a Joinder Agreement to its credit agreement under the existing Senior Facilities (the “2012 Incremental Facility”). The 2012 Incremental Facility increased the aggregate term loan commitments available to Hillman Group under the Senior Facilities by $76,800. Subject to the conditions precedent to each funding date described in Section 17 of the 2012 Incremental Facility, the Company could make two drawings under the 2012 Incremental Facility on any business day after November 7, 2012 and prior to April 1, 2013. On February 19, 2013, the Company drew down on funds from the 2012 Incremental Facility in order to fund the permitted Paulin Acquisition. The aggregate principal amount of commitments under the Senior Facilities, after giving effect to the 2012 Incremental Facility, was $420,000.

Effective February 14, 2013, the Company completed an amendment to the credit agreement governing its Senior Facilities. The Senior Facilities amendment modified the term loan pricing to reduce the EuroDollar margin by 50 basis points to 3.00% and reduce the EuroDollar floor on EuroDollar loans by an additional 25 basis points to 1.25%. This amendment modified the term loan pricing to reduce the base rate margin by 50 basis points to 2.00% and reduce the floor on base rate loans by an additional 25 basis points to 2.25%. This amendment also extends the maturity date of the Senior Facilities by one year to May 28, 2017.

Concurrently with the Merger Transaction, Hillman Group issued $150,000 aggregate principal amount of its senior notes due 2018 (the “10.875% Senior Notes”). On March 16, 2011, Hillman Group completed an offering of $50,000 aggregate principal amount of its 10.875% Senior Notes. Hillman Group received a premium of $4,625 on the $50,000 10.875% Senior Notes offering. On December 21, 2012, Hillman Group completed an offering of $65,000 aggregate principal amount of its temporary 10.875% Senior Notes. Hillman Group received a premium of $4,225 on the $65,000 temporary 10.875% Senior Notes offering. The temporary 10.875% Senior Notes were mandatorily exchanged for a like aggregate principal amount of 10.875% Senior Notes on February 19, 2013 in connection with the Paulin Acquisition. The 10.875% Senior Notes are guaranteed by The Hillman Companies, Inc., Hillman Investment Company and all of the domestic subsidiaries of Hillman Group. Hillman Group pays interest on the 10.875% Senior Notes semi-annually on June 1 and December 1 of each year.

The Senior Facilities contain financial and operating covenants which require the Company to maintain certain financial ratios, including a secured leverage ratio. This debt agreement provides for customary events of default, including, but not limited to, payment defaults, breach of representations or covenants, cross-defaults, bankruptcy events, failure to pay judgments, attachment of its assets, change of control and the issuance of an order of dissolution. Certain of these events of default are subject to notice and cure periods or materiality thresholds. The occurrence of an event of default permits the lenders under the Senior Facilities to accelerate repayment of all amounts due. The Company was in compliance with all provisions and covenants of the amended Senior Facilities as of June 30, 2013.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

10. Common and Preferred Stock:

The Hillman Companies has one class of common stock, with 5,000 shares authorized and issued as of June 30, 2013. All outstanding shares of Hillman Companies’ common stock are owned by Holdco.

Under the terms of the Stockholders Agreement for the Holdco common stock, management shareholders have the ability to put their shares back to Holdco under certain conditions, including death or disability. ASC 480-10-S99 requires shares to be classified outside of permanent equity if they can be redeemed and the redemption is not solely within the control of the issuer. Further, if it is determined that redemption of the shares is probable, the shares are marked to redemption value which equals fair value at each balance sheet date with the change in fair value recorded in additional paid-in capital. Accordingly, the 210.5 shares of common stock held by management are recorded outside permanent equity and have been adjusted to the fair value of $19,983 as of June 30, 2013.

The Hillman Companies has one class of preferred stock, with 5,000 shares authorized and none issued as of June 30, 2013.

11. Stock-Based Compensation:

Effective May 28, 2010, Holdco established the OHCP HM Acquisition Corp. 2010 Stock Option Plan, as amended (the “Option Plan”), pursuant to which Holdco may grant options for up to an aggregate of 45,914 shares of its common stock. The Option Plan is administered by a committee of the Holdco board of directors. Such committee determines the terms of each option grant under the Option Plan, except that the exercise price of any granted option may not be lower than the fair market value of one share of common stock of Holdco as of the date of grant.

Under the Option Plan, Holdco granted options for up to 32,284 shares in 2010, 1,030 shares in 2011, 7,375 shares in 2012 and 5,225 shares during the six months ended June 30, 2013. The options were granted with an exercise price which was equal to the grant date fair value of the underlying securities. As of June 30, 2013, options for a total of 3,761 shares have been cancelled and options for eight shares have been exercised.

Option holders are not required by the terms of the Option Agreement or the Stockholders Agreement to hold the shares for any period of time following exercise. Liability classification is required because this arrangement permits the holders to put the shares back without being exposed to the risks and rewards of the shares for a reasonable period of time. Consistent with past practice, the Company has elected to use the intrinsic value method to value the options. The stock option liability was $5,555 as of June 30, 2013.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

12. Derivatives and Hedging:

The Company uses derivative financial instruments to manage its exposures to (1) interest rate fluctuations on its floating rate senior debt; (2) price fluctuations in metal commodities used in its key products; and (3) fluctuations in foreign currency exchange rates. The Company measures those instruments at fair value and recognizes changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as an effective hedge that offsets certain exposures.

Interest Rate Swap Agreements - On June 24, 2010, the Company entered into a forward Interest Rate Swap Agreement (the “2010 Swap”) with a two-year term for a notional amount of $115,000. The forward start date of the 2010 Swap was May 31, 2011 and its termination date was May 31, 2013. The 2010 Swap fixed the interest rate at 2.47% plus the applicable interest rate margin.

The 2010 Swap was initially designated as a cash flow hedge. Effective April 18, 2011, the Company executed the second amendment to the credit agreement which modified the interest rate on the Senior Facilities. The critical terms for the 2010 Swap no longer matched the terms of the amended Senior Facilities and the 2010 Swap was de-designated.

At June 30, 2013, the 2010 Swap had no value. The fair value of the 2010 Swap was $(418) as of December 31, 2012 and was reported on the condensed consolidated balance sheet in other current liabilities. The 2013 adjustments of $418 to the fair value of the 2010 Swap were recorded as a reduction in interest expense in the statement of comprehensive income for the favorable change in fair value since December 31, 2012.

Interest Rate Cap Agreements - On May 20, 2013, the Company entered into an Interest Rate Cap Agreement (the “2013 Rate Cap No. 1”) with a two-year term for a notional amount of $150,000. 2013 Rate Cap No. 1 became effective on May 28, 2013, matures on May 28, 2015 and sets the maximum LIBOR interest rate at 1.25%.

On May 20, 2013, the Company entered into an Interest Rate Cap Agreement (the “2013 Rate Cap No. 2”) with a two-year term for a notional amount of $75,000. 2013 Rate Cap No. 2 became effective on May 28, 2013, matures on May 28, 2015 and sets the maximum LIBOR interest rate at 1.25%.

As of June 30, 2013, the fair value of the interest rate caps of $239 was reported on the condensed consolidated balance sheet in non-current other assets. The Company’s interest rate cap agreements did not qualify for hedge accounting treatment because they did not meet the provisions specified in ASC 815. Accordingly, the unrealized gain on these derivatives was recognized in current earnings in other expense.

Metal Swap Agreements - On April 20, 2012, the Company entered into a Commodity Metal Swap Agreement (the “2012 Metal Swap No. 1”) with an approximate eight-month term for 35 MT of copper at a notional amount of $294.7. The maturity date was December 31, 2012, and the 2012 Metal Swap No. 1 fixed the copper price at $8.42 per MT.

On May 30, 2012, the Company entered into a Commodity Metal Swap Agreement (the “2012 Metal Swap No. 2”) with an approximate seven-month term for 10 MT of copper at a notional amount of $77.9. The maturity date was December 31, 2012, and the 2012 Metal Swap No. 2 fixed the copper price at $7.79 per MT.

On May 30, 2012, the Company entered into a Commodity Metal Swap Agreement (the “2012 Metal Swap No. 3”) with an approximate ten-month term for 35 MT of copper at a notional amount of $272.5. The maturity date was March 31, 2013, and the 2012 Metal Swap No. 3 fixed the copper price at $7.785 per MT.

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(dollars in thousands)

12. Derivatives and Hedging (continued):

The Company uses metal commodity swap agreements to hedge anticipated purchases of key blanks which can fluctuate with changes in copper prices. The Company’s metal swap agreements did not qualify for hedge accounting treatment because they did not meet the provisions specified in ASC 815. Accordingly, the gain or loss on these derivatives was recognized in current earnings.

As of June 30, 2013, each of the 2012 metal swap agreements have expired and have no value.

Foreign Currency Forward Contract - On December 18, 2012, the Company entered into a Foreign Currency Forward Contract (the “2012 FX Contract”) with an approximate six-month term for a notional amount of C$105,000. The 2012 FX Contract maturity date was May 21, 2013 and fixed the Canadian to US dollar forward exchange rate at 0.9989. The purpose of the 2012 FX Contract was to manage the Company’s exposure to fluctuations in the exchange rate of the Canadian dollar investment used in the Paulin Acquisition.

The 2012 FX Contract was reported on the condensed consolidated balance sheet in other current liabilities prior to its settlement in connection with the Paulin Acquisition. An increase in other expense of $1,138 was recorded in the statement of comprehensive income for the unfavorable change in fair value from December 31, 2012 until its settlement on February 19, 2013.

The Company does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

13. Fair Value Measurements:

The Company uses the accounting guidance that applies to all assets and liabilities that are being measured and reported on a fair value basis. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions.

The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

13. Fair Value Measurements (continued):

The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the periods ended June 30, 2013 and December 31, 2012, by level, within the fair value hierarchy:

	As of June 30, 2013
	Level 1		Level 2		Level 3		Total
Trading securities	$	4,049	$	—	$	—	$	4,049
Interest rate cap		—		239		—		239

	As of December 31, 2012
	Level 1		Level 2			Level 3		Total
Trading securities	$	4,245	$	—		$	—	$	4,245
Interest rate swap		—		(418	)		—		(418	)
Foreign exchange forward contract		—		(1,475	)				(1,475	)
Metal commodity swaps		—		(11	)				(11	)

Trading securities are valued using quoted prices on an active exchange. Trading securities represent assets held in a Rabbi Trust to fund deferred compensation liabilities and are included as restricted investments on the accompanying condensed consolidated balance sheets.

For the three months ended June 30, 2013 and 2012, the unrealized losses on these securities of $69 and $26, respectively, were recorded as other expense. For the six months ended June 30, 2013 and 2012, the unrealized gains on these securities of $69 and $168, respectively, were recorded as other income. An offsetting entry for the same amount, adjusting the deferred compensation liability and compensation expense within SG&A, was also recorded.

The Company utilizes interest rate cap and interest rate swap contracts to manage its targeted mix of fixed and floating rate debt, and these contracts are valued using observable benchmark rates at commonly quoted intervals for the full term of the cap and swap contracts.

As of June 30, 2013, the Interest Rate Cap was included in other non-current assets on the accompanying condensed consolidated balance sheet. The 2010 Swap expired in May 2013 and was included in other current liabilities as of December 31, 2012 on the accompanying condensed consolidated balance sheet.

At December 31, 2012, the Company utilized a foreign exchange forward contract to manage its exposure to currency fluctuations in the Canadian dollar versus the U.S. dollar. This forward contract was valued using observable benchmark rates at commonly quoted intervals during the term of the forward contract. This forward contract was completed on February 19, 2013 in connection with the Paulin Acquisition. The foreign exchange forward contract was included in other current liabilities as of December 31, 2012 on the accompanying condensed consolidated balance sheet.

The Company utilizes metal commodity swap contracts to manage its exposure to price fluctuations in metal commodities used in its key products and these swaps are valued using observable benchmark rates at commonly quoted intervals for the full term of the swaps. As of June 30, 2013, the metal commodity swaps expired and were included in both other current assets and liabilities as of December 31, 2012 on the accompanying condensed consolidated balance sheet.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

13. Fair Value Measurements (continued):

The Company also has certain financial instruments such as cash and cash equivalents, accounts receivables, accounts payable, and variable rate senior term loans (level 2) which have carrying amounts which approximate fair value.

14. Acquisition and Integration Expenses:

For the six months ended June 30, 2013, the Company incurred $4,182 of expenses in connection with the Paulin Acquisition.

For the six months ended June 30, 2012, the Company incurred $464 of expenses in connection with the Ook Acquisition.

15. Segment Reporting:

The Company’s segment reporting structure uses the Company’s management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has five reportable segments as of June 30, 2013. During the first half of 2013, the operations of the Paulin Acquisition were combined into the operations of the Canada segment. The United States segment, excluding All Points, and the Canada segment are the only segments considered material by the Company’s management as of June 30, 2013. The segments are as follows:

• United States – excluding the All Points division

• All Points

• Canada

• Mexico

• Australia

Our United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States. This segment also provides innovative pet ID tag programs to a leading pet products chain retailer using a unique, patent-protected / patent-pending technology and product portfolio.

Our All Points segment is a Florida based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows and hurricane shutters.

Our Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets and industrial Original Equipment Manufacturers (“OEM”) in Canada. Our Canada segment also produces fasteners, stampings, fittings and processes threaded parts for automotive suppliers, industrial OEM’s and industrial distributors.

Our Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.

Our Australia segment distributes keys, key duplicating systems and accessories to home centers and other retail outlets in Australia.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

15. Segment Reporting (continued):

The Company uses profit or loss from operations to evaluate the performance of its segments. Profit or loss from operations is defined as income from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Segment revenue excludes intersegment sales related to the sales or transfer of products between segments which is consistent with the segment revenue information provided to the Company’s chief operating decision maker. Segment Income (Loss) from Operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points segment, while the remaining operating segments do not include any allocations.

The table below presents revenues and income from operations for our reportable segments for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June  30, 2013			Three Months Ended June  30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
Revenues
United States excluding All Points	$	142,851		$	136,588		$	261,696		$	256,349
All Points		5,881			5,115			10,534			9,624
Canada		42,073			3,889			60,385			6,297
Mexico		1,703			1,454			3,670			3,011
Australia		203			195			345			333
Total revenues	$	192,711		$	147,241		$	336,630		$	275,614
Segment Income (Loss) from Operations
United States excluding All Points	$	15,108		$	14,942		$	22,152		$	23,657
All Points		613			321			984			413
Canada		2,251			(214	)		2,417			(433	)
Mexico		116			38			512			389
Australia		(515	)		(146	)		(708	)		(250	)
Total income from operations	$	17,573		$	14,941		$	25,357		$	23,776

Assets by segment as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013		December 31, 2012
Assets
United States excluding All Points	$	928,861	$	1,133,824
All Points		8,878		7,298
Canada		309,215		15,477
Mexico		17,980		17,816
Australia		1,601		1,378
Total Assets	$	1,266,535	$	1,175,793

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information:

The 10.875% Senior Notes, of which $265,000 aggregate principal amount were outstanding as of June 30, 2013, were issued by Hillman Group and are fully and unconditionally guaranteed on a joint and several basis by the Company and certain of Company’s wholly owned subsidiaries. The non-guarantor information presented represents our Australian, Canadian and Mexican subsidiaries.

The following financial information presents condensed consolidating statements of comprehensive income, balance sheets, and cash flows for Hillman Group, all guarantor subsidiaries, all non-guarantor subsidiaries and the eliminations necessary to provide the consolidated results for Hillman Companies and subsidiaries. For purposes of this presentation, we have accounted for investments in our subsidiaries using the equity method of accounting. The principal consolidating adjustments eliminate investment in subsidiary and intercompany balances and transactions.

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THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	139,604		$	9,128		$	43,979		$	—		$	192,711
Cost of sales (exclusive of depreciation and amortization shown below)		—			66,205			6,646			27,487			—			100,338
Selling, general and administrative expenses		4,511			41,996			1,717			11,559			—			59,783
Acquisition and integration expenses		—			657			37			1,459			—			2,153
Depreciation		—			5,785			20			468			—			6,273
Amortization		4,514			771			—			274			—			5,559
Intercompany administrative (income) expense		—			(86	)		—			86			—			—
Other (income) expense, net		69			231			(62	)		794			—			1,032
Income (loss) from operations		(9,094	)		24,045			770			1,852			—			17,573
Intercompany interest (income) expense		(3,058	)		3,058			—			—			—			—
Interest expense, net		(46	)		10,274			—			1,874			—			12,102
Interest expense on junior subordinated debentures		3,153			—			—			—			—			3,153
Investment income on trust common securities		(95	)		—			—			—			—			(95	)
Income (loss) before equity in subsidiaries’ income		(9,048	)		10,713			770			(22	)		—			2,413
Equity in subsidiaries’ income (loss)		10,347			(366	)		—			—			(9,981	)		—
Income (loss) before income taxes		1,299			10,347			770			(22	)		(9,981	)		2,413
Income tax provision		(3,364	)		—			718			396			—			(2,250	)
Net income (loss)	$	4,663		$	10,347		$	52		$	(418	)	$	(9,981	)	$	4,663
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(3,512	)		21			(642	)		—			(4,133	)
Total comprehensive income (loss)	$	4,663		$	6,835		$	73		$	(1,060	)	$	(9,981	)	$	530

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THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	136,588		$	5,115		$	5,538		$	—		$	147,241
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			65,668			3,827			3,455			—			72,950
Selling, general and administrative expenses		(26	)		44,430			940			1,830			—			47,174
Acquisition and integration expenses		—			312			—			—			—			312
Depreciation		—			5,571			28			19			—			5,618
Amortization		4,514			817			—			98			—			5,429
Intercompany administrative (income) expense		—			(87	)		—			87			—			—
Other (income) expense, net		26			421			(1	)		371			—			817
Income (loss) from operations		(4,514	)		19,456			321			(322	)		—			14,941
Intercompany interest (income) expense		(3,058	)		3,058			—			—			—			—
Interest expense, net		(86	)		10,311			—			—			—			10,225
Interest expense on junior subordinated debentures		3,153			—			—			—			—			3,153
Investment income on trust common securities		(94	)		—			—			—			—			(94	)
Income (loss) before equity in subsidiaries’ income		(4,429	)		6,087			321			(322	)		—			1,657
Equity in subsidiaries’ income (loss)		5,642			(102	)		—			—			(5,540	)		—
Income (loss) before income taxes		1,213			5,985			321			(322	)		(5,540	)		1,657
Income tax provision (benefit)		157			343			160			(59	)		—			601
Net income (loss)	$	1,056		$	5,642		$	161		$	(263	)	$	(5,540	)	$	1,056
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			(748	)		—			(748	)
Total comprehensive income (loss)	$	1,056		$	5,642		$	161		$	(1,011	)	$	(5,540	)	$	308

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THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the six months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	256,762		$	15,468		$	64,400		$	—		$	336,630
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			122,520			11,145			40,319			—			173,984
Selling, general and administrative expenses		4,910			82,298			3,024			17,920			—			108,152
Acquisition and integration expenses		—			2,297			51			1,834			—			4,182
Depreciation		—			11,133			35			647			—			11,815
Amortization		9,029			1,543			—			433			—			11,005
Intercompany administrative (income) expense		—			(173	)		—			173			—			—
Other (income) expense, net		(69	)		1,447			(96	)		853			—			2,135
Income (loss) from operations		(13,870	)		35,697			1,309			2,221			—			25,357
Intercompany interest (income) expense		(6,116	)		6,120			—			(4	)		—			—
Interest expense, net		(92	)		21,430			—			2,717			—			24,055
Interest expense on junior subordinated debentures		6,305			—			—			—			—			6,305
Investment income on trust common securities		(189	)		—			—			—			—			(189	)
Income (loss) before equity in subsidiaries’ income		(13,778	)		8,147			1,309			(492	)		—			(4,814	)
Equity in subsidiaries’ income (loss)		7,550			(597	)		—			—			(6,953	)		—
Income (loss) before income taxes		(6,228	)		7,550			1,309			(492	)		(6,953	)		(4,814	)
Income tax provision (benefit)		(6,306	)		—			940			474			—			(4,892	)
Net income (loss)	$	78		$	7,550		$	369		$	(966	)	$	(6,953	)	$	78
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(4,222	)		—			9			—			(4,213	)
Total comprehensive income (loss)	$	78		$	3,328		$	369		$	(957	)	$	(6,953	)	$	(4,135	)

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(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the six months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	256,349		$	9,624		$	9,641		$	—		$	275,614
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			123,310			7,356			5,873			—			136,539
Selling, general and administrative expenses		168			86,500			1,806			3,620			—			92,094
Acquisition and integration expenses		—			464			—			—			—			464
Depreciation		—			11,416			50			41			—			11,507
Amortization		9,029			1,673			—			198			—			10,900
Intercompany administrative (income) expense		—			(173	)		—			173			—			—
Other (income) expense, net		(168	)		473			(1	)		30			—			334
Income (loss) from operations		(9,029	)		32,686			413			(294	)		—			23,776
Intercompany interest (income) expense		(6,116	)		6,116			—			—			—			—
Interest expense, net		(192	)		20,519			—			—			—			20,327
Interest expense on junior subordinated debentures		6,305			—			—			—			—			6,305
Investment income on trust common securities		(189	)		—			—			—			—			(189	)
Income (loss) before equity in subsidiaries’ income		(8,837	)		6,051			413			(294	)		—			(2,667	)
Equity in subsidiaries’ income (loss)		5,185			(60	)		—			—			(5,125	)		—
Income (loss) before income taxes		(3,652	)		5,991			413			(294	)		(5,125	)		(2,667	)
Income tax provision (benefit)		(2,121	)		806			198			(19	)		—			(1,136	)
Net income (loss)	$	(1,531	)	$	5,185		$	215		$	(275	)	$	(5,125	)	$	(1,531	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			489			—			489
Total comprehensive income (loss)	$	(1,531	)	$	5,185		$	215		$	214		$	(5,125	)	$	(1,042	)

Page 26 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Balance Sheet (Unaudited)

