SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)   July 1, 2005

 

Hawkins, Inc.

(Exact name of registrant as specified in its charter)

 

Minnesota

 

0-7647

 

41-0771293

(State of Incorporation)

 

(Commission File Number)

 

(IRS Employer
Identification No.)

 

 

 

 

 

3100 East Hennepin Avenue
Minneapolis, MN

 

55413

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code (612) 331-6910

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02.                                          Results of Operations and Financial Condition.

 

On July 1, 2005, Hawkins, Inc. issued a press release announcing financial results for its fourth quarter and year ended April 3, 2005.  A copy of the press release issued by the Registrant is furnished herewith as Exhibit 99 hereto and is incorporated herein by reference.

 

Item 9.01.                                          Financial Statements and Exhibits.

 

(c)

Exhibit.

 

 

 

Exhibit 99 - Press Release, dated July 1, 2005, announcing financial results of Hawkins, Inc. for its fourth quarter and year ended April 3, 2005.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

HAWKINS, INC.

 

 

 

 

Date: July 1, 2005

By:

/s/ Marvin E. Dee

 

 

 

 

 

 

 

Marvin E. Dee

 

 

 

Vice President, Chief Financial Officer,

 

 

 

Secretary and Treasurer

 

 

3


 

Exhibit 99

 

FOR IMMEDIATE RELEASE

 

Contacts:

 

Marvin E. Dee

Chief Financial Officer

612/617-8571

marvin.dee@HawkinsInc.com

 

Jennifer A. Weichert

Weichert Financial Relations, Inc.

651/686-9751

weichertfr@aol.com

 

HAWKINS, INC. REPORTS

 

RESULTS FOR FISCAL 2005

 

Minneapolis, MN, July 1, 2005 – Hawkins, Inc.  (Nasdaq:  HWKN) today announced results for the 2005 fiscal year and fourth quarter ended April 3, 2005. Sales for fiscal 2005 totaled $115.3 million, an increase of 7.7% over fiscal 2004 sales of $107.0 million. Net income for fiscal 2005 was $8.1 million, equal to $0.79 per share, compared with fiscal 2004 net income of $5.8 million and earnings per share of $0.56. Earnings for fiscal 2004 were negatively impacted by the previously announced $3.0 million (approximately $1.9 million, or $0.19 per share, after tax) litigation settlement in the fourth quarter of fiscal 2004 related to the Company’s pharmaceutical business unit.

 

For the fourth quarter ended April 3, 2005, Hawkins reported sales of $30.0 million, up 23.1% from the $24.4 million for the comparable period a year ago. Net income for the fourth quarter of fiscal 2005 was $1.0 million, or earnings per share of $0.10, versus a net loss of $0.8 million or a loss per share of $0.08 for the fourth quarter of fiscal 2004.

 

Chairman and Chief Executive Officer, John R. Hawkins, commented, “Sales in all areas of Hawkins’ business grew, driven by increased selling prices for caustic soda, higher customer demand for existing and new product lines and a growing customer base. Industrial segment sales rose 8.1%, Water Treatment segment sales increased 5.7% and Pharmaceutical segment sales improved 14.1%. We are pleased with the progress being made in all areas.”

 

Competitive pressures, however, are impacting margins. Overall gross margins were 25.7% compared to 26.1% a year ago.

 

Selling, general and administrative expenses increased as the Company implements a new Enterprise Resource Planning system while simultaneously incurring professional services fees to assist in meeting the requirements of the Sarbanes-Oxley Act.  Fiscal 2006 expenses in these

 



 

areas, including additional staffing and outside professional services, are expected to be consistent with the additional fiscal 2005 expense of approximately $1.7 million.

 

“Our strong liquidity and capital position have improved again this year,” Hawkins stated. “We ended fiscal 2005 with approximately $26.8 million in cash and marketable securities, strong, predictable cash flow and no debt.”

 

Hawkins, Inc. is a highly focused regional company, which provides a full range of bulk industrial products complemented with the technical competence and ingenuity to formulate and blend specialty chemicals. The Company sells and services related products and equipment to safely dispense chemicals in highly controlled environments.

 

The industries in which Hawkins’ customers participate include chemical processing, electronics, energy, environmental services, food processing, metal finishing, pharmaceutical, medical devices, pulp and paper, and water treatment.

 

The Company strives to operate in concert with the environment. Its products and services are geared to improve the environment and insure the safe handling of chemicals.

 

Hawkins is headquartered in Minneapolis, Minnesota. The Company operates fifteen facilities in Iowa, Illinois, Minnesota, Montana, Nebraska, South and North Dakota and Wisconsin and services customers in Upper Michigan, Kansas and Wyoming as well.

 

The discussion above contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements by their nature involve substantial risks and uncertainties as described by Hawkins’ periodic filings.  Actual results may differ materially depending on a variety of factors, including, but not limited to the following:  the achievement of Hawkins’ projected operating results, the achievement of efficient volume production and related sales revenue, the ability of Hawkins to identify and successfully pursue other business opportunities, and the effectiveness of Hawkins’ internal controls.  Additional information with respect to the risks and uncertainties faced by Hawkins may be found in, and the prior discussion is qualified in its entirety by, the Risk Factors contained in the Company’s filings with the Securities and Exchange Commission including Hawkins’ Report on Form 10-K for the period ended March 28, 2004, Forms 10-Q, and other SEC filings.

 



 

HAWKINS, INC.

CONDENSED STATEMENTS OF INCOME (LOSS)

(unaudited)

 

 

 

Quarters Ended

 

Fiscal Years Ended

 

 

 

April 3,
2005

 

March 28,
2004

 

April 3,
2005

 

March 28,
2004

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

29,989,452

 

$

24,364,443

 

$

115,280,312

 

$

107,028,131

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

24,225,381

 

19,083,300

 

85,674,127

 

79,053,842

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

5,764,071

 

5,281,143

 

29,606,185

 

27,974,289

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

4,514,009

 

3,944,819

 

18,089,829

 

16,793,094

 

 

 

 

 

 

 

 

 

 

 

Litigation settlement

 

 

 

3,000,000

 

 

 

3,000,000

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

1,250,062

 

(1,663,676

)

11,516,356

 

8,181,195

 

 

 

 

 

 

 

 

 

 

 

Investment income, net

 

319,357

 

195,134

 

1,120,775

 

825,689

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

1,569,419

 

(1,468,542

)

12,637,131

 

9,006,884

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

585,922

 

(674,000

)

4,545,122

 

3,255,000

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

983,497

 

$

(794,542

)

$

8,092,009

 

$

5,751,884

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares
outstanding - basic

 

10,216,688

 

10,216,688

 

10,216,688

 

10,216,688

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares
outstanding - diluted

 

10,233,846

 

10,216,688

 

10,222,669

 

10,216,688

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share - basic and diluted

 

$

0.10

 

$

(0.08

)

$

0.79

 

$

0.56

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.18

 

$

0.18

 

$

0.36

 

$

0.36

 

 

#   #   #   #