Exhibit 99.1
FOR IMMEDIATE RELEASE
 
Contacts:
Jeffrey P. Oldenkamp
May 30, 2018
 
 
Chief Financial Officer
Hawkins, Inc.
 
 
612/331-6910
2381 Rosegate
 
 
Jeff.Oldenkamp@HawkinsInc.com
Roseville, MN 55113
 
 
 
 
 
 
 

HAWKINS, INC. REPORTS
FOURTH QUARTER, FISCAL 2018 RESULTS

Minneapolis, MN, May 30, 2018 – Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended April 1, 2018.

Confirms previously-reported full-year revenue of $504 million, an increase of 4% over the prior year
Full-year diluted loss per share of ($0.86), within the previously-announced range of ($0.88) to ($0.83), driven by a non-cash goodwill impairment charge of $39.1 million, or ($3.68) per diluted share
Full-year adjusted diluted earnings per share ("EPS") of $1.50, within previously announced range
Fourth quarter sales of $127.0 million, a 7% increase from the same period a year ago, with year-over-year growth in all reporting segments
Paid down $13 million of debt in the fourth quarter resulting in a debt-to-EBITDA ratio of 1.98x
Well positioned for fiscal 2019 earnings improvements

“We are pleased with the sales growth in the fourth quarter. All segments grew over the previous year, including double-digit growth in our Health and Nutrition and Water Treatment segments. Unfortunately, our earnings were negatively impacted by the goodwill impairment charge and the impact that higher on-hand quantities at higher costs had on our LIFO reserve. Our on-hand quantities were higher as we made a decision to increase inventory of a major raw material late in the fourth quarter to preserve competitive pricing when facing further price increases.” said Patrick Hawkins, Chief Executive Officer and President. “We are positioned well for fiscal year 2019 due to our focused expense control, end-market price increases accepted in the latter half of the third quarter and during the fourth quarter, and restructuring activities taken in the latter half of fiscal year 2018."

We undertook a number of initiatives in fiscal 2018 that, in some cases, negatively impacted our current year results, but will yield positive benefits in fiscal 2019. Some of these include:
Accelerated depreciation on certain manufacturing equipment that we removed to make upgrades to current equipment and to make room for more efficient equipment;
Headcount reductions in the Health and Nutrition segment that will generate annualized savings of over $1.0 million; and,
Added the final portion of our business onto our corporate ERP system, which will provide greater insight and consistency in data.
In fiscal 2019, we are committed to leveraging investments and changes we have made to grow our company.

For the fourth quarter of fiscal 2018, the Company reported a net loss of $37.4 million, or $3.50 per diluted share. Net income for the fourth quarter of fiscal 2018 included a $39.1 million goodwill impairment charge, or ($3.66) per diluted share, related to the Health and Nutrition segment, as previously reported, and an additional $0.7 million benefit, or $0.07 per diluted share, related to the Tax Cuts and Jobs Acts of 2017 (the “Tax Act”). Adjusted net income for the fourth quarter of fiscal 2018 was $1.0 million, or $0.10 per diluted share, compared to net income for the fourth quarter of fiscal 2017 of $4.2 million, or $0.40 per diluted share. As a result of raw material cost increases and increases in year-end inventory levels of certain products, the LIFO reserve increased, and gross profits were negatively impacted by $2.7 million in the fourth quarter of fiscal 2018. In the fourth quarter of fiscal 2017, a reduction in inventory costs per unit and lower volumes of certain inventory on hand resulted in a decrease to the LIFO reserve, and increased gross profits of $1.9 million. This negative year-over-year impact in the fourth quarter of $4.6 million ($2.8 million after tax) accounted for approximately $0.26 per diluted share of the year-over-year decline in fourth quarter EPS.

For the full year, the Company reported a net loss of $9.2 million, or $0.86 per diluted share. Adjusting for the goodwill impairment and the full-year impact of the $13.9 million tax benefit related to the Tax Act, or $1.31 per diluted share, adjusted net income for fiscal 2018 was $16.0 million, or $1.50 per diluted share, both within previously-announced ranges. This compares to net income of $22.6 million, or $2.13 per diluted share, in fiscal 2017. As previously reported, the decrease from the prior year’s diluted EPS of $2.13 was driven by the non-cash goodwill impairment charge, rising raw material costs, a significant negative LIFO adjustment, and competitive pressures, offset somewhat by the positive impacts of the Tax Act. The increase to the LIFO reserve for the full



The following information was filed by Hawkins Inc (HWKN) on Wednesday, May 30, 2018 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.

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