As of June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	6,765	$	1,169		$	12,980		$	—		$	20,915
Restricted investments		2,889			—		—			—			—			2,889
Accounts receivable, net		—			85,200		1,178			17,923			—			104,301
Inventories		—			110,151		8,572			53,400			(327	)		171,796
Deferred income taxes		8,643			—		1,224			1,300			(668	)		10,499
Other current assets		—			7,531		197			2,575			—			10,303
Total current assets		11,533			209,647		12,340			88,178			(995	)		320,703
Intercompany notes receivable		105,446			99,886		—			(99,886	)		(105,446	)		—
Intercompany interest receivable		6,116			2,609		—			—			(8,725	)		—
Investments in subsidiaries		(646,282	)		28,123		507			266,323			351,329			—
Property and equipment, net		—			71,271		396			14,092			—			85,759
Goodwill		418,946			24,512		3,090			20,829			280			467,657
Other intangibles, net		302,803			44,503		250			26,033			—			373,589
Restricted investments		1,160			—		—			—			—			1,160
Deferred income taxes		33,648			—		(727	)		142			(33,063	)		—
Deferred financing fees		—			11,329		—			—			—			11,329
Investment in trust common securities		3,261			—		—			—			—			3,261
Other assets		—			2,537		25			515			—			3,077
Total assets	$	236,631		$	494,417	$	15,881		$	316,226		$	203,380		$	1,266,535
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	32,010	$	1,750		$	16,420		$	—		$	50,180
Current portion of senior term loans		—			3,968		—			—			—			3,968
Current portion of capitalized lease and other obligations		—			407		—			—			—			407
Interest payable on junior subordinated debentures		1,019			—		—			—			—			1,019
Intercompany interest payable		—			6,116		—			2,609			(8,725	)		—
Accrued expenses:
Salaries and wages		—			6,659		155			2,107			—			8,921
Pricing allowances		—			3,126		4			2,502			—			5,632
Income and other taxes		(529	)		2,200		311			259			—			2,241
Interest		—			2,763		—			—			—			2,763
Deferred compensation		2,889			—		—			—			—			2,889
Other accrued expenses		—			6,411		251			2,276			—			8,938
Total current liabilities		3,379			63,660		2,471			26,173			(8,725	)		86,958

Page 27 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Balance Sheet (Unaudited)

As of June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)
Intercompany debt payable		—			105,446			—		—			(105,446	)		—
Long term senior term loans		—			380,180			—		—			—			380,180
Long term portion of capitalized leases		—			363			—		—			—			363
Long term senior notes		—			272,358			—		—			—			272,358
Junior subordinated debentures		115,040			—			—		—			—			115,040
Deferred compensation		1,160			—			—		—			—			1,160
Deferred income taxes, net		141,816			—			207		9,545			(33,731	)		117,837
Other non-current liabilities		5,555			5,700			—		—			—			11,255
Total liabilities		266,950			827,707			2,678		35,718			(147,902	)		985,151
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 issued and outstanding at June 30, 2013		19,983			—			—		—			—			19,983
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at June 30, 2013		—			—			—		—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 issued and outstanding at June 30, 2013		—			—			50		—			(50	)		—
Additional paid-in capital		113,211			(130,734	)		11,711		293,717			1,811			289,716
Accumulated deficit		(163,513	)		(198,334	)		1,442		(3,424	)		338,856			(24,973	)
Accumulated other comprehensive income		—			(4,222	)		—		(9,785	)		10,665			(3,342	)
Total stockholders’ equity		(50,302	)		(333,290	)		13,203		280,508			351,282			261,401
Total liabilities and stockholders’ equity	$	236,631		$	494,417		$	15,881	$	316,226		$	203,380		$	1,266,535

Page 28 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Balance Sheet (Unaudited)

As of December 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	62,917	$	429		$	2,201		$	—		$	65,548
Restricted investments		846			—		—			—			—			846
Accounts receivable, net		—			65,916		6,473			(10,045	)		—			62,344
Inventories		—			105,028		4,678			4,404			(272	)		113,838
Deferred income taxes		10,359			—		610			221			(726	)		10,464
Other current assets		—			6,526		145			1,835			—			8,506
Total current assets		11,206			240,387		12,335			(1,384	)		(998	)		261,546
Intercompany notes receivable		105,446			—		—			—			(105,446	)		—
Investments in subsidiaries		(637,376	)		27,204		—			—			610,172			—
Property and equipment, net		—			67,902		191			399			—			68,492
Goodwill		418,946			24,512		58			11,542			280			455,338
Other intangibles, net		311,832			46,047		250			8,515			—			366,644
Restricted investments		3,399			—		—			—			—			3,399
Deferred income taxes		29,492			—		(411	)		977			(30,058	)		—
Deferred financing fees		—			12,858		—			—			—			12,858
Investment in trust common securities		3,261			—		—			—			—			3,261
Other assets		—			3,521		25			709			—			4,255
Total assets	$	246,206		$	422,431	$	12,448		$	20,758		$	473,950		$	1,175,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	31,873	$	517		$	181		$	—		$	32,571
Current portion of senior term loans		—			3,200		—			—			—			3,200
Current portion of capitalized lease and other obligations		—			819		—			—			—			819
Additional acquisition consideration		—			—		—			—			—			—
Accrued expenses:
Salaries and wages		—			8,930		217			204			—			9,351
Pricing allowances		—			3,457		3			597			—			4,057
Income and other taxes		(625	)		2,447		25			645			—			2,492
Interest		—			2,868		—			—			—			2,868
Deferred compensation		846			—		—			—			—			846
Other accrued expenses		—			9,822		40			1,535			—			11,397
Total current liabilities		221			63,416		802			3,162			—			67,601

Page 29 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Balance Sheet (Unaudited)

As of December 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
LIABILITIES AND STOCKHOLDERS’ EQUITY (CONTINUED)
Intercompany debt payable		—			105,446			—		—			(105,446	)		—
Long term senior term loans		—			307,727			—		—			—			307,727
Long term portion of capitalized lease and other obligations		—			245			—		—			—			245
Long term senior notes		—			272,942			—		—			—			272,942
Junior subordinated debentures		115,132			—			—		—			—			115,132
Deferred compensation		3,399			—			—		—			—			3,399
Deferred income taxes, net		146,042			—			219		2,472			(30,784	)		117,949
Other non-current liabilities		714			5,473			—		—			—			6,187
Total liabilities		265,508			755,249			1,021		5,634			(136,230	)		891,182
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 198.4 issued and outstanding at December 31, 2012		14,116			—			—		—			—			14,116
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2012		—			—			—		—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,801.6 issued and outstanding at December 31, 2012		—			—			50		—			(50	)		—
Additional paid-in capital		117,261			(131,642	)		10,304		17,192			281,560			294,675
Accumulated deficit		(150,679	)		(201,176	)		1,073		(2,458	)		328,189			(25,051	)
Accumulated other comprehensive loss		—			—			—		390			481			871
Total stockholders’ equity		(33,418	)		(332,818	)		11,427		15,124			610,180			270,495
Total liabilities and stockholders’ equity	$	246,206		$	422,431		$	12,448	$	20,758		$	473,950		$	1,175,793

Page 30 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(7,472	)	$	8,147		$	369		$	(966	)	$	—		$	78
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		9,029			12,676			35			1,080			—			22,820
Dispositions of property and equipment		—			23			13			3			—			39
Deferred income tax provision (benefit)		(6,666	)		—			(310	)		1,358			—			(5,618	)
Deferred financing and original issue discount amortization		(92	)		1,315			—			—			—			1,223
Stock-based compensation expense		4,841			—			—			—			—			4,841
Other non-cash interest expense		—			(418	)		—			—			—			(418	)
Changes in operating items:
Accounts receivable		—			(17,636	)		(3,102	)		(3,960	)		—			(24,698	)
Inventories		—			(5,068	)		(3,894	)		6,055			—			(2,907	)
Other assets		—			(1,669	)		8,345			(4,639	)		—			2,037
Accounts payable		—			137			1,233			3,435			—			4,805
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		96			168			436			6,772			(8,725	)		(1,253	)
Other items, net		(739	)		(8,434	)		(2,292	)		1,816			8,709			(940	)
Net cash provided by (used for) operating activities		16			(10,759	)		833			10,954			(16	)		1,028
Cash flows from investing activities:
Paulin acquisition		—			(103,416	)		—			—			—			(103,416	)
Capital expenditures		—			(14,336	)		(93	)		(175	)		—			(14,604	)
Other, net		(16	)		—			—			—			16			—
Net cash provided by (used for) investing activities		(16	)		(117,752	)		(93	)		(175	)		16			(118,020	)
Cash flows from financing activities:
Borrowings of senior term loans		—			76,800			—			—			—			76,800
Repayments of senior term loans		—			(1,792	)		—			—			—			(1,792	)
Discount on senior term loans		—			(2,152	)		—			—			—			(2,152	)
Principal payments under capitalized lease obligations		—			(41	)		—			—			—			(41	)
Repayment of other credit obligations		—			(456	)		—			—			—			(456	)
Net cash provided by financing activities		—			72,359			—			—			—			72,359
Net (decrease) increase in cash and cash equivalents		—			(56,152	)		740			10,779			—			(44,633	)
Cash and cash equivalents at beginning of period		1			62,917			429			2,201			—			65,548
Cash and cash equivalents at end of period	$	1		$	6,765		$	1,169		$	12,980		$	—		$	20,915

Page 31 of 50

THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands)

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (continued):

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(6,716	)	$	5,270		$	215		$	(275	)	$	(25	)	$	(1,531	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		9,029			13,089			50			239			—			22,407
Dispositions of property and equipment		—			3			—			—			—			3
Deferred income tax provision (benefit)		(2,435	)		749			171			(47	)		—			(1,562	)
Deferred financing and original issue discount amortization		(192	)		1,234			—			—			—			1,042
Other non-cash interest and change in value of interest rate swap		—			(372	)		—			—			—			(372	)
Changes in operating items:
Accounts receivable		—			(11,126	)		(690	)		(2,222	)		—			(14,038	)
Inventories		—			(11,444	)		(347	)		(781	)		25			(12,547	)
Other assets		—			(2,876	)		(269	)		2,272			—			(873	)
Accounts payable		—			8,620			1,071			(247	)		—			9,444
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		154			7,559			103			323			(6,116	)		2,023
Other items, net		(859	)		(6,716	)		—			(21	)		6,116			(1,480	)
Net cash provided by (used for) operating activities		—			3,990			304			(759	)		—			3,535
Cash flows from investing activities:
Proceeds from sale of property and equipment		—			—			3			—			—			3
Capital expenditures		—			(10,343	)		(51	)		(102	)		—			(10,496	)
Net cash used for investing activities		—			(10,343	)		(48	)		(102	)		—			(10,493	)
Cash flows from financing activities:
Repayments of senior term loans		—			(1,600	)		—			—			—			(1,600	)
Borrowings of revolving credit loans		—			19,000			—			—			—			19,000
Payments of additional acquisition consideration		—			(12,387	)		—			—			—			(12,387	)
Principal payments under capitalized lease obligations		—			(17	)		—			—			—			(17	)
Net cash provided by financing activities		—			4,996			—			—			—			4,996
Net (decrease) increase in cash and cash equivalents		—			(1,357	)		256			(861	)		—			(1,962	)
Cash and cash equivalents at beginning of period		1			8,852			547			2,627			—			12,027
Cash and cash equivalents at end of period	$	1		$	7,495		$	803		$	1,766		$	—		$	10,065

Page 32 of 50

Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The following discussion provides information which the Company’s management believes is relevant to an assessment and understanding of the Company’s operations and financial condition. This discussion should be read in conjunction with the condensed consolidated financial statements and accompanying notes in addition to the consolidated statements and notes thereto included in the Company’s annual report filed on Form 10-K for the year ended December 31, 2012.

Forward-Looking Statements

Certain disclosures related to acquisitions, refinancing, capital expenditures, resolution of pending litigation and realization of deferred tax assets contained in this quarterly report involve substantial risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” “project” or the negative of such terms or other similar expressions.

These forward-looking statements are not historical facts, but rather are based on management’s current expectations, assumptions and projections about future events. Although management believes that the expectations, assumptions and projections on which these forward-looking statements are based are reasonable, they nonetheless could prove to be inaccurate, and as a result, the forward-looking statements based on those expectations, assumptions and projections also could be inaccurate. Forward-looking statements are not guarantees of future performance. Instead, forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause the Company’s strategy, planning, actual results, levels of activity, performance, or achievements to be materially different from any strategy, planning, future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially from those currently anticipated as a result of a number of factors, including the risks and uncertainties discussed under the caption “Risk Factors” set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward-looking statements.

All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements included in this report and the risks and uncertainties discussed under the caption “Risk Factors” set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012; they should not be regarded as a representation by the Company or any other individual. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this report might not occur or be materially different from those discussed.

Page 33 of 50

General

The Hillman Companies, Inc. and its wholly owned subsidiaries (collectively, “Hillman” or the “Company”) are one of the largest providers of hardware-related products and related merchandising services to retail markets in North America. The Company’s principal business is operated through its wholly-owned subsidiary, The Hillman Group, Inc. (the “Hillman Group”). The 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, Australia, Latin America and the Caribbean. Product lines include thousands of small parts such as fasteners and related hardware items; threaded rod and metal shapes; keys, key duplication systems and accessories; builder’s hardware; and identification items, such as tags and letters, numbers, and signs (“LNS”). The Company supports its product sales with value added services including design and installation of merchandising systems and maintenance of appropriate in-store inventory levels.

Financing Arrangements

The Company pays interest to the Trust on the Junior Subordinated Debentures underlying the Trust Preferred Securities at the rate of 11.6% per annum on their face amount of $105.4 million, or $12.2 million per annum in the aggregate. The Trust distributes an equivalent amount to the holders of the Trust Preferred Securities. Pursuant to the Indenture that governs the Trust Preferred Securities, the Trust is able to defer distribution payments to holders of the Trust Preferred Securities for a period that cannot exceed 60 months (the “Deferral Period”). During a Deferral Period, the Company is required to accrue the full amount of all interest payable, and such deferred interest payable would become immediately payable by the Company at the end of the Deferral Period.

Concurrently with the Merger Transaction, Hillman Group issued $150.0 million aggregate principal amount of its senior notes due 2018 (the “10.875% Senior Notes”). On March 16, 2011, Hillman Group completed an offering of $50.0 million aggregate principal amount of its 10.875% Senior Notes. On December 21, 2012, Hillman Group completed an offering of $65.0 million aggregate principal amount of its temporary 10.875% Senior Notes. The temporary 10.875% Senior Notes were mandatorily exchanged for a like aggregate principal amount of 10.875% Senior Notes on February 19, 2013 in connection with the Paulin Acquisition. The 10.875% Senior Notes are guaranteed by The Hillman Companies, Inc., Hillman Investment Company and all of the domestic subsidiaries of Hillman Group. Hillman Group pays interest on the 10.875% Senior Notes semi-annually on June 1 and December 1 of each year.

Effective November 7, 2012, the Company entered into a Joinder Agreement (the “2012 Incremental Facility”) to its $320.0 million senior secured first lien credit facility (the “Senior Facilities”), consisting of a $290.0 million term loan and a $30.0 million revolving credit facility (“Revolver”). The 2012 Incremental Facility increased the aggregate term loan commitments available to Hillman Group under the Senior Facilities by $76.8 million. Subject to the conditions precedent to each funding date described in Section 17 of the 2012 Incremental Facility, the Company was permitted to make two drawings under the 2012 Incremental Facility on any business day after November 7, 2012 and prior to April 1, 2013. The Company drew down on funds from the 2012 Incremental Facility in order to fund the permitted Paulin Acquisition on February 19, 2013. The aggregate principal amount of commitments under the Senior Facilities, after giving effect to the 2012 Incremental Facility, was $420.0 million.

Effective February 14, 2013, the Company completed an amendment to the credit agreement governing its Senior Facilities. The Senior Facilities amendment modified the term loan pricing to reduce the EuroDollar margin by 50 basis points to 3.00% and reduce the EuroDollar floor on EuroDollar loans by an additional 25 basis points to 1.25%. This amendment modified the term loan pricing to reduce the base rate margin by 50 basis points to 2.00% and reduce the floor on base rate loans by an additional 25 basis points to 2.25%. This amendment also extends the maturity date of the Senior Facilities by one year to May 28, 2017.

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Acquisitions

On February 19, 2013, pursuant to the terms of the previously announced plan of arrangement dated December 17, 2012, the Company acquired all of the issued and outstanding Class A common shares of H. Paulin & Co., Limited (the “Paulin Acquisition”). The aggregate purchase price of the Paulin Acquisition was $103.4 million paid in cash. On March 31, 2013, H. Paulin & Co., Limited (“Paulin”) was amalgamated with The Hillman Group Canada ULC.

Paulin is a leading Canadian distributor and manufacturer of fasteners, fluid system products, automotive parts and retail hardware components. Paulin’s distribution facilities are located across Canada in Vancouver, Edmonton, Winnipeg, Toronto, Montreal and Moncton, as well as in Flint, Michigan and Cleveland, Ohio. Paulin’s four manufacturing facilities are located in Ontario, Canada. Annual revenues of Paulin for 2012 were approximately $145.7 million.

Results of Operations

The following analysis of results of operations includes a brief discussion of the factors that affected the Company’s operating results and a comparative analysis of the periods for the three months ended June 30, 2013 and 2012.

	Three Months						Three Months
	Ended						Ended
	June 30,						June 30,
	2013			% of			2012			% of
(dollars in thousands)	Amount			Total			Amount			Total
Net sales	$	192,711			100.0	%	$	147,241			100.0	%
Cost of sales (exclusive of depreciation and amortization shown separately below)		100,338			52.1	%		72,950			49.5	%
Selling		25,705			13.3	%		23,168			15.7	%
Warehouse & delivery		20,794			10.8	%		15,035			10.2	%
General & administrative		13,284			6.9	%		8,971			6.1	%
Acquisition and integration expenses (a)		2,153			1.1	%		312			0.2	%
Depreciation		6,273			3.3	%		5,618			3.8	%
Amortization		5,559			2.9	%		5,429			3.7	%
Other expense		1,032			0.5	%		817			0.6	%
Income from operations		17,573			9.1	%		14,941			10.1	%
Interest expense, net		12,102			6.3	%		10,225			6.9	%
Interest expense on junior subordinated notes		3,153			1.6	%		3,153			2.1	%
Investment income on trust common securities		(95	)		0.0	%		(94	)		-0.1	%
Income before income taxes		2,413			1.3	%		1,657			1.1	%
Income tax provision (benefit)		(2,250	)		-1.2	%		601			0.4	%
Net income	$	4,663			2.4	%	$	1,056			0.7	%

(a) Represents charges for investment banking, legal and other professional fees incurred in connection with the Paulin Acquisition in 2013 and the Ook Acquisition in 2012.

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Current Economic Conditions

The Company’s business is impacted by general economic conditions in the U.S. and international markets, particularly the U.S. retail markets including hardware stores, home centers, mass merchants, and other retailers. In recent quarters, operations have been negatively impacted by the general downturn in the U.S. economy, including higher unemployment figures, and the contraction of the retail market. Recently, there have been certain signs of improvement in economic activity, including a reduction in the unemployment figures. However, conditions are not expected to improve significantly in the near term. While recent economic growth reports are more positive, there still exists concern about downside risk to future growth and the high unemployment rate. These factors may have the effect of reducing consumer spending which could adversely affect our results of operations during the current year and beyond.

The Company is sensitive to inflation or deflation present in the economies of the United States and foreign suppliers located primarily in Taiwan and China. The national and international economic difficulties of 2008 and 2009 began a reversal of the trend of rising costs for our products and commodities used in the manufacture of our products, including a decrease in the cost of oil and diesel fuel. Throughout most of 2010 and 2011, the Company saw an end to decreasing costs and, in certain instances, moderate increases in the costs for our products and the most critical commodities used in the manufacture of our products. Additionally, unfavorable exchange rate fluctuations have increased the costs for many of our products. The Company took pricing action in 2011 and 2012 in an attempt to offset a portion of the product cost increases. While inflation and resulting cost increases over a period of years would result in significant increases in inventory costs and operating expenses, the opposite is true when exposed to a prolonged period of cost decreases. The ability of the Company’s operating divisions to institute price increases and seek price concessions, as appropriate, is dependent on competitive market conditions.

The Three Months Ended June 30, 2013 vs the Three Months Ended June 30, 2012

Revenues

Net sales for the second quarter of 2013 were $192.7 million, an increase of $45.5 million compared to net sales of $147.2 million for the second quarter of 2012. The increase in revenue was primarily attributable to the newly acquired Paulin business which contributed approximately $41.5 million in incremental net sales to the second quarter of 2013. Our national accounts, engraving accounts and All Points provided favorable revenue gains compared to the prior year, however a reduced level of retail activity and product penetration in the 2013 period resulted in revenue decreases from the prior year in our franchise and independent hardware accounts and regional accounts.

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Expenses

Operating expenses were higher for the three months ended June 30, 2013 than the three months ended June 30, 2012. The primary reason for the increase in operating expenses was the the inclusion of the newly acquired Paulin business in the second quarter of 2013. The following changes in underlying trends impacted the change in operating expenses:

• The Company’s cost of sales expense was $100.3 million, or 52.1% of net sales, in the second quarter of 2013, an increase of $27.4 million compared to $72.9 million, or 49.5% of net sales, in the second quarter of 2012. The cost of sales percentage in the 2013 period was higher than the comparable 2012 period as a result of the inclusion of the Paulin business which increased cost of sales by 3.3% expressed as a percent of sales. The cost of sales of the Paulin business, expressed as a percent of sales, is generally higher than the traditional Hillman businesses.

• Selling expense was $25.7 million, or 13.3% of net sales, in the second quarter of 2013, an increase of $2.5 million compared to $23.2 million, or 15.7% of net sales, in the second quarter of 2012. Selling expense of approximately $2.5 million was attributable to the new Paulin business in the second quarter of 2013. The selling costs from the remaining Hillman businesses were approximately unchanged from the comparable 2012 period.

• Warehouse and delivery expense was $20.8 million, or 10.8% of net sales, in the second quarter of 2013, an increase of $5.8 million compared to warehouse and delivery expense of $15.0 million, or 10.2% of net sales, in the second quarter of 2012. Warehouse and delivery expense of approximately $5.2 million was attributable to the new Paulin business in the second quarter of 2013. The costs in the remaining Hillman businesses were up from the prior year period primarily from increased warehouse lease cost and freight on customer shipments.

• G&A expenses were $13.3 million in the second quarter of 2013, an increase of $4.3 million compared to $9.0 million in the second quarter of 2012. G&A expenses in the 2013 period included approximately $4.6 million in stock compensation cost and approximately $2.5 million in costs from the new Paulin business. G&A expenses in the second quarter of 2012 included approximately $2.2 million in legal expense incurred primarily on the Hy-Ko Products patent infringement and antitrust cases.

• Acquisition and integration costs were $2.2 million in the second quarter of 2013 primarily as a result of the Paulin Acquisition. The acquisition and integration costs were $0.3 million in the second quarter of 2012 as a result of the Ook Acquisition.

• Amortization expense was $5.6 million in the second quarter of 2013 compared to $5.4 million in the second quarter of 2012. The slightly higher amount of amortization expense for the 2013 period was due to the increase in amortization expense of certain intangible assets, subject to amortization, acquired as a result of the Paulin Acquisition.

• Interest expense, net, was $12.1 million in the second quarter of 2013 compared to $10.2 million in the second quarter of 2012. The increase in interest expense was primarily the result of the Company’s higher borrowing levels in both the $265.0 million aggregate principal amount of the senior notes due 2018 issued by the Company (the “10.875% Senior Notes”) and the Senior Facilities during the second quarter of 2013 compared to the same period of 2012.

