Hawkins with lower Sales but higher Net Income

United States chemical distributor Hawkins, Inc. (Roseville (Minneapolis), MN, United States) last week published results for Q3-FY2020. Sales for the three months ended on 30.12.2019 were USD 120.4 mn, a decrease of 6% over the same period in fiscal 2019. Sales in the Industrial segment were USD 63.0 mn, down USD 6 mn or 9%. Sales in Water Treatment increased USD 2.2 mn or 7% to USD 34.9 mn. Sales in Health and Nutrition decreased by USD 3.9 mn or 15% to USD 22.5 mn

Gross Profit was USD 21.5 mn (equivalent to 18% of sales), an increase of USD 0.5 mn over the USD 21.0 mn or 16% of sales in  the third quarter of the prior year. EBITDA was USD 13.0 mn (10.8% of sales), which compares with USD 12.5 mn or 9.7% of sales in the same period of FY2019.

Net Income was USD 4,6 mn or USD 0.43 per diluted share. This compares with a figures of USD 4.1 mn and USD 0.39 for the same period in fiscal 2019, respectively. Hawkins also said the company now has a debt level of USD 68 mn, resulting in a leverage ration below 1.1x.

At its recent meeting the Bord of Director of Hawkins declared a quarterly cash dividend of USD 0.2325 per share, payable on 06.03.2020 to shareholders of record at the close of business on 21.02.2020. Hawkins said this will be the 35th consecutive year of dividend payment, since its initial payout in 1985.

Source: Hawkins press releases

HGE – DCG / 14.02.2020