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) October 29, 2014
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.) | ||
2381 Rosegate Roseville, MN | 55113 | |||
(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):
r | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
r | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
r | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
r | 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 October 29, 2014, Hawkins, Inc. issued a press release announcing financial results for its fiscal 2015 second quarter ended September 28, 2014. A copy of the press release issued by the Registrant is furnished herewith as Exhibit 99.1 hereto and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) | Exhibit. |
Exhibit 99.1—Press Release, dated October 29, 2014, announcing financial results of Hawkins, Inc. for its fiscal 2015 second quarter ended September 28, 2014.
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: | October 29, 2014 | By: | /s/ Kathleen P. Pepski | |
Kathleen P. Pepski | ||||
Vice President, Chief Financial Officer, and Treasurer | ||||
Index to Exhibits
Exhibit No. | Description | Method of Filing | |||
99.1 | Press Release, dated October 29, 2014, announcing financial results of Hawkins, Inc. for its fiscal 2015 second quarter ended September 28, 2014. | Electronic Transmission | |||
Exhibit 99.1 | |||
FOR IMMEDIATE RELEASE | Contacts: | Patrick H. Hawkins | |
October 29, 2014 | Chief Executive Officer | ||
Hawkins, Inc. | 612/617-8524 | ||
2381 Rosegate | Patrick.Hawkins@HawkinsInc.com | ||
Roseville, MN 55113 | |||
Kathleen P. Pepski | |||
Chief Financial Officer | |||
612/617-8571 | |||
Kathleen.Pepski@HawkinsInc.com | |||
HAWKINS, INC. REPORTS
SECOND QUARTER FISCAL 2015 RESULTS, CLOSING OF DUMONT ACQUISITION
Minneapolis, MN, October 29, 2014 – Hawkins, Inc. (Nasdaq: HWKN) today announced second quarter and first half results for fiscal 2015. Sales of $88.9 million for the three months ended September 28, 2014 represented an increase of 2.6% from $86.6 million for the same period of the prior year. Net income for the second quarter of fiscal 2015 was $6.1 million, or $0.58 per fully diluted share, compared to net income of $5.2 million, or $0.49 per fully diluted share, for the second quarter of the previous year.
For the six months ended September 28, 2014, Hawkins reported sales of $186.9 million as compared to sales of $181.3 million for the same period a year ago. Net income for the first half of fiscal 2015 was $12.2 million, or $1.15 per fully diluted share, compared to net income of $10.3 million, or $0.98 per fully diluted share, for the first half of fiscal 2014.
In addition, the Company announced that it completed the acquisition of substantially all of the assets of The Dumont Company, Inc., a water treatment chemical distribution company with seven facilities across the State of Florida, on October 20, 2014. Dumont had revenues of approximately $14 million in 2013. The results of operations will be reported as part of the Company’s Water Treatment segment.
"We are very excited about the Dumont acquisition,” said Patrick Hawkins, Chief Executive Officer and President. “This expansion into Florida offers many opportunities for us and is further evidence of our commitment to geographic growth in this business.”
“We are also pleased with our second quarter results, as we were able to grow our bottom line by nearly 20% over last year through a combination of higher sales and expense control," Mr. Hawkins continued. "Our Industrial segment once again experienced a year-over-year increase in sales volumes, but these volume gains continue to be at reduced margins because of continued pricing pressures. We also realized efficiencies in our operations that enhanced the gross profit reported by this segment as we were able to support this quarter’s higher sales volumes and increase inventories without increasing expenses."
"Our Water Treatment segment showed year-over-year gains at our newer branches but they were somewhat offset by declines in certain of our larger branches in our more mature markets where we believe the weather caused reduced municipal pumping rates," said Mr. Hawkins."
For the second quarter of fiscal 2015, Industrial segment sales were $57.9 million, an increase of $1.3 million, or 2.2%, from the same period of the prior year. Our overall volumes increased from the same period a year ago; however, lower raw material prices and competitive pricing pressures resulted in lower per-unit selling prices. Water Treatment segment sales were $30.9 million for the current quarter, an increase of $1.0 million, or 3.4%, from the same period of the prior year. The growth was driven by increased sales in many of our newer branches, including the new Oklahoma branch, partially offset by lower sales in certain of our larger branches in more mature markets.