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The following analysis of results of operations includes a brief discussion of the factors that affected the Company’s operating results and a comparative analysis of the periods for the six months ended June 30, 2013 and 2012.

	Six Months						Six Months
	Ended						Ended
	June 30,						June 30,
	2013			% of			2012			% of
(dollars in thousands)	Amount			Total			Amount			Total
Net sales	$	336,630			100.0	%	$	275,614			100.0	%
Cost of sales (exclusive of depreciation and amortization shown separately below)		173,984			51.7	%		136,539			49.5	%
Selling		48,965			14.5	%		46,188			16.8	%
Warehouse & delivery		37,155			11.0	%		28,951			10.5	%
General & administrative		22,032			6.5	%		16,955			6.2	%
Acquisition and integration expenses (a)		4,182			1.2	%		464			0.2	%
Depreciation		11,815			3.5	%		11,507			4.2	%
Amortization		11,005			3.3	%		10,900			4.0	%
Other expense		2,135			0.6	%		334			0.1	%
Income from operations		25,357			7.5	%		23,776			8.6	%
Interest expense, net		24,055			7.1	%		20,327			7.4	%
Interest expense on junior subordinated notes		6,305			1.9	%		6,305			2.3	%
Investment income on trust common securities		(189	)		-0.1	%		(189	)		-0.1	%
Loss before income taxes		(4,814	)		-1.4	%		(2,667	)		-1.0	%
Income tax benefit		(4,892	)		-1.5	%		(1,136	)		-0.4	%
Net income (loss)	$	78			0.0	%	$	(1,531	)		-0.6	%

(a) Represents charges for investment banking, legal and other professional fees incurred in connection with the Paulin Acquisition in 2013 and the Ook Acquisition in 2012.

The Six Months Ended June 30, 2013 vs the Six Months Ended June 30, 2012

Revenues

Net sales for the first six months of 2013 were $336.6 million, an increase of $61.0 million compared to net sales of $275.6 million for the first six months of 2012. The increase in revenue was primarily attributable to the newly acquired Paulin business which contributed approximately $58.9 million in incremental net sales to the first six months of 2013. Our national accounts and All Points businesses provided favorable revenue gains compared to the prior year, however a decline in retail activity and a reduced level of product penetration in the 2013 period resulted in revenue decreases from the prior year in our franchise and independent hardware accounts and regional accounts.

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Expenses

Operating expenses were higher for the six months ended June 30, 2013 than the six months ended June 30, 2012. The primary reason for the increase in operating expenses was the inclusion of the newly acquired Paulin business in the first six months of 2013. The following changes in underlying trends impacted the change in operating expenses:

• The Company’s cost of sales expense was $174.0 million, or 51.7% of net sales, in the first half of 2013, an increase of $37.5 million compared to $136.5 million, or 49.5% of net sales, in the first half of 2012. The cost of sales percentage in the 2013 period was higher than the comparable 2012 period as a result of the inclusion of the Paulin business which increased cost of sales by 2.7% expressed as a percent of sales.

• Selling expense was $49.0 million, or 14.5% of net sales, in the first half of 2013, an increase of $2.8 million compared to $46.2 million, or 16.8% of net sales, in the first half of 2012. Selling expense of approximately $3.7 million was attributable to the new Paulin business in the first half of 2013. However, the reduction in base sales from Hillman’s regional and franchise and independent businesses resulted in less selling expense of approximately $0.9 million compared to the 2012 period. This favorable variance was primarily from reductions in salesman commissions, marketing and customer display costs.

• Warehouse and delivery expense was $37.2 million, or 11.0% of net sales, in the first half of 2013, an increase of $8.2 million compared to warehouse and delivery expense of $29.0 million, or 10.5% of net sales, in the first half of 2012. Warehouse and delivery expense of approximately $7.6 million was attributable to the new Paulin business in the first half of 2013. The costs in the remaining Hillman businesses were up approximately $0.6 million from the prior year period primarily from increased warehouse lease cost and freight on customer shipments.

• G&A expenses were $22.0 million in the first half of 2013, an increase of $5.0 million compared to $17.0 million in the first half of 2012. G&A expenses in the 2013 period included approximately $4.8 million in stock compensation cost and approximately $3.7 million in costs from the new Paulin business. G&A expenses in the first half of 2012 included approximately $2.9 million in legal expense incurred on the Hy-Ko Products patent infringement and antitrust cases.

• Acquisition and integration costs were $4.2 million in the first half of 2013 primarily as a result of the Paulin Acquisition. The acquisition and integration costs were $0.5 million in the first half of 2012 as a result of the Ook Acquisition.

• Amortization expense was $11.0 million in the first half of 2013 compared to $10.9 million in the first half of 2012. The slightly higher amount of amortization expense for the 2013 period was due to the additional amortization expense of certain intangible assets, subject to amortization, acquired as a result of the Paulin Acquisition.

• Interest expense, net, was $24.1 million in the first half of 2013 compared to $20.3 million in the first half of 2012. The increase in interest expense was primarily the result of the Company’s higher borrowing levels in both the $265.0 million aggregate principal amount of the 10.875% Senior Notes and the Senior Facilities during the first half of 2013 compared to the same period of 2012.

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Income Taxes

In the six month period ended June 30, 2013, the Company recorded an income tax benefit of $4.9 million on a pre-tax loss of $4.8 million. In the three month period ended June 30, 2013, the Company recorded an income tax benefit of $2.2 million on a pre-tax income of $2.4 million. The effective income tax rates were 101.6% and -93.2% for the six and three month periods ended June 30, 2013, respectively.

In the six month period ended June 30, 2012, the Company recorded an income tax benefit of $1.1 million on a pre-tax loss of $2.7 million. In the three month period ended June 30, 2012, the Company recorded an income tax provision of $0.6 million on pre-tax income of $1.7 million. The effective income tax rates were 42.6% and 36.3% for the six and three month periods ended June 30, 2012, respectively.

The difference between the effective income tax rate and the federal statutory rate in the six month and three month periods ended June 30, 2013 was affected by a valuation reserve recorded to offset the deferred tax assets of a foreign subsidiary. The effective income tax rate in the six month and three month periods ended June 30, 2013 was affected by the change, in the second quarter, of the estimated annual effective tax rate used to compute the interim tax provision as required by ASC 740-270, the accounting guidance established for computing income taxes in interim periods. The net effect of the change was recorded in the current period as required by the accounting standard. The effective income tax rate in the six month and three month periods ended June 30, 2013 was also affected by changes, in the second quarter, in certain state income tax rates used in computing the Company’s deferred tax assets and liabilities and a reduction of valuation reserves related to certain deferred tax assets. The remaining differences between the effective income tax rate and the federal statutory rate in the six month and three month periods ended June 30, 2013 was primarily due to state and foreign income taxes.

The difference between the effective income tax rate and the federal statutory rate in the six month and three month periods ended June 30, 2012 was affected by a valuation reserve recorded to offset the deferred tax assets of a foreign subsidiary. The effective income tax rate in the three month period ended June 30, 2012 was also affected by the change, in the second quarter, of the estimated annual effective tax rate used to compute the interim tax provision as required by ASC 740-270, the accounting guidance established for computing income taxes in interim periods. The net effect of the change was recorded in the current period, as required by the accounting standard. The remaining differences between the effective income tax rate and the federal statutory rate in the six month and three month periods ended June 30, 2012 was primarily due to state and foreign income taxes.

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Liquidity and Capital Resources

Cash Flows

The statements of cash flows reflect the changes in cash and cash equivalents for the six months ended June 30, 2013 and the six months ended June 30, 2012 by classifying transactions into three major categories: operating, investing and financing activities.

Operating Activities

Net cash provided by operating activities for the six months ended June 30, 2013 of $1.0 million was the result of the net income adjusted for non-cash items of $22.9 million for depreciation, amortization, deferred taxes, deferred financing, stock-based compensation and non-cash interest which was offset by cash related adjustments of $21.9 million for routine operating activities represented by changes in accounts receivable, inventories, accounts payable, accrued liabilities and other assets. In the first six months of 2013, routine operating activities used cash through an increase in accounts receivable of $24.7 million, an increase in inventories of $2.9 million, a decrease in other accrued liabilities of $1.2 million and other items of $0.9 million. This was partially offset by a decrease in other assets of $2.0 million, an increase in accounts payable of $4.8 million, and an increase of $1.0 million in interest payable on the junior subordinated debentures. In the first six months of 2013, the increase in accounts receivable was the primary use of cash flow from operating activities for the period.

Net cash provided by operating activities for the six months ended June 30, 2012 of $3.5 million was the result of the net loss adjusted for non-cash items of $20.0 million for depreciation, amortization, deferred taxes, deferred financing and non-cash interest which was offset by cash related adjustments of $16.5 million for routine operating activities represented by changes in accounts receivable, inventories, accounts payable, accrued liabilities and other assets. In the first six months of 2012, routine operating activities used cash through an increase in accounts receivable of $14.0 million, an increase in inventories of $12.5 million, an increase in other assets of $0.9 million and other of $1.5 million. This was partially offset by an increase in accounts payable of $9.4 million, an increase in other accrued liabilities of $2.0 million and an increase of $1.0 million in interest payable on the junior subordinated debentures. The Company typically experiences operating cash outflows in the first two fiscal quarters of the year when selling volume, accounts receivable and inventory levels increase as the Company moves into the stronger selling periods of the spring and summer. In the first six months of 2012, the increase in accounts payable and non-cash items such as depreciation and amortization were instrumental in providing an operating cash inflow for the period.

Investing Activities

Net cash used for investing activities was $118.0 million for the six months ended June 30, 2013. The Company used $103.4 million for the Paulin Acquisition. Capital expenditures for the six months totaled $14.6 million, consisting of $8.6 million for key duplicating machines, $1.7 million for engraving machines, $2.8 million for computer software and equipment and $1.5 million for machinery and equipment.

Net cash used for investing activities was $10.5 million for the six months ended June 30, 2012. Capital expenditures for the six months totaled $10.5 million, consisting of $5.2 million for key duplicating machines, $3.2 million for engraving machines, $1.9 million for computer software and equipment and $0.2 million for machinery and equipment.

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Financing Activities

Net cash provided by financing activities was $72.4 million for the six months ended June 30, 2013. The borrowings on senior term loans provided $74.6 million, net of the discount of $2.2 million, and were used together with a portion of the recent borrowings on the 10.875% Senior Notes to pay the purchase price of the Paulin Acquisition and for other corporate purposes. In addition, the Company used cash to pay $1.8 million in principal payments on the senior term loans under the Senior Facilities and $0.5 million in principal payments on other credit obligations.

Net cash provided by financing activities was $5.0 million for the six months ended June 30, 2012. The net cash provided by financing activities was primarily related to the borrowing of $19.0 million on the revolving credit facility. The Company used cash to pay $12.4 million of additional acquisition consideration and $1.6 million in principal payments on the senior term loans under the Senior Facilities.

Liquidity

The Company’s management believes that projected cash flows from operations and revolver availability will be sufficient to fund working capital and capital expenditure needs for the next 12 months.

The Company’s working capital (current assets minus current liabilities) position of $233.7 million as of June 30, 2013 represents an increase of $39.8 million from the December 31, 2012 level of $193.9 million. The primary reason for the increase in working capital was from the inclusion of working capital provided in the Paulin Acquisition which was financed primarily from long-term debt.

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Contractual Obligations

The Company’s contractual obligations in thousands of dollars as of June 30, 2013:

			Payments Due
Contractual Obligations	Total		Less Than 1 Year		1 to 3 Years		3 to 5 Years		More Than 5 Years
Junior Subordinated Debentures (1)	$	115,040	$	—	$	—	$	—	$	115,040
Interest on Jr Subordinated Debentures		174,297		12,231		24,463		24,463		113,140
Senior Term Loans		387,383		3,968		7,936		375,479		—
10.875% Senior Notes		265,000		—		—		265,000		—
KeyWorks License Agreement		3,027		442		837		778		970
Interest Payments (2)		205,802		45,279		90,095		70,045		383
Operating Leases		59,440		9,993		12,748		10,288		26,411
Deferred Compensation Obligations		4,049		2,889		—		—		1,160
Capital Lease Obligations		806		424		323		59		—
Other Obligations		1,494		627		693		174		—
Uncertain Tax Position Liabilities		3,578		1,535		—		—		2,043
Total Contractual Cash Obligations (3)	$	1,219,916	$	77,388	$	137,095	$	746,286	$	259,147

(1) The junior subordinated debentures liquidation value is approximately $108,704.

(2) Interest payments for borrowings under the Senior Facilities and with regard to the 10.875% Senior Notes. Interest payments on the variable rate senior term loans were calculated using the actual interest rate of 4.25% as of June 30, 2013, excluding the possible impact of interest rate caps acquired in 2013. Interest payments on the 10.875% Senior Notes were calculated at their fixed rate.

(3) All of the contractual obligations noted above are reflected on the Company’s condensed consolidated balance sheet as of June 30, 2013 except for the interest payments, purchase obligations and operating leases.

The Company has a purchase agreement with its supplier of key blanks which requires minimum purchases of 100 million key blanks per year. To the extent minimum purchases of key blanks are below 100 million, the Company must pay the supplier $0.0035 per key multiplied by the shortfall. Since the inception of the contract in 1998, the Company has purchased more than the requisite 100 million key blanks per year from the supplier. In 2009, the Company extended this contract for an additional four years. The Company anticipates an additional extension to the agreement will be entered into with this supplier in the third quarter of 2013.

As of June 30, 2013, the Company had no material purchase commitments for capital expenditures.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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Borrowings

As of June 30, 2013, the Company had $26.5 million available under the Senior Facilities. The Company had approximately $388.2 million of outstanding debt under its Senior Facilities at June 30, 2013, consisting of $387.4 million in a term loan and $0.8 million in capitalized lease obligations. The term loan consisted of a $387.4 million Term B-2 Loan at an interest rate of 4.25%. The capitalized lease obligations were at various interest rates.

At June 30, 2013 and December 31, 2012, the Company’s borrowings were as follows:

	June 30, 2013							December 31, 2012
(dollars in thousands)	Facility Amount		Outstanding Amount		Interest Rate			Facility Amount		Outstanding Amount		Interest Rate
Term B-2 Loan			$	387,383		4.25	%			$	312,375		5.00	%
Revolving credit facility	$	30,000		—		—		$	30,000		—		—
Capital leases & other obligations				769		various					1,064		various
Total secured credit				388,152							313,439
10.875% Senior notes				265,000		10.875	%				265,000		10.875	%
Total borrowings			$	653,152						$	578,439

Concurrently with the Merger Transaction, Hillman Group issued $150.0 million aggregate principal amount of its 10.875% Senior Notes. On March 16, 2011, Hillman Group completed an offering of $50.0 million aggregate principal amount of its 10.875% Senior Notes. Hillman Group received a premium of approximately $4.6 million on the $50.0 million 10.875% Senior Notes offering. On December 21, 2012, Hillman Group completed an offering of $65.0 million aggregate principal amount of its 10.875% Senior Notes. Hillman Group received a premium of approximately $4.2 million on the $65.0 million 10.875% Senior Notes offering. The 10.875% Senior Notes are guaranteed by The Hillman Companies, Inc., Hillman Investment Company and all of the domestic subsidiaries of Hillman Group. Hillman Group pays interest on the 10.875% Senior Notes semi-annually on June 1 and December 1 of each year.

On May 28, 2010, the Company and certain of its subsidiaries closed the Senior Facilities, consisting of a $290.0 million term loan and a $30.0 million Revolver. The term loan portion of the Senior Facilities had a six year term and the Revolver had a five year term. Prior to a subsequent amendment, the Senior Facilities provided borrowings at interest rates based on a EuroDollar rate plus a margin of 3.75%, or a Base Rate plus a margin of 2.75%. The EuroDollar rate was subject to a minimum floor of 1.75% and the Base Rate was subject to a minimum floor of 2.75%.

Effective April 18, 2011, the Company completed an amendment to the credit agreement governing its Senior Facilities. The Senior Facilities amendment eliminated the total leverage and interest coverage covenants and reduced the secured leverage covenant to 4.75x with no future step downs. The term loan pricing was modified to reduce the EuroDollar margin and the base rate margin by 25 basis points and reduce the floor on EuroDollar and base rate loans by an additional 25 basis points. In connection with the amendment to the credit agreement, the Company incurred loan discount costs of approximately $1.3 million. As the modification of the Senior Facilities agreement was not substantial, the unamortized loan discount and debt issuance costs will be amortized over the term of the amended Senior Facilities.

Page 44 of 50

Effective November 4, 2011, the Company entered into the 2011 Incremental Facility. The 2011 Incremental Facility increased the aggregate term loan commitments available to Hillman Group under the Senior Facilities by $30.0 million. In connection with the 2011 Incremental Facility, the Company incurred loan discount costs of approximately $0.8 million. As the modification of the Senior Facilities agreement was not substantial, the unamortized loan discount costs will be amortized over the term of the amended Senior Facilities. The aggregate principal amount of commitments under the Senior Facilities, after giving effect to the 2011 Incremental Facility, was $350.0 million. The Company used the proceeds for general corporate purposes.

Effective November 7, 2012, the Company entered into the 2012 Incremental Facility which increased the aggregate term loan commitments available to Hillman Group under the Senior Facilities by $76.8 million. The Company drew down on funds from the 2012 Incremental Facility in order to fund the permitted Paulin Acquisition on February 19, 2013. The aggregate principal amount of commitments under the Senior Facilities, after giving effect to the 2012 Incremental Facility, was $420.0 million.

Effective February 14, 2013, the Company completed an amendment to the credit agreement governing its Senior Facilities. The Senior Facilities amendment modified the term loan pricing to reduce the EuroDollar margin by 50 basis points and reduce the EuroDollar floor on Eurodollar loans by an additional 25 basis points. This amendment modified the term loan pricing to reduce the base rate margin by 50 basis points and reduce the floor on base rate loans by an additional 25 basis points. This amendment also extends the maturity date of the Senior Facilities by one year to May 28, 2017.

The Senior Facilities require the maintenance of a secured leverage ratio described above which limits the ability of the Company to incur debt, make investments, make dividend payments to holders of the Trust Preferred Securities or undertake certain other business activities. Upon the occurrence of an event of default under the credit agreements, all amounts outstanding, together with accrued interest, could be declared immediately due and payable by our lenders. Below are the calculations of the financial covenant, as amended on April 18, 2011, with the Senior Facilities requirement for the twelve trailing months ended June 30, 2013:

(dollars in thousands)	Actual		Ratio Requirement
Secured Leverage Ratio
Senior term loan balance	$	387,383
Revolver		—
Capital leases and other credit obligations		769
Total debt	$	388,152
Adjusted EBITDA (1)	$	119,150
Leverage ratio (must be below requirement)		3.26		4.75

(1) Adjusted EBITDA for the twelve months ended June 30, 2013 is defined as income from operations ($38,487), plus depreciation ($21,707), amortization ($21,629), stock compensation expense ($5,555), restructuring costs ($4,146), acquisition and integration costs ($5,468), litigation related costs ($8,394), foreign exchange losses ($3,011), management fees ($155), pro-forma EBITDA from the acquisition of Paulin ($8,947)(before cost synergies) and other ($1,651).

Page 45 of 50

Critical Accounting Policies and Estimates

Significant accounting policies and estimates are summarized in the notes to the condensed consolidated financial statements. Some accounting policies require management to exercise significant judgment in selecting the appropriate assumptions for calculating financial estimates. Such judgments are subject to an inherent degree of uncertainty. These judgments are based on our historical experience, known trends in our industry, terms of existing contracts and other information from outside sources, as appropriate. Management believes these estimates and assumptions are reasonable based on the facts and circumstances as of June 30, 2013, however, actual results may differ from these estimates under different assumptions and circumstances.

Our critical accounting policies and estimates are discussed in the “Critical Accounting Policies and Estimates” section of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission. In addition, our most significant accounting policies are discussed in Note 2 and elsewhere in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2012, which includes audited financial statements.

Page 46 of 50

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to the impact of interest rate changes as borrowings under the Senior Facilities bear interest at variable interest rates. It is the Company’s policy to enter into interest rate swap and interest rate cap transactions only to the extent considered necessary to meet its objectives.

Based on the Company’s exposure to variable rate borrowings at June 30, 2013, after consideration of the Company’s interest rate cap agreements, a one percent (1%) change in the weighted average interest rate for a period of one year would change the annual interest expense by approximately $1.6 million.

The Company is exposed to foreign exchange rate changes of the Australian, Canadian and Mexican currencies as it impacts the $121.2 million tangible and intangible net asset value of its Australian, Canadian and Mexican subsidiaries as of June 30, 2013. The foreign subsidiaries net tangible assets were $74.4 million and the net intangible assets were $46.8 million as of June 30, 2013.

Item 4.

Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the chief executive officer and the chief financial officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, the Company’s chief executive officer and chief financial officer concluded that the Company’s disclosure controls and procedures were effective, as of the end of the period ended June 30, 2013, in ensuring that material information relating to the Company required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the chief executive officer and the chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the quarter ended June 30, 2013 and that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Page 47 of 50

PART II

OTHER INFORMATION

Item 1. – Legal Proceedings.

The information set forth under Note 6 to the accompanying condensed consolidated financial statements included in this Quarterly Report on Form 10-Q is incorporated herein by reference.

Item 1A. – Risk Factors.

There have been no material changes to the risks related to the Company from those disclosed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Item 2. – Unregistered Sales of Equity Securities and Use of Proceeds.

Not Applicable

Item 3. – Defaults Upon Senior Securities.

Not Applicable

Item 4. – Mine Safety Disclosures.

Not Applicable

Item 5. – Other Information.

Not Applicable

Page 48 of 50

Item 6. – Exhibits.

a) Exhibits, including those incorporated by reference.

3.1	Second Amended and Restated By-laws of The Hillman Companies, Inc. (incorporated by reference from the Company’s Current Report on Form 8-K filed on May 30, 2013).
4.1	Fifth Supplemental Indenture, governing the Permanent 10.875% Senior Notes due 2018, dated as of July 17, 2013, by and among The Hillman Group, Inc., the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (incorporated by reference from the Company’s Amendment No. 2 to Form S-4 filed on July 17, 2013).
10.1	Amended and Restated Employment Agreement, dated as of May 23, 2013 and effective as of July 1, 2013, by and between The Hillman Group, Inc. and James P. Waters (incorporated by reference from the Company’s Current Report on Form 8-K filed on May 30, 2013).
10.2	Separation Agreement, dated as of May 28, 2013, by and among Max W. Hillman, Jr., The Hillman Group, Inc., and The Hillman Companies, Inc. (incorporated by reference from the Company’s Current Report on Form 8-K filed on May 30, 2013).
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Exchange Act.
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Exchange Act.
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101**	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, filed with the Securities and Exchange Commission on August 14, 2013, formatted in eXtensible Business Reporting Language: (i) Condensed Consolidated Balance Sheets as of June 30, 2013 and December 31, 2012, (ii) Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2013 and 2012, (iii) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012, (iv) Condensed Consolidated Statement of Stockholders’ Equity for the six months ended June 30, 2013 and (v) Notes to Condensed Consolidated Financial Statements.

