FOR IMMEDIATE RELEASE
Patrick H. Hawkins
Chief Executive Officer
Roseville, MN 55113
Kathleen P. Pepski
Chief Financial Officer
HAWKINS, INC. REPORTS
FOURTH QUARTER, FISCAL 2013 RESULTS
Minneapolis, MN, May 29, 2013 – Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended March 31, 2013. Sales of $350.4 million for fiscal 2013 represented an increase of 1.9% from $343.8 million for the prior fiscal year. Adjusted net income from continuing operations was $23.6 million for the year, or $2.24 per share, fully diluted, compared to $21.6 million, or $2.08 per share, fully diluted, for fiscal 2012. Adjusted net income from continuing operations for fiscal 2013 excludes previously-announced pretax charges totaling $10.4 million (approximately $6.5 million after tax, or $0.62 per share, fully diluted), consisting of a pension withdrawal charge as well as a litigation settlement charge. Including these items, net income from continuing operations for fiscal 2013 was $17.1 million, or $1.62 per share, fully diluted (see reconciliation table).
For the fourth quarter of fiscal 2013, the Company reported sales of $87.6 million as compared to $83.2 million for the same period a year ago. Net income from continuing operations for the fourth quarter of fiscal 2013 was $4.2 million, or $0.39 per share, fully diluted, compared to net income from continuing operations of $3.3 million, or $0.34 per share, fully diluted, for the same period in fiscal 2012. A decrease in our LIFO inventory reserve of $0.6 million increased our earnings in the current quarter, while an increase in our LIFO reserve of $1.8 million decreased our earnings in the same period of the previous year.
“We recently completed significant infrastructure investments that better position the Company for long-term growth. Our new Rosemount manufacturing and warehousing facility began production in March and we moved our headquarters into a newly leased building in April. We will continue manufacturing and warehousing operations at our main location in Minneapolis, which had been the home of our corporate headquarters for over 60 years. While we absorbed additional costs in fiscal 2013 and will have additional incremental operating and depreciation expenses from both projects in fiscal 2014, these investments were necessary to position us for the future,” said Patrick Hawkins, Chief Executive Officer and President.
Mr. Hawkins continued, "Our Water Treatment segment increased its operating income by 12% in fiscal 2013 compared to fiscal 2012. A good share of this growth was fueled by favorable weather conditions during the first half of the year. Over the past few years we have also worked to increase this group's geographic coverage through additional sales personnel in existing branches and by adding new locations. Our Industrial group's reported performance was negatively impacted by the pension withdrawal and litigation settlement charges in addition to absorbing the incremental costs of the Rosemount facility. As we have discussed for several quarters now, the market conditions for this group continue to be challenging. However, this group was able to grow their overall volumes in fiscal 2013 and has worked hard to gain business in this difficult environment.”
For fiscal 2013, Industrial segment sales were $248.6 million, a decrease of 1.2% from fiscal 2012 sales of $251.5 million. While Industrial volumes increased year-over-year, continued competitive pricing pressure resulted in lower overall per-unit selling prices. Water Treatment segment sales were $101.8 million for the year, an increase of 10.2% over last year’s sales of $92.4 million. The increase in sales was primarily due to volume growth resulting from favorable weather conditions in the first half of fiscal 2013 and additional sales of bulk products.
The following information was filed by Hawkins Inc (HWKN) on Wednesday, May 29, 2013 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.