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) July 29, 2015
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 | 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 July 29, 2015, Hawkins, Inc. issued a press release announcing financial results for its fiscal 2016 first quarter ended June 28, 2015. 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 July 29, 2015, announcing financial results of Hawkins, Inc. for its fiscal 2016 first quarter ended June 28, 2015.
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: July 29, 2015 | 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 July 29, 2015, announcing financial results of Hawkins, Inc. for its fiscal 2016 first quarter ended June 28, 2015. | Electronic Transmission | |||
Exhibit 99.1 | |||
FOR IMMEDIATE RELEASE | Contacts: | Patrick H. Hawkins | |
July 29, 2015 | 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
FIRST QUARTER FISCAL 2016 RESULTS
Minneapolis, MN, July 29, 2015 – Hawkins, Inc. (Nasdaq: HWKN) today announced first quarter results for fiscal 2016. Sales of $101.5 million for the three months ended June 28, 2015 represented an increase of 3.5% from $98.0 million for the same period of the prior year. Net income for the first quarter of fiscal 2016 was $6.8 million, or $0.64 per fully diluted share, compared to net income of $6.0 million, or $0.57 per fully diluted share, for the first quarter of the previous year.
“The first quarter of our new fiscal year was strong for our Industrial segment, with operating income growing nearly 30%,” said Patrick Hawkins, Chief Executive Officer and President. “The growth was largely attributable to increased sales of seasonal products with higher per-unit margins, and is the result of focused sales efforts that came to fruition this quarter."
“We are also pleased with the results from the Florida Water Treatment business we acquired last fall and the continued growth of our newer Water Treatment branches,” Mr. Hawkins continued. “We continue to invest in this business and are adding selling and technical resources to this segment to support future growth.”
For the first quarter of fiscal 2016, Industrial segment sales were $67.6 million, an increase of $0.1 million from the same period of the prior year. Our volumes decreased from the same period a year ago due to lower sales of certain bulk commodity products at select accounts, while a shift in product mix increased sales of products that have higher per-unit selling prices, keeping revenues relatively flat. Water Treatment segment sales were $33.9 million for the current quarter, an increase of $3.4 million, or 11.2%, from the same period of the prior year. Sales at our Florida locations which were acquired in the third quarter of fiscal 2015 were $4.2 million. This increase was partially offset by lower sales of bulk commodity products at certain of our existing branches and lower equipment project revenues.
Company-wide gross profit for the first quarter of fiscal 2016 was $20.7 million, or 20.4% of sales, an increase of 11.9% from $18.5 million, or 18.9% of sales, for the same period of the prior year. The LIFO method of valuing inventory had a nominal impact on gross profit for the quarter, and decreased gross profit by $0.5 million for the same period of the prior year.
Gross profit for the Industrial segment was $10.7 million, or 15.9% of sales, for the quarter as compared to $9.4 million, or 13.9% of sales, for the same period of the prior year. While total volumes decreased year-over-year, the increase in gross profit primarily resulted from increased sales of certain products that generate higher per-unit margins. The LIFO method of valuing inventory had a nominal impact on gross profit in the first quarter of the current year but decreased gross profit by $0.4 million in the prior year.
Gross profit for the Water Treatment segment was $10.0 million, or 29.6% of sales, for the quarter as compared to $9.1 million, or 30.0% of sales, for the same period of the prior year. The increase in gross profit dollars was driven by profits from our Florida locations. The LIFO method of valuing inventory had a nominal impact on gross profit in the first quarter of the current year but decreased gross profit by $0.1 million in the prior year.
Company-wide selling, general and administrative expenses were $9.9 million for the quarter as compared to $8.9 million for the same period of the prior year. The expenses increased primarily in our Water Treatment segment, driven by our Florida locations and the addition of sales personnel in other locations.
Hawkins, Inc. distributes, blends and manufactures bulk and specialty chemicals for its customers in a wide variety of industries. Headquartered in Roseville, Minnesota, and with 37 facilities in 16 states, the Company creates value for its customers through superb customer service and support, quality products and personalized applications.
-more-
HAWKINS, INC. REPORTS
FIRST QUARTER, FISCAL 2016 RESULTS
July 29, 2015
HAWKINS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except share and per-share data)
Three Months Ended | ||||||||
June 28, 2015 | June 29, 2014 | |||||||
Sales | $ | 101,496 | $ | 98,036 | ||||
Cost of sales | (80,761 | ) | (79,540 | ) | ||||
Gross profit | 20,735 | 18,496 | ||||||
Selling, general and administrative expenses | (9,891 | ) | (8,875 | ) | ||||
Operating income | 10,844 | 9,621 | ||||||
Interest income, net | 21 | 14 | ||||||
Income before income taxes | 10,865 | 9,635 | ||||||
Income tax provision | (4,074 | ) | (3,614 | ) | ||||
Net income | $ | 6,791 | $ | 6,021 | ||||
Weighted average number of shares outstanding - basic | 10,580,542 | 10,570,041 | ||||||
Weighted average number of shares outstanding - diluted | 10,628,409 | 10,613,738 | ||||||
Basic earnings per share | $ | 0.64 | $ | 0.57 | ||||
Diluted earnings per share | $ | 0.64 | $ | 0.57 | ||||
Cash dividends declared per common share | $ | — | $ | — | ||||
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