* Filed herewith.

** This exhibit will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such exhibit will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

Page 49 of 50

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

THE HILLMAN COMPANIES, INC.

/S/    ANTHONY A. VASCONCELLOS	/S/    HAROLD J. WILDER
Anthony A. Vasconcellos	Harold J. Wilder
Chief Financial Officer	Controller
	(Chief Accounting Officer)

DATE: August 14, 2013

Page 50 of 50

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, James P. Waters, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Hillman Companies, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013	/s/ James P. Waters
	James P. Waters
	Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Anthony A. Vasconcellos, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Hillman Companies, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013	/s/ Anthony A. Vasconcellos
	Anthony A. Vasconcellos
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 (the “Report”) of The Hillman Companies, Inc. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof; I, James P. Waters, the Chief Executive Officer of the Registrant, certify, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ James P. Waters

Name: James P. Waters

Date: August 14, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 (the “Report”) of The Hillman Companies, Inc. (the “Registrant”), as filed with the Securities and Exchange Commission on the date hereof; I, Anthony A. Vasconcellos, the Chief Financial Officer of the Registrant, certify, to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Anthony A. Vasconcellos

Name: Anthony A. Vasconcellos

Date: August 14, 2013

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation:

Effective May 28, 2010, Holdco established the OHCP HM Acquisition Corp. 2010 Stock Option Plan, as amended (the “Option Plan”), pursuant to which Holdco may grant options for up to an aggregate of 45,914 shares of its common stock. The Option Plan is administered by a committee of the Holdco board of directors. Such committee determines the terms of each option grant under the Option Plan, except that the exercise price of any granted option may not be lower than the fair market value of one share of common stock of Holdco as of the date of grant.

Under the Option Plan, Holdco granted options for up to 32,284 shares in 2010, 1,030 shares in 2011, 7,375 shares in 2012 and 5,225 shares during the six months ended June 30, 2013. The options were granted with an exercise price which was equal to the grant date fair value of the underlying securities. As of June 30, 2013, options for a total of 3,761 shares have been cancelled and options for eight shares have been exercised.

Option holders are not required by the terms of the Option Agreement or the Stockholders Agreement to hold the shares for any period of time following exercise. Liability classification is required because this arrangement permits the holders to put the shares back without being exposed to the risks and rewards of the shares for a reasonable period of time. Consistent with past practice, the Company has elected to use the intrinsic value method to value the options. The stock option liability was $5,555 as of June 30, 2013.

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ 78	$ (1,531)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	22,820	22,407
Dispositions of property and equipment	39	3
Deferred income tax provision (benefit)	(5,618)	(1,562)
Deferred financing and original issue discount amortization	1,223	1,042
Stock-based compensation expense	4,841
Other non-cash interest and change in value of interest rate swap	(418)	(372)
Changes in operating items:
Accounts receivable	(24,698)	(14,038)
Inventories	(2,907)	(12,547)
Other assets	2,037	(873)
Accounts payable	4,805	9,444
Interest payable on junior subordinated debentures	1,019	1,019
Other accrued liabilities	(1,253)	2,023
Other items, net	(940)	(1,480)
Net cash provided by operating activities	1,028	3,535
Cash flows from investing activities:
Paulin acquisition	(103,416)
Proceeds from sale of property and equipment		3
Capital expenditures	(14,604)	(10,496)
Other, net
Net cash used for investing activities	(118,020)	(10,493)
Cash flows from financing activities:
Borrowings of senior term loans	76,800
Repayments of senior term loans	(1,792)	(1,600)
Discount on senior term loans	(2,152)
Borrowings of revolving credit loans		19,000
Payments of additional acquisition consideration		(12,387)
Principal payments under capitalized lease obligations	(41)	(17)
Repayment of other credit obligations	(456)
Net cash provided by financing activities	72,359	4,996
Net (decrease) increase in cash and cash equivalents	(44,633)	(1,962)
Cash and cash equivalents at beginning of period	65,548	12,027
Cash and cash equivalents at end of period	20,915	10,065
Guarantors The Hillman Companies, Inc. [Member]
Cash flows from operating activities:
Net income (loss)	(7,472)	(6,716)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	9,029	9,029
Dispositions of property and equipment
Deferred income tax provision (benefit)	(6,666)	(2,435)
Deferred financing and original issue discount amortization	(92)	(192)
Stock-based compensation expense	4,841
Other non-cash interest and change in value of interest rate swap
Changes in operating items:
Accounts receivable
Inventories
Other assets
Accounts payable
Interest payable on junior subordinated debentures	1,019	1,019
Other accrued liabilities	96	154
Other items, net	(739)	(859)
Net cash provided by operating activities	16
Cash flows from investing activities:
Paulin acquisition
Proceeds from sale of property and equipment
Capital expenditures
Other, net	(16)
Net cash used for investing activities	(16)
Cash flows from financing activities:
Borrowings of senior term loans
Repayments of senior term loans
Discount on senior term loans
Borrowings of revolving credit loans
Payments of additional acquisition consideration
Principal payments under capitalized lease obligations
Repayment of other credit obligations
Net cash provided by financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period	1	1
Cash and cash equivalents at end of period	1	1
Issuer The Hillman Group, Inc. [Member]
Cash flows from operating activities:
Net income (loss)	8,147	5,270
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	12,676	13,089
Dispositions of property and equipment	23	3
Deferred income tax provision (benefit)		749
Deferred financing and original issue discount amortization	1,315	1,234
Stock-based compensation expense
Other non-cash interest and change in value of interest rate swap	(418)	(372)
Changes in operating items:
Accounts receivable	(17,636)	(11,126)
Inventories	(5,068)	(11,444)
Other assets	(1,669)	(2,876)
Accounts payable	137	8,620
Interest payable on junior subordinated debentures
Other accrued liabilities	168	7,559
Other items, net	(8,434)	(6,716)
Net cash provided by operating activities	(10,759)	3,990
Cash flows from investing activities:
Paulin acquisition	(103,416)
Proceeds from sale of property and equipment
Capital expenditures	(14,336)	(10,343)
Other, net
Net cash used for investing activities	(117,752)	(10,343)
Cash flows from financing activities:
Borrowings of senior term loans	76,800
Repayments of senior term loans	(1,792)	(1,600)
Discount on senior term loans	(2,152)
Borrowings of revolving credit loans		19,000
Payments of additional acquisition consideration		(12,387)
Principal payments under capitalized lease obligations	(41)	(17)
Repayment of other credit obligations	(456)
Net cash provided by financing activities	72,359	4,996
Net (decrease) increase in cash and cash equivalents	(56,152)	(1,357)
Cash and cash equivalents at beginning of period	62,917	8,852
Cash and cash equivalents at end of period	6,765	7,495
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	369	215
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	35	50
Dispositions of property and equipment	13
Deferred income tax provision (benefit)	(310)	171
Deferred financing and original issue discount amortization
Stock-based compensation expense
Other non-cash interest and change in value of interest rate swap
Changes in operating items:
Accounts receivable	(3,102)	(690)
Inventories	(3,894)	(347)
Other assets	8,345	(269)
Accounts payable	1,233	1,071
Interest payable on junior subordinated debentures
Other accrued liabilities	436	103
Other items, net	(2,292)
Net cash provided by operating activities	833	304
Cash flows from investing activities:
Paulin acquisition
Proceeds from sale of property and equipment		3
Capital expenditures	(93)	(51)
Other, net
Net cash used for investing activities	(93)	(48)
Cash flows from financing activities:
Borrowings of senior term loans
Repayments of senior term loans
Discount on senior term loans
Borrowings of revolving credit loans
Payments of additional acquisition consideration
Principal payments under capitalized lease obligations
Repayment of other credit obligations
Net cash provided by financing activities
Net (decrease) increase in cash and cash equivalents	740	256
Cash and cash equivalents at beginning of period	429	547
Cash and cash equivalents at end of period	1,169	803
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	(966)	(275)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	1,080	239
Dispositions of property and equipment	3
Deferred income tax provision (benefit)	1,358	(47)
Deferred financing and original issue discount amortization
Stock-based compensation expense
Other non-cash interest and change in value of interest rate swap
Changes in operating items:
Accounts receivable	(3,960)	(2,222)
Inventories	6,055	(781)
Other assets	(4,639)	2,272
Accounts payable	3,435	(247)
Interest payable on junior subordinated debentures
Other accrued liabilities	6,772	323
Other items, net	1,816	(21)
Net cash provided by operating activities	10,954	(759)
Cash flows from investing activities:
Paulin acquisition
Proceeds from sale of property and equipment
Capital expenditures	(175)	(102)
Other, net
Net cash used for investing activities	(175)	(102)
Cash flows from financing activities:
Borrowings of senior term loans
Repayments of senior term loans
Discount on senior term loans
Borrowings of revolving credit loans
Payments of additional acquisition consideration
Principal payments under capitalized lease obligations
Repayment of other credit obligations
Net cash provided by financing activities
Net (decrease) increase in cash and cash equivalents	10,779	(861)
Cash and cash equivalents at beginning of period	2,201	2,627
Cash and cash equivalents at end of period	12,980	1,766
Consolidating Adjustments [Member]
Cash flows from operating activities:
Net income (loss)		(25)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization
Dispositions of property and equipment
Deferred income tax provision (benefit)
Deferred financing and original issue discount amortization
Stock-based compensation expense
Other non-cash interest and change in value of interest rate swap
Changes in operating items:
Accounts receivable
Inventories		25
Other assets
Accounts payable
Interest payable on junior subordinated debentures
Other accrued liabilities	(8,725)	(6,116)
Other items, net	8,709	6,116
Net cash provided by operating activities	(16)
Cash flows from investing activities:
Paulin acquisition
Proceeds from sale of property and equipment
Capital expenditures
Other, net	16
Net cash used for investing activities	16
Cash flows from financing activities:
Borrowings of senior term loans
Repayments of senior term loans
Discount on senior term loans
Borrowings of revolving credit loans
Payments of additional acquisition consideration
Principal payments under capitalized lease obligations
Repayment of other credit obligations
Net cash provided by financing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement [Abstract]
Net sales	$ 192,711	$ 147,241	$ 336,630	$ 275,614
Cost of sales (exclusive of depreciation and amortization shown separately below)	100,338	72,950	173,984	136,539
Selling, general and administrative expenses	59,783	47,174	108,152	92,094
Acquisition and integration expenses	2,153	312	4,182	464
Depreciation	6,273	5,618	11,815	11,507
Amortization	5,559	5,429	11,005	10,900
Other expense	1,032	817	2,135	334
Income from operations	17,573	14,941	25,357	23,776
Interest expense, net	12,102	10,225	24,055	20,327
Interest expense on junior subordinated debentures	3,153	3,153	6,305	6,305
Investment income on trust common securities	(95)	(94)	(189)	(189)
Income (loss) before income taxes	2,413	1,657	(4,814)	(2,667)
Income tax provision (benefit)	(2,250)	601	(4,892)	(1,136)
Net income (loss)	4,663	1,056	78	(1,531)
Net income (loss) (from above)	4,663	1,056	78	(1,531)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(4,133)	(748)	(4,213)	489
Total other comprehensive (loss) income	(4,133)	(748)	(4,213)	489
Comprehensive income (loss)	$ 530	$ 308	$ (4,135)	$ (1,042)

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Acquisitions

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Acquisitions

4. Acquisitions:

On February 19, 2013, pursuant to the terms of the previously announced plan of arrangement dated December 17, 2012, the Company acquired all of the issued and outstanding Class A common shares of H. Paulin & Co., Limited (the “Paulin Acquisition”). The aggregate purchase price of the Paulin Acquisition was $103,416 paid in cash. On March 31, 2013, H. Paulin & Co., Limited (“Paulin”) was amalgamated with The Hillman Group Canada ULC.

Paulin is a leading Canadian distributor and manufacturer of fasteners, fluid system products, automotive parts and retail hardware components. Paulin’s distribution facilities are located across Canada in Vancouver, Edmonton, Winnipeg, Toronto, Montreal and Moncton, as well as in Flint, Michigan and Cleveland, Ohio. Paulin’s four manufacturing facilities are located in Ontario, Canada. Annual revenues of Paulin for 2012 were approximately $145,700.

The following table reconciles the estimated fair value of the acquired assets and assumed liabilities to the total purchase price of the Paulin Acquisition:

Accounts receivable	$	17,259
Inventory		55,051
Other current assets		2,656
Property and equipment		14,937
Goodwill		12,970
Intangibles		18,814
Total assets acquired		121,687
Less:
Deferred income taxes		5,832
Liabilities assumed		12,439
Total purchase price	$	103,416

The excess of the purchase price over the net assets has been preliminarily allocated to goodwill and intangible assets pending final valuation by an independent appraisal. The Company is determining whether or not to make a Section 338(g) election which will impact the deductibility of goodwill for tax purposes.

The following table indicates the pro-forma financial statements of the Company for the three and six months ended June 30, 2013 and 2012. The pro-forma financial statements give effect to the acquisition of Paulin as if it had occurred on January 1, 2012:

	(Unaudited) Three Months Ended June 30, 2013		(Unaudited) Six Months Ended June 30, 2013			(Unaudited) Three Months Ended June 30, 2012		(Unaudited) Six Months Ended June 30, 2012
Net Sales	$	192,711	$	352,560		$	189,916	$	353,962
Net Income		4,663		(387	)		2,951		97

The pro-forma results are based on assumptions that the Company believes are reasonable under the circumstances. The pro-forma results are not necessarily indicative of the operating results that would have occurred if the acquisition had been effective January 1, 2012, nor are they intended to be indicative of results that may occur in the future. The underlying pro-forma information includes the historical results of the Company and Paulin, the Company’s financing arrangements related to the Paulin Acquisition, and certain purchase accounting adjustments.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Reconciliation of Estimated Fair Value of Acquired Assets and Assumed Liabilities

The following table reconciles the estimated fair value of the acquired assets and assumed liabilities to the total purchase price of the Paulin Acquisition:

Accounts receivable	$	17,259
Inventory		55,051
Other current assets		2,656
Property and equipment		14,937
Goodwill		12,970
Intangibles		18,814
Total assets acquired		121,687
Less:
Deferred income taxes		5,832
Liabilities assumed		12,439
Total purchase price	$	103,416

Summary of Pro-Forma Financial Statements of Company

The following table indicates the pro-forma financial statements of the Company for the three and six months ended June 30, 2013 and 2012. The pro-forma financial statements give effect to the acquisition of Paulin as if it had occurred on January 1, 2012:

	(Unaudited) Three Months Ended June 30, 2013		(Unaudited) Six Months Ended June 30, 2013			(Unaudited) Three Months Ended June 30, 2012		(Unaudited) Six Months Ended June 30, 2012
Net Sales	$	192,711	$	352,560		$	189,916	$	353,962
Net Income		4,663		(387	)		2,951		97

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Derivatives and Hedging

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

12. Derivatives and Hedging:

The Company uses derivative financial instruments to manage its exposures to (1) interest rate fluctuations on its floating rate senior debt; (2) price fluctuations in metal commodities used in its key products; and (3) fluctuations in foreign currency exchange rates. The Company measures those instruments at fair value and recognizes changes in the fair value of derivatives in earnings in the period of change, unless the derivative qualifies as an effective hedge that offsets certain exposures.

Interest Rate Swap Agreements - On June 24, 2010, the Company entered into a forward Interest Rate Swap Agreement (the “2010 Swap”) with a two-year term for a notional amount of $115,000. The forward start date of the 2010 Swap was May 31, 2011 and its termination date was May 31, 2013. The 2010 Swap fixed the interest rate at 2.47% plus the applicable interest rate margin.

The 2010 Swap was initially designated as a cash flow hedge. Effective April 18, 2011, the Company executed the second amendment to the credit agreement which modified the interest rate on the Senior Facilities. The critical terms for the 2010 Swap no longer matched the terms of the amended Senior Facilities and the 2010 Swap was de-designated.

At June 30, 2013, the 2010 Swap had no value. The fair value of the 2010 Swap was $(418) as of December 31, 2012 and was reported on the condensed consolidated balance sheet in other current liabilities. The 2013 adjustments of $418 to the fair value of the 2010 Swap were recorded as a reduction in interest expense in the statement of comprehensive income for the favorable change in fair value since December 31, 2012.

Interest Rate Cap Agreements - On May 20, 2013, the Company entered into an Interest Rate Cap Agreement (the “2013 Rate Cap No. 1”) with a two-year term for a notional amount of $150,000. 2013 Rate Cap No. 1 became effective on May 28, 2013, matures on May 28, 2015 and sets the maximum LIBOR interest rate at 1.25%.

On May 20, 2013, the Company entered into an Interest Rate Cap Agreement (the “2013 Rate Cap No. 2”) with a two-year term for a notional amount of $75,000. 2013 Rate Cap No. 2 became effective on May 28, 2013, matures on May 28, 2015 and sets the maximum LIBOR interest rate at 1.25%.

As of June 30, 2013, the fair value of the interest rate caps of $239 was reported on the condensed consolidated balance sheet in non-current other assets. The Company’s interest rate cap agreements did not qualify for hedge accounting treatment because they did not meet the provisions specified in ASC 815. Accordingly, the unrealized gain on these derivatives was recognized in current earnings in other expense.

Metal Swap Agreements - On April 20, 2012, the Company entered into a Commodity Metal Swap Agreement (the “2012 Metal Swap No. 1”) with an approximate eight-month term for 35 MT of copper at a notional amount of $294.7. The maturity date was December 31, 2012, and the 2012 Metal Swap No. 1 fixed the copper price at $8.42 per MT.

On May 30, 2012, the Company entered into a Commodity Metal Swap Agreement (the “2012 Metal Swap No. 2”) with an approximate seven-month term for 10 MT of copper at a notional amount of $77.9. The maturity date was December 31, 2012, and the 2012 Metal Swap No. 2 fixed the copper price at $7.79 per MT.

On May 30, 2012, the Company entered into a Commodity Metal Swap Agreement (the “2012 Metal Swap No. 3”) with an approximate ten-month term for 35 MT of copper at a notional amount of $272.5. The maturity date was March 31, 2013, and the 2012 Metal Swap No. 3 fixed the copper price at $7.785 per MT.

The Company uses metal commodity swap agreements to hedge anticipated purchases of key blanks which can fluctuate with changes in copper prices. The Company’s metal swap agreements did not qualify for hedge accounting treatment because they did not meet the provisions specified in ASC 815. Accordingly, the gain or loss on these derivatives was recognized in current earnings.

As of June 30, 2013, each of the 2012 metal swap agreements have expired and have no value.

Foreign Currency Forward Contract - On December 18, 2012, the Company entered into a Foreign Currency Forward Contract (the “2012 FX Contract”) with an approximate six-month term for a notional amount of C$105,000. The 2012 FX Contract maturity date was May 21, 2013 and fixed the Canadian to US dollar forward exchange rate at 0.9989. The purpose of the 2012 FX Contract was to manage the Company’s exposure to fluctuations in the exchange rate of the Canadian dollar investment used in the Paulin Acquisition.

The 2012 FX Contract was reported on the condensed consolidated balance sheet in other current liabilities prior to its settlement in connection with the Paulin Acquisition. An increase in other expense of $1,138 was recorded in the statement of comprehensive income for the unfavorable change in fair value from December 31, 2012 until its settlement on February 19, 2013.

