Hawkins, Inc. Form 8-K dated June 12, 2008

 
 


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 12, 2008

 


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 12, 2008, Hawkins, Inc. issued a press release announcing financial results for its fiscal year ended March 30, 2008. 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 12, 2008, announcing financial results of Hawkins, Inc. for its fiscal year ended March 30, 2008.

 
















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 16, 2008

By:   

/s/ Kathleen P. Pepski

 

 

Kathleen P. Pepski

Vice President, Chief Financial Officer,

Secretary and Treasurer

 

 

 















Index to Exhibits

 

Exhibit
No.

 

Description

 

Method of Filing

 

 

 

 

 

99

 

Press Release, dated June 12, 2008, announcing financial results of Hawkins, Inc. for its fiscal year ended March 30, 2008.

 

Electronic Transmission

 

 

















Exhibit 99 to Hawkins, Inc. Form 8-K dated June 12, 2008

Exhibit 99

 

FOR IMMEDIATE RELEASE

Contacts:

 

John R. Hawkins

Chief Executive Officer

612/617-8532

John.Hawkins@HawkinsInc.com

 

Kathleen P. Pepski

Chief Financial Officer

612/617-8571

Kathleen.Pepski@HawkinsInc.com

 

HAWKINS, INC. REPORTS

FOURTH QUARTER, FISCAL 2008 RESULTS

 

Minneapolis, MN, June 12, 2008 – Hawkins, Inc. (Nasdaq: HWKN) today announced sales for fiscal 2008 of $196.4 million, a 22.5% increase over fiscal 2007 sales of $160.4 million. Net income for fiscal 2008 was $9.1 million, equal to earnings per share of $0.89, compared with fiscal 2007 net income of $8.1 million or earnings per share of $0.79.

 

For the fourth quarter ended March 30, 2008, Hawkins reported sales of $51.2 million, up 29.0% from $39.7 million for the comparable period a year ago. Net income for the fourth quarter of fiscal 2008 was $1.7 million, equal to earnings per share of $0.17, versus net income of $1.8 million, or earnings per share of $0.18, for the fourth quarter of fiscal 2007. The fourth quarter of fiscal 2008 was negatively impacted by LIFO inventory adjustments of approximately $1.2 million before taxes (approximately $0.8 million or $0.08 per share, after tax) resulting from fluctuations in cost and inventory levels, whereas the fourth quarter of fiscal 2007 was positively impacted by LIFO adjustments of approximately $0.8 million before taxes (approximately $0.5 million or $0.05 per share, after tax).

 

In fiscal 2008, Industrial segment sales were $124.6 million, a 30.6% increase over fiscal 2007 sales of $95.4 million. The change was driven largely by higher volumes, price increases related to rising material costs, and the acquisition of Trumark, Inc. in May of 2007.

 

Water Treatment segment sales were $62.1 million, a 10.1% increase over fiscal 2007 sales of $56.4 million. The growth is primarily attributable to selling price increases that correlate with rising material costs, product line growth and higher volumes related to favorable weather conditions.

 

The Pharmaceutical segment’s sales were $9.8 million, a 13.2% increase over fiscal 2007 sales of $8.6 million. The improvement was due primarily to the resolution of regulatory restrictions during the third quarter of fiscal 2008, which began in fiscal 2007.

 





Gross margin as a percent of sales for the quarter and year ended March 30, 2008 were 17.1% and 21.2%, respectively, compared with 20.8% and 23.2% in the comparable periods a year ago. In addition to the effect of the LIFO adjustments mentioned above, margins for fiscal 2008 were negatively affected by rising commodity chemicals prices and continued growth in high volume, lower margin products.

 

The positive impact of higher sales on net income for fiscal 2008 was partially offset by an increase in Selling, General and Administrative (SG&A) expenses. The SG&A expense increase primarily related to the acquisition of Trumark and higher employee-related expenses, partially offset by a decrease in professional and consulting expenses.

Chief Executive Officer, John R. Hawkins, commented, “We continue to operate in a highly competitive, price pressured environment where increasing raw material and transportation costs are negatively impacting margins. Our historical focus on strong customer service has permitted us to meet customer needs despite these challenges. The business also continues to generate strong cash flow. This has enabled Hawkins to invest capital in operations, business processes and new growth opportunities while continuing to pay higher shareholder dividends. For example in January 2008, two new Water Treatment sales and service offices were established in Missouri and Kansas, further expanding Hawkins’ territory.”

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

 

Hawkins serves customers in a wide range of industries, including chemical processing, electronics, energy, environmental services, food processing, metal finishing, pharmaceutical, medical devices, pulp and paper, and water treatment.

 

Hawkins is headquartered in Minneapolis, Minnesota. The Company operates 18 facilities in Iowa, Illinois, Kansas, Minnesota, Missouri, Montana, Nebraska, New Jersey, South and North Dakota and Wisconsin and services customers in Upper Michigan 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. Actual results may differ materially depending on a variety of factors, including, but not limited to, the following: our ability to pass through cost increases in raw materials and energy, competition from other chemical companies, seasonality and weather conditions, costs and difficulties with our new enterprise resource planning system, the hazards of chemical manufacturing, natural disasters, downturns in our customers’ industries, actual growth in our products’ markets, changes in our customers’ products, compliance with applicable laws and regulations, our ability to meet quality specifications, the adequacy of our insurance coverage, our ability to attract and retain key personnel, our ability to complete and integrate future acquisitions, and future terrorist attacks. 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 Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 1, 2007, as updated by subsequent SEC filings.

 

 

 





 

HAWKINS, INC.

CONDENSED STATEMENTS OF INCOME

(unaudited)

 

 

 

Quarters Ended

 

Fiscal Years Ended

 

 

 

March 30,
2008

 

April 1,
2007

 

March 30,
2008

 

April 1,
2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

51,201,423

 

$

39,705,074

 

$

196,439,762

 

$

160,405,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

42,446,932

 

 

31,459,035

 

 

154,843,280

 

 

123,168,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

8,754,491

 

 

8,246,039

 

 

41,596,482

 

 

37,236,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

6,661,767

 

 

6,136,878

 

 

28,614,185

 

 

25,972,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

2,092,724

 

 

2,109,161

 

 

12,982,297

 

 

11,264,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment income

 

 

468,676

 

 

684,144

 

 

1,340,712

 

 

1,692,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

2,561,400

 

 

2,793,305

 

 

14,323,009

 

 

12,956,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

830,833

 

 

984,790

 

 

5,213,000

 

 

4,887,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,730,567

 

$

1,808,515

 

$

9,110,009

 

$

8,068,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - basic

 

 

10,239,458

 

 

10,171,496

 

 

10,213,225

 

 

10,171,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - diluted

 

 

10,242,725

 

 

10,180,040

 

 

10,214,387

 

 

10,173,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic and diluted

 

$

0.17

 

$

0.18

 

$

0.89

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.24

 

$

0.22

 

$

0.48

 

$

0.44

 

 

 

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