FOR IMMEDIATE RELEASE
Patrick H. Hawkins
Chief Executive Officer
Roseville, MN 55113
Kathleen P. Pepski
Chief Financial Officer
HAWKINS, INC. REPORTS
FOURTH QUARTER, FISCAL 2017 RESULTS
Minneapolis, MN, May 31, 2017 – Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended April 2, 2017. Sales of $483.6 million for fiscal 2017 represented an increase of $69.6 million, or 16.8%, from $414.0 million for the prior fiscal year. Net income was $22.6 million, or $2.13 per diluted share, for fiscal 2017, compared to net income of $18.1 million, or $1.72 per diluted share, for fiscal 2016. Net income for fiscal 2016 included pre-tax expenses of $3.3 million (approximately $2.5 million after tax, or $0.24 per diluted share) related to our acquisition of Stauber Performance Ingredients ("Stauber") at the end of the third quarter of fiscal 2016. Adjusted net income for fiscal 2016, excluding the charges related to the Stauber acquisition, was $20.7 million, or $1.96 per diluted share. Our fiscal year ended April 2, 2017 was a 52-week year, while our fiscal year ended April 3, 2016 was a 53-week year and includes an extra week of sales and operations in that year. The LIFO method of valuing inventory increased gross profit by $2.7 million for fiscal 2017, and increased gross profit by $1.4 million for fiscal 2016.
For the fourth quarter of fiscal 2017, the Company reported sales of $118.6 million as compared to $129.5 million for the same period a year ago. Net income was $4.2 million, or $0.40 per diluted share, for the fourth quarter of fiscal 2017, compared to net income for the fourth quarter of fiscal 2016 of $4.9 million, or $0.46 per diluted share. Net income for the fourth quarter of fiscal 2016 included pre-tax expenses of $0.6 million (approximately $0.4 million after tax, or $0.04 per diluted share) related to our acquisition of Stauber. Adjusted net income for the fourth quarter of fiscal 2016, excluding the charges related to the Stauber acquisition, was $5.3 million, or $0.50 per diluted share. The fourth quarter of fiscal 2016 included one extra week of sales and operations as compared to the fourth quarter of fiscal 2017. The LIFO method of valuing inventory increased gross profit by $1.9 million for the fourth quarter of fiscal 2017, and increased gross profit by $1.4 million for the fourth quarter of fiscal 2016.
“The year-over-year comparison for all of our segments was negatively impacted by the extra week in the fourth quarter of fiscal 2016. We were pleased that our Industrial segment continued to perform well this year, with improved margins from certain of its specialized products. However, weak economic conditions in agricultural markets continued, with lower fertilizer application rates driving decreased sales of our agricultural products,” said Patrick Hawkins, Chief Executive Officer and President. “In addition, our Water Treatment segment continued its steady growth, despite the impact of lower sales into the oil and gas industry. As we stated before, we are focused on leveraging the staffing additions we have made in these segments to support our customers and drive future growth.”
Mr. Hawkins continued, “Although sales in our Health and Nutrition segment were somewhat lower in fiscal 2017 than pro forma sales in the prior year, due to lower demand from certain of our customers, we are very pleased with the level of new business and prospects we are seeing within this segment. We continue to believe that the talent we have added in this segment has positioned us well for future growth.”
For fiscal 2017, Industrial segment sales were $238.6 million, a decrease of 5.2% from fiscal 2016 sales of $251.7 million. Sales volumes were down year over year, largely driven by the 53rd week in the prior year. These lower volumes, together with lower raw material costs on certain products which drove lower selling prices, resulted in the decrease in sales dollars. Water Treatment segment sales were $129.0 million for the year, an increase of 0.5% over last year’s sales of $128.3 million. Sales dollars increased slightly, despite the inclusion of the 53rd week in the prior year, due to the business we acquired late in the second quarter of fiscal 2016 and increased volumes of specialized products. Sales for our Health and Nutrition segment were $116.1 million in fiscal 2017, compared to $33.9 million for fiscal 2016, as the prior year included only one quarter of activity due to the timing of the Stauber acquisition. This compares to pro forma sales of $121.6 million for the comparable prior full-year period, which included the 53rd week.
Company-wide gross profit for fiscal 2017 was $98.1 million, or 20.3% of sales, compared to $80.3 million, or 19.4% of sales, for the same period of the prior year. We estimated the total gross profit impact of the 53rd week in fiscal 2016 to be approximately
The following information was filed by Hawkins Inc (HWKN) on Wednesday, May 31, 2017 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.