The Company does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

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Segment Reporting - Assets by Segment (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Assets
Total Assets	$ 1,266,535	$ 1,175,793
Operating Segments [Member] | United States Excluding All Points [Member]
Assets
Total Assets	928,861	1,133,824
Operating Segments [Member] | All Points [Member]
Assets
Total Assets	8,878	7,298
Operating Segments [Member] | Canada [Member]
Assets
Total Assets	309,215	15,477
Operating Segments [Member] | Mexico [Member]
Assets
Total Assets	17,980	17,816
Operating Segments [Member] | Australia [Member]
Assets
Total Assets	$ 1,601	$ 1,378

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Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Tax Disclosure [Abstract]
Effective income tax rates	(93.20%)	36.30%	101.60%	42.60%

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Revenues and Income from Operations for Reportable Segments

The table below presents revenues and income from operations for our reportable segments for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June  30, 2013			Three Months Ended June  30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
Revenues
United States excluding All Points	$	142,851		$	136,588		$	261,696		$	256,349
All Points		5,881			5,115			10,534			9,624
Canada		42,073			3,889			60,385			6,297
Mexico		1,703			1,454			3,670			3,011
Australia		203			195			345			333
Total revenues	$	192,711		$	147,241		$	336,630		$	275,614
Segment Income (Loss) from Operations
United States excluding All Points	$	15,108		$	14,942		$	22,152		$	23,657
All Points		613			321			984			413
Canada		2,251			(214	)		2,417			(433	)
Mexico		116			38			512			389
Australia		(515	)		(146	)		(708	)		(250	)
Total income from operations	$	17,573		$	14,941		$	25,357		$	23,776

Assets by Segment

Assets by segment as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013		December 31, 2012
Assets
United States excluding All Points	$	928,861	$	1,133,824
All Points		8,878		7,298
Canada		309,215		15,477
Mexico		17,980		17,816
Australia		1,601		1,378
Total Assets	$	1,266,535	$	1,175,793

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Measurement of Assets and Liabilities at Fair Value on Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the periods ended June 30, 2013 and December 31, 2012, by level, within the fair value hierarchy:

	As of June 30, 2013
	Level 1		Level 2		Level 3		Total
Trading securities	$	4,049	$	—	$	—	$	4,049
Interest rate cap		—		239		—		239

	As of December 31, 2012
	Level 1		Level 2			Level 3		Total
Trading securities	$	4,245	$	—		$	—	$	4,245
Interest rate swap		—		(418	)		—		(418	)
Foreign exchange forward contract		—		(1,475	)				(1,475	)
Metal commodity swaps		—		(11	)				(11	)

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Segment Reporting - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013 Segment
Segment Reporting [Abstract]
Number of reportable segments	5

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Other Intangibles - Components of Other Intangibles Net (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Product Rights [Line Items]
Intangible assets, gross	$ 437,752	$ 419,825
Less: Accumulated amortization	64,163	53,181
Other intangibles, net	373,589	366,644
Customer Relationships [Member]
Product Rights [Line Items]
Estimated Useful Life	20 years
Intangible assets, gross	341,608	328,382
Trademarks - All Others [Member]
Product Rights [Line Items]
Estimated Useful Life	Indefinite
Intangible assets, gross	54,114	49,413
Trademarks - Tag Works [Member]
Product Rights [Line Items]
Estimated Useful Life	5 years
Intangible assets, gross	240	240
Patents [Member]
Product Rights [Line Items]
Intangible assets, gross	20,250	20,250
Patents [Member] | Minimum [Member]
Product Rights [Line Items]
Estimated Useful Life	5 years
Patents [Member] | Maximum [Member]
Product Rights [Line Items]
Estimated Useful Life	20 years
Quick Tag license [Member]
Product Rights [Line Items]
Estimated Useful Life	6 years
Intangible assets, gross	11,500	11,500
Laser Key License [Member]
Product Rights [Line Items]
Estimated Useful Life	5 years
Intangible assets, gross	1,250	1,250
KeyWorks license [Member]
Product Rights [Line Items]
Estimated Useful Life	10 years
Intangible assets, gross	4,100	4,100
Non-Compete Agreements [Member]
Product Rights [Line Items]
Intangible assets, gross	4,450	4,450
Non-Compete Agreements [Member] | Minimum [Member]
Product Rights [Line Items]
Estimated Useful Life	5 years
Non-Compete Agreements [Member] | Maximum [Member]
Product Rights [Line Items]
Estimated Useful Life	10 years
Lease Agreements [Member]
Product Rights [Line Items]
Estimated Useful Life	6 months
Intangible assets, gross	$ 240	$ 240

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Common and Preferred Stock - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Class of Stock [Line Items]
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	4,790	4,802
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Put Options [Member]
Class of Stock [Line Items]
Common stock, held by management	210.5
Fair value adjusted to common stock	$ 19,983

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Additional Information (Detail) (10.875% Senior Notes [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2012	Mar. 16, 2011
10.875% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior note	10.875%	10.875%	10.875%
Aggregate principal amount outstanding	$ 265,000

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Acquisitions - Additional Information (Detail) (Paulin [Member], USD $) In Thousands, unless otherwise specified	1 Months Ended	6 Months Ended	12 Months Ended
	Feb. 19, 2013	Jun. 30, 2013 Facility	Dec. 31, 2012
Paulin [Member]
Business Acquisition [Line Items]
Aggregate purchase price cash paid	$ 103,416
Revenues			$ 145,700
Number of manufacturing facilities		4

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Fair Value Measurements - Measurement of Assets and Liabilities at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	$ 4,049	$ 4,245
Interest rate swap		(418)
Interest rate cap	239
Foreign exchange forward contract		(1,475)
Metal commodity swaps		(11)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities	4,049	4,245
Interest rate swap
Interest rate cap
Foreign exchange forward contract
Metal commodity swaps
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities
Interest rate swap		(418)
Interest rate cap	239
Foreign exchange forward contract		(1,475)
Metal commodity swaps		(11)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading securities
Interest rate swap
Interest rate cap
Foreign exchange forward contract
Metal commodity swaps

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Other Intangibles (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Components of Other Intangibles Net

Other intangibles, net, as of June 30, 2013 and December 31, 2012 consist of the following:

	Estimated Useful Life (Years)	June 30, 2013		December 31, 2012
Customer relationships	20	$	341,608	$	328,382
Trademarks - All Others	Indefinite		54,114		49,413
Trademarks - TagWorks	5		240		240
Patents	5-20		20,250		20,250
Quick Tag license	6		11,500		11,500
Laser Key license	5		1,250		1,250
KeyWorks license	10		4,100		4,100
Non-compete agreements	5-10		4,450		4,450
Lease agreement	0.5		240		240
Intangible assets, gross			437,752		419,825
Less: Accumulated amortization			64,163		53,181
Other intangibles, net		$	373,589	$	366,644

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2012	$ 270,495		$ 294,675	$ (25,051)	$ 871
Net income	78			78
FMV adjustment to common stock with put options	(4,959)		(4,959)
Change in cumulative foreign currency translation adjustment	(4,213)				(4,213)
Balance at Jun. 30, 2013	$ 261,401		$ 289,716	$ (24,973)	$ (3,342)

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies:

The significant accounting policies should be read in conjunction with the significant accounting policies included in the Form 10-K for the year ended December 31, 2012. Policies included herein were updated for activity in the interim period.

Use of Estimates in the Preparation of Financial Statements:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results may differ from estimates.

Accounts Receivable and Allowance for Doubtful Accounts:

The Company establishes the allowance for doubtful accounts using the specific identification method and also provides a reserve in the aggregate. The estimates for calculating the aggregate reserve are based on historical collection experience. Increases to the allowance for doubtful accounts result in a corresponding expense. The Company writes off individual accounts receivable when collection becomes improbable. The allowance for doubtful accounts was $799 at June 30, 2013 and $1,105 at December 31, 2012.

Property and Equipment and Accumulated Depreciation:

Property and equipment, including assets acquired under capital leases, are carried at cost and include expenditures for new facilities and major renewals. Maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective accounts, and the resulting gain or loss is reflected in income from operations. The accumulated depreciation was $52,535 at June 30, 2013 and $44,089 at December 31, 2012.

Shipping and Handling:

The costs incurred to ship product to customers, including freight and handling expenses, are included in selling, general and administrative (“SG&A”) expenses on the Company’s condensed consolidated statements of comprehensive income. The Company’s shipping and handling costs were $7,142 and $6,119 in the three month periods ended June 30, 2013 and 2012, respectively. The Company’s shipping and handling costs were $12,756 and $11,498 in the six month periods ended June 30, 2013 and 2012, respectively.

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Other Intangibles

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Other Intangibles

5. Other Intangibles:

Intangible assets are amortized over their useful lives and are subject to impairment testing. The values assigned to intangible assets in connection with the Paulin Acquisition were determined by management pending independent appraisal. The Paulin intangible asset values may be adjusted by management for any changes upon completion of the independent appraisal. Other intangibles, net, as of June 30, 2013 and December 31, 2012 consist of the following:

	Estimated Useful Life (Years)	June 30, 2013		December 31, 2012
Customer relationships	20	$	341,608	$	328,382
Trademarks - All Others	Indefinite		54,114		49,413
Trademarks - TagWorks	5		240		240
Patents	5-20		20,250		20,250
Quick Tag license	6		11,500		11,500
Laser Key license	5		1,250		1,250
KeyWorks license	10		4,100		4,100
Non-compete agreements	5-10		4,450		4,450
Lease agreement	0.5		240		240
Intangible assets, gross			437,752		419,825
Less: Accumulated amortization			64,163		53,181
Other intangibles, net		$	373,589	$	366,644

Intangible assets are amortized over their useful lives. The amortization expense for amortizable assets was $5,559 and $5,429 for the three month periods ended June 30, 2013 and 2012, respectively. The amortization expense for amortizable assets was $11,005 and $10,900 for the six month periods ended June 30, 2013 and 2012, respectively. The amortization expense for amortizable assets for the year ended December 31, 2013 is estimated to be $22,095. For the years ended December 31, 2014, 2015, 2016, 2017, and 2018, the amortization expense for amortizable assets is estimated to be $22,206, $21,545, $19,614, $18,759 and $18,759, respectively.

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Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2013

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements:

In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income”. The update amended the Accounting Standards Codification (“ASC”) to require entities to provide information about amounts reclassified out of other comprehensive income by component. The Company is required to present, either on the face of the financial statements or in the notes, the amounts reclassified from other comprehensive income to the respective line items in the Condensed Consolidated Statements of Comprehensive Income. This amendment was effective for interim and annual periods beginning after December 15, 2012. The adoption of this amendment did not have an impact on the Company’s disclosure or the Company’s consolidated results of operations or financial condition.

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	May 28, 2010
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option liability	$ 5,555
Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock granted maximum					45,914
Common stock granted	5,225	7,375	1,030	32,284
Common stock cancelled	3,761
Common stock exercised	8

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	139,604		$	9,128		$	43,979		$	—		$	192,711
Cost of sales (exclusive of depreciation and amortization shown below)		—			66,205			6,646			27,487			—			100,338
Selling, general and administrative expenses		4,511			41,996			1,717			11,559			—			59,783
Acquisition and integration expenses		—			657			37			1,459			—			2,153
Depreciation		—			5,785			20			468			—			6,273
Amortization		4,514			771			—			274			—			5,559
Intercompany administrative (income) expense		—			(86	)		—			86			—			—
Other (income) expense, net		69			231			(62	)		794			—			1,032
Income (loss) from operations		(9,094	)		24,045			770			1,852			—			17,573
Intercompany interest (income) expense		(3,058	)		3,058			—			—			—			—
Interest expense, net		(46	)		10,274			—			1,874			—			12,102
Interest expense on junior subordinated debentures		3,153			—			—			—			—			3,153
Investment income on trust common securities		(95	)		—			—			—			—			(95	)
Income (loss) before equity in subsidiaries’ income		(9,048	)		10,713			770			(22	)		—			2,413
Equity in subsidiaries’ income (loss)		10,347			(366	)		—			—			(9,981	)		—
Income (loss) before income taxes		1,299			10,347			770			(22	)		(9,981	)		2,413
Income tax provision		(3,364	)		—			718			396			—			(2,250	)
Net income (loss)	$	4,663		$	10,347		$	52		$	(418	)	$	(9,981	)	$	4,663
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(3,512	)		21			(642	)		—			(4,133	)
Total comprehensive income (loss)	$	4,663		$	6,835		$	73		$	(1,060	)	$	(9,981	)	$	530

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	136,588		$	5,115		$	5,538		$	—		$	147,241
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			65,668			3,827			3,455			—			72,950
Selling, general and administrative expenses		(26	)		44,430			940			1,830			—			47,174
Acquisition and integration expenses		—			312			—			—			—			312
Depreciation		—			5,571			28			19			—			5,618
Amortization		4,514			817			—			98			—			5,429
Intercompany administrative (income) expense		—			(87	)		—			87			—			—
Other (income) expense, net		26			421			(1	)		371			—			817
Income (loss) from operations		(4,514	)		19,456			321			(322	)		—			14,941
Intercompany interest (income) expense		(3,058	)		3,058			—			—			—			—
Interest expense, net		(86	)		10,311			—			—			—			10,225
Interest expense on junior subordinated debentures		3,153			—			—			—			—			3,153
Investment income on trust common securities		(94	)		—			—			—			—			(94	)
Income (loss) before equity in subsidiaries’ income		(4,429	)		6,087			321			(322	)		—			1,657
Equity in subsidiaries’ income (loss)		5,642			(102	)		—			—			(5,540	)		—
Income (loss) before income taxes		1,213			5,985			321			(322	)		(5,540	)		1,657
Income tax provision (benefit)		157			343			160			(59	)		—			601
Net income (loss)	$	1,056		$	5,642		$	161		$	(263	)	$	(5,540	)	$	1,056
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			(748	)		—			(748	)
Total comprehensive income (loss)	$	1,056		$	5,642		$	161		$	(1,011	)	$	(5,540	)	$	308

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the six months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	256,762		$	15,468		$	64,400		$	—		$	336,630
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			122,520			11,145			40,319			—			173,984
Selling, general and administrative expenses		4,910			82,298			3,024			17,920			—			108,152
Acquisition and integration expenses		—			2,297			51			1,834			—			4,182
Depreciation		—			11,133			35			647			—			11,815
Amortization		9,029			1,543			—			433			—			11,005
Intercompany administrative (income) expense		—			(173	)		—			173			—			—
Other (income) expense, net		(69	)		1,447			(96	)		853			—			2,135
Income (loss) from operations		(13,870	)		35,697			1,309			2,221			—			25,357
Intercompany interest (income) expense		(6,116	)		6,120			—			(4	)		—			—
Interest expense, net		(92	)		21,430			—			2,717			—			24,055
Interest expense on junior subordinated debentures		6,305			—			—			—			—			6,305
Investment income on trust common securities		(189	)		—			—			—			—			(189	)
Income (loss) before equity in subsidiaries’ income		(13,778	)		8,147			1,309			(492	)		—			(4,814	)
Equity in subsidiaries’ income (loss)		7,550			(597	)		—			—			(6,953	)		—
Income (loss) before income taxes		(6,228	)		7,550			1,309			(492	)		(6,953	)		(4,814	)
Income tax provision (benefit)		(6,306	)		—			940			474			—			(4,892	)
Net income (loss)	$	78		$	7,550		$	369		$	(966	)	$	(6,953	)	$	78
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(4,222	)		—			9			—			(4,213	)
Total comprehensive income (loss)	$	78		$	3,328		$	369		$	(957	)	$	(6,953	)	$	(4,135	)

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the six months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	256,349		$	9,624		$	9,641		$	—		$	275,614
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			123,310			7,356			5,873			—			136,539
Selling, general and administrative expenses		168			86,500			1,806			3,620			—			92,094
Acquisition and integration expenses		—			464			—			—			—			464
Depreciation		—			11,416			50			41			—			11,507
Amortization		9,029			1,673			—			198			—			10,900
Intercompany administrative (income) expense		—			(173	)		—			173			—			—
Other (income) expense, net		(168	)		473			(1	)		30			—			334
Income (loss) from operations		(9,029	)		32,686			413			(294	)		—			23,776
Intercompany interest (income) expense		(6,116	)		6,116			—			—			—			—
Interest expense, net		(192	)		20,519			—			—			—			20,327
Interest expense on junior subordinated debentures		6,305			—			—			—			—			6,305
Investment income on trust common securities		(189	)		—			—			—			—			(189	)
Income (loss) before equity in subsidiaries’ income		(8,837	)		6,051			413			(294	)		—			(2,667	)
Equity in subsidiaries’ income (loss)		5,185			(60	)		—			—			(5,125	)		—
Income (loss) before income taxes		(3,652	)		5,991			413			(294	)		(5,125	)		(2,667	)
Income tax provision (benefit)		(2,121	)		806			198			(19	)		—			(1,136	)
Net income (loss)	$	(1,531	)	$	5,185		$	215		$	(275	)	$	(5,125	)	$	(1,531	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			489			—			489
Total comprehensive income (loss)	$	(1,531	)	$	5,185		$	215		$	214		$	(5,125	)	$	(1,042	)

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet (Unaudited)

As of June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	6,765		$	1,169		$	12,980		$	—		$	20,915
Restricted investments		2,889			—			—			—			—			2,889
Accounts receivable, net		—			85,200			1,178			17,923			—			104,301
Inventories		—			110,151			8,572			53,400			(327	)		171,796
Deferred income taxes		8,643			—			1,224			1,300			(668	)		10,499
Other current assets		—			7,531			197			2,575			—			10,303
Total current assets		11,533			209,647			12,340			88,178			(995	)		320,703
Intercompany notes receivable		105,446			99,886			—			(99,886	)		(105,446	)		—
Intercompany interest receivable		6,116			2,609			—			—			(8,725	)		—
Investments in subsidiaries		(646,282	)		28,123			507			266,323			351,329			—
Property and equipment, net		—			71,271			396			14,092			—			85,759
Goodwill		418,946			24,512			3,090			20,829			280			467,657
Other intangibles, net		302,803			44,503			250			26,033			—			373,589
Restricted investments		1,160			—			—			—			—			1,160
Deferred income taxes		33,648			—			(727	)		142			(33,063	)		—
Deferred financing fees		—			11,329			—			—			—			11,329
Investment in trust common securities		3,261			—			—			—			—			3,261
Other assets		—			2,537			25			515			—			3,077
Total assets	$	236,631		$	494,417		$	15,881		$	316,226		$	203,380		$	1,266,535
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	32,010		$	1,750		$	16,420		$	—		$	50,180
Current portion of senior term loans		—			3,968			—			—			—			3,968
Current portion of capitalized lease and other obligations		—			407			—			—			—			407
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Intercompany interest payable		—			6,116			—			2,609			(8,725	)		—
Accrued expenses:
Salaries and wages		—			6,659			155			2,107			—			8,921
Pricing allowances		—			3,126			4			2,502			—			5,632
Income and other taxes		(529	)		2,200			311			259			—			2,241
Interest		—			2,763			—			—			—			2,763
Deferred compensation		2,889			—			—			—			—			2,889
Other accrued expenses		—			6,411			251			2,276			—			8,938
Total current liabilities		3,379			63,660			2,471			26,173			(8,725	)		86,958
Intercompany debt payable		—			105,446			—			—			(105,446	)		—
Long term senior term loans		—			380,180			—			—			—			380,180
Long term portion of capitalized leases		—			363			—			—			—			363
Long term senior notes		—			272,358			—			—			—			272,358
Junior subordinated debentures		115,040			—			—			—			—			115,040
Deferred compensation		1,160			—			—			—			—			1,160
Deferred income taxes, net		141,816			—			207			9,545			(33,731	)		117,837
Other non-current liabilities		5,555			5,700			—			—			—			11,255
Total liabilities		266,950			827,707			2,678			35,718			(147,902	)		985,151
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 issued and outstanding at June 30, 2013		19,983			—			—			—			—			19,983
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at June 30, 2013		—			—			—			—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 issued and outstanding at June 30, 2013		—			—			50			—			(50	)		—
Additional paid-in capital		113,211			(130,734	)		11,711			293,717			1,811			289,716
Accumulated deficit		(163,513	)		(198,334	)		1,442			(3,424	)		338,856			(24,973	)
Accumulated other comprehensive income		—			(4,222	)		—			(9,785	)		10,665			(3,342	)
Total stockholders’ equity		(50,302	)		(333,290	)		13,203			280,508			351,282			261,401
Total liabilities and stockholders’ equity	$	236,631		$	494,417		$	15,881		$	316,226		$	203,380		$	1,266,535

Condensed Consolidating Balance Sheet (Unaudited)

As of December 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	62,917		$	429		$	2,201		$	—		$	65,548
Restricted investments		846			—			—			—			—			846
Accounts receivable, net		—			65,916			6,473			(10,045	)		—			62,344
Inventories		—			105,028			4,678			4,404			(272	)		113,838
Deferred income taxes		10,359			—			610			221			(726	)		10,464
Other current assets		—			6,526			145			1,835			—			8,506
Total current assets		11,206			240,387			12,335			(1,384	)		(998	)		261,546
Intercompany notes receivable		105,446			—			—			—			(105,446	)		—
Investments in subsidiaries		(637,376	)		27,204			—			—			610,172			—
Property and equipment, net		—			67,902			191			399			—			68,492
Goodwill		418,946			24,512			58			11,542			280			455,338
Other intangibles, net		311,832			46,047			250			8,515			—			366,644
Restricted investments		3,399			—			—			—			—			3,399
Deferred income taxes		29,492			—			(411	)		977			(30,058	)		—
Deferred financing fees		—			12,858			—			—			—			12,858
Investment in trust common securities		3,261			—			—			—			—			3,261
Other assets		—			3,521			25			709			—			4,255
Total assets	$	246,206		$	422,431		$	12,448		$	20,758		$	473,950		$	1,175,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	31,873		$	517		$	181		$	—		$	32,571
Current portion of senior term loans		—			3,200			—			—			—			3,200
Current portion of capitalized lease and other obligations		—			819			—			—			—			819
Additional acquisition consideration		—			—			—			—			—			—
Accrued expenses:
Salaries and wages		—			8,930			217			204			—			9,351
Pricing allowances		—			3,457			3			597			—			4,057
Income and other taxes		(625	)		2,447			25			645			—			2,492
Interest		—			2,868			—			—			—			2,868
Deferred compensation		846			—			—			—			—			846
Other accrued expenses		—			9,822			40			1,535			—			11,397
Total current liabilities		221			63,416			802			3,162			—			67,601
Intercompany debt payable		—			105,446			—			—			(105,446	)		—
Long term senior term loans		—			307,727			—			—			—			307,727
Long term portion of capitalized lease and other obligations		—			245			—			—			—			245
Long term senior notes		—			272,942			—			—			—			272,942
Junior subordinated debentures		115,132			—			—			—			—			115,132
Deferred compensation		3,399			—			—			—			—			3,399
Deferred income taxes, net		146,042			—			219			2,472			(30,784	)		117,949
Other non-current liabilities		714			5,473			—			—			—			6,187
Total liabilities		265,508			755,249			1,021			5,634			(136,230	)		891,182
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 198.4 issued and outstanding at December 31, 2012		14,116			—			—			—			—			14,116
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2012		—			—			—			—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,801.6 issued and outstanding at December 31, 2012		—			—			50			—			(50	)		—
Additional paid-in capital		117,261			(131,642	)		10,304			17,192			281,560			294,675
Accumulated deficit		(150,679	)		(201,176	)		1,073			(2,458	)		328,189			(25,051	)
Accumulated other comprehensive loss		—			—			—			390			481			871
Total stockholders’ equity		(33,418	)		(332,818	)		11,427			15,124			610,180			270,495
Total liabilities and stockholders’ equity	$	246,206		$	422,431		$	12,448		$	20,758		$	473,950		$	1,175,793

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(7,472	)	$	8,147		$	369		$	(966	)	$	—		$	78
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		9,029			12,676			35			1,080			—			22,820
Dispositions of property and equipment		—			23			13			3			—			39
Deferred income tax provision (benefit)		(6,666	)		—			(310	)		1,358			—			(5,618	)
Deferred financing and original issue discount amortization		(92	)		1,315			—			—			—			1,223
Stock-based compensation expense		4,841			—			—			—			—			4,841
Other non-cash interest expense		—			(418	)		—			—			—			(418	)
Changes in operating items:
Accounts receivable		—			(17,636	)		(3,102	)		(3,960	)		—			(24,698	)
Inventories		—			(5,068	)		(3,894	)		6,055			—			(2,907	)
Other assets		—			(1,669	)		8,345			(4,639	)		—			2,037
Accounts payable		—			137			1,233			3,435			—			4,805
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		96			168			436			6,772			(8,725	)		(1,253	)
Other items, net		(739	)		(8,434	)		(2,292	)		1,816			8,709			(940	)
Net cash provided by (used for) operating activities		16			(10,759	)		833			10,954			(16	)		1,028
Cash flows from investing activities:
Paulin acquisition		—			(103,416	)		—			—			—			(103,416	)
Capital expenditures		—			(14,336	)		(93	)		(175	)		—			(14,604	)
Other, net		(16	)		—			—			—			16			—
Net cash provided by (used for) investing activities		(16	)		(117,752	)		(93	)		(175	)		16			(118,020	)
Cash flows from financing activities:
Borrowings of senior term loans		—			76,800			—			—			—			76,800
Repayments of senior term loans		—			(1,792	)		—			—			—			(1,792	)
Discount on senior term loans		—			(2,152	)		—			—			—			(2,152	)
Principal payments under capitalized lease obligations		—			(41	)		—			—			—			(41	)
Repayment of other credit obligations		—			(456	)		—			—			—			(456	)
Net cash provided by financing activities		—			72,359			—			—			—			72,359
Net (decrease) increase in cash and cash equivalents		—			(56,152	)		740			10,779			—			(44,633	)
Cash and cash equivalents at beginning of period		1			62,917			429			2,201			—			65,548
Cash and cash equivalents at end of period	$	1		$	6,765		$	1,169		$	12,980		$	—		$	20,915

