Exhibit 99.1
FOR IMMEDIATE RELEASE
 
Contacts:
Jeffrey P. Oldenkamp
August 1, 2018
 
 
Chief Financial Officer
Hawkins, Inc.
 
 
612/331-6910
2381 Rosegate
 
 
Jeff.Oldenkamp@HawkinsInc.com
Roseville, MN 55113
 
 
 
 
 
 
 

HAWKINS, INC. REPORTS
FIRST QUARTER FISCAL 2019 RESULTS

Minneapolis, MN, August 1, 2018 – Hawkins, Inc. (Nasdaq: HWKN) today announced results for the three months July 1, 2018, its first quarter of fiscal 2019.

Achieved record operating income of $13.5 million, an increase of 32% over the first quarter of the prior year, a 56% increase in net income, and record EBITDA of $19.5 million, an 18% increase over the first quarter of the prior year.
Recorded diluted earnings per share (EPS) of $0.85 for the current quarter, as compared to $0.55 for the same period of the prior year.
Produced record sales of $149.8 million, an increase of 12% from $133.7 million from a year ago, with year-over-year growth of 16% in Industrial, 11% in Health and Nutrition, and 7% in Water Treatment.
Generated $6.8 million in operating cash flow in the first quarter of fiscal 2019, an $18.7 million year-over-year improvement.

“We are pleased that the momentum in our businesses that we saw building in the fourth quarter of fiscal 2018 continued into the first quarter of fiscal 2019. As a result of top-line revenue growth of 12%, expense management, and lower tax rates, our net income grew by 56% compared to the first quarter of the prior year,” said Patrick Hawkins, Chief Executive Officer and President. “Our Industrial and Health and Nutrition segments had double-digit revenue and gross profit growth. In spite of a very late start to spring in the Upper Midwest, our Water Treatment segment experienced 7% year-over-year revenue growth. We continue to closely manage our operating expenses, and reported a 5% year-over-year reduction in selling, general and administrative expenses.”

Mr. Hawkins continued, “We see positive signs in each of our segments, with new business opportunities, price increases due to rising material costs taking hold, and previously-made investments paying off. As stated at the end of fiscal 2018, we believe we are well-positioned for fiscal 2019 earnings improvements."

For the first quarter of fiscal 2019, sales increased 12% to $149.8 million from the prior year. Industrial segment sales were $74.0 million, an increase of $10.0 million, or 16%, from the same period of the prior year. While sales volumes in the Industrial segment were relatively flat compared to a year ago, sales dollars increased due to a product mix shift to more sales of certain specialty products that carry higher per-unit selling prices, as well as increased selling prices on certain products as a result of increased raw material costs. Water Treatment segment sales were $40.9 million for the most recent quarter, an increase of $2.6 million, or 7%, from the same period of the prior year, as a result of increased sales volumes across many product lines. Health and Nutrition segment sales were $34.9 million, an increase of $3.4 million, or 11%, from the same period of the prior year, as increased sales of our distributed products were offset slightly by a decline in sales of our manufactured products.

Company-wide gross profit for the first quarter of fiscal 2019 was $28.5 million, or 19% of sales, an increase of $2.5 million from $26.0 million, or 19% of sales, for the same period of the prior year. Industrial segment gross profit was $10.4 million, or 14% of sales, for the quarter, an increase of $1.5 million from $9.0 million, or 14% of sales, for the same period of the prior year. As a result of projected raw material cost increases, the LIFO reserve in the Industrial segment increased and gross profits decreased by $0.3 million in the current year. In the prior year, as a result of projected raw material cost and on-hand quantity increases, the LIFO reserve increased and gross profits decreased by $0.4 million. The overall increase in gross profit in the Industrial segment was due to improved pricing on certain products and a favorable product mix shift. Water Treatment segment gross profit was $11.4 million, or 28% of sales, for the three months ended July 1, 2018, an increase of $0.2 million compared to $11.2 million, or 29% of sales, for the same period of the prior year. Gross profit in the Water Treatment segment increased as a result of higher sales compared to a year ago. Health and Nutrition segment gross profit increased $0.8 million to $6.6 million, or 19% of sales, for the first quarter of fiscal 2019 compared to $5.8 million, or 18% of sales, for the same period of the prior year. Gross profit in the Health and Nutrition segment increased as a result of lower operating costs and higher sales compared to the same period a year ago.



The following information was filed by Hawkins Inc (HWKN) on Thursday, August 2, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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