Form 8-K

 

 

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) August 1, 2011

 

 

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):

 

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

 

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

 

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

 

¨ 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 August 1, 2011, Hawkins, Inc. issued a press release announcing financial results for its fiscal 2012 first quarter ended July 3, 2011. 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 August 1, 2011, announcing financial results of Hawkins, Inc. for its fiscal 2012 first quarter ended July 3, 2011.


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: August 1, 2011   By:  

/s/    Kathleen P. Pepski        

    Kathleen P. Pepski
    Vice President, Chief Financial Officer, and Treasurer


Index to Exhibits

 

Exhibit

No.

  

Description

   Method of Filing  
99    Press Release, dated August 1, 2011, announcing financial results of Hawkins, Inc. for its fiscal 2012 first quarter ended July 3, 2011.      Electronic Transmission   
Press Release

Exhibit 99

 

FOR IMMEDIATE RELEASE    Contacts:    Patrick H. Hawkins
      Chief Executive Officer
August 1, 2011       612/617-8524
Hawkins, Inc.       Patrick.Hawkins@HawkinsInc.com
3100 East Hennepin Avenue      
Minneapolis, MN 55413      
      Kathleen P. Pepski
      Chief Financial Officer
      612/617-8571
      Kathleen.Pepski@HawkinsInc.com

HAWKINS, INC. REPORTS

FIRST QUARTER FISCAL 2012 RESULTS

Minneapolis, MN, August 1, 2011 – Hawkins, Inc. (Nasdaq: HWKN) today announced results for its fiscal 2012 first quarter ended July 3, 2011. Sales of $88.6 million in the period represented an increase of 18.7% from $74.7 million in sales for the first quarter of fiscal 2011. Vertex, which the Company acquired in the fourth quarter of fiscal 2011, contributed approximately $11.0 million of the increase in sales for the period.

Net income for the quarter was $6.7 million, or $0.65 per share, fully diluted, compared to net income of $7.3 million or $0.71 per share, fully diluted, for the first quarter of fiscal 2011.

Chief Executive Officer and President, Patrick H. Hawkins, commented, “In addition to the competitive pricing pressures we have discussed before, we experienced unfavorable weather conditions that negatively impacted our sales volumes this past quarter. The weather was unseasonably cold and wet, with floods occurring within several of our primary sales regions. These conditions led to reduced demand, primarily for water treatment and agricultural chemical applications. Despite these difficult conditions, we continue to focus on serving our customers and growing our market share and grew our sales volumes in the Water Treatment Group. We are also working to identify investments that will support new product applications, provide additional storage and service capability, or allow us to move into a new geography. We opened a Water Treatment branch office on Vertex’s site in Memphis, Tennessee, this quarter and we have entered into an agreement to acquire a parcel of property in the Twin Cities area. This new site would give us room to grow and reduce our dependency on our flood-prone sites along the Mississippi River. We are delighted to have found this expansion site and expect to close on the land purchase in the upcoming quarter, with construction of a new facility commencing shortly thereafter.”

For the quarter ended July 3, 2011, Industrial segment sales were $63.6 million, an increase of 27.6% from sales of $49.8 million during the quarter ended June 30, 2010. The acquisition of Vertex during the fourth quarter of fiscal 2011 contributed approximately $11.0 million of the increase in sales during the first quarter of fiscal 2012. The remaining increase in sales for the Industrial segment was the result of higher selling prices for bulk chemicals due to increased commodity chemical prices, partially offset by lower bulk chemical sales volumes. Water Treatment segment sales for the first quarter of fiscal 2012 were $25.0 million, relatively unchanged from the first quarter fiscal 2011 sales of $24.9 million. Despite adverse weather conditions, the segment’s sales performance was positively impacted by increased sales across all product lines, largely offset by lower selling prices due to competitive pricing pressures.

Company-wide gross profit for the first quarter of fiscal 2012 was $17.9 million, or 20.2% of sales, compared to $18.4 million, or 24.7% of sales, for the first quarter of fiscal 2011. Gross profit for the Industrial segment was $10.7 million, or 16.9% of sales, for the quarter ended July 3, 2011, as compared to $10.3 million, or 20.8% of sales, for the quarter ended June 30, 2010. Lower per-unit profits resulting from competitive pricing pressures across all product lines largely offset the impact of adding Vertex’s business to this segment. Gross profit for the Water Treatment segment was $7.2 million, or 28.8% of sales, for the quarter ended July 3, 2011, as compared to $8.1 million, or 32.6% of sales, for the quarter ended June 30, 2010. The decrease in gross profit was primarily due to competitive pricing pressures, partially offset by increased sales across all product lines.


 

HAWKINS, INC. REPORTS

RESULTS FOR FIRST QUARTER FISCAL 2012

August 1, 2011

Page Two.

 

Selling, general and administration (SG&A) expenses increased by $1.2 million during the first quarter of fiscal 2012 compared to the first quarter of fiscal 2011. The increase in SG&A expenses was primarily due to the acquisition of Vertex during the fourth quarter of fiscal 2011.

Hawkins, Inc. distributes, blends and manufactures bulk and specialty chemicals for its customers in a wide variety of industries. Headquartered in Minneapolis, Minnesota, and with 25 facilities in 13 states, the Company creates value for its customers through superb customer service and support, quality products and personalized applications.

-more-


 

HAWKINS, INC. REPORTS

RESULTS FOR FIRST QUARTER FISCAL 2012

August 1, 2011

Page Three.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except share and per-share data)

 

     Quarter Ended  
     July 3, 2011     June 30, 2010  

Sales

   $ 88,594      $ 74,665   

Cost of sales

     (70,667     (56,218
  

 

 

   

 

 

 

Gross profit

     17,927        18,447   

Selling, general and administrative expenses

     (7,857     (6,661
  

 

 

   

 

 

 

Operating income

     10,070        11,786   

Investment income

     65        106   
  

 

 

   

 

 

 

Income from continuing operations before income taxes

     10,135        11,892   

Provision for income taxes

     (3,782     (4,555
  

 

 

   

 

 

 

Income from continuing operations

     6,353        7,337   

Income from discontinued operations, net of tax

     374        —     
  

 

 

   

 

 

 

Net income

   $ 6,727      $ 7,337   
  

 

 

   

 

 

 

Weighted average number of shares outstanding-basic

     10,307,177        10,253,458   
  

 

 

   

 

 

 

Weighted average number of shares outstanding-diluted

     10,362,172        10,308,270   
  

 

 

   

 

 

 

Basic earnings per share

    

Earnings per share from continuing operations

   $ 0.61      $ 0.72   

Earnings per share from discontinued operations

     0.04        —     
  

 

 

   

 

 

 

Basic earnings per share

   $ 0.65      $ 0.72   
  

 

 

   

 

 

 

Diluted earnings per share

    

Earnings per share from continuing operations

   $ 0.61      $ 0.71   

Earnings per share from discontinued operations

     0.04        —     
  

 

 

   

 

 

 

Diluted earnings per share

   $ 0.65      $ 0.71   
  

 

 

   

 

 

 

Cash dividends declared per common share

   $ —        $ —     
  

 

 

   

 

 

 

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