Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 8, 2005
Hawkins, Inc.
(Exact name of registrant as specified in its charter)
Minnesota |
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0-7647 |
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41-0771293 |
(State of Incorporation) |
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(Commission File Number) |
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(IRS Employer |
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3100 East Hennepin Avenue |
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55413 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrants 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 November 8, 2005, Hawkins, Inc. issued a press release announcing financial results for its fiscal second quarter ended September 30, 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.
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Exhibit. |
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Exhibit 99 - Press Release, dated November 8, 2005, announcing financial results of Hawkins, Inc. for its fiscal second quarter ended September 30, 2005. |
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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.
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HAWKINS, INC. |
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Date: November 8, 2005 |
By: |
/s/ Marvin E. Dee |
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Marvin E. Dee |
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Vice President, Chief Financial Officer, |
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Secretary and Treasurer |
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Exhibit 99
Contacts:
Marvin E. Dee
Chief Financial Officer
612/617-8571
marvin.dee@HawkinsInc.com
Jennifer A. Weichert
Weichert Financial Relations, Inc.
651/686-9751
JWeichert@Comcast.net
Minneapolis, MN, November 8, 2005 Hawkins, Inc. (Nasdaq: HWKN) today announced results for the second quarter and first six months of fiscal 2006. For the quarter ended September 30, 2005, Hawkins reported sales of $36.6 million, an increase of 28.0% over the $28.6 million in sales for the same period a year ago. Net income for the second quarter of fiscal 2006 was $3.0 million, or diluted earnings per share of $0.29, versus net income of $2.4 million, or diluted earnings per share of $0.24, earned in the same period of fiscal 2005.
For the six months ended September 30, 2005, Hawkins reported sales of $72.5 million, net income of $5.8 million and diluted earnings per share of $0.56 versus sales of $58.6 million, net income of $5.3 million and diluted earnings per share of $0.52 for the six months ended September 30, 2004.
Both the second quarter and six-month results benefited from a pretax gain of $1,016,000 (approximately $650,000 or $0.06 per share after tax) from litigation settlement income associated with the surrender of shares of the Companys common stock by the former Universal Chemical principals that was issued to them at the time of the acquisition.
Chief Executive Officer, John R. Hawkins, commented, Revenue growth across all three segments the Water Treatment, Industrial and Pharmaceutical reflects growing demand for product and economic improvement in our major market areas. Hawkins continued, rising costs, competitive pressures, and product mix affected gross margin, and as a percent of sales for the six months ended September 30, 2005 gross margin was 25.8% versus 28.9% a year ago.
As we move into the second half of the year, we are comfortable with the financial condition of the Company, as Hawkins has approximately $24.9 million in cash and marketable securities, strong, predictable cash flow and no debt, John Hawkins added.
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 Companys filings with the Securities and Exchange Commission including Hawkins Report on Form 10-K for the period ended April 3, 2005, Forms 10-Q, and other SEC filings.
HAWKINS, INC.
CONDENSED STATEMENTS OF INCOME
(unaudited)
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Three Months Ended |
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Six Months Ended |
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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2005 |
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2004 |
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2005 |
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2004 |
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Sales |
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$ |
36,643,242 |
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$ |
28,631,601 |
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$ |
72,497,769 |
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58,587,419 |
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Cost of sales |
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27,848,289 |
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20,313,977 |
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53,817,158 |
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41,684,319 |
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Gross margin |
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8,794,953 |
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8,317,624 |
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18,680,611 |
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16,903,100 |
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Selling, general and administrative expenses |
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5,189,914 |
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4,724,648 |
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11,088,310 |
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8,929,493 |
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Litgation settlement |
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(1,015,826 |
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(1,015,826 |
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Income from operations |
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4,620,865 |
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3,592,976 |
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8,608,127 |
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7,973,607 |
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Investment income |
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68,654 |
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140,608 |
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376,878 |
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336,781 |
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Income before income taxes |
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4,689,519 |
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3,733,584 |
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8,985,005 |
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8,310,388 |
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Provision for income taxes |
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1,688,600 |
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1,327,500 |
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3,234,600 |
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2,975,000 |
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Net income |
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$ |
3,000,919 |
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$ |
2,406,084 |
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$ |
5,750,405 |
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$ |
5,335,388 |
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Weighted average number of shares outstanding - basic |
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10,227,209 |
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10,216,688 |
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10,222,065 |
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10,216,688 |
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Weighted average number of shares outstanding - diluted |
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10,251,181 |
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10,217,793 |
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10,247,623 |
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10,217,234 |
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Earnings per share - basic and diluted |
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$ |
0.29 |
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0.24 |
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0.56 |
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0.52 |
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Cash dividends declared per common share |
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$ |
0.20 |
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$ |
0.18 |
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$ |
0.20 |
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$ |
0.18 |
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