Company-wide gross profit for the second quarter of fiscal 2015 was $18.1 million, or 20.4% of sales, compared to $16.6 million, or 19.1% of sales, for the same period of the prior year. The LIFO method of valuing inventory decreased gross profit by $0.2 million for the three months ended September 28, 2014 and increased gross profit by $0.4 million for the three months ended September 29, 2013.
Gross profit for the Industrial segment was $8.4 million, or 14.4% of sales, for the quarter as compared to $7.3 million, or 12.8% of sales, for the same period of the prior year. Gross profit for the second quarter of fiscal 2015 was favorably impacted by higher sales volumes as well as operating overhead efficiencies, partially offset by lower per-unit margins due to continued competitive pricing pressures. Our operational overhead costs were relatively flat year-over-year despite higher sales volumes. Gross profit for the second quarter of fiscal 2014 was negatively impacted by costs incurred to exit the leased facility used to serve our bulk pharmaceutical customers ($0.4 million). The LIFO method of valuing inventory decreased gross profit by $0.1 million in the second quarter of fiscal 2015 and increased gross profit by $0.4 million for the second quarter of fiscal 2014.
Gross profit for the Water Treatment segment was $9.8 million, or 31.5% of sales, for the quarter as compared to $9.3 million, or 31.0% of sales, for the same period of the prior year. The increase in gross profit was driven by increased sales in many of our newer branches, including sales from our new Oklahoma branch, partially offset by lower sales in certain of our larger branches in our more mature markets. The LIFO method of valuing inventory decreased gross profit by $0.1 million for the three months ended September 28, 2014, and nominally impacted gross profit for the three months ended September 29, 2013.
Company-wide SG&A expenses were flat at $8.3 million for the quarter ended September 28, 2014 and the same period of the prior year. Decreased selling expenses in our Industrial segment were offset by increased selling expenses in our Water Treatment Segment.
Hawkins, Inc. distributes, blends, dilutes and manufactures bulk and specialty chemicals for its customers in a wide variety of industries. Headquartered in Roseville, Minnesota, and with 36 facilities in 15 states, the Company creates value for its customers through superb customer service and support, quality products and personalized applications.
-more-
HAWKINS, INC. REPORTS
SECOND QUARTER, FISCAL 2015 RESULTS
October 29, 2014
HAWKINS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except share and per-share data)
Three Months Ended | Six Months Ended | |||||||||||||||
September 28, 2014 | September 29, 2013 | September 28, 2014 | September 29, 2013 | |||||||||||||
Sales | $ | 88,881 | $ | 86,599 | $ | 186,917 | $ | 181,343 | ||||||||
Cost of sales | (70,759 | ) | (70,029 | ) | (150,299 | ) | (147,542 | ) | ||||||||
Gross profit | 18,122 | 16,570 | 36,618 | 33,801 | ||||||||||||
Selling, general and administrative expenses | (8,271 | ) | (8,293 | ) | (17,146 | ) | (17,263 | ) | ||||||||
Operating income | 9,851 | 8,277 | 19,472 | 16,538 | ||||||||||||
Interest expense, net | (18 | ) | (12 | ) | (4 | ) | (27 | ) | ||||||||
Income before income taxes | 9,833 | 8,265 | 19,468 | 16,511 | ||||||||||||
Income tax provision | (3,686 | ) | (3,058 | ) | (7,300 | ) | (6,192 | ) | ||||||||
Net income | $ | 6,147 | $ | 5,207 | $ | 12,168 | $ | 10,319 | ||||||||
Weighted average number of shares outstanding - basic | 10,558,173 | 10,545,719 | 10,564,107 | 10,533,951 | ||||||||||||
Weighted average number of shares outstanding - diluted | 10,603,931 | 10,588,747 | 10,616,874 | 10,582,318 | ||||||||||||
Basic earnings per share | $ | 0.58 | $ | 0.49 | $ | 1.15 | $ | 0.98 | ||||||||
Diluted earnings per share | $ | 0.58 | $ | 0.49 | $ | 1.15 | $ | 0.98 | ||||||||
Cash dividends declared per common share | $ | 0.38 | $ | 0.36 | $ | 0.38 | $ | 0.36 | ||||||||
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