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(6,716	)	$	5,270		$	215		$	(275	)	$	(25	)	$	(1,531	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		9,029			13,089			50			239			—			22,407
Dispositions of property and equipment		—			3			—			—			—			3
Deferred income tax provision (benefit)		(2,435	)		749			171			(47	)		—			(1,562	)
Deferred financing and original issue discount amortization		(192	)		1,234			—			—			—			1,042
Other non-cash interest and change in value of interest rate swap		—			(372	)		—			—			—			(372	)
Changes in operating items:
Accounts receivable		—			(11,126	)		(690	)		(2,222	)		—			(14,038	)
Inventories		—			(11,444	)		(347	)		(781	)		25			(12,547	)
Other assets		—			(2,876	)		(269	)		2,272			—			(873	)
Accounts payable		—			8,620			1,071			(247	)		—			9,444
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		154			7,559			103			323			(6,116	)		2,023
Other items, net		(859	)		(6,716	)		—			(21	)		6,116			(1,480	)
Net cash provided by (used for) operating activities		—			3,990			304			(759	)		—			3,535
Cash flows from investing activities:
Proceeds from sale of property and equipment		—			—			3			—			—			3
Capital expenditures		—			(10,343	)		(51	)		(102	)		—			(10,496	)
Net cash used for investing activities		—			(10,343	)		(48	)		(102	)		—			(10,493	)
Cash flows from financing activities:
Repayments of senior term loans		—			(1,600	)		—			—			—			(1,600	)
Borrowings of revolving credit loans		—			19,000			—			—			—			19,000
Payments of additional acquisition consideration		—			(12,387	)		—			—			—			(12,387	)
Principal payments under capitalized lease obligations		—			(17	)		—			—			—			(17	)
Net cash provided by financing activities		—			4,996			—			—			—			4,996
Net (decrease) increase in cash and cash equivalents		—			(1,357	)		256			(861	)		—			(1,962	)
Cash and cash equivalents at beginning of period		1			8,852			547			2,627			—			12,027
Cash and cash equivalents at end of period	$	1		$	7,495		$	803		$	1,766		$	—		$	10,065

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Acquisitions - Reconciliation of Estimated Fair Value of Acquired Assets and Assumed Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Feb. 19, 2013 Paulin [Member]
Business Acquisition [Line Items]
Accounts receivable			$ 17,259
Inventory			55,051
Other current assets			2,656
Property and equipment			14,937
Goodwill	467,657	455,338	12,970
Intangibles			18,814
Total assets acquired			121,687
Deferred income taxes			5,832
Liabilities assumed			12,439
Total purchase price			$ 103,416

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Related Party Transactions - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Rental Expense And Deferred Rent [Line Items]
Rental expense for the lease	$ 82	$ 82	$ 165	$ 165
Paulin [Member]
Rental Expense And Deferred Rent [Line Items]
Rental expense for the lease	$ 205		$ 274
Number of leases			3
Number of properties leased			5
Lease agreement date	Feb. 19, 2013		Feb. 19, 2013

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 192,711	$ 147,241	$ 336,630	$ 275,614
Cost of sales (exclusive of depreciation and amortization shown separately below)	100,338	72,950	173,984	136,539
Selling, general and administrative expenses	59,783	47,174	108,152	92,094
Acquisition and integration expenses	2,153	312	4,182	464
Depreciation	6,273	5,618	11,815	11,507
Amortization	5,559	5,429	11,005	10,900
Intercompany administrative (income) expense
Other (income) expense, net	1,032	817	2,135	334
Income from operations	17,573	14,941	25,357	23,776
Intercompany interest (income) expense
Interest expense, net	12,102	10,225	24,055	20,327
Interest expense on junior subordinated debentures	3,153	3,153	6,305	6,305
Investment income on trust common securities	(95)	(94)	(189)	(189)
Income (loss) before equity in subsidiaries' income	2,413	1,657	(4,814)	(2,667)
Equity in subsidiaries' income (loss)
Income (loss) before income taxes	2,413	1,657	(4,814)	(2,667)
Income tax provision (benefit)	(2,250)	601	(4,892)	(1,136)
Net income (loss)	4,663	1,056	78	(1,531)
Other comprehensive income (loss):
Foreign currency translation adjustments	(4,133)	(748)	(4,213)	489
Comprehensive income (loss)	530	308	(4,135)	(1,042)
Guarantors The Hillman Companies, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales
Cost of sales (exclusive of depreciation and amortization shown separately below)
Selling, general and administrative expenses	4,511	(26)	4,910	168
Acquisition and integration expenses
Depreciation
Amortization	4,514	4,514	9,029	9,029
Intercompany administrative (income) expense
Other (income) expense, net	69	26	(69)	(168)
Income from operations	(9,094)	(4,514)	(13,870)	(9,029)
Intercompany interest (income) expense	(3,058)	(3,058)	(6,116)	(6,116)
Interest expense, net	(46)	(86)	(92)	(192)
Interest expense on junior subordinated debentures	3,153	3,153	6,305	6,305
Investment income on trust common securities	(95)	(94)	(189)	(189)
Income (loss) before equity in subsidiaries' income	(9,048)	(4,429)	(13,778)	(8,837)
Equity in subsidiaries' income (loss)	10,347	5,642	7,550	5,185
Income (loss) before income taxes	1,299	1,213	(6,228)	(3,652)
Income tax provision (benefit)	(3,364)	157	(6,306)	(2,121)
Net income (loss)	4,663	1,056	78	(1,531)
Other comprehensive income (loss):
Foreign currency translation adjustments
Comprehensive income (loss)	4,663	1,056	78	(1,531)
Issuer The Hillman Group, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	139,604	136,588	256,762	256,349
Cost of sales (exclusive of depreciation and amortization shown separately below)	66,205	65,668	122,520	123,310
Selling, general and administrative expenses	41,996	44,430	82,298	86,500
Acquisition and integration expenses	657	312	2,297	464
Depreciation	5,785	5,571	11,133	11,416
Amortization	771	817	1,543	1,673
Intercompany administrative (income) expense	(86)	(87)	(173)	(173)
Other (income) expense, net	231	421	1,447	473
Income from operations	24,045	19,456	35,697	32,686
Intercompany interest (income) expense	3,058	3,058	6,120	6,116
Interest expense, net	10,274	10,311	21,430	20,519
Interest expense on junior subordinated debentures
Investment income on trust common securities
Income (loss) before equity in subsidiaries' income	10,713	6,087	8,147	6,051
Equity in subsidiaries' income (loss)	(366)	(102)	(597)	(60)
Income (loss) before income taxes	10,347	5,985	7,550	5,991
Income tax provision (benefit)		343		806
Net income (loss)	10,347	5,642	7,550	5,185
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,512)		(4,222)
Comprehensive income (loss)	6,835	5,642	3,328	5,185
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	9,128	5,115	15,468	9,624
Cost of sales (exclusive of depreciation and amortization shown separately below)	6,646	3,827	11,145	7,356
Selling, general and administrative expenses	1,717	940	3,024	1,806
Acquisition and integration expenses	37		51
Depreciation	20	28	35	50
Amortization
Intercompany administrative (income) expense
Other (income) expense, net	(62)	(1)	(96)	(1)
Income from operations	770	321	1,309	413
Intercompany interest (income) expense
Interest expense, net
Interest expense on junior subordinated debentures
Investment income on trust common securities
Income (loss) before equity in subsidiaries' income	770	321	1,309	413
Equity in subsidiaries' income (loss)
Income (loss) before income taxes	770	321	1,309	413
Income tax provision (benefit)	718	160	940	198
Net income (loss)	52	161	369	215
Other comprehensive income (loss):
Foreign currency translation adjustments	21
Comprehensive income (loss)	73	161	369	215
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales	43,979	5,538	64,400	9,641
Cost of sales (exclusive of depreciation and amortization shown separately below)	27,487	3,455	40,319	5,873
Selling, general and administrative expenses	11,559	1,830	17,920	3,620
Acquisition and integration expenses	1,459		1,834
Depreciation	468	19	647	41
Amortization	274	98	433	198
Intercompany administrative (income) expense	86	87	173	173
Other (income) expense, net	794	371	853	30
Income from operations	1,852	(322)	2,221	(294)
Intercompany interest (income) expense			(4)
Interest expense, net	1,874		2,717
Interest expense on junior subordinated debentures
Investment income on trust common securities
Income (loss) before equity in subsidiaries' income	(22)	(322)	(492)	(294)
Equity in subsidiaries' income (loss)
Income (loss) before income taxes	(22)	(322)	(492)	(294)
Income tax provision (benefit)	396	(59)	474	(19)
Net income (loss)	(418)	(263)	(966)	(275)
Other comprehensive income (loss):
Foreign currency translation adjustments	(642)	(748)	9	489
Comprehensive income (loss)	(1,060)	(1,011)	(957)	214
Consolidating Adjustments [Member]
Condensed Financial Statements, Captions [Line Items]
Net sales
Cost of sales (exclusive of depreciation and amortization shown separately below)
Selling, general and administrative expenses
Acquisition and integration expenses
Depreciation
Amortization
Intercompany administrative (income) expense
Other (income) expense, net
Income from operations
Intercompany interest (income) expense
Interest expense, net
Interest expense on junior subordinated debentures
Investment income on trust common securities
Income (loss) before equity in subsidiaries' income
Equity in subsidiaries' income (loss)	(9,981)	(5,540)	(6,953)	(5,125)
Income (loss) before income taxes	(9,981)	(5,540)	(6,953)	(5,125)
Income tax provision (benefit)
Net income (loss)	(9,981)	(5,540)	(6,953)	(5,125)
Other comprehensive income (loss):
Foreign currency translation adjustments
Comprehensive income (loss)	$ (9,981)	$ (5,540)	$ (6,953)	$ (5,125)

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Acquisition and Integration Expenses - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Business Combinations [Abstract]
Acquisition expenses	$ 2,153	$ 312	$ 4,182	$ 464

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	4,789.5	4,801.6
Common stock, shares outstanding	4,789.5	4,801.6
Put Options [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	210.5	198.4
Common stock, shares outstanding	210.5	198.4

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Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes:

The Company’s policy is to estimate income taxes for interim periods based on estimated annual effective tax rates. These are derived, in part, from expected pre-tax income. Accordingly, the Company applied an estimated annual effective tax rate to the interim period pre-tax income (loss) in the six and three month periods ended June 30, 2013 and 2012 to calculate the income tax benefit / provision in accordance with the principal method prescribed by ASC 740-270, the accounting guidance established for computing income taxes in interim periods.

The effective income tax rates were 101.6% and 42.6% for the six month periods ended June 30, 2013 and 2012, respectively. The effective income tax rates were -93.2% and 36.3% for the three month periods ended June 30, 2013 and 2012, respectively. The effective income tax rate differed from the federal statutory rate in the six and three month periods ended June 30, 2013 primarily due to a current period benefit caused by the effect of changes in certain state income tax rates on the Company’s deferred tax assets and liabilities and the reduction of valuation reserves related to certain deferred tax assets. The effective income tax rate differed from the federal statutory rate in the six and three month periods ended June 30, 2012 due in part to a reduction of the valuation reserve related to a deferred tax asset that was utilized in the period. The remaining differences between the federal statutory rate and the effective tax rate in the six and three month periods ended June 30, 2013 and 2012 were primarily due to state and foreign income taxes.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ 78	$ (1,531)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	22,820	22,407
Dispositions of property and equipment	39	3
Deferred income tax benefit	(5,618)	(1,562)
Deferred financing and original issue discount amortization	1,223	1,042
Stock-based compensation expense	4,841
Other non-cash interest and change in value of interest rate swap	(418)	(372)
Changes in operating items:
Accounts receivable	(24,698)	(14,038)
Inventories	(2,907)	(12,547)
Other assets	2,037	(873)
Accounts payable	4,805	9,444
Interest payable on junior subordinated debentures	1,019	1,019
Other accrued liabilities	(1,253)	2,023
Other items, net	(940)	(1,480)
Net cash provided by operating activities	1,028	3,535
Cash flows from investing activities:
Paulin acquisition	(103,416)
Proceeds from sale of property and equipment		3
Capital expenditures	(14,604)	(10,496)
Net cash used for investing activities	(118,020)	(10,493)
Cash flows from financing activities:
Borrowings of senior term loans	76,800
Repayments of senior term loans	(1,792)	(1,600)
Discount on senior term loans	(2,152)
Borrowings of revolving credit loans		19,000
Payment of additional acquisition consideration		(12,387)
Principal payments under capitalized lease obligations	(41)	(17)
Repayments of other credit obligations	(456)
Net cash provided by financing activities	72,359	4,996
Net decrease in cash and cash equivalents	(44,633)	(1,962)
Cash and cash equivalents at beginning of period	65,548	12,027
Cash and cash equivalents at end of period	20,915	10,065
Supplemental schedule of noncash activities:
Fixed assets acquired under capital lease	$ 202	$ 33

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 20,915	$ 65,548
Restricted investments	2,889	846
Accounts receivable, net	104,301	62,344
Inventories	171,796	113,838
Deferred income taxes	10,499	10,464
Other current assets	10,303	8,506
Total current assets	320,703	261,546
Property and equipment, net	85,759	68,492
Goodwill	467,657	455,338
Other intangibles, net	373,589	366,644
Restricted investments	1,160	3,399
Deferred financing fees	11,329	12,858
Investment in trust common securities	3,261	3,261
Other assets	3,077	4,255
Total assets	1,266,535	1,175,793
Current liabilities:
Accounts payable	50,180	32,571
Current portion of senior term loans	3,968	3,200
Current portion of capitalized lease and other obligations	407	819
Interest payable on junior subordinated debentures	1,019
Accrued expenses:
Salaries and wages	8,921	9,351
Pricing allowances	5,632	4,057
Income and other taxes	2,241	2,492
Interest	2,763	2,868
Deferred compensation	2,889	846
Other accrued expenses	8,938	11,397
Total current liabilities	86,958	67,601
Long term senior term loans	380,180	307,727
Long term capitalized lease and other obligations	363	245
Long term senior notes	272,358	272,942
Junior subordinated debentures	115,040	115,132
Deferred compensation	1,160	3,399
Deferred income taxes	117,837	117,949
Other non-current liabilities	11,255	6,187
Total liabilities	985,151	891,182
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Additional paid-in capital	289,716	294,675
Accumulated deficit	(24,973)	(25,051)
Accumulated other comprehensive (loss) income	(3,342)	871
Total stockholders' equity	261,401	270,495
Total liabilities and stockholders' equity	1,266,535	1,175,793
Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively	$ 19,983	$ 14,116

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 20,915	$ 65,548	$ 10,065	$ 12,027
Restricted investments	2,889	846
Accounts receivable, net	104,301	62,344
Inventories	171,796	113,838
Deferred income taxes	10,499	10,464
Other current assets	10,303	8,506
Total current assets	320,703	261,546
Intercompany notes receivable
Intercompany interest receivable
Investments in subsidiaries
Property and equipment, net	85,759	68,492
Goodwill	467,657	455,338
Other intangibles, net	373,589	366,644
Restricted investments	1,160	3,399
Deferred income taxes
Deferred financing fees	11,329	12,858
Investment in trust common securities	3,261	3,261
Other assets	3,077	4,255
Total assets	1,266,535	1,175,793
Current liabilities
Accounts payable	50,180	32,571
Current portion of senior term loans	3,968	3,200
Current portion of capitalized lease and other obligations	407	819
Interest payable on junior subordinated debentures	1,019
Additional acquisition consideration
Intercompany interest payable
Accrued expenses:
Salaries and wages	8,921	9,351
Pricing allowances	5,632	4,057
Income and other taxes	2,241	2,492
Interest	2,763	2,868
Deferred compensation	2,889	846
Other accrued expenses	8,938	11,397
Total current liabilities	86,958	67,601
Intercompany debt payable
Long term senior term loans	380,180	307,727
Long term portion of capitalized lease and other obligations	363	245
Long term senior notes	272,358	272,942
Junior subordinated debentures	115,040	115,132
Deferred compensation	1,160	3,399
Deferred income taxes, net	117,837	117,949
Other non-current liabilities	11,255	6,187
Total liabilities	985,151	891,182
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Additional paid-in capital	289,716	294,675
Accumulated deficit	(24,973)	(25,051)
Accumulated other comprehensive income	(3,342)	871
Total stockholders' equity	261,401	270,495
Total liabilities and stockholders' equity	1,266,535	1,175,793
Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively	19,983	14,116
Guarantors The Hillman Companies, Inc. [Member]
Current assets
Cash and cash equivalents	1	1	1	1
Restricted investments	2,889	846
Accounts receivable, net
Inventories
Deferred income taxes	8,643	10,359
Other current assets
Total current assets	11,533	11,206
Intercompany notes receivable	105,446	105,446
Intercompany interest receivable	6,116
Investments in subsidiaries	(646,282)	(637,376)
Property and equipment, net
Goodwill	418,946	418,946
Other intangibles, net	302,803	311,832
Restricted investments	1,160	3,399
Deferred income taxes	33,648	29,492
Deferred financing fees
Investment in trust common securities	3,261	3,261
Other assets
Total assets	236,631	246,206
Current liabilities
Accounts payable
Current portion of senior term loans
Current portion of capitalized lease and other obligations
Interest payable on junior subordinated debentures	1,019
Additional acquisition consideration
Intercompany interest payable
Accrued expenses:
Salaries and wages
Pricing allowances
Income and other taxes	(529)	(625)
Interest
Deferred compensation	2,889	846
Other accrued expenses
Total current liabilities	3,379	221
Intercompany debt payable
Long term senior term loans
Long term portion of capitalized lease and other obligations
Long term senior notes
Junior subordinated debentures	115,040	115,132
Deferred compensation	1,160	3,399
Deferred income taxes, net	141,816	146,042
Other non-current liabilities	5,555	714
Total liabilities	266,950	265,508
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Additional paid-in capital	113,211	117,261
Accumulated deficit	(163,513)	(150,679)
Accumulated other comprehensive income
Total stockholders' equity	(50,302)	(33,418)
Total liabilities and stockholders' equity	236,631	246,206
Guarantors The Hillman Companies, Inc. [Member] | Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively	19,983	14,116
Issuer The Hillman Group, Inc. [Member]
Current assets
Cash and cash equivalents	6,765	62,917	7,495	8,852
Restricted investments
Accounts receivable, net	85,200	65,916
Inventories	110,151	105,028
Deferred income taxes
Other current assets	7,531	6,526
Total current assets	209,647	240,387
Intercompany notes receivable	99,886
Intercompany interest receivable	2,609
Investments in subsidiaries	28,123	27,204
Property and equipment, net	71,271	67,902
Goodwill	24,512	24,512
Other intangibles, net	44,503	46,047
Restricted investments
Deferred income taxes
Deferred financing fees	11,329	12,858
Investment in trust common securities
Other assets	2,537	3,521
Total assets	494,417	422,431
Current liabilities
Accounts payable	32,010	31,873
Current portion of senior term loans	3,968	3,200
Current portion of capitalized lease and other obligations	407	819
Interest payable on junior subordinated debentures
Additional acquisition consideration
Intercompany interest payable	6,116
Accrued expenses:
Salaries and wages	6,659	8,930
Pricing allowances	3,126	3,457
Income and other taxes	2,200	2,447
Interest	2,763	2,868
Deferred compensation
Other accrued expenses	6,411	9,822
Total current liabilities	63,660	63,416
Intercompany debt payable	105,446	105,446
Long term senior term loans	380,180	307,727
Long term portion of capitalized lease and other obligations	363	245
Long term senior notes	272,358	272,942
Junior subordinated debentures
Deferred compensation
Deferred income taxes, net
Other non-current liabilities	5,700	5,473
Total liabilities	827,707	755,249
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Additional paid-in capital	(130,734)	(131,642)
Accumulated deficit	(198,334)	(201,176)
Accumulated other comprehensive income	(4,222)
Total stockholders' equity	(333,290)	(332,818)
Total liabilities and stockholders' equity	494,417	422,431
Issuer The Hillman Group, Inc. [Member] | Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents	1,169	429	803	547
Restricted investments
Accounts receivable, net	1,178	6,473
Inventories	8,572	4,678
Deferred income taxes	1,224	610
Other current assets	197	145
Total current assets	12,340	12,335
Intercompany notes receivable
Intercompany interest receivable
Investments in subsidiaries	507
Property and equipment, net	396	191
Goodwill	3,090	58
Other intangibles, net	250	250
Restricted investments
Deferred income taxes	(727)	(411)
Deferred financing fees
Investment in trust common securities
Other assets	25	25
Total assets	15,881	12,448
Current liabilities
Accounts payable	1,750	517
Current portion of senior term loans
Current portion of capitalized lease and other obligations
Interest payable on junior subordinated debentures
Additional acquisition consideration
Intercompany interest payable
Accrued expenses:
Salaries and wages	155	217
Pricing allowances	4	3
Income and other taxes	311	25
Interest
Deferred compensation
Other accrued expenses	251	40
Total current liabilities	2,471	802
Intercompany debt payable
Long term senior term loans
Long term portion of capitalized lease and other obligations
Long term senior notes
Junior subordinated debentures
Deferred compensation
Deferred income taxes, net	207	219
Other non-current liabilities
Total liabilities	2,678	1,021
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively	50	50
Additional paid-in capital	11,711	10,304
Accumulated deficit	1,442	1,073
Accumulated other comprehensive income
Total stockholders' equity	13,203	11,427
Total liabilities and stockholders' equity	15,881	12,448
Guarantor Subsidiaries [Member] | Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Non-Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents	12,980	2,201	1,766	2,627
Restricted investments
Accounts receivable, net	17,923	(10,045)
Inventories	53,400	4,404
Deferred income taxes	1,300	221
Other current assets	2,575	1,835
Total current assets	88,178	(1,384)
Intercompany notes receivable	(99,886)
Intercompany interest receivable
Investments in subsidiaries	266,323
Property and equipment, net	14,092	399
Goodwill	20,829	11,542
Other intangibles, net	26,033	8,515
Restricted investments
Deferred income taxes	142	977
Deferred financing fees
Investment in trust common securities
Other assets	515	709
Total assets	316,226	20,758
Current liabilities
Accounts payable	16,420	181
Current portion of senior term loans
Current portion of capitalized lease and other obligations
Interest payable on junior subordinated debentures
Additional acquisition consideration
Intercompany interest payable	2,609
Accrued expenses:
Salaries and wages	2,107	204
Pricing allowances	2,502	597
Income and other taxes	259	645
Interest
Deferred compensation
Other accrued expenses	2,276	1,535
Total current liabilities	26,173	3,162
Intercompany debt payable
Long term senior term loans
Long term portion of capitalized lease and other obligations
Long term senior notes
Junior subordinated debentures
Deferred compensation
Deferred income taxes, net	9,545	2,472
Other non-current liabilities
Total liabilities	35,718	5,634
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Additional paid-in capital	293,717	17,192
Accumulated deficit	(3,424)	(2,458)
Accumulated other comprehensive income	(9,785)	390
Total stockholders' equity	280,508	15,124
Total liabilities and stockholders' equity	316,226	20,758
Non-Guarantor Subsidiaries [Member] | Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively
Consolidating Adjustments [Member]
Current assets
Cash and cash equivalents
Restricted investments
Accounts receivable, net
Inventories	(327)	(272)
Deferred income taxes	(668)	(726)
Other current assets
Total current assets	(995)	(998)
Intercompany notes receivable	(105,446)	(105,446)
Intercompany interest receivable	(8,725)
Investments in subsidiaries	351,329	610,172
Property and equipment, net
Goodwill	280	280
Other intangibles, net
Restricted investments
Deferred income taxes	(33,063)	(30,058)
Deferred financing fees
Investment in trust common securities
Other assets
Total assets	203,380	473,950
Current liabilities
Accounts payable
Current portion of senior term loans
Current portion of capitalized lease and other obligations
Interest payable on junior subordinated debentures
Additional acquisition consideration
Intercompany interest payable	(8,725)
Accrued expenses:
Salaries and wages
Pricing allowances
Income and other taxes
Interest
Deferred compensation
Other accrued expenses
Total current liabilities	(8,725)
Intercompany debt payable	(105,446)	(105,446)
Long term senior term loans
Long term portion of capitalized lease and other obligations
Long term senior notes
Junior subordinated debentures
Deferred compensation
Deferred income taxes, net	(33,731)	(30,784)
Other non-current liabilities
Total liabilities	(147,902)	(136,230)
Common stock with put options:
Commitments and contingencies
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued or outstanding at June 30, 2013 and December 31, 2012 respectively
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 and 4801.6 issued and outstanding at June 30, 2013 and December 31, 2012 respectively	(50)	(50)
Additional paid-in capital	1,811	281,560
Accumulated deficit	338,856	328,189
Accumulated other comprehensive income	10,665	481
Total stockholders' equity	351,282	610,180
Total liabilities and stockholders' equity	203,380	473,950
Consolidating Adjustments [Member] | Put Options [Member]
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 and 198.4 issued and outstanding at June 30, 2013 and December 31, 2012 respectively

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Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013 Segment
Business Combinations [Abstract]
Number of business segments	5

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations:

The Company comprises five separate business segments, the largest of which is (1) The Hillman Group, Inc. (the “Hillman Group”) operating primarily in the United States. The other business segments consist of separate subsidiaries of the Hillman Group operating in (2) Canada under the names The Hillman Group Canada ULC and H. Paulin & Co., (3) Mexico under the name SunSource Integrated Services de Mexico SA de CV, (4) Florida under the name All Points Industries, Inc. and (5) Australia under the name The Hillman Group Australia Pty. Ltd. The Hillman Group provides merchandising services and products such as fasteners and related hardware items; threaded rod and metal shapes; keys, key duplication systems and accessories; builder’s hardware; and identification items, such as tags, and letters, numbers and signs, to retail outlets, primarily hardware stores, home centers and mass merchants, pet supply stores, grocery stores and drug stores. Our Canada segment also produces fasteners, stampings, fittings and processes threaded parts for automotive suppliers, industrial Original Equipment Manufacturers (“OEM”) and industrial distributors. Through its field sales and service organization, Hillman complements its extensive product selection with value-added services for the retailer.

