|FOR IMMEDIATE RELEASE||Contacts:||Jeffrey P. Oldenkamp|
|May 20, 2020||Chief Financial Officer|
|Roseville, MN 55113|
HAWKINS, INC. REPORTS
FOURTH QUARTER AND FISCAL 2020 RESULTS
Minneapolis, MN, May 20, 2020 – Hawkins, Inc. (Nasdaq: HWKN) today announced fourth quarter and full-year results for its fiscal year ended March 29, 2020. Highlights include:
•Eighth consecutive quarter of year-over-year operating income growth, with diluted earnings per share of $0.45, increasing 29% over the fourth quarter of fiscal 2019.
•Sales of $540.2 million for the full year, a decrease of 3% from fiscal 2019, with continued growth in our Water Treatment segment of 7% year over year.
•Record operating income for the full year of $41.7 million, an increase of 13% over the $36.8 million recorded in fiscal 2019.
•Record net income of $28.4 million for the full year compared to $24.4 million in fiscal 2019, an increase of 16%.
•Record diluted earnings per share (EPS) of $2.66 for the full year, which was $0.38, or 17%, higher than EPS of $2.28 in fiscal 2019.
•Record operating cash flow of $58.9 million for the full year, allowing us to pay down $25.0 million of debt in fiscal 2020, ending the year with a leverage ratio below 1.0x and net debt of $55.7 million.
“We are pleased to report a strong fiscal 2020, with record operating income, net income, EPS, EBITDA and operating cash flow,” said Patrick H. Hawkins, Chief Executive Officer and President. “Those results have fueled our favorable balance sheet and liquidity positions, positioning us well for the future.”
Mr. Hawkins continued, “Our financial performance has been driven by our continued customer focus, value-added services and products, and growth in our specialty business lines. Our Industrial and Water Treatment segments had strong years, with operating income in Industrial up 22% over the prior year and Water Treatment up 20%. While sales dollars were down year-over-year in Industrial, this was a result of lower sales of bulk commodities driven by a weak ethanol industry, as well as lower pricing on certain commodities due to lower costs. Sales of our higher-margin specialty products were up from the prior year in both Industrial and Water Treatment. Sales of certain products saw an uptick toward the end of March due to increased demands and the filling of customers' tanks as a result of COVID-19. Our Health and Nutrition segment sales finished down 16% compared to the prior year, but only down 9% in the fourth quarter due to increased demands in the latter half of March as we have seen the market shift to health and immunity supplements as a result of COVID-19. As mentioned last quarter, we have continued to make progress in this segment and are encouraged by what we are seeing.”
Hawkins operations qualify as Essential Critical Infrastructure under guidelines issued by the U.S. Department of Homeland Security and provides products and services that impact millions of people across the United States each and every day, including the critical products needed to maintain safe drinking water, and ingredients essential for large-scale food, pharmaceutical and other health product manufacturing and nutrition products needed to support our critical infrastructure.
As previously disclosed, Hawkins announced readiness plans on March 18, 2020. As part of those plans, Hawkins:
•Implemented stringent procedures and practices to minimize potential spread of COVID-19 and protect employees, customers and suppliers;
•Increased bleach production to meet demand;
•Operates redundant plant capabilities to ensure business continuity in critical areas of our Water Treatment group to serve drinking water and wastewater needs of the many municipalities we support;
•Increased inventory positions, where needed, to meet customer demands across all areas of the business;
The following information was filed by Hawkins Inc (HWKN) on Wednesday, May 20, 2020 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.