UNITED STATES
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)        June 15, 2006

 

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 June 15, 2006, Hawkins, Inc. issued a press release announcing financial results for its fiscal fourth quarter and year ended April 2, 2006. 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.

 

     (d)

Exhibit.

Exhibit 99 - Press Release, dated June 15, 2006, announcing financial results of Hawkins, Inc. for its fiscal fourth quarter and year ended April 2, 2006.

 




 

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: June 15, 2006

 

By:

/s/ Marvin E. Dee

 

 

 

Marvin E. Dee

 

 

 

Vice President, Chief Financial Officer,

 

 

 

Secretary and Treasurer

 



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

JWeichert@Comcast.net

HAWKINS, INC. REPORTS
RESULTS FOR FISCAL 2006

Minneapolis, MN, June 15, 2006 — Hawkins, Inc. (Nasdaq:  HWKN) today announced sales for fiscal 2006 totaled $143.3 million, an increase of 24.3% over fiscal 2005 sales of $115.3 million. Net income for fiscal 2006 was $8.9 million, equal to $0.87 per share, compared with fiscal 2005 net income of $8.1 million and earnings per share of $0.79. Earnings for fiscal 2006 were positively impacted by the previously announced pretax gain of $1.1 million (approximately $0.7 million, or $0.07 per share, after tax) from the settlement of litigation with the former Universal Chemical shareholders.

For the fourth quarter ended April 2, 2006, Hawkins reported sales of $36.5 million, up 21.6% from the $30.0 million for the comparable period a year ago. Net income for the fourth quarter of fiscal 2006 was $1.3 million, equal to earnings per share of $0.13, versus net income of $1.0 million, or earnings per share of $0.10, for the fourth quarter of fiscal 2005.

Chief Executive Officer, John R. Hawkins, commented, “Hawkins’ core businesses are stable and strong, with recurring revenue and a loyal customer base. As a result, our financial performance was solid. Raw material and finished goods costs rose commensurate with rising energy costs. Increased commodity pricing added to sales growth while simultaneously negatively impacting margins. Overall gross margin was 23.2% compared to 25.7% a year ago.”

“We are excited about the prospects for this year as we have identified niches in each of our markets and begun marketing new products and services that address client needs. A number of new product lines are beginning to show promise in the Water Treatment and Industrial Groups’ markets; as a result we have expanded our technical sales staff to capitalize on potential growth,” Hawkins said. “Additionally, investments in infrastructure to support these efforts as well as the Sarbanes Oxley-based reporting requirements continue to be made.”

Hawkins completed the fiscal year ended April 2, 2006 with approximately $26.2 million in cash and marketable securities, and no debt.




 

Hawkins serves customers primarily on a regional basis. The industries in which the Industrial segment participates is in the fields of energy, electronics, chemical processing, pulp and paper, medical devices, metal finishing, food manufacturing and processing plants. The Water Treatment segment provides water and waste-water treatment equipment and chemicals to improve the quality of life while operating in concert with the environment. The Industrial and Water Treatment segments’ customers receive a great benefit from Hawkins’ chemical distribution, blending, and related expertise. The Pharmaceutical segment specializes in providing pharmaceutical chemicals to pharmacies and small-scale pharmaceutical manufacturers across the nation. The Company’s 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 April 3, 2005, Forms 10-Q, and other SEC filings.




 

HAWKINS, INC.
CONDENSED STATEMENTS OF INCOME
(unaudited)

 

 

Quarters Ended

 

Fiscal Years Ended

 

 

 

April 2,

 

April 3,

 

April 2,

 

April 3,

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

36,480,489

 

$

29,989,452

 

$

143,331,250

 

$

115,280,312

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

29,161,573

 

24,225,381

 

110,112,108

 

85,674,127

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

7,318,916

 

5,764,071

 

33,219,142

 

29,606,185

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

5,675,501

 

4,514,009

 

21,513,444

 

18,089,829

 

 

 

 

 

 

 

 

 

 

 

Litigation settlement

 

 

 

 

 

(1,056,520

)

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

1,643,415

 

1,250,062

 

12,762,218

 

11,516,356

 

 

 

 

 

 

 

 

 

 

 

Investment income, net

 

272,923

 

319,357

 

892,289

 

1,120,775

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

1,916,338

 

1,569,419

 

13,654,507

 

12,637,131

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

607,854

 

585,922

 

4,768,354

 

4,545,122

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,308,484

 

$

983,497

 

$

8,886,153

 

$

8,092,009

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic 

 

10,171,496

 

10,216,688

 

10,199,194

 

10,216,688

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - diluted    

 

10,171,496

 

10,233,846

 

10,211,834

 

10,222,669

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic and diluted

 

$

0.13

 

$

0.10

 

$

0.87

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.20

 

$

0.18

 

$

0.40

 

$

0.36

 

 

 

 

 

 

 

 

 

 

 

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