Use of Estimates in the Preparation of Financial Statements

Use of Estimates in the Preparation of Financial Statements:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Actual results may differ from estimates.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts:

The Company establishes the allowance for doubtful accounts using the specific identification method and also provides a reserve in the aggregate. The estimates for calculating the aggregate reserve are based on historical collection experience. Increases to the allowance for doubtful accounts result in a corresponding expense. The Company writes off individual accounts receivable when collection becomes improbable. The allowance for doubtful accounts was $799 at June 30, 2013 and $1,105 at December 31, 2012.

Property and Equipment and Accumulated Depreciation

Property and Equipment and Accumulated Depreciation:

Property and equipment, including assets acquired under capital leases, are carried at cost and include expenditures for new facilities and major renewals. Maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective accounts, and the resulting gain or loss is reflected in income from operations. The accumulated depreciation was $52,535 at June 30, 2013 and $44,089 at December 31, 2012.

Shipping and Handling

Shipping and Handling:

The costs incurred to ship product to customers, including freight and handling expenses, are included in selling, general and administrative (“SG&A”) expenses on the Company’s condensed consolidated statements of comprehensive income. The Company’s shipping and handling costs were $7,142 and $6,119 in the three month periods ended June 30, 2013 and 2012, respectively. The Company’s shipping and handling costs were $12,756 and $11,498 in the six month periods ended June 30, 2013 and 2012, respectively.

ASU 2013-02, Comprehensive Income

In February 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-02, “Comprehensive Income”. The update amended the Accounting Standards Codification (“ASC”) to require entities to provide information about amounts reclassified out of other comprehensive income by component. The Company is required to present, either on the face of the financial statements or in the notes, the amounts reclassified from other comprehensive income to the respective line items in the Condensed Consolidated Statements of Comprehensive Income. This amendment was effective for interim and annual periods beginning after December 15, 2012. The adoption of this amendment did not have an impact on the Company’s disclosure or the Company’s consolidated results of operations or financial condition.

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Fair Value Measurements - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 2010 Swap [Member]	Dec. 31, 2012 2010 Swap [Member]
Investment Securities [Line Items]
Unrealized gains (losses) on securities recorded as other income (expense)	$ (69)	$ (26)	$ 69	$ 168
Swap expired date					May 31, 2013	May 31, 2013

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Long-Term Debt - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended		6 Months Ended		1 Months Ended
	Dec. 31, 2012	Mar. 31, 2011	Jun. 30, 2013	Nov. 07, 2012	Feb. 14, 2013 Euro Dollar Margin [Member]	Feb. 14, 2013 Euro Dollar Loans [Member]	Feb. 14, 2013 Base Rate Margin [Member]	Feb. 14, 2013 Base Rate Loans [Member]	Feb. 14, 2013 Eurodollar [Member]	Feb. 14, 2013 Base Rate [Member]	Jun. 30, 2013 10.875% Senior Notes [Member]	Dec. 31, 2012 10.875% Senior Notes [Member]	Jun. 30, 2012 10.875% Senior Notes [Member]	Mar. 16, 2011 10.875% Senior Notes [Member]	May 28, 2010 10.875% Senior Notes [Member]
Debt Instrument [Line Items]
Increase in aggregate term loan				$ 76,800
Aggregate principal amount				420,000
Basis point reduction on term loan pricing									0.50%	0.50%
Additional reduction of basis point on term loan pricing									0.25%	0.25%
Amended maturity date of Senior Facilities			May 28, 2017
Debt Instrument Margin Percentage					3.00%	1.25%	2.00%	2.25%
Principal amount of senior notes												65,000		50,000	150,000
Interest rate on senior note											10.875%		10.875%	10.875%
Premium on senior notes	$ 4,225	$ 4,625

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Other Intangibles - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 5,559	$ 5,429	$ 11,005	$ 10,900
Estimated amortization expense for current year	22,095		22,095
2014	22,206		22,206
2015	21,545		21,545
2016	19,614		19,614
2017	18,759		18,759
2018	$ 18,759		$ 18,759

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Commitments and Contingencies - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Loss Contingencies [Line Items]
Losses up to per occurrence related to product liability, automotive, workers' compensation and general liability	$ 250
Liability recorded for such risk insurance reserves	1,494
Aggregate vendors and insurers letters of credit related to product purchases and insurance coverage of product liability, workers' compensation and general liability	3,481
Group health claims up to annual stop loss limit per participant	200
Annual group health insurance claims in excess of expected claims	125.00%
Liability recorded for such group health insurance reserves	2,053
Maximum [Member]
Loss Contingencies [Line Items]
Occurrences in excess for purchased catastrophic coverage	40,000
Minimum [Member]
Loss Contingencies [Line Items]
Occurrences in excess for purchased catastrophic coverage	$ 250

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Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

7. Related Party Transactions:

Gregory Mann and Gabrielle Mann are employed by the All Points subsidiary of Hillman. All Points leases an industrial warehouse and office facility from companies under the control of the Manns. The Company has recorded rental expense for the lease of this facility on an arm’s length basis. The rental expense for the lease of this facility was $82 for each of the three month periods ended June 30, 2013 and 2012. The rental expense for the lease of this facility was $165 for each of the six month periods ended June 30, 2013 and 2012.

In connection with the Paulin Acquisition, the Company entered into three leases for five properties containing industrial warehouse, manufacturing plant, and office facilities on February 19, 2013. The owners of the properties under one lease are relatives of Richard Paulin, who is employed by The Hillman Group Canada ULC, and the owner of the properties under the other two leases is a company which is owned by Richard Paulin and certain of his relatives. The Company has recorded rental expense for the three leases on an arm’s length basis. The rental expense for the three leases was $205 and $274 for the three and six month periods ended June 30, 2013, respectively.

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 799		$ 799		$ 1,105
Accumulated depreciation	52,535		52,535		44,089
Shipping and handling costs	$ 7,142	$ 6,119	$ 12,756	$ 11,498

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Derivatives and Hedging - Additional Information (Detail)	12 Months Ended		1 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended	12 Months Ended	1 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended	1 Months Ended	6 Months Ended
	Dec. 31, 2012 USD ($)	Jun. 30, 2013 USD ($)	Dec. 18, 2012 2012 FX Contract [Member] CAD	Jun. 30, 2013 2012 FX Contract [Member]	Jun. 24, 2010 2010 Swap [Member] USD ($)	Jun. 30, 2013 2010 Swap [Member]	Dec. 31, 2012 2010 Swap [Member] USD ($)	May 20, 2013 2013 Rate Cap No. 1 [Member] USD ($)	Jun. 30, 2013 2013 Rate Cap No. 1 [Member]	May 20, 2013 2013 Rate Cap No. 2 [Member] USD ($)	Jun. 30, 2013 2013 Rate Cap No. 2 [Member]	Apr. 20, 2012 2012 Metal Swap No. 1 [Member] USD ($) Mg	Jun. 30, 2013 2012 Metal Swap No. 1 [Member]	May 30, 2012 2012 Metal Swap No. 2 [Member] USD ($) Mg	Jun. 30, 2013 2012 Metal Swap No. 2 [Member]	May 30, 2012 2012 Metal Swap No. 3 [Member] USD ($) Mg	Jun. 30, 2013 2012 Metal Swap No. 3 [Member]
Derivative [Line Items]
Term of derivative instrument			6 months		2 years			2 years		2 months		8 months		7 months		10 months
Notional amount of derivative instrument			105,000,000		$ 115,000,000			$ 150,000,000		$ 75,000,000		$ 294,700		$ 77,900		$ 272,500
Interest rate of derivative instrument					2.47%
Effective date of agreement						May 31, 2011		May 28, 2013		May 28, 2013
Termination date of derivative				May 21, 2013		May 31, 2013	May 31, 2013		May 28, 2015		May 28, 2015		Dec. 31, 2012		Dec. 31, 2012		Mar. 31, 2013
Fair value of derivative liability							(418,000)
Fair value of interest expense	418,000
LIBOR interest rate								1.25%		1.25%
Fair value of interest rate caps		239,000
Quantity of derivative instrument												35		10		35
Price of copper												8.420		7.790		7.785
Forward exchange rate			0.9989
Increase in other expense	$ 1,138,000

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Common and Preferred Stock

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Common and Preferred Stock

10. Common and Preferred Stock:

The Hillman Companies has one class of common stock, with 5,000 shares authorized and issued as of June 30, 2013. All outstanding shares of Hillman Companies’ common stock are owned by Holdco.

Under the terms of the Stockholders Agreement for the Holdco common stock, management shareholders have the ability to put their shares back to Holdco under certain conditions, including death or disability. ASC 480-10-S99 requires shares to be classified outside of permanent equity if they can be redeemed and the redemption is not solely within the control of the issuer. Further, if it is determined that redemption of the shares is probable, the shares are marked to redemption value which equals fair value at each balance sheet date with the change in fair value recorded in additional paid-in capital. Accordingly, the 210.5 shares of common stock held by management are recorded outside permanent equity and have been adjusted to the fair value of $19,983 as of June 30, 2013.

The Hillman Companies has one class of preferred stock, with 5,000 shares authorized and none issued as of June 30, 2013.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

6. Commitments and Contingencies:

The Company self-insures its product liability, automotive, workers’ compensation and general liability losses up to $250 per occurrence. Catastrophic coverage has been purchased from third party insurers for occurrences in excess of $250 up to $40,000. The two risk areas involving the most significant accounting estimates are workers’ compensation and automotive liability. Actuarial valuations performed by the Company’s outside risk insurance expert were used by the Company’s management to form the basis for workers’ compensation and automotive liability loss reserves. The actuary contemplated the Company’s specific loss history, actual claims reported, and industry trends among statistical and other factors to estimate the range of reserves required. Risk insurance reserves are comprised of specific reserves for individual claims and additional amounts expected from development of these claims, as well as for incurred but not yet reported claims. The Company believes the liability of approximately $1,494 recorded for such risk insurance reserves is adequate as of June 30, 2013.

As of June 30, 2013, the Company has provided certain vendors and insurers letters of credit aggregating $3,481 related to its product purchases and insurance coverage of product liability, workers’ compensation and general liability.

The Company self-insures its group health claims up to an annual stop loss limit of $200 per participant. Aggregate coverage is maintained for annual group health insurance claims in excess of 125% of expected claims. Historical group insurance loss experience forms the basis for the recognition of group health insurance reserves. Provisions for losses expected under these programs are recorded based on an analysis of historical insurance claim data and certain actuarial assumptions. The Company believes the liability of approximately $2,053 recorded for such group health insurance reserves is adequate as of June 30, 2013.

In addition, legal proceedings are pending which are either in the ordinary course of business or incidental to the Company’s business. Those legal proceedings incidental to the business of the Company are generally not covered by insurance or other indemnity. In the opinion of the Company’s management, the ultimate resolution of the pending litigation matters will not have a material adverse effect on the consolidated financial position, operations or cash flows of the Company.

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Basis of Presentation

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation:

The accompanying financial statements include the condensed consolidated accounts of The Hillman Companies, Inc. (“Hillman Companies”) and its wholly-owned subsidiaries (collectively “Hillman” or the “Company”). All significant intercompany balances and transactions have been eliminated.

On May 28, 2010, Hillman Companies was acquired by an affiliate of Oak Hill Capital Partners (“OHCP”) and certain members of Hillman’s management and Board of Directors. Pursuant to the terms and conditions of an Agreement and Plan of Merger dated as of April 21, 2010, the Company was merged with an affiliate of OHCP with the Company surviving the merger (the “Merger Transaction”). As a result of the Merger Transaction, Hillman Companies is a wholly-owned subsidiary of OHCP HM Acquisition Corp. (“Holdco”).

The accompanying unaudited condensed consolidated financial statements present information in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X. Accordingly, they do not include all information or footnotes required by generally accepted accounting principles for complete financial statements. Management believes the financial statements include all normal recurring accrual adjustments necessary for a fair presentation. Operating results for the six month period ended June 30, 2013 do not necessarily indicate the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s annual report filed on Form 10-K for the year ended December 31, 2012.

Nature of Operations:

The Company comprises five separate business segments, the largest of which is (1) The Hillman Group, Inc. (the “Hillman Group”) operating primarily in the United States. The other business segments consist of separate subsidiaries of the Hillman Group operating in (2) Canada under the names The Hillman Group Canada ULC and H. Paulin & Co., (3) Mexico under the name SunSource Integrated Services de Mexico SA de CV, (4) Florida under the name All Points Industries, Inc. and (5) Australia under the name The Hillman Group Australia Pty. Ltd. The Hillman Group provides merchandising services and products such as fasteners and related hardware items; threaded rod and metal shapes; keys, key duplication systems and accessories; builder’s hardware; and identification items, such as tags, and letters, numbers and signs, to retail outlets, primarily hardware stores, home centers and mass merchants, pet supply stores, grocery stores and drug stores. Our Canada segment also produces fasteners, stampings, fittings and processes threaded parts for automotive suppliers, industrial Original Equipment Manufacturers (“OEM”) and industrial distributors. Through its field sales and service organization, Hillman complements its extensive product selection with value-added services for the retailer.

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet (Parenthetical) (Detail) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	4,789.5	4,801.6
Common stock, shares outstanding	4,789.5	4,801.6
Put Options [Member]
Condensed Financial Statements, Captions [Line Items]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	210.5	198.4
Common stock, shares outstanding	210.5	198.4

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Segment Reporting - Revenues and Income from Operations for Reportable Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues
Total revenues	$ 192,711	$ 147,241	$ 336,630	$ 275,614
Segment Income (Loss) from Operations
Income from operations	17,573	14,941	25,357	23,776
Operating Segments [Member] | United States Excluding All Points [Member]
Revenues
Total revenues	142,851	136,588	261,696	256,349
Segment Income (Loss) from Operations
Income from operations	15,108	14,942	22,152	23,657
Operating Segments [Member] | All Points [Member]
Revenues
Total revenues	5,881	5,115	10,534	9,624
Segment Income (Loss) from Operations
Income from operations	613	321	984	413
Operating Segments [Member] | Canada [Member]
Revenues
Total revenues	42,073	3,889	60,385	6,297
Segment Income (Loss) from Operations
Income from operations	2,251	(214)	2,417	(433)
Operating Segments [Member] | Mexico [Member]
Revenues
Total revenues	1,703	1,454	3,670	3,011
Segment Income (Loss) from Operations
Income from operations	116	38	512	389
Operating Segments [Member] | Australia [Member]
Revenues
Total revenues	203	195	345	333
Segment Income (Loss) from Operations
Income from operations	$ (515)	$ (146)	$ (708)	$ (250)

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Acquisitions - Summary of Pro-Forma Financial Statements of Company (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Net Sales	$ 192,711	$ 189,916	$ 352,560	$ 353,962
Net Income	$ 4,663	$ 2,951	$ (387)	$ 97

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

13. Fair Value Measurements:

The Company uses the accounting guidance that applies to all assets and liabilities that are being measured and reported on a fair value basis. The guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions.

The accounting guidance establishes a hierarchy which requires an entity to maximize the use of quoted market prices and minimize the use of unobservable inputs. An asset or liability’s level is based on the lowest level of input that is significant to the fair value measurement.

The following tables set forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis during the periods ended June 30, 2013 and December 31, 2012, by level, within the fair value hierarchy:

	As of June 30, 2013
	Level 1		Level 2		Level 3		Total
Trading securities	$	4,049	$	—	$	—	$	4,049
Interest rate cap		—		239		—		239

	As of December 31, 2012
	Level 1		Level 2			Level 3		Total
Trading securities	$	4,245	$	—		$	—	$	4,245
Interest rate swap		—		(418	)		—		(418	)
Foreign exchange forward contract		—		(1,475	)				(1,475	)
Metal commodity swaps		—		(11	)				(11	)

Trading securities are valued using quoted prices on an active exchange. Trading securities represent assets held in a Rabbi Trust to fund deferred compensation liabilities and are included as restricted investments on the accompanying condensed consolidated balance sheets.

For the three months ended June 30, 2013 and 2012, the unrealized losses on these securities of $69 and $26, respectively, were recorded as other expense. For the six months ended June 30, 2013 and 2012, the unrealized gains on these securities of $69 and $168, respectively, were recorded as other income. An offsetting entry for the same amount, adjusting the deferred compensation liability and compensation expense within SG&A, was also recorded.

The Company utilizes interest rate cap and interest rate swap contracts to manage its targeted mix of fixed and floating rate debt, and these contracts are valued using observable benchmark rates at commonly quoted intervals for the full term of the cap and swap contracts.

As of June 30, 2013, the Interest Rate Cap was included in other non-current assets on the accompanying condensed consolidated balance sheet. The 2010 Swap expired in May 2013 and was included in other current liabilities as of December 31, 2012 on the accompanying condensed consolidated balance sheet.

At December 31, 2012, the Company utilized a foreign exchange forward contract to manage its exposure to currency fluctuations in the Canadian dollar versus the U.S. dollar. This forward contract was valued using observable benchmark rates at commonly quoted intervals during the term of the forward contract. This forward contract was completed on February 19, 2013 in connection with the Paulin Acquisition. The foreign exchange forward contract was included in other current liabilities as of December 31, 2012 on the accompanying condensed consolidated balance sheet.

The Company utilizes metal commodity swap contracts to manage its exposure to price fluctuations in metal commodities used in its key products and these swaps are valued using observable benchmark rates at commonly quoted intervals for the full term of the swaps. As of June 30, 2013, the metal commodity swaps expired and were included in both other current assets and liabilities as of December 31, 2012 on the accompanying condensed consolidated balance sheet.

The Company also has certain financial instruments such as cash and cash equivalents, accounts receivables, accounts payable, and variable rate senior term loans (level 2) which have carrying amounts which approximate fair value

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Long-Term Debt

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Long-Term Debt

9. Long-Term Debt:

Effective November 7, 2012, the Company entered into a Joinder Agreement to its credit agreement under the existing Senior Facilities (the “2012 Incremental Facility”). The 2012 Incremental Facility increased the aggregate term loan commitments available to Hillman Group under the Senior Facilities by $76,800. Subject to the conditions precedent to each funding date described in Section 17 of the 2012 Incremental Facility, the Company could make two drawings under the 2012 Incremental Facility on any business day after November 7, 2012 and prior to April 1, 2013. On February 19, 2013, the Company drew down on funds from the 2012 Incremental Facility in order to fund the permitted Paulin Acquisition. The aggregate principal amount of commitments under the Senior Facilities, after giving effect to the 2012 Incremental Facility, was $420,000.

Effective February 14, 2013, the Company completed an amendment to the credit agreement governing its Senior Facilities. The Senior Facilities amendment modified the term loan pricing to reduce the EuroDollar margin by 50 basis points to 3.00% and reduce the EuroDollar floor on EuroDollar loans by an additional 25 basis points to 1.25%. This amendment modified the term loan pricing to reduce the base rate margin by 50 basis points to 2.00% and reduce the floor on base rate loans by an additional 25 basis points to 2.25%. This amendment also extends the maturity date of the Senior Facilities by one year to May 28, 2017.

Concurrently with the Merger Transaction, Hillman Group issued $150,000 aggregate principal amount of its senior notes due 2018 (the “10.875% Senior Notes”). On March 16, 2011, Hillman Group completed an offering of $50,000 aggregate principal amount of its 10.875% Senior Notes. Hillman Group received a premium of $4,625 on the $50,000 10.875% Senior Notes offering. On December 21, 2012, Hillman Group completed an offering of $65,000 aggregate principal amount of its temporary 10.875% Senior Notes. Hillman Group received a premium of $4,225 on the $65,000 temporary 10.875% Senior Notes offering. The temporary 10.875% Senior Notes were mandatorily exchanged for a like aggregate principal amount of 10.875% Senior Notes on February 19, 2013 in connection with the Paulin Acquisition. The 10.875% Senior Notes are guaranteed by The Hillman Companies, Inc., Hillman Investment Company and all of the domestic subsidiaries of Hillman Group. Hillman Group pays interest on the 10.875% Senior Notes semi-annually on June 1 and December 1 of each year.

The Senior Facilities contain financial and operating covenants which require the Company to maintain certain financial ratios, including a secured leverage ratio. This debt agreement provides for customary events of default, including, but not limited to, payment defaults, breach of representations or covenants, cross-defaults, bankruptcy events, failure to pay judgments, attachment of its assets, change of control and the issuance of an order of dissolution. Certain of these events of default are subject to notice and cure periods or materiality thresholds. The occurrence of an event of default permits the lenders under the Senior Facilities to accelerate repayment of all amounts due. The Company was in compliance with all provisions and covenants of the amended Senior Facilities as of June 30, 2013.

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Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information

16. Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information:

The 10.875% Senior Notes, of which $265,000 aggregate principal amount were outstanding as of June 30, 2013, were issued by Hillman Group and are fully and unconditionally guaranteed on a joint and several basis by the Company and certain of Company’s wholly owned subsidiaries. The non-guarantor information presented represents our Australian, Canadian and Mexican subsidiaries.

The following financial information presents condensed consolidating statements of comprehensive income, balance sheets, and cash flows for Hillman Group, all guarantor subsidiaries, all non-guarantor subsidiaries and the eliminations necessary to provide the consolidated results for Hillman Companies and subsidiaries. For purposes of this presentation, we have accounted for investments in our subsidiaries using the equity method of accounting. The principal consolidating adjustments eliminate investment in subsidiary and intercompany balances and transactions.

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	139,604		$	9,128		$	43,979		$	—		$	192,711
Cost of sales (exclusive of depreciation and amortization shown below)		—			66,205			6,646			27,487			—			100,338
Selling, general and administrative expenses		4,511			41,996			1,717			11,559			—			59,783
Acquisition and integration expenses		—			657			37			1,459			—			2,153
Depreciation		—			5,785			20			468			—			6,273
Amortization		4,514			771			—			274			—			5,559
Intercompany administrative (income) expense		—			(86	)		—			86			—			—
Other (income) expense, net		69			231			(62	)		794			—			1,032
Income (loss) from operations		(9,094	)		24,045			770			1,852			—			17,573
Intercompany interest (income) expense		(3,058	)		3,058			—			—			—			—
Interest expense, net		(46	)		10,274			—			1,874			—			12,102
Interest expense on junior subordinated debentures		3,153			—			—			—			—			3,153
Investment income on trust common securities		(95	)		—			—			—			—			(95	)
Income (loss) before equity in subsidiaries’ income		(9,048	)		10,713			770			(22	)		—			2,413
Equity in subsidiaries’ income (loss)		10,347			(366	)		—			—			(9,981	)		—
Income (loss) before income taxes		1,299			10,347			770			(22	)		(9,981	)		2,413
Income tax provision		(3,364	)		—			718			396			—			(2,250	)
Net income (loss)	$	4,663		$	10,347		$	52		$	(418	)	$	(9,981	)	$	4,663
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(3,512	)		21			(642	)		—			(4,133	)
Total comprehensive income (loss)	$	4,663		$	6,835		$	73		$	(1,060	)	$	(9,981	)	$	530

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the three months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	136,588		$	5,115		$	5,538		$	—		$	147,241
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			65,668			3,827			3,455			—			72,950
Selling, general and administrative expenses		(26	)		44,430			940			1,830			—			47,174
Acquisition and integration expenses		—			312			—			—			—			312
Depreciation		—			5,571			28			19			—			5,618
Amortization		4,514			817			—			98			—			5,429
Intercompany administrative (income) expense		—			(87	)		—			87			—			—
Other (income) expense, net		26			421			(1	)		371			—			817
Income (loss) from operations		(4,514	)		19,456			321			(322	)		—			14,941
Intercompany interest (income) expense		(3,058	)		3,058			—			—			—			—
Interest expense, net		(86	)		10,311			—			—			—			10,225
Interest expense on junior subordinated debentures		3,153			—			—			—			—			3,153
Investment income on trust common securities		(94	)		—			—			—			—			(94	)
Income (loss) before equity in subsidiaries’ income		(4,429	)		6,087			321			(322	)		—			1,657
Equity in subsidiaries’ income (loss)		5,642			(102	)		—			—			(5,540	)		—
Income (loss) before income taxes		1,213			5,985			321			(322	)		(5,540	)		1,657
Income tax provision (benefit)		157			343			160			(59	)		—			601
Net income (loss)	$	1,056		$	5,642		$	161		$	(263	)	$	(5,540	)	$	1,056
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			(748	)		—			(748	)
Total comprehensive income (loss)	$	1,056		$	5,642		$	161		$	(1,011	)	$	(5,540	)	$	308

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the six months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	256,762		$	15,468		$	64,400		$	—		$	336,630
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			122,520			11,145			40,319			—			173,984
Selling, general and administrative expenses		4,910			82,298			3,024			17,920			—			108,152
Acquisition and integration expenses		—			2,297			51			1,834			—			4,182
Depreciation		—			11,133			35			647			—			11,815
Amortization		9,029			1,543			—			433			—			11,005
Intercompany administrative (income) expense		—			(173	)		—			173			—			—
Other (income) expense, net		(69	)		1,447			(96	)		853			—			2,135
Income (loss) from operations		(13,870	)		35,697			1,309			2,221			—			25,357
Intercompany interest (income) expense		(6,116	)		6,120			—			(4	)		—			—
Interest expense, net		(92	)		21,430			—			2,717			—			24,055
Interest expense on junior subordinated debentures		6,305			—			—			—			—			6,305
Investment income on trust common securities		(189	)		—			—			—			—			(189	)
Income (loss) before equity in subsidiaries’ income		(13,778	)		8,147			1,309			(492	)		—			(4,814	)
Equity in subsidiaries’ income (loss)		7,550			(597	)		—			—			(6,953	)		—
Income (loss) before income taxes		(6,228	)		7,550			1,309			(492	)		(6,953	)		(4,814	)
Income tax provision (benefit)		(6,306	)		—			940			474			—			(4,892	)
Net income (loss)	$	78		$	7,550		$	369		$	(966	)	$	(6,953	)	$	78
Other comprehensive income (loss):
Foreign currency translation adjustments		—			(4,222	)		—			9			—			(4,213	)
Total comprehensive income (loss)	$	78		$	3,328		$	369		$	(957	)	$	(6,953	)	$	(4,135	)

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the six months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
Net sales	$	—		$	256,349		$	9,624		$	9,641		$	—		$	275,614
Cost of sales (exclusive of depreciation and amortization shown separately below)		—			123,310			7,356			5,873			—			136,539
Selling, general and administrative expenses		168			86,500			1,806			3,620			—			92,094
Acquisition and integration expenses		—			464			—			—			—			464
Depreciation		—			11,416			50			41			—			11,507
Amortization		9,029			1,673			—			198			—			10,900
Intercompany administrative (income) expense		—			(173	)		—			173			—			—
Other (income) expense, net		(168	)		473			(1	)		30			—			334
Income (loss) from operations		(9,029	)		32,686			413			(294	)		—			23,776
Intercompany interest (income) expense		(6,116	)		6,116			—			—			—			—
Interest expense, net		(192	)		20,519			—			—			—			20,327
Interest expense on junior subordinated debentures		6,305			—			—			—			—			6,305
Investment income on trust common securities		(189	)		—			—			—			—			(189	)
Income (loss) before equity in subsidiaries’ income		(8,837	)		6,051			413			(294	)		—			(2,667	)
Equity in subsidiaries’ income (loss)		5,185			(60	)		—			—			(5,125	)		—
Income (loss) before income taxes		(3,652	)		5,991			413			(294	)		(5,125	)		(2,667	)
Income tax provision (benefit)		(2,121	)		806			198			(19	)		—			(1,136	)
Net income (loss)	$	(1,531	)	$	5,185		$	215		$	(275	)	$	(5,125	)	$	(1,531	)
Other comprehensive income (loss):
Foreign currency translation adjustments		—			—			—			489			—			489
Total comprehensive income (loss)	$	(1,531	)	$	5,185		$	215		$	214		$	(5,125	)	$	(1,042	)

Condensed Consolidating Balance Sheet (Unaudited)

As of June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	6,765		$	1,169		$	12,980		$	—		$	20,915
Restricted investments		2,889			—			—			—			—			2,889
Accounts receivable, net		—			85,200			1,178			17,923			—			104,301
Inventories		—			110,151			8,572			53,400			(327	)		171,796
Deferred income taxes		8,643			—			1,224			1,300			(668	)		10,499
Other current assets		—			7,531			197			2,575			—			10,303
Total current assets		11,533			209,647			12,340			88,178			(995	)		320,703
Intercompany notes receivable		105,446			99,886			—			(99,886	)		(105,446	)		—
Intercompany interest receivable		6,116			2,609			—			—			(8,725	)		—
Investments in subsidiaries		(646,282	)		28,123			507			266,323			351,329			—
Property and equipment, net		—			71,271			396			14,092			—			85,759
Goodwill		418,946			24,512			3,090			20,829			280			467,657
Other intangibles, net		302,803			44,503			250			26,033			—			373,589
Restricted investments		1,160			—			—			—			—			1,160
Deferred income taxes		33,648			—			(727	)		142			(33,063	)		—
Deferred financing fees		—			11,329			—			—			—			11,329
Investment in trust common securities		3,261			—			—			—			—			3,261
Other assets		—			2,537			25			515			—			3,077
Total assets	$	236,631		$	494,417		$	15,881		$	316,226		$	203,380		$	1,266,535
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	32,010		$	1,750		$	16,420		$	—		$	50,180
Current portion of senior term loans		—			3,968			—			—			—			3,968
Current portion of capitalized lease and other obligations		—			407			—			—			—			407
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Intercompany interest payable		—			6,116			—			2,609			(8,725	)		—
Accrued expenses:
Salaries and wages		—			6,659			155			2,107			—			8,921
Pricing allowances		—			3,126			4			2,502			—			5,632
Income and other taxes		(529	)		2,200			311			259			—			2,241
Interest		—			2,763			—			—			—			2,763
Deferred compensation		2,889			—			—			—			—			2,889
Other accrued expenses		—			6,411			251			2,276			—			8,938
Total current liabilities		3,379			63,660			2,471			26,173			(8,725	)		86,958
Intercompany debt payable		—			105,446			—			—			(105,446	)		—
Long term senior term loans		—			380,180			—			—			—			380,180
Long term portion of capitalized leases		—			363			—			—			—			363
Long term senior notes		—			272,358			—			—			—			272,358
Junior subordinated debentures		115,040			—			—			—			—			115,040
Deferred compensation		1,160			—			—			—			—			1,160
Deferred income taxes, net		141,816			—			207			9,545			(33,731	)		117,837
Other non-current liabilities		5,555			5,700			—			—			—			11,255
Total liabilities		266,950			827,707			2,678			35,718			(147,902	)		985,151
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 210.5 issued and outstanding at June 30, 2013		19,983			—			—			—			—			19,983
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at June 30, 2013		—			—			—			—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,789.5 issued and outstanding at June 30, 2013		—			—			50			—			(50	)		—
Additional paid-in capital		113,211			(130,734	)		11,711			293,717			1,811			289,716
Accumulated deficit		(163,513	)		(198,334	)		1,442			(3,424	)		338,856			(24,973	)
Accumulated other comprehensive income		—			(4,222	)		—			(9,785	)		10,665			(3,342	)
Total stockholders’ equity		(50,302	)		(333,290	)		13,203			280,508			351,282			261,401
Total liabilities and stockholders’ equity	$	236,631		$	494,417		$	15,881		$	316,226		$	203,380		$	1,266,535

Condensed Consolidating Balance Sheet (Unaudited)

As of December 31, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust - ments			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1		$	62,917		$	429		$	2,201		$	—		$	65,548
Restricted investments		846			—			—			—			—			846
Accounts receivable, net		—			65,916			6,473			(10,045	)		—			62,344
Inventories		—			105,028			4,678			4,404			(272	)		113,838
Deferred income taxes		10,359			—			610			221			(726	)		10,464
Other current assets		—			6,526			145			1,835			—			8,506
Total current assets		11,206			240,387			12,335			(1,384	)		(998	)		261,546
Intercompany notes receivable		105,446			—			—			—			(105,446	)		—
Investments in subsidiaries		(637,376	)		27,204			—			—			610,172			—
Property and equipment, net		—			67,902			191			399			—			68,492
Goodwill		418,946			24,512			58			11,542			280			455,338
Other intangibles, net		311,832			46,047			250			8,515			—			366,644
Restricted investments		3,399			—			—			—			—			3,399
Deferred income taxes		29,492			—			(411	)		977			(30,058	)		—
Deferred financing fees		—			12,858			—			—			—			12,858
Investment in trust common securities		3,261			—			—			—			—			3,261
Other assets		—			3,521			25			709			—			4,255
Total assets	$	246,206		$	422,431		$	12,448		$	20,758		$	473,950		$	1,175,793
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	—		$	31,873		$	517		$	181		$	—		$	32,571
Current portion of senior term loans		—			3,200			—			—			—			3,200
Current portion of capitalized lease and other obligations		—			819			—			—			—			819
Additional acquisition consideration		—			—			—			—			—			—
Accrued expenses:
Salaries and wages		—			8,930			217			204			—			9,351
Pricing allowances		—			3,457			3			597			—			4,057
Income and other taxes		(625	)		2,447			25			645			—			2,492
Interest		—			2,868			—			—			—			2,868
Deferred compensation		846			—			—			—			—			846
Other accrued expenses		—			9,822			40			1,535			—			11,397
Total current liabilities		221			63,416			802			3,162			—			67,601
Intercompany debt payable		—			105,446			—			—			(105,446	)		—
Long term senior term loans		—			307,727			—			—			—			307,727
Long term portion of capitalized lease and other obligations		—			245			—			—			—			245
Long term senior notes		—			272,942			—			—			—			272,942
Junior subordinated debentures		115,132			—			—			—			—			115,132
Deferred compensation		3,399			—			—			—			—			3,399
Deferred income taxes, net		146,042			—			219			2,472			(30,784	)		117,949
Other non-current liabilities		714			5,473			—			—			—			6,187
Total liabilities		265,508			755,249			1,021			5,634			(136,230	)		891,182
Common stock with put options:
Common stock, $.01 par, 5,000 shares authorized, 198.4 issued and outstanding at December 31, 2012		14,116			—			—			—			—			14,116
Commitments and Contingencies
Stockholders’ Equity:
Preferred Stock:
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2012		—			—			—			—			—			—
Common Stock:
Common stock, $.01 par, 5,000 shares authorized, 4,801.6 issued and outstanding at December 31, 2012		—			—			50			—			(50	)		—
Additional paid-in capital		117,261			(131,642	)		10,304			17,192			281,560			294,675
Accumulated deficit		(150,679	)		(201,176	)		1,073			(2,458	)		328,189			(25,051	)
Accumulated other comprehensive loss		—			—			—			390			481			871
Total stockholders’ equity		(33,418	)		(332,818	)		11,427			15,124			610,180			270,495
Total liabilities and stockholders’ equity	$	246,206		$	422,431		$	12,448		$	20,758		$	473,950		$	1,175,793

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2013

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(7,472	)	$	8,147		$	369		$	(966	)	$	—		$	78
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		9,029			12,676			35			1,080			—			22,820
Dispositions of property and equipment		—			23			13			3			—			39
Deferred income tax provision (benefit)		(6,666	)		—			(310	)		1,358			—			(5,618	)
Deferred financing and original issue discount amortization		(92	)		1,315			—			—			—			1,223
Stock-based compensation expense		4,841			—			—			—			—			4,841
Other non-cash interest expense		—			(418	)		—			—			—			(418	)
Changes in operating items:
Accounts receivable		—			(17,636	)		(3,102	)		(3,960	)		—			(24,698	)
Inventories		—			(5,068	)		(3,894	)		6,055			—			(2,907	)
Other assets		—			(1,669	)		8,345			(4,639	)		—			2,037
Accounts payable		—			137			1,233			3,435			—			4,805
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		96			168			436			6,772			(8,725	)		(1,253	)
Other items, net		(739	)		(8,434	)		(2,292	)		1,816			8,709			(940	)
Net cash provided by (used for) operating activities		16			(10,759	)		833			10,954			(16	)		1,028
Cash flows from investing activities:
Paulin acquisition		—			(103,416	)		—			—			—			(103,416	)
Capital expenditures		—			(14,336	)		(93	)		(175	)		—			(14,604	)
Other, net		(16	)		—			—			—			16			—
Net cash provided by (used for) investing activities		(16	)		(117,752	)		(93	)		(175	)		16			(118,020	)
Cash flows from financing activities:
Borrowings of senior term loans		—			76,800			—			—			—			76,800
Repayments of senior term loans		—			(1,792	)		—			—			—			(1,792	)
Discount on senior term loans		—			(2,152	)		—			—			—			(2,152	)
Principal payments under capitalized lease obligations		—			(41	)		—			—			—			(41	)
Repayment of other credit obligations		—			(456	)		—			—			—			(456	)
Net cash provided by financing activities		—			72,359			—			—			—			72,359
Net (decrease) increase in cash and cash equivalents		—			(56,152	)		740			10,779			—			(44,633	)
Cash and cash equivalents at beginning of period		1			62,917			429			2,201			—			65,548
Cash and cash equivalents at end of period	$	1		$	6,765		$	1,169		$	12,980		$	—		$	20,915

Condensed Consolidating Statement of Cash Flows (Unaudited)

For the six months ended June 30, 2012

(Amounts in thousands)

	Guarantors The Hillman Companies, Inc.			Issuer The Hillman Group, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consol- idating Adjust- ments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(6,716	)	$	5,270		$	215		$	(275	)	$	(25	)	$	(1,531	)
Adjustments to reconcile net loss to net cash (used for) provided by operating activities:
Depreciation and amortization		9,029			13,089			50			239			—			22,407
Dispositions of property and equipment		—			3			—			—			—			3
Deferred income tax provision (benefit)		(2,435	)		749			171			(47	)		—			(1,562	)
Deferred financing and original issue discount amortization		(192	)		1,234			—			—			—			1,042
Other non-cash interest and change in value of interest rate swap		—			(372	)		—			—			—			(372	)
Changes in operating items:
Accounts receivable		—			(11,126	)		(690	)		(2,222	)		—			(14,038	)
Inventories		—			(11,444	)		(347	)		(781	)		25			(12,547	)
Other assets		—			(2,876	)		(269	)		2,272			—			(873	)
Accounts payable		—			8,620			1,071			(247	)		—			9,444
Interest payable on junior subordinated debentures		1,019			—			—			—			—			1,019
Other accrued liabilities		154			7,559			103			323			(6,116	)		2,023
Other items, net		(859	)		(6,716	)		—			(21	)		6,116			(1,480	)
Net cash provided by (used for) operating activities		—			3,990			304			(759	)		—			3,535
Cash flows from investing activities:
Proceeds from sale of property and equipment		—			—			3			—			—			3
Capital expenditures		—			(10,343	)		(51	)		(102	)		—			(10,496	)
Net cash used for investing activities		—			(10,343	)		(48	)		(102	)		—			(10,493	)
Cash flows from financing activities:
Repayments of senior term loans		—			(1,600	)		—			—			—			(1,600	)
Borrowings of revolving credit loans		—			19,000			—			—			—			19,000
Payments of additional acquisition consideration		—			(12,387	)		—			—			—			(12,387	)
Principal payments under capitalized lease obligations		—			(17	)		—			—			—			(17	)
Net cash provided by financing activities		—			4,996			—			—			—			4,996
Net (decrease) increase in cash and cash equivalents		—			(1,357	)		256			(861	)		—			(1,962	)
Cash and cash equivalents at beginning of period		1			8,852			547			2,627			—			12,027
Cash and cash equivalents at end of period	$	1		$	7,495		$	803		$	1,766		$	—		$	10,065

XML

Acquisition and Integration Expenses

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Acquisition and Integration Expenses

14. Acquisition and Integration Expenses:

For the six months ended June 30, 2013, the Company incurred $4,182 of expenses in connection with the Paulin Acquisition.

For the six months ended June 30, 2012, the Company incurred $464 of expenses in connection with the Ook Acquisition.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 14, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	HLM
Entity Registrant Name	HILLMAN COMPANIES INC
Entity Central Index Key	0001029831
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		5,000

XML

Segment Reporting

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting

15. Segment Reporting:

The Company’s segment reporting structure uses the Company’s management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has five reportable segments as of June 30, 2013. During the first half of 2013, the operations of the Paulin Acquisition were combined into the operations of the Canada segment. The United States segment, excluding All Points, and the Canada segment are the only segments considered material by the Company’s management as of June 30, 2013. The segments are as follows:

• United States – excluding the All Points division

• All Points

• Canada

• Mexico

• Australia

Our United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States. This segment also provides innovative pet ID tag programs to a leading pet products chain retailer using a unique, patent-protected / patent-pending technology and product portfolio.

Our All Points segment is a Florida based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows and hurricane shutters.

Our Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets and industrial Original Equipment Manufacturers (“OEM”) in Canada. Our Canada segment also produces fasteners, stampings, fittings and processes threaded parts for automotive suppliers, industrial OEM’s and industrial distributors.

Our Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.

Our Australia segment distributes keys, key duplicating systems and accessories to home centers and other retail outlets in Australia.

The Company uses profit or loss from operations to evaluate the performance of its segments. Profit or loss from operations is defined as income from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Segment revenue excludes intersegment sales related to the sales or transfer of products between segments which is consistent with the segment revenue information provided to the Company’s chief operating decision maker. Segment Income (Loss) from Operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points segment, while the remaining operating segments do not include any allocations.

The table below presents revenues and income from operations for our reportable segments for the three and six months ended June 30, 2013 and 2012.

	Three Months Ended June  30, 2013			Three Months Ended June  30, 2012			Six Months Ended June 30, 2013			Six Months Ended June 30, 2012
Revenues
United States excluding All Points	$	142,851		$	136,588		$	261,696		$	256,349
All Points		5,881			5,115			10,534			9,624
Canada		42,073			3,889			60,385			6,297
Mexico		1,703			1,454			3,670			3,011
Australia		203			195			345			333
Total revenues	$	192,711		$	147,241		$	336,630		$	275,614
Segment Income (Loss) from Operations
United States excluding All Points	$	15,108		$	14,942		$	22,152		$	23,657
All Points		613			321			984			413
Canada		2,251			(214	)		2,417			(433	)
Mexico		116			38			512			389
Australia		(515	)		(146	)		(708	)		(250	)
Total income from operations	$	17,573		$	14,941		$	25,357		$	23,776

Assets by segment as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013		December 31, 2012
Assets
United States excluding All Points	$	928,861	$	1,133,824
All Points		8,878		7,298
Canada		309,215		15,477
Mexico		17,980		17,816
Australia		1,601		1,378
Total Assets	$	1,266,535	$	1,175,793